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Rs.46,038.70 crore sanctioned as states' share in central taxes and duties for May
On 18 May, the Finance Ministry stated that Rs.46,038.70 crore has been sanctioned as the instalment of the devolution of the state’s share in central duties and taxes for May.
According to the tweet, this release in funds is similar to the releases in April and has been calculated based on the tax receipts projected on the Budget 2020-2021 and not as per the actuals. The primary objective of the government of India has been to protect the revenues of the state and help them meet their liquidity requirements during the crisis of the COVID-19 pandemic.
According to the budget, the projected share of the states in taxes was at Rs.7.84 lakh crore for the year 2020-2021 and the 15th Finance Commission had suggested the share of states at 41% of the divisible pool and 1% to the new Union Territories of Jammu and Kashmir, and Ladakh, with a total of 42%.
The state-wise breakup of the funds are the highest to the state of Uttar Pradesh at Rs.8,255.19 crore, Rs.4,631.96 crore to Bihar, Rs.3,461.65 crore to West Bengal, Rs.1,892.64 crore to Andhra Pradesh, Rs.1,564.4 to the state of Gujarat, Rs.1,441.48 crore to Assam, and Rs.894.53 crore to Kerala.
22 May 2020
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Tax regimes can be switched every year
The Union Budget 2020 unveiled two tax regimes: The old one offering higher interest rates while availing the existing deductions and exemptions and a new one offering lower interest rates but without the income tax deductions and exemptions. The government has now announced that these regimes can be switched every year. The exception for this would be for individuals who have a business of their own. In order to simplify the taxation process, the government is also considering income tax return forms that are prefilled. The Central Board of Direct Taxes is also considering the adoption of a taxpayer charter that will ensure that taxpayers are not harassed. In order to further simplify the tax structure, the government is planning to gradually phase out exemptions and deductions.
12 Feb 2020
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Budget 2020: Taxpayers’ charter to be institutionalised says Finance Minister
Finance Minister Nirmala Sitharaman reassured taxpayers that several steps are being put into action in order to eliminate tax harassment during her Budget 2020 speech. She also said that taxpayers’ charter will be institutionalised.
Taxpayers are expecting exemptions on various allowances amidst speculations that the finance minister might not propose any substantial cuts in the personal income tax rates.
01 Feb 2020
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5 speculative changes to income tax in the Union Budget
There are a number of speculations regarding income tax in the upcoming Union Budget. Some of these are: There might be some rationalisation in the income tax slabs in order to moderate it; withdrawal of dividend distribution tax and taxing it for shareholders at concessional rates; abolishment of Securities Transaction Tax (STT) on listed securities or exemption of Long Term Capital Gains Tax on the sale of listed securities; tax sops for home loans in order to boost the flailing real estate sector such as an annual Rs.1.5 lakh deduction on the principal repayment amount; increasing the income tax benefit for the National Pension Scheme (NPS) to Rs.1 lakh, and extending the 14% tax-free contribution to all subscribers of NPS categories.
29 Jan 2020
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Major highlights of Budget 2019-20
The interim Budget for the financial year 2019-20 was announced on the 1 February 2019 by the interim Finance Minister Piyush Goyal. This budget has been driven by a populist push and the main purpose of it is to offer benefits to the middle class, salaried individuals, farmers, and so on. Some of the important highlights for the 2019-20 interim budget can be summed up as follows:
- Individuals drawing an income of up to Rs.5 lakh will be eligible for a full tax rebate.
- Individuals drawing an income of more than Rs.5 lakh will be falling under the prevalent tax slabs.
- The individuals who draw a gross income of Rs.6.5 lakh will be able to receive full tax exemption if they make investments in provident funds, insurance, or other specified savings schemes.
- The standard deductions for salaried individuals has been increased to Rs.50,000 from Rs.40,000.
- The TDS threshold has been increased to Rs.2.4 lakh from Rs.1.8 lakh for rental incomes.
- The upper limit for gratuity has been increased from Rs.10 lakh to Rs.30 lakh.
- The defence budget has been announced and it has hit an all-time high of Rs.3 lakh crore.
- Farmers with a holding of less than 2 hectares of land will be eligible to receive Rs.6,000 per annum in 3 instalments under the Pradhan Mantri Kisan Samman Nidhi scheme.
15 February 2019
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Cess on Income Tax Increased to 4% from 3% by Budget 2018
A proposal to increase the cess on income tax has been made by Arun Jaitley, the Finance Minister of India, in Budget 2018. The cess is expected to increase by 1% to 4%. Owing to such a change, individuals who fall in the top-most tax bracket increases. For instance, an individual earns Rs.15 lakh per annum, his tax liability through the cess shall increase by Rs.2,625. Individuals who fall in the middle-income group, i.e. those who earn Rs.5 lakh to Rs.10 lakh per annum, will see the liability rise by Rs.1,125, and those who fall in the lowest bracket, i.e. those who earn Rs.2.5 lakh to Rs.5 lakh will see their liability rise by Rs.125. At the moment, 3% is charges as cess on income tax, and out of this, 2% is education cess while 1% is senior secondary education cess.
