Income tax – Im Just Sayin http://imjustsayin.net/ Tue, 24 May 2022 22:47:09 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://imjustsayin.net/wp-content/uploads/2021/10/icon-5-120x120.png Income tax – Im Just Sayin http://imjustsayin.net/ 32 32 Would you accept 15% GST for a BIG income tax cut? https://imjustsayin.net/would-you-accept-15-gst-for-a-big-income-tax-cut/ Tue, 24 May 2022 22:47:09 +0000 https://imjustsayin.net/would-you-accept-15-gst-for-a-big-income-tax-cut/ Look for! It’s only been four days and the new Labor government is already tied to tax reform, which still means that if changes happen along the way, some people will pay less tax and others will pay more. To be clear, no one from Prime Minister Albanese’s team is publicly leading this tax discussion […]]]>

Look for! It’s only been four days and the new Labor government is already tied to tax reform, which still means that if changes happen along the way, some people will pay less tax and others will pay more.

To be clear, no one from Prime Minister Albanese’s team is publicly leading this tax discussion in The Australian today, but you can never rule out that Labor may have a public relations group working to put the tax on the table for discussion in the halls of power and in society at large via the media.

And here I am already playing ball!

Before we look at what might happen there, if Labor gets the support it needs to change our tax system, you have to remember that most countries have a secret battle between the under-taxed and the over-taxed. And the funny thing is that both groups think they are overtaxed!

The trigger for this tax discourse is the OECD, which tells us that we are the fourth overtaxed country in the world! Well, that’s an exaggeration, but that’s what people hear when someone like me covers this story in the media.

To be specific, the Paris-based think tank, the Organization for Economic Co-operation and Development (OECD), claims that we are the fourth highest country when it comes to income taxes and that is why many Famous Australian politicians (such as John Hewson, Malcolm Turnbull and others) tried to cut income taxes and increase the GST. They were all either dumped by voters or their party, or they dumped the issue that always seemed to be in the “too tough” basket.

In fact, during Albo’s speech at Business Sydney ahead of the election, a reporter asked him if he had any plans for tax reform and his response was basically, “No! Following!”

Our new Prime Minister may not read enough economics to know all the current reading on economics, but he knows his politics and you can’t easily win an election promising more taxes, like Bill Shorten did. discovered in 2019.

John Howard got away with it when he charged us GST in 1998, but it was a short-lived affair, as Wikipedia reminds us: “Before the 1998 election, Howard proposed a GST that would replace all existing sales taxes and apply to all goods and services. During the election, the Howard Government suffered a swing against him of 4.61% in the election, achieving a preferred vote of both parties of only 49.02%, compared to Labor [at] 50.98%. Nonetheless, the incumbent government retained a majority of seats in the lower house, and Howard described the election victory as a “GST mandate.” Missing one Senate majority, and with Labor opposed to the introduction of the GST, the government turned to smaller parties such as the Australian Democrats to gain the support needed to pass the necessary legislation through the Senate.

To entice us to buy a GST before an election, Howard gave us big income tax cuts, but that didn’t help because over time future governments didn’t have the guts to raise the GST and promise income tax cuts.

This is why the OECD says:

• The average worker’s total tax burden is 23.2% of income.

• The average for the 38 OECD countries is 14.9%.

• The Kiwis are at 19.4%.

• Great Britain, 14.3%.

And as Patrick Commins reports in The Oz: “Only Denmark, Iceland and Belgium imposed a higher income tax burden on their workers.”

Director of the ANU’s Tax and Transfer Policy Institute, Bob Breunig, said policymakers need to tax income less, which means he also proposes raising the GST. And that’s why politicians are walking away from this tax debate.

And what makes the sale harder is the whole story.

The OECD report showed that by including additional taxes such as social security contributions paid by workers and employers, the picture improved significantly, with the total tax burden on an employee rising to 27.1%, compared to an OECD average of 34.6%, which places Australia’s total tax burden on wages. at 14and the lowest.

Putting on my academic hat, I would say we should raise our GST and lower our income tax, and get rid of terrible taxes like stamp duty. However, when university professors come up with a property tax to replace stamp duty, they lose a lot of normal people (voters) and less courageous politicians.

Academics tell you that a higher GST would help create a more efficient tax system and capture a lot of money from the black economy (tax evasion). This all sounds good on paper, but not in the real world of a politician.

And facts like this put tax reform in the ‘too hard’ basket – the UK’s income tax is 14.3% but its VAT is 20%.

Following!

