Govt’s net tax collection rises 86% to Rs 5.57 lakh crore in Quarter1

Govt’s net tax collection rises 86% to Rs 5.57 lakh crore in Quarter1

Parliament was informed on Monday that the government’s total tax collection increased by almost 86 percent in the April-June quarter to more than Rs 5.57 lakh crore. Net direct tax collection totaled Rs 2.46 lakh crore, while indirect tax collection totaled Rs 3.11 lakh crore.

Minister of State for Finance Pankaj Chaudhary said, “The net direct tax collection in the first quarter of FY 2021-2022 is Rs 2,46,519.82 crore as against Rs 1,17,783.87 crore during the same period of previous FY 2020-21, representing a growth of 109.3 percent.”

In the first quarter of FY 2021-2022, net indirect tax collection was Rs 3,11,398 crore, up from Rs 1,82,862 crore in the same time the previous year, a 70.3 percent increase.

In response to another query, Chaudhary stated that the Income Tax Department takes appropriate action against tax evaders in accordance with applicable legislation.

Searches, surveys, inquiries, income assessments, tax levy, interest, penalties, and the filing of prosecution cases in criminal courts, if applicable, are examples of actions taken under direct tax laws.

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Furthermore, under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act of 2015, more than 107 criminal complaints have been submitted.
Assessment orders under the Act had been issued in 166 cases as of May 31, 2021, with a total demand of Rs 8,216 crore.

In the HSBC cases, concealed income of around Rs 8,465 crore was brought to tax, and a penalty of Rs 1,294 crore was imposed. In ICIJ (International Consortium of Investigative Journalists) cases, the undisclosed income of almost Rs 11,010 crore has been discovered.

Representation on 10 issues relating to GST

Undisclosed credits totaling Rs 20,078 crore and Rs 246 crore have been discovered in the Panama Papers and Paradise Papers disclosures, respectively.

 

National Savings Certificate – Benefit, Lock In

Is NSC tax-exempt?

NSC meets all requirements for duty reasoning under Section 80C of Income Tax Act and along these lines your speculation up to Rs 1,50,000 would be qualified for expense conclusion from salary. One thing to remember is that there is no maximum farthest point on the sum put resources into the plan yet you won’t get any expense alleviation for a sum surpassing Rs 1,50,000. Moreover, the accumulated premiums on the declarations are likewise added to the central venture and in this way they additionally fit the bill for a duty decrease.

For instance, you are contributing Rs. 1000 in the testaments and this makes you qualified for finding in assessments on the vital sum for the main year. In the second year, you can request charge conclusions on the speculations that year just as the intrigue accumulated on the essential sum in the principal year. You can guarantee charge reasonings independently on the grounds that the premium is added to the speculation and is every year exacerbated.

Is Interest on NSC taxable?

The premium that is gathered every year is collected in the record and afterward gets added to the first interest in the NSC account. This amassed intrigue gets an expense discount under area 80C of the Income Tax Act.

Since the development time of NSC is five years, the premium can be re-contributed just for a long time. The premium earned in the fifth year comes in the hand of financial specialist with the development sum. So essentially, the tax reduction is benefited just on the underlying initial four years of the speculation time frame. The premium earned in the fifth and last year is assessable.

We should take a precedent, assume you have put Rs 10,000 in NSC that offers a loan cost of 8%, which would create Rs. 800 as the enthusiasm toward the year’s end. Presently while recording your Income Tax return, you will have an alternative of proclaiming this pay created from enthusiasm as assessment deductible u/s 80C gave that you have not depleted the point of confinement of Rs 1,50,000 as of now. In the event that you choose to announce the premium u/s 80C, the premium would be reinvested and added to the essential sum (making it Rs 10,8000). In the event that you have depleted your breaking point of finding under area 80C than the premium earned would be exhausted and it won’t be reinvested. Be that as it may, the premium earned on the interest in the most recent year isn’t tax-exempt since it can’t be included the important and is recorded under ‘Pay from different sources’.

Note: The most extreme help under area 80C is Rs 1,50,000. On the off chance that you have just practiced the greatest alleviation, at that point you won’t most likely profit advantage on premium earned u/s 80C and thus will be at risk to make good on government obligations.

Is NSC taxable on withdrawal?

NSC is paid on development, this incorporates the contributed sum and the premium earned.

