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.

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News Network
March 27,2024

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Gokarna (Uttara Kannada): Karnataka Deputy Chief Minister D K Shivakumar on Wednesday said the Congress will decide about making him the Chief Minister in future, bringing to the fore again the issue of leadership change.

There was stiff competition between Siddaramaiah and Shivakumar for the Chief Minister's post after the Assembly election results in May last year, and the Congress had managed to convince the latter and made him the Deputy Chief Minister.

There were some reports at the time that a compromise had been reached based on a "rotational Chief Minister formula," according to which Shivakumar will become CM after two-and-half years but they have not been officially confirmed by the party.

During a temple visit here, a priest prayed that God's blessings may be showered on Shivakumar, and he became the Chief Minister.

Speaking to reporters here in Uttara Kannada district, Shivakumar, who has in the past made no secret of his ambition to become Chief Minister, amid speculations of change in guard mid-way of the Assembly term, responded to talk in some political circles about the leadership issue.

"What's wrong if a priest expresses his desire before God while praying? The priest has expressed his desire. Now Siddaramaiah is the Chief Minister, I'm working as Deputy Chief Minister under him, also as party's state President. People speak about it and desiring it (Shivakumar should become CM) is a different matter, it will be decided by our party," Shivakumar said.

"Now we are all working under the leadership of Siddaramaiah, and our desire is that the state should progress further under his leadership," he said.

"There will be people including supporters and priests, who pray for us, they will express their opinion. Can we stop them from doing it? At the temple it is between God and his disciple, they have expressed their feelings to God," Shivakumar added. 

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News Network
March 18,2024

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Mangaluru, Mar 18: The rising temperature has become a growing concern for residents of coastal district of Dakshina Kannada, as the issue of drinking water shortage continues to worsen in several parts. 

Though the water supply of Mangaluru city has not been affected much, nearby urban local bodies, including Ullal, Kotekar, Bajpe and other parts on the outskirts of Mangaluru have been facing an acute shortage of drinking water.

Though the water level in the Thumbe vented dam across Nethravati River has started going down in the last few days, officials have ruled out possibility of rationing the water supply in the city.

According to officials, the water level at Thumbe dam of the Mangaluru City Corporation (MCC) stood at 5.8 m as against the maximum storage capacity of 6m height on March 16. The water level at the dam during the same period last year was 5.3 metres. The water level reduced from 5.9 m on March 15 to 5.8 m on March 16 due to the scorching heat, causing evaporation.

The MCC has been drawing 160 MLD of water from the Thumbe vented dam. According to officials, without inflow, the maximum water stored in the dam will be sufficient for only 50 days. Meanwhile, the MCC has already started pumping backwater from downstream of the Thumbe vented dam back to the dam using pumpsets. Water from Thumbe dam can be drawn only if it has more than 1.5m of water in it.

DC Mullai Muhilan MP said that the district administration is closely monitoring water levels in all the dams that supply water.

The AMR dam located upstream of Thumbe dam has 18 m of water from sea level. If the water level in the Thumbe vented dam recedes, then water from the AMR dam will be released into the Thumbe dam. There is water in a dam at Biliyoor, which is located upstream of the AMR dam, the DC said.

“Drawing water for irrigation purposes from Thumbe and AMR dams has been banned,” the deputy commissioner said, adding that an order in this regard has already been issued. Some of the pockets in rural areas too have started facing water crisis.

“We have made arrangements to supply water through tankers in Ullal, Kotekar and Bajpe areas. We will not introduce water supply rationing in MCC limits for the time being,” he said and appealed to citizens to use water judiciously.

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News Network
March 14,2024

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Udupi: In a freak mishap, a 65-year-old man lost his life after being hit by his own bus which was being repaired at a garage at Athrady in Udupi district on Wednesday, March 13.

The deceased has been identified as Dayanand Shetty, the owner of a private bus.

It is learnt that the bus had been kept for repairs at the garage and Dayanand had gone there to inspect the repair works.

At this time, the mechanic started the engine and the bus moved ahead. Dayanand, who was standing in front of the bus, came under its wheels.

He was immediately rushed to a hospital where he died without responding to the treatment. A case is registered at jurisdictional Manipal police station.

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