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Time of India
5 hours ago
- Business
- Time of India
REC gets CBDT nod to issue ₹5,000 crore Zero Coupon Bonds
New Delhi: REC Limited , a Maharatna Central Public Sector Enterprise under the Ministry of Power, has received approval from the Central Board of Direct Taxes (CBDT) to issue Zero Coupon Bonds (ZCBs) aggregating ₹5,000 crore. The bonds will have a tenure of ten years and six months. According to a notification dated May 30, 2025, issued by the Department of Revenue, Ministry of Finance, the approval allows REC to issue five lakh ZCBs. These instruments will be issued at a deep discount and redeemed at face value upon maturity, offering tax advantages to investors under the Income-tax Act, 1961. In FY 2024–25, REC had issued CBDT-notified ZCBs worth ₹5,000 crore, which received subscription nearly seven times the offered amount. That issue was priced at a yield of 6.25 per cent, approximately 100 basis points lower than the prevailing market rates . "The success of the previous issue enabled REC to tap into a new segment of investors while further diversifying its funding sources at competitive rates," the company stated. REC, which functions as a leading non-banking financial company (NBFC), said it remains committed to exploring innovative financial instruments for efficient fund mobilisation to support India's growing energy infrastructure .
Time of India
a day ago
- Business
- Time of India
Ladki Bahin Yojana fraud beneficiaries beware: Maharashtra govt to cross-check income tax data; check who is eligible to get Rs 1,500 per month
How will the new law impact Ladki Bahin Yojana? Live Events What did Income Tax Department notification say? What is Mukhyamantri Mazi Ladki Bahin Yojana? Who is eligible for Mukhyamantri Mazi Ladki Bahin Yojana? Who is not eligible for Mukhyamantri Mazi Ladki Bahin Yojana? The Maharashtra Government can now access Income Tax Return (ITR) filing data to identify fraudulent beneficiaries under the Ladki Bahin Yojana . The Central government, via a notification, has allowed the Secretary to the Government of Maharashtra, Women and Child Development, to access the data and identify fraudulent notification is issued by the Central Board of Direct Taxes (CBDT) on June 3, move is expected to tighten the screening process for selecting eligible beneficiaries, making it more data-driven and precise. The Maharashtra government will now be able to use official Income Tax data to identify and exclude income taxpayers from the Ladki Bahin scheme, ensuring that only economically eligible women benefit from the program. The move helps reduce fraudulent claims and improve transparency in welfare read: HDFC Bank credit card rules changing from July 1, 2025: New charges on rent, gaming, and reward limits Last week, Maharashtra Women and Child Development Minister Aditi Tatkare revealed that more than 2,200 government employees had wrongly received benefits under the Ladki Bahin to the Central Board of Direct Taxes (CBDT), 'In pursuance of sub-clause (ii) of clause (a) of sub-section (1) of section 138 of the Income-tax Act, 1961, the Central Government hereby specifies 'Secretary to the Government of Maharashtra, Women and Child Development' for the purposes of the said clause in connection with sharing of information regarding Income-tax payers' for identifying eligible beneficiaries under the Mukhyamantri Mazi Ladki Bahin Yojana .'This decision has been made under Section 138(1)(a)(ii) of the Income-tax Act, 1961, which allows the government to disclose income tax-related information to specified authorities for public interest Mukhyamantri Mazi Ladki Bahin Yojana is a flagship initiative of the Maharashtra Government to provide financial assistance to specific women from economically weaker is the amount paid to eligible beneficiaries under the Mukhyamantri Mazi Ladki Bahin Yojana?According to the website, 'The said beneficiary woman may be receiving benefits of Rs. 1500 or more per month.'To be eligible for the Ladki Bahin Yojana, a beneficiary must be fulfil the following criteria:She must be a resident of the state of widowed, divorced, abandoned and destitute women in the state as well as only one unmarried woman in the minimum age should be 21 years and the maximum age of 65 beneficiary should have his own bank account linked to annual income of the beneficiary family should not exceed Rs. 2.50 woman who does not fulfil the eligibility criteria does not qualify to get assistance under the Ladki Bahin Scheme. For instance, if the beneficiary's combined annual family income exceeds Rs. 2.50 lakh, they will not be eligible for the benefit under the if the beneficiary's family members are income tax payers, then women cannot take benefit under Ladki Bahin per the scheme details, 'Those whose family members are working as regular/permanent employees in any Government Department/Undertaking/Board/Local Body of Government of India or State Government or are drawing pension after retirement. However, employees working through external agencies, voluntary workers and contractual employees with an income up to Rs. 2.50 lakhs will be eligible. If the beneficiary woman is receiving benefits of Rs. 1500/- or more per month through a financial scheme implemented by other government departments, or those whose family members are current or former MPs/MLAs, Those whose family members are Chairman/Vice Chairman/Director/Member of a board/Corporation/Undertaking of the Government of India or a State Government and Those who have a four-wheeled vehicle (excluding tractors) registered in the name of their family members.'