The underlying speculation is tax-exempt gave that you have filled it for finding u/s 80C. On the off chance that you have been reliably profiting charge refund under area 80C, at that point upon development the premium earned in the most recent year will be saddled as it can’t be reinvested in the record.

On the off chance that you have not settled on assessment help than you would need to make good on government expenses on the premium earned. One thing to recollect for this situation is that there is no Tax Deduction at Source (TDS) on account of NSC. It is your obligation to record right Income government forms which ought to incorporate the assessments payable on premium earned.

What are the upsides of investing into NSC?

To put it plainly, the advantages offered by NSC are numerous and some of them are somewhat special:

  • The premium earned is essentially charge exempted notwithstanding for a year ago.
  • Contributed sum is charge exempted under area 80C of Income Tax Act.
  • One can make ventures beginning from Rs 100 and there is no maximum point of confinement on the contributed sum.
  • Premium earned is exacerbated, bringing about higher returns.
  • NSC can likewise be taken in the interest of a minor.
  • NSC can be utilized as guarantee for verifying credits from banks.
  • Generally safe speculation alternative with Government backing.
  • Most elevated return rate among other fixed rate speculation choices.
  • Simple venture choice as they are accessible at all post workplaces.
  • A copy testament can be masterminded if the first is lost or harmed.

What are the disadvantages of NSC?

As observed, the NSC plot offers numerous favorable circumstances yet it additionally accompanies a few hindrances. It comes up short on a couple of advantages which are offered by other speculation plans like

  • It doesn’t offer a reinvestment choice, so you would need to purchase another authentication each time you choose to put resources into this plan.
  • The financing cost offered is fixed and subsequently may not offer genuine returns whether they fall underneath swelling.
  • The proposed e-mode for buy is as yet not accessible at many post-workplaces and national bank.

Public Provident Fund

Public Provident Fund: a Stable system of tax planning.

The only answer to the question of how to save income tax and those who are self-employed and self-employed is a single answer-Public Provident Fund. The Public Provident Fund Account (PPF) is a three-term long-term investment scheme with cash withdrawals, interest received and withdrawal of funds.

PFF, which is associated with the interest rate market for all three months as well as other small deposits, will now pay interest at a nominal interest rate of not exceeding 7.6%. Learning about the investment plan will help to make the ending of the tax deduction.

Public Provident Fund

Regular reinvestment

PUBLIC PROVIDED FUNDS DATA DURING the term of 15 years, the term of withdrawal can be withdrawn during the last financial year. Those who used the Public Provident Fund account for up to six years of income tax have been able to withdraw money using this facility for the seventh year and benefit from the tax hike.

Seven years will not have to make any other money to invest in tax concessions. Taxes not withdrawn due to tax withdrawal are not considered as revenue, but the recovered deposit will be eligible for tax concessions.

Partial Withdrawal

The withdrawal amounted to 50 percent of the balance sheet. At the end of the preceding financial year, the withdrawal amount is 50 percent. In the financial year 2011-12, the investment can be partially withdrawn in the 2017-18 financial year.

The amount that can be withdrawn by half the value of the balance sheet from the end of the 2013-14 financial year or the amount of the amount from the end of the 2016-17 financial year.

The withdrawal amount can be deposited in the account and can be a taxpayer for 2017-18. Taxes can be planned as well as those that can be repeated in the years to come. Those who have not made a key component of the public provident fund account in tax planning will start using this later this year and will be able to use this extra feature in the future.

Loan Availability

There is also a need to avail loans at the time of completion of the financial year beginning with the account. The loan is entitled to 25% of the remaining amount, including interest on the second year after the loan year. The interest on loan will be above 2% of the interest rate paid on deposit when it comes to loan. Borrowing should be repaid within 36 months. Repay the loan for one or two months or more.

Reimbursement from the repayment amount will be paid to the account. Loans will not be repaid within 36 months and the rate of interest is 6% instead of 2%. The loan is only allowed until the end of the sixth financial year. This means that after this the partial withdrawal is partially withdrawn. In order to repay partially the amount will be deducted from the outstanding loan.

As a social security plan, the balance in the public provident account cannot be reduced to all other liabilities of the account holder. Courts have been barred from issuing judgments to seize existing liabilities from their PPF accounts. PPF account can be opened on Post Offices, nationalized banks and some private banks. 1.5 lakh per annum in the financial year. The accounts starting from post offices also have the ability to change the bank and vice versa.

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