Dated: 10.05.2018

New PAN allotment and Change request applications with 'gender' as 'transgender' is allowed without any hassle. Also, there is no requirement of depositing any supporting document for change of ‘gender’ to 'transgender' vide PAN Change request application

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 7th May, 2018

PRESS RELEASE

CBDT notifies the Protocol amending the Double Taxation Avoidance Agreement (DTAA) between India and Kuwait

A Protocol to amend the existing Double Taxation Avoidance Agreement (DTAA) between India and Kuwait signed on 15.06.2006 for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income was signed on 15.01.2017. The said Protocol has entered into force on 26.03.2018 and is notified in Official Gazette on 04.05.2018.

The Protocol updates the provisions in the DTAA for exchange of information as per international standards. Further, the Protocol enables sharing of the information received from Kuwait for tax purposes with other law enforcement agencies with authorisation of the competent authority of Kuwait and vice versa.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT.

Press Information Bureau 
Government of India
Ministry of Finance

03-May-2018

CBDT invites suggestions on draft notification pertaining to new Rule 11UAB of IT Rules, 1962 

Finance Act, 2018 has inserted clause (via) to section 28 of the Income-tax Act, 1961 (‘the Act’) so as to provide that any profit and gains from conversion of inventory into capital asset or its treatment as capital asset shall be charged to tax as business income. It has also been provided that for this purpose the fair market value of inventory on the date of conversion or treatment determined in prescribed manner shall be deemed to be the full value of consideration. Accordingly, rules are to be framed for providing the manner in which fair market value of the inventory shall be determined.

In view of the above, it is proposed to insert a new rule 11UAB in the Income-tax Rules, 1962 for prescribing the manner of determination of fair market value of the inventory which has been converted into, or treated as, capital asset.

In order to have wider consultation in this matter, the draft of notification proposed to be issued for amending the Income-tax Rules, 1962 has been uploaded on www.incometaxindia.gov.in. Stakeholders are requested to submit their comments/ suggestions on the draft notification by 14.05.2018 at the e-mail address dirtpl2@nic.in

Press Information Bureau

Government of India

Election Commission

30-April-2018

 

State Election Machinery and Income Tax Department step up their action against misuse of money in forthcoming Karnataka Assembly elections

In Karnataka, State Election Machinery and Income Tax Department have stepped up their action against misuse of money in election and for the first time, teams with statutory powers and sufficient resources in terms of manpower, vehicles etc. have been posted in each district of the state.

Total cash seizure as on today ( 30.04.2018) is Rs.19.69 crores and the unexplained jewellery of value Rs.4.81 crores has been made by the Investigation Wing of Income Tax department in Karnataka after the start of the Assembly election related surveillance.

In 2013, Karnataka State Assembly Elections, the total seizure made in the entire campaign period was only Rs 4.97 crore cash and Rs 3.41 crore worth of jewellery. It has been found that the bulk of cash seized during operations in the present Assembly Elections is has been meant for distribution.

The Investigation Wing of the Income Tax Department has been doing intensive surveillance and monitoring activities in the State.

The details of some of the major activities carried out by Income Tax department are as follows.

(A) Searches conducted in Mysore on 24th April, 2018

1. Based on the intelligence, search & seizure operations were conducted on several government contractors between the 24th and 26th of April 18. This resulted in a seizure of unaccounted cash of Rs 6.76 crore from four such contractors in the Mysore area. The entire amount seized was in higher denomination notes i.e. Rs.2,000/- and Rs.500/- and the bulk of the seizure was made from lockers in benami names. The cash found and seized was not reflected in the books of account maintained by the contractors and they could not explain the source of the cash.

2. Hoarding of huge stocks cash by these persons at a time when the election process is in progress and when cash shortages are reported in some areas in the state raises troubling questions.

(B) Bangalore, Davangere & Mysore cases on 26th April, 2018 to 28th April, 2018

1.Based on the specific intelligence that cash is hoarded by Government contractors for being used for election purposes, search action has been initiated in the cases of 3 contractors in Bangalore, Davangere and Mysore on 26/04/2018 and were concluded on 28.04.2018.

2. Unaccounted cash of Rs. 4.08 crores and unexplained gold jewellery of 2.79 Crores worth were seized. In one of the contractor's case, cash of Rs. 1.2 crores was found in a moving car.

3. During the search evidences have been recovered showing inflation of purchases, bogus sub-contractor and labour payments and unaccounted cash payments. The searched party admitted additional income of Rs.74.39 crores.

(C) Searches conducted in Bangalore on 28.04.2018 & 29.04.2018

1. Based on the intelligence inputs that one person was funding certain candidates of a particular party, a search was conducted at 2 business premises and 1 residence, which continued for 32 hours and resulted in seizure of Rs. 3.18 Crs of cash, concluded on early hours of 29th April.

2. Cash of Rs.2.00 crores was found in a car parked closed to the main persons residence, which was found by the department after causing the thorough rummaging of the persons premises and belongings.

(D) Searches conducted at Khanapur, Hubballi and Bangalore on 28th & 29th April, 2018

1. Searches were conducted on a candidate who is contesting on a party ticket based on verification of the affidavit filed by him, specific intelligence about the cash transactions and other particulars.

2. It was found that the contesting candidate is a non – filer since AY 2012-13 onwards. However, in his election affidavit he has declared some income and put a remark that online filing of return has been blocked by Income Tax Department so he could not file his return and has paid Self Assessment Tax.

There is no such thing like blocking the filing of return. Also, there are substantial discrepancies between income declared by his wife in her return of income filed, declared in affidavit and actually detected during the search.

4. He accepted that five Properties (out of which 3 are General Power of Attorneys and 2 are purchased Properties) of his family members have not been declared in the election affidavit.

5. During the search it was found that he and his family members have not declared their income out of real estate business and Joint Development Agreements. The income detected and now being declared by him and his family members is Approx. Rs.18.00 crores for various Assessment Years, including he himself, his wife and two sons. He has most of the business activities in family member’s name only.

6. Issues like valuation of properties which he claimed to be valued at Rs.191.00 crores are under investigation.

Press Information Bureau

Government of India

Ministry of Finance

24-April-2018

Government invites comments on draft Notification under section 112A as inserted by Finance Act, 2018 by 30th April, 2018 

The Finance Act, 2018 has withdrawn the exemption under clause (38) of Section 10 of the Income-tax Act, 1961 (the Act) and has introduced a new section 112A in the Act, to provide that long term capital gains arising from transfer of a long-term capital asset being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust shall be taxed at 10 per cent of such capital gains exceeding one lakh rupees. The said section, inter alia, provides that the provisions of the section shall apply to the capital gains arising from a transfer of long-term capital asset being an equity share in a company, only if securities transaction tax (STT) has been paid on acquisition and transfer of such capital asset. 

However, to provide the applicability of the tax regime under Section 112A of the Act to genuine cases where the STT could not have been paid, it has also been provided in sub-section (4) of Section 112A of the Act that the Central Government may specify, by notification, the nature of acquisitions in respect of which the requirement of payment of STT shall not apply in the case of acquisition of equity share in a company. 

In order to have wider consultation in this matter, the draft of notification proposed to be issued under Section 112A (4) of the Act has been uploaded on www.incometaxindia.gov.in.  Stakeholders are requested to submit their comments/ suggestions on the draft notification by 30^th April, 2018 at the e-mail address dirtpl2@nic.in

Click here to read and download Draft Notification