Latest news with #IncomeTax
The Hindu
21 hours ago
- The Hindu
CBI arrests I-T inspector, middleman while accepting ₹70,000 bribe
The Central Bureau of Investigation (CBI) team on Tuesday arrested Income Tax (IT) inspector B. Ramachandra Rao, working in Vijayawada, and middle man Rajaratnam alias Raju red-handed while accepting ₹70,000 bribe. The accused IT inspector allegedly demanded ₹5 lakh from the complainant for not taking action against the complaints received and not raiding his mobile phone shop located in Eluru. When the complainant expressed inability to pay ₹5 lakh, the inspector through the middleman agreed for ₹1.20 lakh. The accused would be produced in the Special Judge Court for CBI Cases, Vijayawada, the CBI said in a release.
Time of India
a day ago
- Entertainment
- Time of India
Kingdom: Who is Bhagyashri Borse? Vijay Deverakonda's heroine has a strong connection with Ajay Devgn
Bhagyashri Borse will soon be seen opposite Vijay Deverakonda in Kingdom, one of the biggest releases of the year. It is slated to hit the screens on July 31 and has created a buzz in the industry with its intense trailer. It also marks Vijay's first collaboration with Bhagyashri, who is regarded as one of Telugu cinema's bright upcoming stars. Born in 1999 in Aurangabad, the self-confessed Shah Rukh Khan fan made her acting debut with the Hindi film Yaariyaan 2 (2023). The young lady was also seen in Chandu Champion with Kartik Aaryan, which did not do well at the box office. Thereafter, she entered Telugu cinema with Mr Bachchan (2024). The film flopped but Bhagyashri emerged as a sensation with her bold screen presence. Interestingly, Mr Bachchan had a special connection with Ajay Devgn. Bhagyashri Borse's first Telugu movie was a remake of Raid Bhagyashri Borse, Vijay Deverakonda's Kingdom co-star, made her Tollywood debut with Mr Bachchan. The film was a remake of Ajay Devgn's Raid (2018). Mr Bachchan featured her as the leading lady opposite Ravi Teja and was released last August. Much like Raid, it centred on an Income Tax officer who is tasked with the responsibility of conducting a raid on the mansion of a local political leader. However, unlike Devgn's version, it featured commercial elements and a full-fledged romantic sub-plot. Mr Bachchan was directed by Harish Shankar and also featured Jagapathi Babu in a key role. It failed to meet the standards set by the Bollywood hit and ended up being a disaster. Shot on a budget of Rs 70 crore, Mr Bachchan earned just Rs 7 crore in its full run (as per Pinkvilla) and also received negative reviews with critics panning the treatment. Are you ready for Kingdom? Coming to the present, Kingdom has the potential to be a game-changer for Bhagyashri. The spy thriller is directed by Gowtam Tinnanuri of Jersey fame. According to reports in the Telugu media, she has a 'meaty' role in the film and it will add depth to the narrative. The plot centres on a constable (played by Vijay Deverakonda) who goes on a mission to rescue/find his brother. Satyadev plays the Arjun Reddy star's brother in the film and something happens to him in Sri Lanka. Kingdom is produced by Naga Vamsi and Sai Soujanya. Anirudh Ravichander serves as the music director. Kingdom is set to hit the screens on July 31.
The Herald Scotland
2 days ago
- Business
- The Herald Scotland
How you can beat unwittingly falling into 60 per cent tax trap
If you've just joined the 4% of UK individuals with an income of £100,000 or more, congratulations. It's a personal achievement that likely took years of hard work, late nights and careful saving and budgeting. And the number of those earning £100,000 or more is growing – in the 2022/23 tax year (the last year that data is available from HMRC) there were 1.35m people in the higher tax bracket – up 16% on the previous year. Since the national average UK salary is £37,500, earning £100,000 should feel more than comfortable. Yet often, it doesn't. Partly, because the cost of living has soared – but that affects all of us. More importantly, while wages have been steadily rising, personal tax thresholds have remained frozen since April 2021. As a result, more people are tipping into a higher tax band, and finding themselves falling unwittingly into the 60% tax trap. Earning a six figure sum can feel like being caught between a rock and a hard place. What is the 60% tax trap? They call it the 'stealth tax'. Most people are aware that Income Tax is charged at 0%, 20%, 40% or 45%, depending on the level of your income. The rates are slightly different in Scotland. However, the allowance for higher taxpayers tapers off as your level of income goes up, those with income between £100,000 and £125,140 can end up paying 60% tax, not 40%. If, for example, you're in a profession that rewards strong performance with good bonuses, a great year 'on paper' can have a nasty sting-in-the-tail at tax year-end. Why the 60% tax trap happens It's the freeze on tax thresholds that is the invisible tripwire that triggers the 60% tax trap. As a basic rate taxpayer, you're entitled to £12,750 personal allowance, which is the amount of income you can receive each year without paying Income Tax. Once your income is £100,000 or more, the personal allowance slowly reduces or tapers off. Currently, the allowance tapers down at a rate of £1 for every £2 of income above £100,000. In real terms, this means that for every £100 of income between £100,000 and £125,140, £40 is deducted in Income Tax, while another £20 is lost by the tapering of the personal allowance. You will also pay Employee National insurance at 2% on the income. This amounts to a 60% tax rate, plus National Insurance. It feels like a double jeopardy. Once your income is £125,140 or more, you are an additional rate taxpayer and lose the allowance completely – and pay 45% tax as a