Yuva Sai Sagar

Online news channel!

Tag: irs

Ahead of Budget 2017, Arun Jaitley says India needs globally compatible tax rates

Ahead of the Union Budget, finance minister Arun Jaitley has pitched for a lower level of taxation that is globally compatible. This, according to him,  is necessary if the country has to have a broader base of economy.

He said gone are the days of the philosophy that high taxation will bring greater revenues and that since 1991 the course of economy has altered itself.

Finance Minister Arun Jaitley. Reuters file photoFinance Minister Arun Jaitley. Reuters file photo

Finance Minister Arun Jaitley. Reuters file photo

“… What you need is a broader base of economy for which you need a lower level of taxation. You need to manufacture products and provide services which are more competitive in character and therefore your taxes have to be globally compatible,” Jaitley said while inaugurating the professional training of IRS officers.

The comments have raised speculation that the government may cut tax rates in the Union Budget for 2017-18 to be presented in Parliament on 1 February.

However, in a later tweet he also indicated that any such interpretation of his speech may be inaccurate.

Ever since the demonetisation of Rs 500 and Rs 1,000 notes, there has been speculation that the government may resort to some direct tax cuts to lessen the pain inflicted on the common man. A cut in income tax rates will placate the middle class, a key political constituency of the ruling BJP.

As far as corporate tax are concerned, Jaitley had laid out a road map for cuts in rates and exemptions in last year’s Budget.

In the speech on Monday, Jaitley also said competition is not merely domestic but global and therefore in the last two-and-a-half decades, the governments have been guided by these principles.

Tracing the behaviour of people in the last 70 years, the finance minister said there has been an impression if avoidance could be done of government revenue, there is nothing “improper or immoral” about it.

This was, he said, considered to be “commercial smartness” and of course some people were visited with very serious consequences.

He told the young revenue service officers that in coming future decades they should see that voluntary tax compliance has to increase in India.

“And the mindset of the tax payer (should be) that payment of legitimate taxes is a responsibility and then it should be reciprocated by you with a confidence in the tax payer. The tax payer is to be trusted, except when it’s proven otherwise.

And therefore only in those select cases, very objectively selected, you go in for a wider audit or a wider scrutiny itself,” Jaitley said.

With PTI

First Published On : Dec 27, 2016 08:35 IST

‘Indian call centres stole $300 million from Americans’

<!– /11440465/Dna_Article_Middle_300x250_BTF –>The five Indian call centres charged with defrauding thousands of Americans, stole more than US $300 million from their victims, US Homeland Security Secretary Jeh Johnson has said.The official on Thursday said an inter-agency effort resulted in the indictment of all five call centers and 56 people, including 31 from India, as well as the arrest of 20 others in the US, most of whom are Indians.Johnson said these were “engaged in defrauding thousands of victims, stealing more than a total of US $300 million.” The scheme involved a network of call centers based in Ahmedabad, where associates of the ring would call victims in the US impersonating Department of Homeland Security, Internal Revenue Services, or other government officials, demanding payment in order to clear fictitious arrest warrants, orders of deportation, or unpaid income tax, Johnson said.The five Ahmedabad-based call centers that made calls to people living in the US are global, Call Mantra, Worldwide Solution, Zoriion Communications and Sharma BPO Services.The Treasury Inspector General for Tax Administration (TIGTA), Department of Homeland Security, Department of Justice, the Internal Revenue Service and the Federal Trade Commission announced the indictments, the result of a three-year investigation that was the largest single domestic law enforcement action connected with the impersonation scam.”To date, more than 1.8 million people have reported to TIGTA that they have received an impersonation call; more than 9,600 victims reported that they paid the impersonators a total amount that exceeds US $50 million,” TIGTA Inspector General J Russell George said.”The largest single amount paid as a result of the IRS impersonation scam as charged in the indictment is US $136,000, paid by a victim in California,” George said.The US Senate Aging Committee, that studies issues related to older Americans, received more than 1,100 calls from senior citizens across the country on its fraud hotline in 2015.The most common complaint reported to the fraud hotline continues to be the IRS impersonation scam.

‘Indian call centres stole $300 million from Americans’: US Homeland Security

Washington: The five Indian call centres charged with defrauding thousands of Americans, stole more than USD 300 million from their victims, US Homeland Security Secretary Jeh Johnson has said.

The official on Thursday said an inter-agency effort resulted in the indictment of all five call centers and 56 people, including 31 from India, as well as the arrest of 20 others in the US, most of whom are Indians.

Johnson said these were “engaged in defrauding thousands of victims, stealing more than a total of USD 300 million.”

