New income tax rules comes into force, can’t escape just by paying penalty

Agencies
June 17, 2019

New Delhi, Jun 17: Tightening the screw on tax evaders, the revised guidelines issued by the Income Tax (I-T) Department have made serious offences under black money and benami laws "generally" non-compoundable.

This means that a person or entity would not be able to settle a case of tax evasion by just paying the tax demand, penalty and interest.

The new guidelines will kick in from June 17, 2019 and apply to all cases for compounding received on or after this date.

Listing 13 cases, where the offences are not to be generally compounded, and also grouping the offences in two parts, the Central Board of Direct Taxes (CBDT) has directed its senior officers to circulate the revised guidelines for compliance by concerned authorities.

Offences forming category 'A' include failure to pay tax deducted at source under Chapter XVII-B or tax payable under Section 115-0. Failure to pay the tax collected at source also falls under this category.

The category 'B' offences include willful attempt to evade tax, failure to produce accounts and documents, and false statement in verification.

While the first category offences are open to compounding, offences such as willful evasion of tax and removal or concealment or transfer or delivery of property to thwart tax recovery in a search operation are not to be compounded.

"Offences under Sections 275A, 275B and 276 of the Act will not be compounded," said the new guideline that supersedes the one issued in 2014.

The guidelines state that a category 'A' offence on more than three occasions would not be generally compounded.

Any offence which has bearing on any offence under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 would not be generally compounded, the revised guidelines said.

Further, any offence which has bearing on any offence under the Benami Transactions (Prohibition) Act, 1988 would not merit compounding by tax authorities.

The CBDT guidelines said that offences committed by a person which, as per the information available with the Principal Chief Commissioner of Income Tax and other officials concerned, have a bearing on a case under investigation (at any stage including enquiry, filing of FIR/complaint) by the Enforcement Directorate, CBI, Lokpal, Lokayukta or any other Central or state agency are also not to be normally compounded.

"Notwithstanding anything contained in these guidelines, the Finance Minister may relax restrictions in Para 8.1 for compounding of an offence in a deserving case, on consideration of a report from the Board on the petition of an applicant," said the tax body.

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News Network
April 15,2020

Mangaluru, Apr 15: For the convenience of the public during the lockdown period, the Department of Posts has been providing essential services to the public at its various branch offices which are functioning from 1000 hrs to 1400 hrs.

Medicines and other essential items can be sent via parcel from any town to any place in Dakshina Kannada and Udupi districts.

Arrangements are also being made to extend this facility to nearby districts. In case of sending medicines and other essentials to other states from Mangaluru, the transportation has to be done via Bengaluru and can be expedited if a request for urgency is made, says a press release from the Senior Superintendent of Posts of Mangaluru Division on Wednesday.

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News Network
May 7,2020

Bengaluru, May 7: Karnataka Minister for Labour Shivaram Hebbar, on Thursday, ordered issuance of notice to employers who have not paid salary to the workers during lockdown period amid Coronavirus threat in the state.

The Ministry has also directed serving notice to those employers who have reduced the wages of the workers in April '20, official sources told UNI here.

State Chief Minister B S Yediyurappa had appealed to the employers not to retrench any employee from the job because of their failure to attend to work because of Coronavirus which is spreading like wildfire and since they have been asked to remain in the house.

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News Network
May 12,2020

New Delhi, May 12: Minorities are "flourishing" in India and have been an equal partner in development without discrimination under the Modi government, Union Minister Mukhtar Abbas Naqvi said on Tuesday, dismissing allegations of Islamophobia as an attempt to defame the country.

The "Narendra Modi phobia club” has been unable to digest the inclusive growth under the prime minister and is engaged in a "nefarious campaign" in India and abroad through fake propaganda alleging "intolerance, communalism and discrimination" against minorities in India, Naqvi said.

In a blog titled "Islamophobia -- Bogey of Bogus Bashing Brigade", the minority affairs minister argued that the "Modi phobia club" is playing the “Islamophobia card" to harm the pluralistic fabric of India, but will not succeed.

Naqvi's remarks come days after a wave of angry reactions on Twitter by citizens and rights activists from various Arab countries following allegations that Muslims are being blamed for spreading COVID-19 in parts of India.

Also, the 57-member prominent international Mulim grouping, the Organisation of Islamic Cooperation, recently accused India of "Islamophobia".

India has dismissed all such allegations.

"Minorities in India are flourishing equally with all the citizens with a sense of equality, security and prosperity. Misinformation against such a gracious and tolerant country and its effective leadership is nothing but the height of ignorance and mental bankruptcy," Naqvi said.

He claimed that no riot took place in last 5 years of the Modi government and it was after "nefarious preaching" by those who were irked by this that the Delhi riots happened.

Naqvi said the women who sat on protests at Shaheen Bagh cannot be termed "anti-nationals" but they had been "misguided by the bogus bashing brigade”.

This brigade pushed these women on a path which had an “entry gate” but no “exit gate”, the minister said.

This was a “calculated conspiracy” by the brigade that wants to defame and disgrace Modi and India, Naqvi said.

He also argued that for the "first time since Independence", India has forged close and strong ties with nearly all Islamic nations and countries such as Saudi Arabia, the UAE, Afghanistan, Russia, Palestine, Mauritius and the Maldives have conferred Modi with their highest civilian awards.

"The United Nations has also conferred Narendra Modi with the prestigious 'Champions of the Earth Award'. Prime Minister Narendra Modi's global acceptance and popularity doesn't need any certificate," Naqvi said.

The Modi government never planned development on the basis of Hindus, Muslims, Sikhs, Christians or on region and caste, and its priority has been the poor and deprived, Naqvi said, adding that still some people with a “prejudiced mindset” are trying to defame India by raising the bogey of Islamophobia.

There is not a single incident of discrimination against any section of the society, including minorities under the Modi government, the minister asserted.

All sections, including minorities, are strongly moving forward on the path of “development with dignity” under the Modi government, he said.

When the challenges due to the coronavirus were in initial stages across the world in early January and several countries, including Pakistan, had not taken care of their people abroad, it was the Modi government that brought back thousands of Indians stranded in Wuhan (China), Iran, Iraq, Saudi Arabia and other countries, Naqvi said, adding that a majority of these people were Muslims.

In the recent Vande Bharat Mission also, the Indian government is bringing back thousands of Indians from countries such as the Maldives, the UAE, Saudi Arabia, Iran, Qatar and other countries which include a large number of Muslims, he pointed out.

"Strong eternal commitment of my country will defeat and demolish the fake and fabricated Islamophobia card of the 'India bashing brigade'," Naqvi said in his blog.

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