Latest news with #IncomeTax
Time of India
an hour ago
- Business
- Time of India
Debt by cash transactions of over Rs 20,000 not legally enforceable: Kerala HC
The Kerala High Court on Friday declared that a debt created by a cash transaction of above Rs 20,000 in violation of the Income Tax Act is not a " legally enforceable debt " unless there is a valid explanation for the same. Justice P V Kunhikrishnan made the declaration while allowing a plea for setting aside the conviction and sentence of a man accused in a cheque dishonor case . Explore courses from Top Institutes in Please select course: Select a Course Category Others Management Technology CXO Data Analytics Product Management Digital Marketing Leadership Artificial Intelligence Data Science healthcare Public Policy Operations Management Cybersecurity MBA Degree MCA others Finance Data Science Project Management PGDM Skills you'll gain: Duration: 28 Weeks MICA CERT-MICA SBMPR Async India Starts on undefined Get Details Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT-ISB Transforming HR with Analytics & AI India Starts on undefined Get Details Skills you'll gain: Duration: 9 months IIM Lucknow SEPO - IIML CHRO India Starts on undefined Get Details The accused was sentenced to one year and imposed with a fine of Rs 9 lakh by a sessions court for the offence of dishonour of cheque due to insufficiency of funds in the account under section 138 of Negotiable Instruments (NI) Act. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Animal Advocate Begs: Never Do This With A Senior Dog ExpertsInPetHealth Learn More Undo In his appeal in the High Court against the sessions court decision, the accused claimed that as the amount of Rs 9 lakh given to him by the complainant was in cash, it was an illegal transaction according to the Income Tax laws. "Therefore, a debt created by an illegal transaction cannot be treated as a legally enforceable debt," the accused had claimed. Live Events Agreeing with the accused's contention, Justice Kunhikrishnan said that if a criminal court "indirectly legalises such illegal transactions in violation of the IT Act" by treating them as a legally enforceable debt, it will be against the aim of the country to discourage cash transactions above Rs 20,000. The High Court said that discouraging cash transactions above Rs 20,000 was also "a part of the 'digital India' dream of our country, which is propounded by our Prime Minister to save our economy and to curb a parallel economy in our country". "If the debt arises through an illegal transaction, that debt cannot be treated as a legally enforceable debt. If the court regularises such transactions, that will encourage illegal transactions by the citizens. Even black money will be converted into white money through the criminal courts," the High Court said. It further said that in such cases the accused should challenge such transactions in evidence and has to rebut the presumption under section 139 of the NI Act that "the holder of a cheque received it for the discharge of a debt or other liability". In the instant case, the accused had rebutted the presumption by claiming that the complainant does not have the source to loan out Rs 9 lakh and therefore, the debt alleged to be due to him cannot be treated as a legally enforceable one, the HC said. It allowed the accused's revision petition and acquitted him by setting aside his conviction and sentence by the lower court. The High Court said if anybody pays an amount in excess of Rs 20,000 to another person by cash in violation of the IT Act and thereafter receives a cheque for that debt, he should take responsibility to get back the amount, unless there is a valid explanation for such cash transactions. "If there is no valid explanation in tune with provisions of the IT Act, the doors of the criminal court will be closed for such illegal transactions," the HC said. It also made it clear that its findings would be prospective in nature.
Daily Mirror
5 hours ago
- Business
- Daily Mirror
Inheritance Tax rule change confirmed and how it will affect your loved ones
From April 2027, inherited pensions will be subject to Inheritance Tax and included in the 'estate' of someone who has died - here is what you need to know Grieving families will be forced to pay inheritance tax on pensions from April 2027 after a major shake-up was confirmed this week. Under current rules, if you die before the age of 75, the person inheriting your pension will not have to pay tax on your retirement savings. If you die after the age of 75, those who inherit your pension will pay Income Tax when they draw from it, as it will be treated as income. But from April 2027, inherited pensions will be subject to Inheritance Tax and included in the "estate" of someone who has died. The plans were first announced in the autumn 2024 Budget - but now, the Government has published draft legislation, outlining the changes. It confirms that the person receiving the inherited pension will be responsible for reporting and paying any Inheritance Tax due, as opposed to it being the responsibility of the pension provider. It also confirmed that death in service payments will not become liable for Inheritance Tax. HMRC estimates that about 10,500 estates in 2027/28 will have to pay Inheritance Tax in the 2029/30 financial year while 38,500 will face a larger bill. Steve Webb, partner at pension consultants LCP said: 'Life is tough enough when you have just lost a loved one without having extra layers of bureaucracy on top. 'In future, the person dealing with the estate will need to track down all of the pensions held by the deceased which may have any balances in them, contact the schemes, collate all the information and put it into an online calculator and then work out and pay the Inheritance Tax bill. 'All of this has to be done before a probate application can be made, potentially substantially slowing down the process of winding up an estate. 'Complications will no doubt arise where the family member cannot track down all of the deceased persons pensions or where providers are slow to supply the information needed to work out the IHT bill.' What is Inheritance Tax? Inheritance Tax is sometimes paid on the "estate" of someone that has died - this includes property, possessions and money. But under the current rules, very few people end up paying it. Inheritance Tax is only due for wealth transferred within seven years of death. If there is Inheritance Tax to pay, the standard rate you pay is 40% above anything above threshold, which is normally £325,000 - although this is often higher depending on who you leave your estate to. For example, there is no Inheritance Tax to pay when an estate is left to your spouse or civil partner. If you give away your home to your children - this includes adopted, foster or stepchildren - or grandchildren, then the Inheritance Tax threshold can increase to £500,000. This includes the basic £325,000 allowance, plus an additional £175,000. If you are married or in a civil partnership, any Inheritance Tax allowance that isn't used can be passed on when someone dies. This means a couple can potentially pass on as much as £1million without their estate being subject to Inheritance Tax. There are also ways to reduce how much Inheritance Tax is paid on your estate. Your rate of Inheritance Tax on some assets is reduced from 40% to 36% if you leave at least 10% of the net value after any deductions to a charity in your will.
