TAXATION NEWS

Direct Tax Collections Up

Net direct tax collections up to July 2008 stood at Rs.71,648 crore,

up from Rs.48,756 crore, registering a growth of 46.95 percent. The

cost of direct tax collection, on the other hand, had declined to an

all-time low of 0.54 percent during 2007-08, amongst the lowest in

the world.

Circular No. 7

CBDT has issued Circular No. 7 through which corporations which are

set up for the welfare and economic upliftment of ex-servicemen and

whose income qualifies for exemption from income-tax have been

exempted from TDS/TCS on their receipts.

Overwhelming response to e-filing

The facility of e-filing of income-tax returns has received

overwhelming response from the taxpayers. As on 31st July 2008,

12.49 lakh e-returns were filed compared to 1.46 lakh e-returns

filed up to the same date last year. About 97 percent of the 12.49

lakh e-returns have been filed voluntarily by individuals,

professionals and small businesses.


E Payment of Taxes

To facilitate e-payment of taxes CBDT has clarified that an assessee

can make e- payment of taxes from the account of any other person.

It is also clarified that tax deducted at source (TDS) or tax

collected at source (TCS) shall fall within the meaning of tax for

the purpose of e-payment.


Annexureless Returns

To enable taxpayers to file returns in the electronic mode, Income

Tax Returns (except ITR-7) have been made annexureless. The CBDT has

issued clarifications on annexureless returns.


Clarification on media reports

The Income Tax Department clarifies that the media reports on

processing of tax returns and issuance of refunds are delayed due to

shortage of manpower are incorrect and misleading.


Industrial Park Scheme 2008

CBDT has notified Industrial Park Scheme 2008 expanding the ambit of

industrial activity to include research and experimental development

on natural sciences and engineering, development of computer

software, and information technology enabled services.


Anticipated delay in issue of PAN cards

As a part of the modernization of computer infrastructure in the

Income Tax Department, the Computer Centers at Amritsar, Baroda and

Rohtak will be shutdown for a period from 27.06.2008 to 09.08.2008.

During this period the work of issue of PAN card would be stopped

completely in these centers.