Monday, 22 August 2016

Paperless application of PAN and TAN introduced

Ease of Doing Business – Paperless PAN & TAN application process.

For fast tracking the allotment of PAN and TAN to company applicants,
Digital Signature Certificate(DSC) based application procedure has been
introduced on the portals of PAN service providers M/s NSDL eGov and M/s
UTIITSL. Under the new process PAN and TAN will be allotted within one
day after completion of valid on-line application.

Similarly, a new Aadhaar e-Signature based application process for
Individual PAN applicants has been made available on the portals of PAN
service providers M/s NSDL eGov.

The URL links for the above applications are available in important
linkson the homepage of the departmental website
Introduction of Aadhaar based e-Signature through M/s NSDL eGov in
PAN application not only ensures paperless hassle free PAN application process
but also seeding of Aadhaar in PAN which will curb the problem of duplicate
PAN to a great extent.

Increase in Efiling of Income tax Returns

Surging growth in Electronic filing of Income Tax Returns for F.Y. 16-17

 The facility of e-verification of IT returns has been used by over 75.3 Lakh taxpayers till 5th August, 2016 as compared to 32.95 Lakh taxpayers last year till 7th September 2015. Of these Aadhar based E- verification was used by 17.68 lakh taxpayers during the current year as against 10.41 lakh taxpayers during the same period in 2015-16. In addition to these, 3.32 Lakh returns were digitally signed. Thus, over 35% of taxpayers have already completed the entire process of Return submission electronically. 

The Department encourages all taxpayers who have submitted their ITRs to use the e-verification as an easy alternative to sending their ITR-V form to CPC, Bengaluru. As on 5th August 2016, over 226.98 Lakh e-returns had been filed in F.Y. 2016-17 as compared to 70.97 Lakh for the same period in FY 2015-16. The growth is over 9.8% even if comparison is made with E-returns filed of 206.55 Lakh as on 7th September 2015 (the extended due date in FY 2015-16) which is for a period more than a month later. 

Taxpayers have appreciated the early processing of Income Tax Returns by CPC Bangalore last year. Keeping the same momentum, the CPC Bengaluru has already issued over 54.35 Lakh refunds totaling to Rs 14,332 Cr which includes 20.81 Lakh refunds for AY 2016-17 (current year returns) totaling to Rs 2,922 Cr till 5th August 2016. 

The Department is committed to continuous improvement of taxpayer services and seeks the cooperation of all taxpayers in contributing their fair share of taxes voluntarily.

Saturday, 23 July 2016

Income Tax Department to issue 7 lakh letters seeking Information in respect of High Value Transactions

Under the Annual Information Returns (AIR), various types of high-value transactions were being reported to the Income Tax Department. These include reporting of cash deposits of Rs.10,00,000 or more in a saving bank account, sale/purchase of immovable property valued at Rs. 30,00,000 or more, etc. 

Many of these transactions do not have PAN linked to it. The Department has details of about 90 lakh such transactions for the period 2009-10 to 2016-17. The Income Tax Department has with the help of in-house computer techniques, grouped such non-PAN transactions and identified 7 lakh high-risk clusters having around 14 lakh non-PAN transactions which are being scrutinized by the Income Tax Department closely. The Department will be issuing letters to the parties of these transactions requesting them to provide their PAN number against these transactions. 

Income Tax Department signs contract with L & T Infotech Ltd for implementation of Project Insight

In the last decade, the Income Tax Department embarked on an ambitious computerization plan which developed voluminous databases of IT returns, IT forms, TDS/TCS statements, Annual Information Return (AIR) etc. The large volumes of data necessitated development of a comprehensive platform for effective utilization of information. The Department initiated Project Insight to strengthen the non–intrusive information driven approach for improving tax compliance and effective utilization of information in tax administration.

The Income Tax Department has today signed a contract with L & T Infotech Ltd for implementation of Project Insight. The Project will be rolled out in three phases and the first phase is expected to go live in May 2017. 

This integrated platform would play a key role in widening of tax-base and data mining to track tax evaders. The new technical infrastructure will also be leveraged for implementation of Foreign Account Tax Compliance Act Inter Governmental A

Direct Tax Collection upto June, 2016 shows an Increase of 24.79%

The figures for direct tax collection upto June, 2016 indicates net revenue
collection of Rs.1.24 lakh crore which is a growth of 24.79% over the
corresponding period last year. The main reason for this increase is the change in the requirements for advance tax payment even in respect of individuals which has been made in the last year’s Budget. Earlier there were only three instalments of advance tax to be paid by individuals in the months of September, December and March. From the current year, individuals are also supposed to pay four instalments of advance tax at the rate of 15%, 30%, 30% and 25% in the months of June, September, December and March of every Financial Year. The collection upto June, 2016 indicates that 14.63% of the annual budget target of direct taxes has been achieved in the first three months of the F.Y. 2016-17.

In terms of growth rate for corporation tax and personal income tax, the trend in gross revenue of corporation tax is indicating an increase of 13.5% while that of personal income tax (including STT etc.) a growth of 29.8%. However, after adjusting for refunds, the net growth in corporation tax is at 4.43% while that of personal income tax (including STT etc.) at 48.75%.