result. So, is it possible to mitigate the 60% tax trap? Beating the 60% tax trap – top up your pension One of the quickest and simplest ways to bring your taxable income below the threshold is to pay more into your pension before tax year-end. This is a win-win, since you reduce your tax bill and boost your retirement fund at the same time. Here's an example. You get a £1,000 pay rise or bonus, which takes your taxable income to £101,000. If you pay that £1,000 into your pension, you won't enter the 60% tax zone and you'll get the benefit of a 40% top-up on your contribution, thanks to the pension tax relief for higher rate taxpayers. The tax benefits of making pension contributions is limited by the annual pension allowance. The current standard annual allowance is £60,000 but it can be lower for high earners. It is, however, possible to 'carry forward' any unused allowances from the three previous tax years. Tax relief on personal contributions is also limited to a maximum of 100% of earnings in the tax year that you make the contributions. It's always a good idea to catch up with your financial adviser if there's been a change to your financial circumstances, positive or negative – to check on how you can stay tax efficient. Pension top-ups can cut your tax bill If you're just over one of the tax bands, topping up your pension can reduce the amount of tax you pay in a number of ways. Since any contribution you make reduces your taxable income (and gets tax relief) it's worth paying in as much as you can afford. A well-timed pension contribution might help you stay just below the higher rate tax band, so you avoid paying more Income Tax. If you are a higher taxpayer, remember you need to declare – and claim – that tax relief on your pension contributions on your self assessment tax return. Read more Money HQ: You can also massage your income back down below one of the tax band thresholds if you receive Child Benefit. High-income Child Benefit is a tax charge on families where one partner has an adjusted net income of more than £60,000. This is another 'tapered' charge, with an extra 1% deducted for every £200 of income over £60,000. Once the higher income earner hits £80,000, bang goes the benefit. If you're unsure about how to work out your adjusted net income, again – have a word with your financial adviser. Keeping on top of your taxes If there's one word to describe the UK tax system, it's 'complicated'. Regulations, as we saw in the Autumn Budget, can change frequently and even if you're more informed than most, it's easy to misinterpret the rules – and end up in the 60% tax trap without realising. Checking in with your financial adviser on a regular basis means you can often swerve any tax 'sinkholes' or at least manage them. Ben Stark is a chartered financial planner with over a decade of experience advising businesses and families. He is partnered with St. James's Place Wealth Management.
Mint
2 days ago
- Business
- Mint
Income Tax: Only evaders should fear invasive tax probes
Next Story Mint Editorial Board India's Income Tax bill is broadly welcome for simplifying this direct levy, but it has also raised some concern over digital privacy. We should tighten the operating framework under Section 247 to reassure earnest taxpayers. To minimize the scope for Section 247 to become a tool in the hands of venal elements, the taxman's bar for search and seizure operations should be set high. Gift this article When finance minister Nirmala Sitharaman announced during her 2025-26 Budget speech that the government was planning to overhaul the existing Income Tax Act and introduce a new tax bill, there was a round of applause from all taxpayers. When finance minister Nirmala Sitharaman announced during her 2025-26 Budget speech that the government was planning to overhaul the existing Income Tax Act and introduce a new tax bill, there was a round of applause from all taxpayers. The old Act had become cumbersome, difficult to navigate and abstruse across many parts, leading to differing interpretations and irreconcilable disputes. 'The new bill will be clear and direct in text," promised the finance minister, '[…] close to half of the present law, in terms of both chapters and words." This commitment was roundly welcomed, given the difficulties taxpayers and tax authorities faced in dealing with confusing provisions. The revision's basic aim was to simplify the law's language and retire redundant parts, while retaining the extant tax rates, definitions and framework for offences and penalties. Also Read: Mint Quick Edit | Income tax: How close should authorities look? When the new bill's draft was unveiled, it came as a breath of fresh air: it proposed to reduce the number of chapters from 47 to 23 and of sections from 819 to 536. But then, on closer scrutiny of the draft, alarm bells started going off in various accounting shops and law firms. Accompanied by lobby groups, they started raising a red flag over Section 247, which was viewed as a potential breach of the right to privacy. This contentious section empowers the taxman to access an assessee's digital assets and online spaces during search and seizure operations with the authority to override any password or access code. This would cover email servers, social media accounts, online investment and trading accounts, and also cloud storage of asset ownership details. The bill was referred to a select committee of Parliament headed by Bharatiya Janata Party member Baijayant Panda. In their depositions to this panel, Indian tax authorities and finance ministry officials argued that even the current Act allows officials to not only enter and search buildings, but also to break open locks of physical storage spaces for closer scrutiny of their contents. Given the proliferation of virtual spaces and digital