Mukesh Patel.in
practical tax & investment planning online
international tax expert / columnist / author / speaker

COERCIVE RECOVERY NOT JUSTIFIED!

HC holds that ITO should not act as a mere tax gatherer but as a quasi judicial authority vested with public duty!

“Administrative directions for fulfilling recovery targets for the collection of revenue should not be at the expense of foreclosing remedies which are available to assessees for challenging the correctness of a demand. The sanctity of the rule of law must be preserved.” With these observations, the Bombay High Court has come down heavily hammer and tongs, sharply criticizing the attitude of the tax officials in making coercive recoveries from taxpayers through attachment of their bank accounts. (more…)

ILLUSIONS LARGER THAN CONCESSIONS!

Tax reliefs granted by the FM in Budget 2012 are not only inadequate but also deceptive!

                   While the Finance Minister has been predictable, in announcing the much expected Rs.2,00,000 personal income-tax exemption limit (from the current limit of Rs.1,80,000), he has disappointed the lady taxpayer and the senior citizen by not making any significant increase in their respective exemption limits of Rs.1,90,000 and Rs.2,50,000.

                    Thus, while  all income-tax payers upto the taxable income of Rs.8,00,000 will get a tax benefit of Rs.2,060, a lady taxpayer has been handed only Rs.1,030 and the senior citizen (including Super Seniors above 80) virtually nothing by way of tax relief!

                     Taxpayers in the income range of Rs.8,00,000 to Rs.10,00,000 and Rs.10,00,000 and above shall have a definite reason to cheer, with tax saving of 10.3% and Rs.22,660 respectively. (more…)

DTC PANEL MOOTS MAJOR REFORMS!

Seeks more rational exemptions, liberal tax rates, greater accountability in administration & taxpayer friendly regime!

                   “We want taxpayers to celebrate DTC. I can assure you that our committee will make sure that the Direct Tax Code (DTC) is made as taxpayer friendly, as judicious and as equitable as possible,” assured Yashwant Sinha, former FM and Chairman of the 31 member Parliamentary Standing Committee on Finance, while responding to the presentation made by your columnist on the occasion of the interactive session on the ‘Challenges of Direct Tax Code’ held at Ahmedabad in May, 2011. It is indeed heartening for the taxpayers at large that the spirit of this positive assurance stands reflected in ample measure in the 364 page Report of the Parliamentary Panel on DTC presented to the Speaker on March 9, 2012. (more…)

SIMPLE PRE-BUDGET PRESCRIPTION!

Via meaningful reforms in tax administration FM can earn immense tax-payer goodwill without losing any tax revenue!

              There was a time until the mid-1980s when our direct tax rates were so high, that Indian taxpayers used to pray to the FM, “Take away all our income, just return us our taxes!” However, the past 25 years have witnessed a considerable rationalization in the direct tax rate structure. And, after the peak income tax rate was brought down to 30% in 1997, India’s finance ministers have been justifiably boasting of the country having world class tax rates. (more…)

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