Policemen coming out of the call centre. ReutersPolicemen coming out of the call centre. Reuters

Policemen coming out of the call centre. Reuters

The scheme involved a network of call centers based in Ahmedabad, where associates of the ring would call victims in the US impersonating Department of Homeland Security, Internal Revenue Services, or other government officials, demanding payment in order to clear fictitious arrest warrants, orders of deportation, or unpaid income tax, Johnson said.

The five Ahmedabad-based call centers that made calls to people living in the US are Hglobal, Call Mantra, Worldwide Solution, Zoriion Communications and Sharma BPO Services.

The Treasury Inspector General for Tax Administration (TIGTA), Department of Homeland Security, Department of Justice, the Internal Revenue Service and the Federal Trade Commission announced the indictments, the result of a three-year investigation that was the largest single domestic law enforcement action connected with the impersonation scam.

“To date, more than 1.8 million people have reported to TIGTA that they have received an impersonation call; more than 9,600 victims reported that they paid the impersonators a total amount that exceeds USD 50 million,” TIGTA Inspector General J Russell George said.

“The largest single amount paid as a result of the IRS impersonation scam as charged in the indictment is USD 136,000, paid by a victim in California,” George said.

The US Senate Aging Committee, that studies issues related to older Americans, received more than 1,100 calls from senior citizens across the country on its fraud hotline in 2015.

The most common complaint reported to the fraud hotline continues to be the IRS impersonation scam.

Call centre scam: 6,400 US citizens complained to IRS last year: Thane police

<!– /11440465/Dna_Article_Middle_300x250_BTF –>As many as 6,400 US citizens had complained to the Internal Revenue Service (IRS) department of the United States (US), informing them of receiving threat calls to pay fine for defaulting on taxes. And ever since Thane Police chief Param Bir Singh made his email ID available to these US citizens – taken to ride by the fraudsters from Mira Road in Thane – and busted the call centre scam, the victims have been calling up Thane police to thank them.”Tejas Vakil from California called me up to say that his father was harassed by the fraudsters from Mira Road to the limits. The fraudsters had extorted $2,050 from Vakil’s father. Another person from Delhi informed that many US citizens known to him were duped by the syndicate in a similar fashion. After coming across several such instances, I made my email ID available to those duped in this fashion so that more victims can come forward. Last year, at least 6,400 US citizens complained to IRS of getting such calls,” Singh told dna.After having received a tip-off about such bogus call centres at Mira Road, police decided to gather evidence before conducting raids. “We scouted for a youth with good command over English and can win over the fraudsters. We came across a 25-year old and sent him as our mole in one of the call centres. He worked there for at least 15 days, gathering information and audio/video recording the interiors and the goings on there, based on which the raids were conducted,” he said.”Floor supervisors and team leaders had made it compulsory for the callers to record their calls with the US-based victims. This was mainly to keep track of the money that is being extorted. These call records will now be the biggest evidence against the fraudsters. We suspect that similar call centres could be operating in Mumbai and Gujarat as well. A team of US Federal Bureau of Investigation is also likely to visit soon to gather information about the syndicate,” said another police officer.The accused were so precise in their execution of con, that in some cases they called up the victims and asked them to visit a store where gift cards were available and share their 16 digits PIN numbers without cutting the calls. Some of the victims even cried and pleaded during the calls, police said.The modus operandiAccording to the victims, a few bogus call centres in Thane called them up over VOIP (Voice Over Internet Protocol) and demanded that they pay $10,000 as fine or go to jail for three months for tax default in US. They were told that they would be blacklisted, driving licences impounded and Social Security Number blocked if they fail to pay up.Sharing the spoils: Once the victims agreed to pay up, the fraudsters asked them to pay either through Target Gift Card or itunes money transfer system. The money generated through fraud were shared by the US and Indian members of the syndicate in the ratio of 30% and 70%.The police action: Police raided nine call centres at Mira Road in Thane from where the alleged fraudsters operated and arrested 72 people. They seized hard disks, servers and various equipment used by the fraudsters and also served notices to 700 others.

