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.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 27,2020

In a development which highlights the diversity in the United Kingdom’s legal system, a 40-year-old Muslim woman has become the first hijab-wearing judge in the country.

Raffia Arshad, a barrister, was appointed a deputy district judge on the Midlands circuit last week after 17-year career in law.  

She said her promotion was great news for diversity in the world’s most respected legal system. She hopes to be an inspiration to young Muslims.

Ms Arshad, who grew up in Yorkshire, north England, has wanted to work in law since she was 11.

Ms Arshad said the judicial office was looking to promote diversity, but when they appointed her they did not know that she wore the hijab.

‘It’s definitely bigger than me,” she told Metro newspaper. "I know this is not about me.

"It’s important for all women, not just Muslim women, but it is particularly important for Muslim women."

Ms Arshad, a mother of three, has been practising private law dealing with children, forced marriage, female genital mutilation and other cases involving Islamic law for the past 17 years.

She was the first in her family to go to university and has also written a leading text on Islamic family law.

Although the promotion by the Lord Chief Justice was welcome news for her, Ms Arshad said the happiness from other people sharing the news was “far greater”.

“I’ve had so many emails from people, men and women," she said.

"It’s the ones from women that stand out, saying that they wear a hijab and thought they wouldn’t even be able to become a barrister, let alone a judge."

Ms Arshad is regularly the subject of discrimination in the courtroom because of her choice to wear the hijab.

She is sometimes mistaken for a court worker or a client.

Ms Arshad said that recently she was asked by an usher whether she was a client, an interpreter, and even if she were on work experience.

“I have nothing against the usher who said that but it reflects that as a society, even for somebody who works in the courts, there is still this prejudicial view that professionals at the top end don’t look like me,” she said.

A family member once advised her to not wear a hijab at an interview for a scholarship at the Inns of Court School of Law in 2001, warning that it would affect her chances of landing the role.

“I decided that I was going to wear my headscarf because for me it’s so important to accept the person for who they are," Ms Arshad said.

"And if I had to become a different person to pursue my profession, it’s not something I wanted.”

The joint heads of St Mary’s Family Law Chambers said they were “delighted” to hear the news of her appointment.

“Raffia has led the way for Muslim women to succeed in the law and at the bar, and has worked tirelessly to promote equality and diversity in the profession,” Vickie Hodges and Judy Claxton said.

“It is an appointment richly deserved and entirely on merit, and all at St Mary’s are proud of her and wish her every success.”

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
coastaldigest.com news network
May 6,2020

Mangaluru, May 6: Three more coronavirus positive cases have been reported in Dakshina Kannada district. 

According to fresh bulletin of health and family welfare department, an 11-year-old girl and a 36-year-old woman from Boloor in Mangaluru and a 16-year-old girl from Bantwal tested positive for the covid-19. 

All of them are undergoing treatment at Wenlock Hospital. Their condition is said to be stable. 

With this the total number of cases in the district reached 28 including 22 residents of Dakshina Kannada, 4 from Kasaragod, 1 from Udupi and 1 from Uttara Kannada.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
coastaldigest.com news network
August 1,2020

Udupi, Aug 1: A young rider lost his life after a head-on collision between a scooter and a car on K G Road in Udupi last evening.

The deceased has been identified as Praveen Ganiga (24), a resident of Kodavoor in Malpe.

According to police Praveen was riding his scooter on the wrong side of the road. The car was plying from Brahmavar to Udupi.

The people on board car suffered minor injuries in the mishap. A case was registered at Brahmavar police station and investigations are on.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.