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Who pays more income tax, workers in the Republic or in the North? https://imjustsayin.net/who-pays-more-income-tax-workers-in-the-republic-or-in-the-north/ Sun, 22 May 2022 14:15:38 +0000 https://imjustsayin.net/who-pays-more-income-tax-workers-in-the-republic-or-in-the-north/ In terms of taxes and benefits, it has long been assumed that working in Northern Ireland is better than collecting unemployment benefits or a state pension in the Republic, not that you can do both. The jobseeker’s allowance here is €208 per week while the basic state pension is €248.30. These fares are considerably better […]]]>

In terms of taxes and benefits, it has long been assumed that working in Northern Ireland is better than collecting unemployment benefits or a state pension in the Republic, not that you can do both. The jobseeker’s allowance here is €208 per week while the basic state pension is €248.30.

These fares are considerably better than their equivalents north of the border – £77 (€91) and £129.20 respectively – even taking into account currency exchange differences and the cost of living. The Republic’s state pension – in terms of purchasing power parity (PPP), a measure devised by the OECD that compares purchasing power (in dollars) between jurisdictions – is $304.29 , or about 1.7 times the Northern equivalent ($180.45).

Why these basic social protections are stronger in the Republic is an open question – it used to be the other way around – but they have been reduced by successive UK governments since the Thatcher era of the 1980s. Conversely, rates welfare in the Republic were maintained at relatively high levels even during the period of austerity following the 2008 financial crisis, a point rarely acknowledged by the left.

Income tax systems raise a different set of issues. The relatively modest income levels at which workers in the Republic are beginning to pay the highest rate generate near-universal resentment and are unquestionably out of step with peer countries, including the UK. The higher rate of tax (currently 40%) in the Republic applies to all gross taxable income over €36,800 for a single person (Central Bureau of Statistics 2020 figures establish average time wage full at €49,000). In addition, a PRSI rate of 4 percent applies, as well as the universal social charge of up to 8 percent for employees, depending on your income level. Those earning less than €13,000 are exempt from USC.

Business groups say “high rate meets low entry point” effectively penalizes labor and undermines the Republic’s competitive bid. Workers in the UK (and Northern Ireland) only pay the highest rate at income levels above £50,271.

Tax burden

Tánaiste Leo Varadkar and Finance Minister Paschal Donohoe insist that reducing the tax burden on workers remains a central objective of the government. Events – Brexit, Covid-19, rising inflation – continue to hamper, of course. Either way, the low entry point appears to provide an advantage to workers north of the border. Hence the conclusion that workers in Northern Ireland – at least in fiscal terms – are better off.

Income tax, however, is only part of the tax equation for workers. What is rarely taken into account in these comparisons is the social insurance component. A new study comparing the tax and benefit systems of the North and the South shows that when this is included, certain cohorts of workers in the Republic pay less tax on average than their counterparts in the North.

Queen’s University scholar Mike Tomlinson’s study – titled Social Security in a Unified Ireland and published in this month’s issue of the academic journal Irish Studies in International Affairs as part of the Analyzing and Researching Ireland project North and South – examines income tax/welfare issues relating to a united Ireland. In other words, who would win and who would lose in a unified system.

Tomlinson comes to his conclusion by looking at the gross income of various Northern wage earners and comparing what they currently pay under the UK tax code and what they would pay if the Republic system applied.

The poorest 10% of workers in the North, those with a gross salary of €387.40 per week, pay €43.80 in taxes, a combination of €20.80 in income tax and 23 € social insurance. In the Republic, they would pay €27.70, including €14 in income tax, €4.30 in USC and €9.40 in social insurance.

Middle income workers

For people with average incomes with 630 € weekly, the tax advantage of the code of the Republic is more important. Workers currently pay €121.40 in tax under the UK code, including €69.30 in income tax and €52.10 in social insurance. If the Republic system applied, they would pay €101.60, including €62.50 income tax, €13.90 USC and €25.20 PRSI, or 16% less.

His study finds that all income groups except the top 30% would end up paying less tax in the Republic system, debunking the idea that most workers would be better off working in the Republic. north of the border.

“From an employee perspective, the overall differences between the Irish and UK tax codes [including social insurance] aren’t great,” says Tomlinson.

“The South has lower insurance premiums but higher income tax plus USC deductions across most of the income range,” he says.

“Overall, most low-to-middle-income northern employees would be better off with the southern PAYE system,” he says. His study also examines the public finance implications of a unified system, concluding that using the Republic tax code would result in the collection of an additional €769 million in taxes in the North.

This is mainly due to the increase in tax on high incomes and the increase in employers’ social security contributions. Tomlinson’s paper is just one of many recent studies aimed at examining the economic and financial implications of a united Ireland, a concept that had received little academic attention until Brexit.

That is likely to change given Sinn Féin’s success in becoming the largest party in recent Northern Assembly elections, which has put the issue of a border ballot and a united Ireland on the table. ‘agenda.