6 February 2018
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Custom Duty Increased to 25%, Luxury Cars to Cost More
Arun Jaitley, the Finance Minister of India, proposed increasing the custom duty applicable to luxury cars manufactured abroad. All motorcycles and cars that are imported for assembly shall be more expensive as custom duty has risen from 10% to 15%. Custom duty on motor vehicles that are imported as fully constructed units shall also be more expensive owing to a rise in custom duty from 20% to 25%.
2 February 2018
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Women to Benefit From Budget 2018
Arun Jaitley, the Finance Minister of India, announced beneficial measures for the female populace of the country. In addition to social protection benefits like construction of an extra 2 crore toilets across the country as well as electricity for all, the aim of the government is to make rural women more self-reliant. Female self-help groups will see the loans increase to Rs.75,000 crore from Rs.42,000 crore this financial year. In the first three years, women's contribution to EPF will be lowered to 8%. Over 8 lakh women across rural areas shall receive free LPG supply too.
2 February 2018
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Custom Duty Increased to 25%, Luxury Cars to Cost More
Arun Jaitley, the Finance Minister of India, proposed increasing the custom duty applicable to luxury cars manufactured abroad. All motorcycles and cars that are imported for assembly shall be more expensive as custom duty has risen from 10% to 15%. Custom duty on motor vehicles that are imported as fully constructed units shall also be more expensive owing to a rise in custom duty from 20% to 25%.
2 February 2018
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Women to Benefit From Budget 2018
Arun Jaitley, the Finance Minister of India, announced beneficial measures for the female populace of the country. In addition to social protection benefits like construction of an extra 2 crore toilets across the country as well as electricity for all, the aim of the government is to make rural women more self-reliant. Female self-help groups will see the loans increase to Rs.75,000 crore from Rs.42,000 crore this financial year. In the first three years, women's contribution to EPF will be lowered to 8%. Over 8 lakh women across rural areas shall receive free LPG supply too.
2 February 2018
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Upcoming Budget Could Offer Tax Benefits For Electric Vehicles
Incentives may be offered by the Central Government in an effort to encourage people in the country to purchase electric vehicles. The Goods and Services Tax applicable to electric vehicles could be lowered, while tax benefits could also be extended in the 2018-19 Budget. The Government of India has plans to have only electric vehicles for public transport, while 40% of all personal vehicles are expected to be electric come the year 2030.
Sources in the industry have revealed that Arun Jaitley, the Finance Minister of India, may announce the tax benefits applicable to electric vehicles in the upcoming Budget on February 1, adding that plenty of brainstorming has been taking place thus far. The GST applicable to electric vehicles may come down from the current 12% to just 5%, and the income tax benefits that may be offered in addition to a lower GST is expected to make these vehicles more alluring to individuals across the country. RK Singh, the Power and New and Renewable Energy Minister, said recently that incentives must be given to electric vehicles.
31 January 2018
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GST madeeasy Comes as a Boon to the New Tax Regime
In order to render GST tasks comparatively facile and effortless, a revolutionary digital solution called GSTmadeeasy was launched recently. With the goal of making every Indian SME and MSME thoroughly GST complaint, this comprehensive digitization is being viewed as the “game changer" for the new tax reform of the country.
Offering thoroughgoing business solutions, GSTmadeeasy takes care of a multitude of tasks efficiently. From the purchase of invoices (including unlimited invoices), digitization of sales, resolution of disputes, reconciliation of tax ledgers to filing returns and online taxation, GSTmadeeasy is your go-to digital solution to all GST-related issues.
Where the technological aspects are concerned, GSTmadeeasy offers a user-friendly POS solution which is utterly different from the earlier versions of software. Along with providing useful data, you will henceforth be able to operate GSTmadeeasy offline as well.
Along with all the aforementioned features, GSTmadeeasy also provides a Help Desk number which is toll-free to address and solve all your problems on a real-time basis.
31 January 2018
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National Health Policy cleared by Cabinet
The Union Cabinet approved the National Health Policy after it was deferred twice previously. A suo motu statement will be made in the Parliament by Health Minister J P Nadda in order to make the details of the new policy public as there cannot be a policy announcement outside the House while Parliament is in session. This policy ensures that health is an entitlement but is not a fundamental right as envisioned by the draft policy. It does not provide a legislative backing for right to health. A constitutional amendment would be needed to bring health in the concurrent list from where it is presently on the state list.
In the present policy, health services are only ‘assured’. However, discussions of imposing a health cess similar to the education cess that was put forth after RTE was legislated. It also talks of increasing public expenditure on health to 2.5% of the GDP.
16 March 2017
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Budget 2017: There won't be any service tax on health care services
Regarding the Budget 2017, the government noticed speculation on social media pertaining to the proposal of service tax on healthcare service. The government has clarified that there won't a service tax on health care services. Some of the media channels had mentioned a proposal of 5% service tax on health care services. The government confirmed that the Union Budget 2017 doesn't have any proposal of service tax for the health care services. The proposal of service tax was dropped in the Budget of 2011-2012 itself due to strong opposition.
15 February 2017