New Indian Express
10 hours ago
- Business
- New Indian Express
CBDT chief highlights tax dept's digital transformation on 166th Income Tax Day in Odisha
BHUBANESWAR: Chairman of the Central Board of Direct Taxes (CBDT) Ravi Agrawal on Thursday highlighted the transformative journey of the Income Tax department towards greater transparency, efficiency, simplification, and digitalisation. In a video message on the occasion of the 166th Income Tax Day celebrated by the Odisha Region here, Agrawal also lauded the crucial role of taxpayers in nation-building and reaffirmed the department's vision to continue enhancing taxpayer services and streamlining processes. Principal chief commissioner of Income Tax, Odisha region, Paramita Satapathy Tripathy, said, 'Marking over a century and a half of dedicated service to the nation, the celebration highlights the department's ongoing commitment to voluntary tax compliance, taxpayer service, and nation-building.' The event featured a Chhau dance performance by the Mayur Art Group and an award ceremony honouring meritorious officers and employees for their exemplary service. Distinguished doctors from across the state were also felicitated for their decades-long contribution to society. Principal director of Income Tax (Investigation) Sandeep Goel, principal chief commissioner of Income Tax Saroj Kumar Mohapatra, and commissioner of Income Tax (Admin & TPS), Bhubaneswar, Shovan Krushna Sahu, were present.
Hans India
14 hours ago
- General
- Hans India
Income Tax Day celebrated at Viswam High School
Tirupati: As part of the nationwide observance of Income Tax Day, the Income Tax Department conducted a special outreach programme at Viswam High School, Jeevakona on Thursday. Dr K M Lakshman Kumar, Deputy Commissioner of Income Tax, Circle-1, Tirupati, along with his team, led the awareness campaign. The event began with a warm welcome from School Director N Viswa Chandan Reddy, followed by sapling plantation to promote environmental responsibility. Students were engaged through a PowerPoint presentation, video session and quiz competition on the importance of income tax in nation-building. Winners were felicitated with certificates. The Department also donated play kits and educational comic books to the school library. The event witnessed participation from over 100 students and was met with enthusiastic response.
Hans India
16 hours ago
- Business
- Hans India
ALC celebrates Income Tax Day
Vijayawada: Commemorating Income Tax Day, Andhra Loyola College on Thursday hosted an insightful guest lecture on Income Tax, aimed at enhancing financial literacy among its students. The session was led by Assistant Director of Income Tax Dommeti Sridhar providing students with essential up-to-date financial knowledge directly from the Income Tax Department. The event also featured Manohar, an IIT Graduate, who emphasised that paying taxes is a civic duty akin to building one's family, underscoring its foundational role in national development. Vijay, an alumnus of Andhra Loyola College (ALC), highlighted the simplicity of online tax portals and the stability of current tax policies, encouraging seamless compliance. The overall objective of the session was to foster a 'Together for a Strong Nation' spirit among the youth. Discussions covered practical aspects of taxation, including popular tax deductions under Section 80C, the convenience of online taxpayer services, and the crucial link between Intellectual Property Rights (IPR) taxation and innovation. This comprehensive session empowered students with real-world knowledge vital for both personal financial management and active participation in nation-building. Approximately 200 students from the Commerce and BBA departments actively participated in the programme, demonstrating a keen interest in understanding their future financial responsibilities. Certificates were distributed to the prize winners as part of the celebration. Fr Kiran Kumar, Vice-Principal II year, Dr L Subha, Dean of Student Activities, Nirmala Rani, Head of the Department of Commerce and Durga Pavani, Head of the Department of Business Administration also participated.
