Alarmed by the initial findings of its departmental inquiry, the income-tax (I-T ) department has moved the Central Bureau of Investigations (CBI) to probe the ‘tax return scam.’ The hand of several I-T officials working in tandem with some rogue tax agents is suspected in the scam to siphon off refunds.
The Income Tax department has set up the Centralized Processing Centre (CPC) at Bengaluru for bulk processing of income tax returns. The CPC will process all electronic tax returns of the entire country, and physical returns of Karnataka and Goa regions. It is equipped with a dedicated call centre, where taxpayers can enquire about the status of their returns and refunds, and also has a remote record storage unit, which would reduce congestion in the IT offices.
The Council of the Institute of Chartered Accountants of India had in August 2009, pursuant to the provisions of Rule 12 of the Chartered Accountants (Procedures of Investigations of Professional and Other Misconduct and Cases) Rules, 2007 had amended the audit documentation retention period appearing as ten years in paragraph 83 of Standard on Quality Control 1 to seven years.
ITR-2:This form is applicable to both Individuals & HUFs who have one or more of the following sources of income. In addition, they may have one of the sources of income specified for ITR-1. Income / loss from house property; Capital gain / loss on sale of investments / property, etc;
Indian corporate sector has raised significant funds through foreign currency loans like FCCBs, ECBs, etc., during FY07 and FY08. The corporate sector had preferred to keep its forex payable positions un-hedged in anticipation of appreciating INR trend to continue wherein FCCBs would eventually get converted into equity. While at the same time exports were hedged using various derivative instruments.
The income tax department has launched a drive to file corrected returns with a view to do away with the problem of held-up refunds and the tax already paid not being credited to the assessees’ name. A large number of people whose tax is deducted at source did not get the payments credited which, in turn, held up refunds.
The interim pension regulator has sought tax relief on investments in the New Pension Scheme (NPS) to make it more attractive to employees of private sector firms. The Pension Fund Regulatory and Development Authority (PFRDA) has written to the finance ministry seeking level playing field for NPS with other long-term savings schemes that will get tax benefits under the proposed Direct Taxes Code. “All we want is equal treatment,” a PFRDA official said.
The Law Commission in its report had recommended that pendency of large number of cases relating to cheque bouncing tarnish the image of business. Cases relating to dishonoured cheques affect business within and outside the country. It said cheque bouncing cases need to be speedily disposed of through this measure, lest litigants may lose faith in the judicial system. Speedy disposal of such cases would instil confidence.
The government has served notices on 50 people for stashing black money abroad and evading taxes. Sources told that the government is proceeding against the 50tax evaders on the basis of documents received from Germany in April last year.
The ministry of corporate affairs is looking to amend the disgorgement clause under Companies Act, 1956 to strengthen the mechanism for compensating duped investors by recouping funds from wrong-doers and paying them back to investors.
