Zero Income Tax up to Rs 4.5 lakh– BUDGET LIVE

Finance Minister Arun Jaitley said he is slashing Income Tax paid by individuals by as much as 50% in some slabs. In the starting slab of 2.5-5.0 lakh per year, the income tax rate has been brought down from 10% of income above Rs 2.5 lakh to 5% of income above Rs 2.5 lakh. “If exemption under 80 c (for investments made in mutual funds and insurance up to 1.5 lakh) is utilized, tax will be zero for people with an income up to 4.5 lakhs,” Jaitley said as part…

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Mining baron Sekhar Reddy arrested after Income Tax raids

Sand miner Shekar Reddy has been arrested, two weeks after the seizure of crores of rupees and gold in an income tax raid. The arrest has come hours after Income Tax officials conducted a raid on Tamil Nadu’s top bureaucrat chief secretary P Rama Mohana Rao at his home. It was speculated that Rao’s home was raided on the basis of information obtained from the earlier raid. Income Tax raids has unearthed Rs 130 crore in cash including Rs 34 crore in new currencies and 177 kg of gold from…

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No Income Tax on FCCB proceeds, SC rules on RCom

The Supreme Court on Monday dismissed the petition filed by the Income-Tax Department against Reliance Communications on taxing of the proceeds of Foreign Currency Convertible Bonds (FCCBs), said the telecom operator. The Supreme Court order has quashed contingent tax liability of RCOM for about Rs 4,800 crore. During Financial Year 2006-07, Reliance Communications had issued FCCBs, as per the extant Guidelines of the Reserve Bank of India and applicable laws, aggregating US $1.5 billion, which amounted to around Rs 6,485 crore at the time. FCCB refers to money raised by…

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CURRENCY SWAP: 1 lakh cr done, 13 lakh cr to go?

The country’s biggest bank State Bank of India saw nearly Rs 40,000 cr deposited by the public in its branches in the first two days of the ongoing currency swap. A total of Rs 1,666 cr worth of notes were exchanged. Under the ongoing currency swap, bank customers can get up to Rs 4,000 worth of new currency notes in exchange for old currency from banks and post offices. Any extra money they need to convert has to be deposited. Once deposited, they can withdraw Rs 20,000 over two days….

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Income Tax Dept website now shows your bank accounts with cash transactions

Thanks to technology, the Income Tax department is now able to track all your bank accounts in all the banks in India, and show you the details on its website. The details of your accounts can be seen on incometaxindiaefiling.gov.in — the portal used to file your income tax returns. As of now, only those accounts which have substantial cash transactions are listed on the portal. This is helpful to avoid fraud in the context of the ongoing crackdown on black money. In other words, if someone else has opened…

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Currency Trap: IT Dept moves in on cooperative banks

With bank withdrawals restricted, the Income Tax Department seems to be taking the opportunity to move in on a long-time target of tax evasion investigators — co-operative banks. Several co-operative banks in Kerala have got Income Tax Department notices seeking details of deposits. It is not known if banks in other states have also got similar notices. Unlike mainstream banks, co-operative banks — mostly controlled by local politicians — have lax KYC requirements and often don’t ask for tax-related details such as PAN cards. This has led to these banks being used…

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