April 27th, 2016
Road rationing is also known as driving restriction or no-drive day. It is a strategy aimed to reduce the air population. Rationing is restricting traffic access into urban areas in peak hours.
The Delhi government implemented the road rationing mechanism for fifteen days every month, but the government will lose the more money gained from the tax report. The implementation of rationing mechanism in January reports that the VAT collection from the diesel and petrol sales is less than the monthly collection.
Tax report on Value Added tax on diesel and petrol shows that the government received only two hundred and thirty crore which is forty crore less than the average monthly VAT collection, thus if the government follows the road rationing mechanism, the VAT tax can go down up to five hundred crore. The oil company’s sales of petrol and diesel rate dropped from January to February, the government plans to re-implement the rationing mechanism from April 15th, 2016. The government has set its VAT collection target to twenty four thousand crore, thus the government will pay special attention to the income received through sales of fuel.
After the end of the first road rationing mechanism in January, the Delhi government headed by Arvind Kejriwal, the Chief Minister increased the rate of VAT on diesel and petrol by twenty five to twenty seven percent. The government officials said that they met with the Finance Minister for North Indian states and discussed about the uniform taxation of fuel.
April 8th, 2016
The government has introduced a new Income tax return form on April 1st, 2016. The new ITR form is a simplified form, making it easy for the filers. The Finance Ministry released the new ITR forms, with significant changes in it. The government has asked the taxpayers with an annual income of more than fifty thousand, to specify their assets in the tax return form so as on to prevent from tax evasion.
The income tax department has asked the taxpayers to specify their immovable assets like buildings, lands and movable assets like jewelry, vehicles etc. This is to ensure that there is no illegal property or money prevailing among the wealthy people. The National Democratic government has taken several steps to stop the illegal and black money accounted in foreign banks. Coming to power, Prime Minister Narendra Modi has promised to recover the black money from the country.
Hence, the previous year’s tax return form had a column to specify the taxpayers, foreign tours and expenditures during his tour. And also asked about the taxpayers bank details and account balance. But, this year’s revised income tax return form , only had a column to fill the passport number without the expenditure details and bank account details without the account balance. For the taxpayers, whose annual income exceeds fifty lakh has to fill the new column, which specifies ‘Liability and Assets’ with the details of their property. And they have sought the Aadhaar card number of the taxpayers along with their account.
April 8th, 2016
The Finance Ministry proposed the Equalization levy in its new Budget plan, which has a greater impact on the digital marketing and the online marketing in India. To regularize taxation, the government proposed the equalization levy. According to this the non-resident digital system becomes liable to pay tax, because they do not have a permanent establishment in India and if the total exceeds one lakh within a year, 6% of the gross is liable under equalization levy.
Collection of tax from the digital economy is an indirect taxation of the multi-national companies. For example, if a resident company pays a multinational e-commerce company for online advertising, then the 6 percent of the gross goes to the government of India. Thus the multinational companies like Alphabet , Facebook, Google, Twitter which earns money from India are in turn taxed.
This levy is only for business-to-business transactions, but it can extend its specifications in the future, like taxation on the online service and goods sales, software downloads, and downloading books, movies, songs, etc. But, this equalization levy may affect the small and start-ups. If a start-up seeks advertising in Facebook, and which has more than one lakh payment in a year comes under the levy. These small companies cannot negotiate with the foreign companies to reduce their margin. Thus, when the country receives its monetary tax income, the start-ups and small business have a negative impact.
Equalization levy it equalizes the domestic and foreign e-commerce market. Because when the multi-national ecommerce company do not have a permanent establishment in the country, it becomes taxable. And thus opens the door to the domestic market. The equalization levy has both boon and bane over the e-commerce market. It not only affects the foreign entities, but also the Indian start-ups.
April 4th, 2016
The Prime Minister Mr. Narendra Modi addressed the probationary officers of the Indian Revenue Service (IRS).
Around 167 probationary officers attended a meeting held by the Prime Minister of India Narendra Modi on March 10th, 2016. In the meeting, the Prime Minister said that the civil servants and the authorities of the revenue department should treat the income tax payers with a sensitive approach.
Narendra Modi said that the majority of the people obeys the law and abide by the rules and regulation of the nation, so that the nation could grow as a developed nation. He said that, the government officials should not harass the taxpayers while they work towards the revenue policy of the government. The Prime Minister’s officials reported that, Narendra Modi also asked the revenue officials to treat each taxpayer as their family and help them with their process. The young trainees of the Indian Revenue Service asked the Prime Minister several questions. And Narendra Modi answered all the questions and advised the trainees to work hard with enthusiasm.
The meeting attended by the probationary officers with the Prime Minister prevailed for about forty five minutes, and Modi shared his own experience from his personal life and political life and explained the officers to maintain a diplomatic to become a successful civil officer. He also informed the probationary officers that all the people- friendly schemes and policies reach the public on-time so that the people get benefitted by them.