Economic Times
3 days ago
- Business
- Economic Times
Infosys CEO Salil Parekh's FY25 salary jumps 22% to Rs 80.6 crore
Infosys CEO Salil Parekh's pay rose 22% in FY25 to ₹80.62 crore, driven by exercised stock options and variable pay, as he seeks reappointment. Synopsis Infosys CEO Salil Parekh's FY25 remuneration rose 22% to ₹80.62 crore, mainly due to exercised stock options. His base salary was ₹7.45 crore, with substantial variable pay and RSUs. He's proposed for reappointment till 2027. Infosys' Chief Executive Officer and Managing Director Salil Parkeh's remuneration jumped 22% in FY25 over FY24 to Rs 80.62 crore , the IT company's annual report released on Monday showed. ADVERTISEMENT The hike in FY25 remuneration was primarily on account of 49.50 crore of 3,06,276 stock options (Restricted Stock Units or RSUs) exercised by Parekh under the 2015 plan and 39,141 RSUs under the 2019 plan during fiscal 2025. His base salary stood at Rs 7.45 crore with Rs 49 lakh worth retiral benefits. The bonus/variable and variable pay accounted for Rs 23.18 crore As per the Income-tax Act, 1961, only the value of stock incentives that were actually exercised during the period is included in the remuneration. Stock incentives that were granted but not exercised during the period are not whose term has been extended until March 31, 2027 and who is liable to retire at the forthcoming Annual General Meeting, is eligible and has offered himself for reappointment, the report said. "Based on the performance evaluation and the recommendation of the Nomination and Remuneration Committee, the Board recommends his reappointment," the report number of restricted stock units offered to him in FY25 stood at 3,82,071 ADVERTISEMENT Parekh holds 11,85,548 shares in the company, the annual report was appointed CEO & MD on January 2, 2018 and reappointed on July 1, 2022. ADVERTISEMENT The shareholders had approved the initial appointment and key terms of the agreement on February 20, 2018 and amended the terms of remuneration as per the resolution passed at the AGM dated June 22, 2019. Further, the shareholders approved the reappointment of Parekh including revised remuneration payable to him at the 41st AGM held on June 25, has over three decades of global experience in the IT services industry with a strong track record of driving digital transformation for enterprises, executing business turnarounds and managing successful acquisitions. ADVERTISEMENT He was also the Chairman of Capgemini's North America Executive Council. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
The Hindu
5 days ago
- Business
- The Hindu
Dr. Reddy's gets I-T Dept order for notice over ₹2,396 crore tax demand
The Income-Tax Department has issued an order that paves way for notice to generic drugmaker Dr. Reddy's Laboratories over almost ₹2,396-crore tax demand. The Assistant Commissioner of Income Tax, Circle 8(1), Hyderabad, in a May 30 order, deemed it appropriate to issue a notice under Section 148 of the Income-tax Act, 1961 to assess or reassess the income for assessment year 2020-21, Dr. Reddy's said in a filing on Saturday. The order follows a show cause notice in April on why a notice should not be issued for assessment of income 'alleged to be escaped from tax consequent to the merger of Dr. Reddy's Holding into Dr. Reddy's under a scheme of amalgamation approved by the National Company Law Tribunal (NCLT), Hyderabad on April 5, 2022. As per the April 4, 2025 notice, the tax demand was quantified at ₹2,395,81,79,470, Dr. Reddy's said. The scheme of amalgamation was carried with adherence to all legal requirements, including tax laws, and approved by NCLT, Hyderabad, on April 5, 2022 with effect from the appointed date April 1, 2019. The company said it strongly believes that there is 'no escapement of tax pursuant to the said merger scheme.' Nonetheless, it is reviewing the order/notice and will take actions as required, appropriately, Dr. Reddy's said. 'Based on our assessment, there is no material impact on the financials, operations, or other activities of the company at this stage,' it said.
