India targets black money with new assets disclosure law

June 8, 2012

Black_Money

New Delhi, June 8: Filing of income tax returns has become more complicated for those with assets overseas as the government has introduced a compulsory disclosure law for Indians in the country and abroad aimed at tracing black money.

“The overseas assets will not be taxed, but it is an additional hassle for taxpayers,” said Neeru Ahuja, a partner at Deloitte Haskins and Sells.

Apart from the additional hassle, Ahuja said, expatriates see it as an intrusion on their privacy.

“Many people are complaining. Expatriates who have come here to work even for a short period are required to disclose assets back home,” Ahuja said.

The Central Board of Direct Taxes (CBDT) recently issued the new tax return forms for 2011-12 or assessment year 2012-13, mandating disclosure of foreign assets. On the form, a new section labelled ‘FA’ (Foreign Assets) is included.

Individuals with taxable income exceeding Rs1 million (Dh66,750) and Indians and expatriates with assets overseas must file their returns electronically.

“Resident individuals are required to file tax returns in India irrespective of whether they have income chargeable to tax in India or not,” said Ahuja.

As per the Finance Bill 2012, residents with assets outside India are required to file tax returns electronically giving details of such assets.

In other words, income is now not the only criteria for filing a tax return. Residents with assets abroad are now required to submit their details irrespective of whether they have income generated in India.

The government has made disclosure of foreign assets mandatory in a bid to trace black money, which has become a big political issue.

Although there is no official figure, some private research puts illicit money held by Indians at $1.4 trillion (Dh5.14 trillion).

The government says the mandatory disclosure of foreign assets is aimed at preventing the generation and circulation of unaccounted-for money and so that undisclosed assets can be tracked.

However, such a disclosure could cause undue hardship to individuals, especially the family of an expatriate, who qualify as residents due to their physical presence in India.

For example, spouses of foreigners who work in India or non-resident Indians returning to India will need to disclose their foreign assets.

“It is not clear how the additional information may be used, but it will cause hardship to genuine tax payers,” said Ahuja.

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News Network
February 1,2020

New Delhi, Feb 1: India on Friday banned the export of personal protection equipment such as masks and clothing amid a global coronavirus outbreak.

It did not give a reason for the ban but it reported its first case of the new coronavirus on Thursday, a woman in Kerala who was a student of Wuhan University in China.

The central Chinese city of Wuhan is the epicentre of the outbreak, and the virus has since spread to more than 9,800 people globally and killed 213 people in China.

Several Indian citizens living in Wuhan will arrive in India by plane on Saturday and be taken to a quarantine centre on the outskirts of the capital New Delhi.

India, the world’s second most heavily populated country after China, has taken measures to ensure that all people arriving from China report to health authorities.

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News Network
January 9,2020

New Delhi, Jan 9: Amazon founder and CEO Jeff Bezos will be visiting India next week and is likely to meet Prime Minister Narendra Modi and officials, besides industry leaders, according to sources.

The top executive will also attend SMBhav – an event focussing on small and medium businesses in India - that is slated for January 15-16 in the capital city.

When contacted, Amazon declined to comment.

Amazon, which has seen significant growth in its business in India, has also witnessed protest from a section of traders in the country who claim that e-commerce giants including Amazon and Walmart-owned Flipkart offer deep discounts and engage in unfair business practices.

Last year, the government had tightened rules for e-commerce marketplaces with foreign investment. These rules barred such platforms from offering products of sellers in which they hold a stake and banned exclusive marketing arrangements among other clauses. Following this, Amazon restructured its joint ventures to ensure compliance.

Bezos is likely to discuss regulatory issues in his meeting with the government officials.

He is also slated to engage with SMBs during the SMBhav event. The event - which will focus on discussions around how technology adoption can enable SMBs in India - is slated to see participation from industry experts, policymakers, solution providers and Amazon leadership.

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Agencies
May 17,2020

New Delhi, May 17: Eight of the 10 most valued domestic firms suffered a combined erosion of Rs 1,37,311.31 crore in market valuation last week, with Reliance Industries (RIL) taking the biggest knock.

Only Bharti Airtel and ITC from the top-10 list managed to close the week with gains.

RIL's market cap plunged Rs 65,232.46 crore to Rs 9,24,855.56 crore.

The market valuation of HDFC Bank declined Rs 22,347.07 crore to Rs 4,87,083.88 crore and that of Hindustan Unilever Limited tanked Rs 13,192.26 crore to Rs 4,77,458.89 crore.

ICICI Bank's market cap dropped Rs 9,770.06 crore to Rs 2,08,900.79 crore.

Infosys witnessed a decline of Rs 9,518.84 crore in valuation to reach Rs 2,77,814.09 crore while that of HDFC tumbled Rs 9,370.38 crore to Rs 2,83,293.70 crore.

The m-cap of Kotak Mahindra Bank slipped by Rs 7,805.2 crore to Rs 2,25,327.22 crore.

Tata Consultancy Services' market valuation dipped Rs 75.04 crore to Rs 7,10,439 crore.

In contrast, Bharti Airtel added Rs 13,147.89 crore to its valuation to stand at Rs 3,02,292.43 crore.

ITC's valuation also rose by Rs 7,744.11 crore to Rs 2,02,330.13 crore.

In the ranking of top-10 firms, RIL retained the number one spot, followed by TCS, HDFC Bank, HUL, Airtel, HDFC, Infosys, Kotak Mahindra Bank, ICICI Bank and ITC.

During the last week, the Sensex declined 544.97 points or 1.72 per cent.

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