Certification course on Balance Sheet Finalisation

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* Indian Finance Minister Mr P Chidambaram has taken a big step towards assessee in defaults as soon as budget came out.

* After Budget, revenue department used to send show cause notices to assessee who may find in default. First, around 35000 notices sent till 15th of March and another 35000 notices sent, and after sending these 70000 notices to assessee who have high profile but still not filed their return, sends another batch of 30000 notices.

* Finance minister said that pay their dues till 31st March with self assessment tax, don't wait for notice from department.

"The gross collection from revenue during April to January is Rs 4.55 lakhs crore which is very low as proposed.", he continued. The target of revenue is not achieved hence he further stated that it is really shocking that there are only 42800 asseessees (including Individual, HUF, Body corporate, Companies, Firms etc) in the country having taxable income of Rs 1 crore or above, there is no shame to disclose to have high income.

* IT department also sent notices who did not file their return though they do not have high profile.

* Every year huge amount of undisclosed income detected by IT department, in this year more than Rs 20,000 crore undisclosed income is detected.

* In the month of March IT department also disclosed amount of bogus bill. In Mumbai around 150 cases detected having amount of bills approx Rs 6500 crore and from Pune around 39 cases were detected having amount of bills approx Rs 722 crore.


* Income tax department has taken major step against TDS defaulters. IT department has decided to crack the whip on big companies and organisations that do not remit  TDS money even after deduction from workers wages.

* In the case of Kingfisher airlines, IT dept had asked the carrier to deposit around Rs 185 crore as TDS deducted from employees salary and wages. The supreme court had refused a relief to the grounded airline and asked it to deposit the due taxes under TDS.

* The Income Tax department slapped Rs 2000 crore tax notice to Nokia for non-deduction of TDS. In the year 2006 Nokia India downloaded software from its Parent company in Finland. As per IT department it attracts TDS @ 10% amounting Rs 2000 crore. Nokia India in turn got interim stay from Delhi high court.

* Samsung India also gets the same notice from IT department amounting Rs 1139.21 crore for the same reason that is non deuction fo TDS while making payment to sister concern and Samsung Korea in the assessment year 2006-07.


* Income Tax department slaps notice of Rs 138 croe excluding interest ti iPhone distributor Redington. The demand is based on directive from transfer pricing officer pertains to imputed profit on transfer of 100% shareholding in Redington gulf FZE to step down wholl owned subsidiary Redington International Limited in 2008-09 without any consideration.

* Income Tax department issued draft order on 15000 crore tax liability of Shell India. The demand is raised due to alleged undervaluation of shares when it raised money from its Global Parent Shell Gas BV a few years ago. The transfer pricing wing of IT department has finalised the order.


* Now keeping cash more than 50000 may bring attention to the IT department in the new form of Income tax return. The Government may ask non-salaried individual to declare cash in hand more than Rs 50000. 


Siddharth S Bumb



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@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
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