Time of India
28-05-2025
- Business
- Time of India
ITR deadline extended: Taxpayers may earn more interest, but government could face higher refund burden
NEW DELHI: With the Income Tax Return (ITR) filing deadline for Assessment Year 2025–26 extended from July 31 to September 15, 2025, a key question has surfaced: will this extension increase the government's interest liability on tax refunds? TOI reached out to multiple tax experts to understand the implications of this move on both taxpayers and the exchequer. What emerged is a detailed view of how refund-related interest works under Section 244A of the Income Tax Act, the potential financial burden on the government, and why taxpayers may still be better off filing early. Extended ITR deadline may lead to higher refund interest Shalini Jain, Tax Partner, EY India, explained: 'The ITR filing extended deadline (for Assessment Year 2025-26, i.e., Financial Year 2024-25) may result in the government paying more interest on tax refunds in certain cases. Considering an example where excess TDS has been deducted from the taxpayer or the taxpayer has paid excess advance tax during the Financial Year (FY), Section 244A(1)(a) of the Income-tax Act, 1961 (Act) provides that the taxpayer will be eligible to receive interest on the refund amount at the rate of 0.5% per month or part of a month calculated from the 1st day of April of the Assessment Year (i.e. , April 1, 2025, for AY 2025-26) up to the date on which the refund is granted.' She further noted that the interest is payable only when the refund exceeds 10% of the assessed tax liability. 'Therefore, the extension of due date of filing the tax return from July 31, 2025, to September 15, 2025 may lead to higher interest being paid to taxpayers in eligible cases. Further, the taxpayers should also keep in mind that the interest received on refund is taxable in their hands as 'income from other sources,'' Jain added. ALSO READ: ITR filing FY 2024-25 (AY 2025-26): Deadline to file income tax returns extended from July 31 - check new date Highlighting the administrative side of the extension, Jain also pointed out a practical benefit for the Government: 'While there may be additional interest liability for the Government, the extended time allows the Government to make their systems ready for additional changes brought about in the income tax returns forms and accurately capture the information from TDS/TCS statements filed by tax deductors/collectors, thereby facilitating a smooth and convenient filing experience for the taxpayers.' Interest still payable if returns filed by extended deadline Even with the extension, taxpayers are still entitled to receive interest on their tax refunds—provided they file their returns by the new due date of September 15, 2025. 'If the Government extends the due date of filing, it would have to pay interest on refunds for the additional time of extension. The Government will need to compensate taxpayers for the extra months that their refunds are delayed,' said Ritika Nayyar, Partner at Singhania & Co., in an exclusive interaction with TOI Online. She added that interest on refunds is calculated at 0.5% per month or part thereof under Section 244A. If the return is filed on or before the due date, interest is calculated from April 1 of the assessment year until the refund is granted. How much more interest could be paid? To illustrate how the extended due date could impact pay-outs, Abhishek Soni, CEO and Co-founder of Tax2Win shared a breakdown of refund interest scenarios for returns filed on September 15, 2025, and processed the next day, on September 16, 2025: Scenario Refund Amount Interest Period (5.5 months) Interest Amount Total Refund Scene 1 Rs 1,00,000 5.5 months Rs 2,750 Rs 1,02,750 Scene 2 Rs 1,50,000 5.5 months Rs 4,125 Rs 1,54,125 Scene 3 Rs 2,00,000 5.5 months Rs 5,500 Rs 2,05,500 Source: Abhishek Soni, CEO and Co-founder of Tax2Win Longer processing = Higher payouts In another example, if the same return is filed on September 15, 2025, but the refund is processed on October 3, 2025, the interest period extends to 7 months. Here's how that plays out: Scenario Refund Amount Interest Period (7 months) Interest Amount Total Refund Scene 1 Rs 1,00,000 7 months Rs 3,500 Rs 1,03,500 Scene 2 Rs 1,50,000 7 months Rs 5,250 Rs 1,55,250 Scene 3 Rs 2,00,000 7 months Rs 7,000 Rs 2,07,000 Source: Ritika Nayyar, Singhania & Co. These scenarios highlight how a longer refund window directly translates into higher interest payouts—an added cost that will be borne by the Income Tax Department. CA Shefali Mundra, Tax Expert at ClearTax, highlighted 'If the return is filed on or before the due date u/s 139(1): Interest begins from 1 April of the assessment year till the date of grant of the return is filed after the due date u/s 139(1): Interest begins from the date of return filing to the date of grant of refund.' She illustrated the interest payable on tax refunds when ITRs are filed on September 15, 2025, with the refunds processed on September 16 and October 3, 2025, respectively. Tax refund interest amount if ITR is filed on September 15, 2025, and processed on September 16, 2025 Scenario Interest rate Months delayed Interest amount Tax Refund Rs 1,00,000 0.5% per month 6 months Rs 1,00,000 × 0.5% × 6 = Rs 3,000 Tax Refund Rs 1,50,000 0.5% per month 6 months Rs 1,50,000 × 0.5% × 6 = Rs 4,500 Tax Refund Rs 2,00,000 0.5% per month 6 months Rs 2,00,000 × 0.5% × 6 = Rs 6,000 Source: CA Shefali Mundra, Tax Expert, ClearTax Tax refund interest amount if ITR is filed on September 15, 2025, and processed on October 3, 2025 Scenario Interest rate Months delayed Interest amount Tax Refund Rs 1,00,000 0.5% per month 7 months Rs 1,00,000 × 0.5% × 7 = Rs 3,500 Tax Refund Rs 1,50,000 0.5% per month 7 months Rs 1,50,000 × 0.5% × 7 = Rs 5,250 Tax Refund Rs 2,00,000 0.5% per month 7 months Rs 2,00,000 × 0.5% × 7 = Rs 7,000 Source: CA Shefali Mundra, Tax Expert, ClearTax What triggers refund interest, and who pays? 