Biggest income tax scam- Watch the video !

The CIB wing of the Income Tax department has responsibility to collect  information from various sources -mainly from AIR information which are then disseminated to field officials for action. Recently ,CIB, Mumbai’s director A.C. Tejpal had alleged that 11.4 crore pieces of information collected in the last five years were not disseminated. He is now suspended ! Watch the video !

Media reports that the Central Board of Direct Taxes (CBDT) has constituted a three-member committee to inquire into income tax loss to Mumbai caused due to non-transmission of important information on unaccounted income to field officials concerned. The CBDT, the apex body of I-T department, will now look into the allegations. It will also look into Tejpal’s allegation that the computer software developed by spending crores of rupees was unable to transmit information from central reservoir system to assessing officers.

Six countries supply data about payments to Indians !

Director General of Income Tax (Inteligence) , a recently formed directorate in the Income Tax Department are handling the data provided by US, Finland, Japan, Korea, Denmark and New Zealand on entities in these countries having made payments to Indians.  It is reported that the data was provided in May 2010 and are voluminous .

Apart from that a list of more than 5,000 names who got foreign remittances to the tune of Rs 1 lakh and above but below Rs 1 crore are handled at the level of  the chief commissioners in different cities for identification and further probe.

135 individuals and entities , who received payments over 1 crore are culled from the data  for verification by Investigation Wing of the department regarding the genuineness of the payments received. These payaments are received in different form-dividened, salaries

Biggest Cash seizure by Income Tax department from a temple !

Rs 10 crore from the Adiparasakthi temple in Melmaravathur was seized by  The Income Tax department, in its first biggest seizure of unaccounted cash in Tamil Nadu, on Friday .The raid on the premises under Section 132 of the Income Tax Act was based on information regarding the stocking up of a large amount of black money in the temple run by self-proclaimed godman Bangaru Adigal. The cash was seized from his house on the temple premises, an official said.

“The money was stacked up in the bureau inside his house and he could not provide any account for it. So we seized it. The counting of the currency seized is still on and it could be well beyond Rs 10 crore,” an income tax official told The Times Of India.”

Read the complete report

Why BCCI slapped with huge demand of tax ?

A a Rs 118-crore demand for assessemnt year 2007-08 was raised on BCCI , out of which department  has already recovered Rs 92 crore.  The reason for such demands on BCCI , which until sometime ago was claiming all its income exempt u/s 11 of the I T Act , is that from 2007-08 , the status of the BCCI in eyes of department has  changed on account of variataion in objectives set out by it.

Section 11 of the I T Act exempts income earned by organisation whose agenda is not to earn profit but using all money for furtherance of  specified  public charitable  services . But BCCI  changed its objectives to  include establishing coaching academies and holding 20-over matches  , immortalized as the Indian Premier League, a hugely successful BCCI property that successfully completed its third season this year.  Thus the pain of paying tax !

Read complete media reports here.

This effectively means the board will have little choice but to pay up the bulk of the more than Rs 500 crore in taxes demand for 2008-09 and 2009-10 , the tax department official added.

The I-T department’s claims include tax on income BCCI earned from IPL during the period. BCCI is contesting the decision of the tax authorities. For three years before the exemption was withdrawn, BCCI was granted a total tax exemption of Rs 215 crore.

Revised DTC- Wealth Tax to be paid by all except non-profit organisation !

The proposal of first draft DTC that wealth tax limit was set at 50 Crore has been selved in revised draft Direct Tax Code.It is proposed that Wealth Tax will be levied broadly on the same lines as provided in the Wealth Tax Act, 1957.

Accordingly, specified “unproductive assets” will be subject to  the  wealth  tax. However, it will be payable by all taxpayers except non-profit organizations.   The threshold limit and rate of tax will be suitably calibrated in the context of overall tax rates.

Hero Honda posts its best quarterly result

Hero Honda Motors, the countrys largest two-wheeler manufacturer, today posted a net profit of Rs 598.8 crore in the fourth quarter of 2009-10, its highest to date, as compared to Rs 402.2 crore during the corresponding quarter of 2008-09, growth of 48.9 per cent.
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