IPS, IRS officers to be appointed as Secretary, Additional Secretary

In good news for non-IAS Group A bureaucrats, the Centre has set in motion the process of empanelling IPS and IRS officers for appointment as secretaries and additional secretaries in different ministries.The posts of secretaries and additional secretaries are usually occupied by IAS officers.Cabinet Secretary Pradeep Kumar Sinha has written to secretaries of central government ministries and cadre- controlling authorities seeking nomination of officers for these posts.<!– /11440465/Dna_Article_Middle_300x250_BTF –>”It is proposed to draw up panels of IPS, IFoS and officers belonging to other Group A services for appointment at the level of Secretary and Additional Secretary in the government of India,” Sinha said in the letter.The move will bring some cheer to officers of Indian Police Service (IPS), Indian Forest Service (IFoS), Indian Revenue Service (IRS) and Indian Information Service (IIS), among others. They have been objecting to service-related benefits enjoyed by those in the Indian Administrative Service (IAS).A confederation representing these officers has also petitioned the Seventh Central Pay Commission seeking parity with IAS officers. The pay panel was divided on the issue of financial and career-related edge to IAS officers in its report submitted to the government in November.Sinha said those officers who have completed a minimum of 30 years of service are eligible for empanelment as secretary, whereas for additional secretary the requirement is a minimum 25 years of service.All concerned ministries and cadre-controlling authorities (like Finance Ministry for IRS, Home Ministry for IPS and Environment Ministry for IFoS) have been asked to send their recommendations by February 29 along with vigilance clearance from Central Vigilance Commission

Your TDS may come down by 50% if Centre accepts panel report

In a bonanza for consultants, brokers, house owners, small depositors, freelancers and all those paying TDS (tax deduction at source) on their income, the tax reforms committee, constituted by the Union government, has recommended 50% cut in TDS rates. It has also recommended a whole range of changes in TDS regime, including a raise in limit of bank interest and brokerage for TDS.In a 90-page report, which will be submitted to the Finance Ministry this week, the committee has instituted TDS reforms as one of the core recommendations for Union Budget 2016. Once endorsed, these recommendations will be incorporated in the coming budget.<!– /11440465/Dna_Article_Middle_300x250_BTF –>Multiple agencies, including third parties, deal in with Rs 41 lakh crore – liable for TDS payment – in a financial year. As many as 17 kinds of transactions are liable for TDS payment.The government has not revised TDS rate for many years. The report, as accessed by dna, has recommended that TDS rate on bank interest and broker’s commission be “reduced from 10% to five” in budget 2016. Over 80% taxpayers will fall in the bracket of average 5% TDS rate.The committee has proposed to raise TDS limit on bank deposit interest from Rs 10,000 to Rs 15,000.It also has a big relief to brokers. Currently, one has to pay 10% TDS on commission or brokerage of Rs 5,000 or above. The committee has suggested that the limit should be Rs 15,000 with 5% TDS.Similarly, National Saving Scheme (NSS) depositors may get a relief. Currently, interest of Rs 2,500 and above earned under NSS deposits attracts TDS. The committee has suggested that the limit be increased to Rs 15,000 and the TDS be reduced from 20% to 5%.Home and building owners will get a relief on rental income. The committee wants the limit of rental income for paying TDS be hiked from the existing Rs 1,80,000 to Rs 2,40,000. This TDS limit should also be applicable to plant, machinery and equipment, it said.The committee has recommended a complete overhauling and even deletion of irrelevant rules of different TDS components. For instance, ‘interest on securities’ have to deleted and should be merged with interest income as a new section (194 A) of Income Tax Act from June 1, 2016.The 10-member committee, headed by retired Delhi high court judge R V Easwar, was set up in November 2015 to simplify the 50-year-old Income Tax law. The other members of the committee are V K Bhasin (former law secretary), Dr Ravi Gupta (senior tax advocate) , Arvind Modi (IRS), Vinay Kumar Singh (IRS), Vinod Jain (chartered accountant), Rajiv Memani, (consultant), Mukesh Patel (chartered accountant), Ajay Bahl (consultant) and Pradip P Shah (investment adviser).Understanding TDSAny income or amount above the permissible limit, paid by a company, comes under TDS ambit. The company is supposed to deduct the tax on behalf of the government. Same is the case with Rs 10,000 and above interest on bank deposits. Here, banks will deduct the TDS and pass it on to the government.PROPOSED MAJOR TDS REFORMSIncome Current Limit Proposed Limit CurrentRate Proposed RateInterest income (Banks) Rs 10,000 Rs 15,000 10% 5%Interest income (Others) Rs 5,000 Rs 15,000 10% 5%Contractors payments Rs75,000 Rs 1,0000 1-2% 1-2%Commission/Brokerage Rs 5,000 Rs 15,000 10% 5%NSS Deposit Rs 2,500 Rs 15,000 20% 5%professn/tech fees Rs 30,000 Rs 50,000 10% 10%

© 2021 Yuva Sai Sagar. Theme by Anders Norén.