assets, the same provision needs an upgrade to help tax officers ferret out undisclosed income. The authorities also argued that Section 247 does not conflict with the right to privacy, especially if we apply the three-fold test laid down by the Supreme Court's nine-judge bench that heard the K.S. Puttuswamy vs Union of India case. While the select committee has approved Section 247, with Parliament now expected to debate its fine details, it must be pointed out that history is witness to many such well-intentioned provisions turning into slippery slopes in the absence of sufficient guard-rails. In its present form, the bill appears to grant too many officers the authority to sanction forced access under a diffused command and accountability structure. This framework could prove prone to misuse, as the past has shown, and should be tightened. For example, publicly revealed instances of phone tapping have shown the innovative misuse of standard operating procedures whose original intent was noble. To minimize the scope for Section 247 to become a tool in the hands of venal elements, the taxman's bar for search and seizure operations should be set high. This would reassure earnest taxpayers and honour the five-letter foundation of India's proposed Income Tax law: trust. Topics You May Be Interested In Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Hans India
3 days ago
- Business
- Hans India
India's direct tax collections double as incomes rise, compliance grows
India's total gross direct tax collections (before adjusting for refunds) have more than doubled in the last five years, reflecting the high economic growth and improved tax compliance in the country, which has been encouraged with the introduction of the new digital technology. The increase in collections is backed by a 36 per cent jump in the number of Income Tax returns filed in the last 5 years, with around 9.19 crore ITRs submitted in FY 2024-25 compared to 6.72 crore in FY 2020-21 due to the robust expansion in the taxpayer base. The country's total gross direct tax collection stood at Rs. 12.31 lakh crore in 2020-21, which rose to Rs. 16.34 lakh crore in the financial year 2021-22, figures compiled by the Finance Ministry show. The trend continued in 2022-23 and 2023-24 as well, with the amount reaching Rs 19.72 lakh crore and Rs 23.38 lakh crore, respectively. This growth stems from a combination of economic recovery and improved efficiency in tax collection, according to an official statement. By FY 2024-25, the total Gross Direct Tax Collections climbed to an impressive Rs 27.02 lakh crore, which showcases the strength of the Indian economy combined with improved taxpayer compliance and the government's actions to expand the tax base, the statement said. The Indian tax ecosystem has witnessed remarkable growth through various technology-driven initiatives in a phased manner. The current series of PAN (10 digit alphanumeric) was launched in 1995 offering advantages like unique identification, information matching leading to widening of tax base. Linking of PAN with Aadhaar was undertaken in 2017 to improve compliance and eliminate duplication. Further, in recent years, initiatives like the setting up of the Centralised Processing Centre (CPC) in 2009 and the TDS Reconciliation Analysis and Correction Enabling System (TRACES) in 2012 led to automated processing of ITRs and issuance of refunds and resolving mismatch of Tax Deducted at Source (TDS), respectively, the statement said. The introduction of Tax Information Network (TIN) 2.0, a new tax payment platform, has been a trendsetter. With multiple payment modes, real-time credit of taxes, and faster processing of refunds, the department has not just streamlined the process but empowered taxpayers with greater flexibility and convenience, the statement said. With the establishment of the Demand Facilitation Centre at Mysuru, a central repository for outstanding demand has been created, which is a single reference point for both the taxpayer as well as the departmental officer. In the last decade, focusing on global technological revolutions, the Income Tax Department (ITD) launched PROJECT INSIGHT, building an integrated data repository, creating a "360-degree profile" of each taxpayer. This Data Warehousing and Business Intelligence platform represents a paradigm shift in how the department leverages data analytics for improving compliance and widening the tax base. Further, the Faceless Assessment Scheme launched in 2019 targets to enhance transparency, efficiency, and accountability by eliminating the physical interface between the taxpayer (Assessee) and the tax officer (Assessing Officer) through features like Automated Random Allocation and Electronic Communication. The Annual Information Statement (AIS) was implemented on the Compliance Portal of the Income Tax website on November 2021 which provides taxpayer's financial activities across the financial year, including records related to Tax Deducted at Source (TDS), Tax Collected at Source (TCS), stock market transactions, mutual fund investments, and other relevant financial data. Besides, the introduction of pre-filled returns, facilitated by the Annual Information Statement (AIS) and Taxpayer Information Summaries (TIS), facilitates filing returns. NUDGE, which stands for Non-Intrusive Usage of Data to Guide and Enable Taxpayers, has also been introduced, based on behavioural economics and psychology, which refers to a subtle suggestion or influence or intervention that can change the behaviour of individuals in a predictable way without limiting their freedom of choice. Accordingly, Section 139(8A) inserted by the Finance Act, 2022 permits taxpayers to file an updated I-T return within 24 months from the end of the relevant assessment year with effect from April 1, 2022.
