Byte on while staying informed about the latest tax updates.
Here’s a food for thought – in 1705, Russian Emperor Peter the Great placed a tax on beards, hoping to force men to adopt the clean-shaven look that was common in Western Europe – isn’t this strange?
This Week’s Dose-
- Ever wondered how much is India’s TAX REVENUE?
- Risk Management Process – emails from ITD. Should you PANIC?
- Some things never change in India – startups left FUMING
- On a mission to simplify taxes – launching Quicko’s Tax compliance Tools and Calculators
Ever wondered how much is India’s Tax Revenue?
India’s total Tax Revenue was over 13 lakh crore for the F.Y. 2018-2019. Ever wondered what are the sources of tax inflow for India? Here is the breakup of all the tax sources.
Risk Management Process – emails from ITD. Should you PANIC?
A much appreciated move.
I-T Department announced tax refunds worth INR 5 lakh crore amidst the Covid 19 crisis. Income tax refund worth INR 5,204 Cr. has already been issued, another INR 7,760 Cr. will be issued at the earliest. This might prove as a major relief to thousands of taxpayers.
“Risk Management Process”
A number of taxpayers claiming refund have been getting emails by the I-T Department saying, “Your Income Tax Return has been selected under risk management process wherein your confirmation is required on the claim of refund…”
The ITD is trying to…
Confirm 2 things –
- First, the amount of claim for the refund is correct
- Second, the bank details are correct so that the amount is not credited to an incorrect bank account
Hence this is not a notice by the tax department and nothing to panic about.
Keep in mind
These details need to be confirmed within a period of 30 days. It can be said that the Government will process refunds as and when the taxpayer confirms the details.
The earlier you act upon this, the faster your refund process gets.
Track your ITR Refund Status here.
Some things never change in India – startups left FUMING
The gist of it.
The Angel-tax issue resurfaces. I-T Department starts adjusting refunds against outstanding amounts. To make matters worse, tax issues are already pending in the courts. Also, the Government had revoked angel tax for Indian startups last year.
A new twist…
The ITD will adjust the refund amount against the pending angel tax dues (which is under dispute in the courts).
Most startups have filed an appeal against the pending-angel-tax issue with the income tax appellate tribunal. But cases have not been moved for a long time. The situation in concern can be termed as quasi-judicial, since the government cannot intervene directly. Hence it has been futile to raise the issue with the ministry of finance. And since government officials are only semi-functional, nothing has been happening with the pending cases. To add on to the mess, finance minister Nirmala Sitharaman had it very clear that the pending will be resolved.
Add on the crisis
This unexpected development comes when the entire India-startup ecosystem is badly crippled with the recession triggered by the Covid-19 pandemic. One of the longest economic slowdowns has turned into a recession. Startups have been facing a historic funding crisis. And most of them have been reporting huge losses.
Do you think when it comes to friendly policies, the government is all talk and no action?
On a mission to simplify taxes – Tax compliance Tools and Calculators
Just Launched Tax Compliance Tools & Calculators.
You can now track ITR Refund status, PAN card Application status, GST Refund status online without hassle.
Byte of the Day
“Next to being shot at and missed, nothing is quite as satisfying as an income tax refund.”– F.J. Raymond