'Interest is payable only if the refund results from excess payment of TDS, TCS or advance tax and is more than 10% of the total tax liability,' Nayyar clarified. 'The extra interest due to the extended deadline will be borne by the Government of India, specifically the Income Tax Department.' Refund interest isn't a windfall for taxpayers Despite longer interest accrual periods, delaying returns doesn't provide major benefits to taxpayers. 'There's no significant benefit by delaying to file the tax return since the government pays interest upto 6% per annum, which is almost at par, if not lower, than what banks are paying these days,' said Ankit Jain, Partner at Ved Jain and Associates. Jain pointed out that while filing closer to the deadline might earn you more interest, it's only marginal. 'If one has a refund of Rs 1,00,000 and his return is filed on September 15 with the refund processed on October 3, he gets Rs 3,500 as interest. Had he filed on July 31 and refund issued on August 18, the interest would be Rs 2,000. That's just Rs 1,500 more—hardly a compelling reason to delay,' he explained. He added that the cost to the government is not heavy because 'the coupon rate of Government borrowing is almost at the same rate.' Interest burden manageable for the government Some tax professionals echoed the view that while the extension increases interest outflow, it's not alarming. 'The extension of the ITR filing deadline from July 31 to September 15, 2025, does not increase the interest rate; it merely increases the period for which interest is calculated,' said Ashish Karundia, Founder of Ashish Karundia & Co., Chartered Accountants. He emphasized that the Government's liability is limited because the 6% per annum interest paid is quite conservative and aligned with the cost of government borrowings. ITR refund is not dependent on deadline According to S. Sriram, Partner at Lakshmikumaran & Sridharan Attorneys, refunds are more a function of actual filing and processing than of deadlines. 'Granting of a refund is not dependent upon the due date for filing of tax returns but on the actual filing of the return and its processing by the CPC. If the return is filed by July 31, the CPC can process the return earlier and grant the refund quickly,' he told TOI. He warned that filing late—even within the extended deadline—would delay refund processing and result in longer interest periods, which the Government would then have to fund. ITR processing still faces operational challenges Even with a push to expedite ITR processing, challenges remain. 'To mitigate the potential rise in interest liability, the Government may consider accelerating processing at the CPC,' said Ashish Karundia. He noted that refund timelines also depend on various factors: the complexity of the ITR form, nature of income, taxpayer risk profile, claims made, and cross-verification with third-party data. 'Processing times can vary significantly based on these elements,' he said. What about other interest provisions? Aarti Raote, Partner at Deloitte India, brought another dimension into the picture—interest under Sections 234A and 234B. While the extension waives 234A interest (for delayed return filing), taxpayers still remain liable under 234B if they failed to pay sufficient advance tax. 'Taxpayers should note that while the tax return filing deadline is extended and hence interest under section 234A for delayed filing will not be triggered if the return is filed by September 15, interest under 234B continues till the date of actual payment if there is default in advance tax,' Raote said. She added that from a government perspective, 'delayed processing means delayed scrutiny and delay in the process overall. The Government also pays interest, which starts from the date of filing of the tax return.' However, according to Abhishek Soni, CEO and Co-founder of Tax2Win, "The extension of the ITR filing deadline from July 31 to September 15, 2025, does not increase the interest paid by the government on tax refunds. Interest continues to be calculated from April 1, 2025, up to the date the refund is issued, provided the return is filed by the extended due date. However, if the return is filed after the deadline, the interest amount may be reduced. " Final takeaway While the extension provides relief to those needing more time to file, the consensus among tax professionals is clear: taxpayers should aim to file early. 'While the ITR filing deadline extension provides taxpayers with additional time to file their returns, it also results in a longer waiting period for refunds. Consequently, eligible taxpayers will accrue more interest on their refunds due to the extended processing time. Taxpayers should file their returns promptly once filing is live to expedite the refund process.' said CA Shefali Mundra, Tax Expert, ClearTax. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