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URA boss toughens rental income tax as rTCS goes live https://imjustsayin.net/ura-boss-toughens-rental-income-tax-as-rtcs-goes-live/ Sat, 21 May 2022 10:19:11 +0000 https://imjustsayin.net/ura-boss-toughens-rental-income-tax-as-rtcs-goes-live/ Commissioner General of the Uganda Revenue Authority (URA), John Rujoki Musinguzi, has expressed his dissatisfaction with the low collection of tax on rental income, despite a booming property sector. However, that seems about to change. During recent meeting with big taxpayers, Musinguzi described the meager USh120b collected each year from taxes on rental income as […]]]>

Commissioner General of the Uganda Revenue Authority (URA), John Rujoki Musinguzi, has expressed his dissatisfaction with the low collection of tax on rental income, despite a booming property sector. However, that seems about to change.

During recent meeting with big taxpayers, Musinguzi described the meager USh120b collected each year from taxes on rental income as “incredible” given the rapid expansion of the property sector. The sheer volume of real estate development in Kampala over the last 5 years indicates that much of the revenue is not being collected.

Around the same time the meeting took place, behind the scenes, the URA rolled out the fully live Rental Tax Compliance System (rTCS).

Last year the URA deployed a first pilot based on the rTCS analyzes during fiscal year 2, from September to December. The pilot consisted of two sets of scans; the first was delivered on September 26, 2021, focusing on 88 high-income non-compliant landlords in Greater Kampala and their 285 associated properties. The second set of scans, delivered on November 29, 2021, contained 2,000 non-compliant owners and their 9,521 properties.

The sample of landlords included those who did not have a tax identification number (TIN), those who had not declared any rental income and those who had not filed a tax return in the last five years. .

Following the success of the pilot, the full rTCS software application went live on April 18, and training for the URA rental team began the next day.

rTCS is a complex software application used to determine the highest priority individuals or corporations likely to underpay their rental income tax obligations.

The rollout of the software follows the finance minister’s directives to the URA to broaden the tax base to ease the burden on the few compliant taxpayers.

According to the tax authority, the rTCS app has so far identified just over 70,000 unregistered owners (those without TINs) and their associated properties, and another 80,000 owners who either do not submit tax returns, either do not declare or under-declare their rent. Income. This is compared to the roughly 4,000 people the system has identified as compliant.

Sarah Muzungyo Chelengat, inland tax commissioner at the URA, says broadening the tax base is essential as the tax revenues of the few compliant owners have been severely affected by COVID-19, which has had a impact on the URA’s ability to meet its rental targets.

“Rental income collections over the past nine months from July to March 2022 have been largely impacted by COVID and many commercial properties have been closed. This implies that landlords had no rental income, and even those who could pay were not paying on time, relying on tenants’ promises to pay,” says Chelengat.

“Because of this, we had a number of taxpayers asking for an installment payment and then those who had jobs had lost their jobs but had to pay rental income to their landlords – it’s a ripple effect on the entire supply chain,” she explains.

However, since the rollout of rTCS, the URA’s focus has been on easing the burden on the few who pay, by broadening the tax base for unregistered owners.

Chelengat explains that the rTCS identifies a significant portion of the population that had never been identified before.

“Basically what we can say is the owners haven’t been in the tax net, but we’re doing check-ins to have them on board and a lot of them are actually checking in,” says- she.

The rental tax will be an important focus of the URA in the coming months to achieve its ambitious target of 21.9 trillion Ugandan shillings in revenue this financial year.

“We hope that by closing this exercise, we will be in a better position to exceed the objective,” adds Chelengat.

The private sector also called on the government to focus on unregistered homeowners to broaden the tax base and reverse the decline of the economy.

Certificate before the Committee on the National Economy on Wednesday, May 11, 2022, Private Sector Foundation Membership Director Francis Kisirinya also said that rents have low tax revenue, but the real estate sector is booming.

“From what we know about this sector, we can tell you that not even 25% is collected in terms of tax revenue. If you can’t even collect 50% of a sector, how dare you complain about not even having any money? Mubiru asks.

He notes that most middle-class Ugandans evade rent taxes. “There is poor performance in this sector; most middle-class Ugandans are the culprits of this tax component, but you can never hide the rentals,” he says.

Mubiru says the makers want the government to exploit the use of national ID cards to track people in the informal sector so they can make tax contributions. “We have national identity cards; we can extract land data, registration data, so that we can tap into the bulk of Ugandans who have chosen to remain informal, but they are doing well,” says Mubiru.

This is exactly how rTCS works. The application integrates various types of data from selected ministries, departments and agencies to match properties in the Greater Kampala Metropolitan Area to their beneficial owners, individuals or companies, enabling the URA to integrate these informal owners into the formal economy.

Meanwhile, the bulk of Uganda’s Ush 45.6 trillion national budget continues to be financed by external and internal borrowing.

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Stormont should have some power over income tax rate setting, report says https://imjustsayin.net/stormont-should-have-some-power-over-income-tax-rate-setting-report-says/ Thu, 19 May 2022 10:36:20 +0000 https://imjustsayin.net/stormont-should-have-some-power-over-income-tax-rate-setting-report-says/ Stormont should have partial control over the setting of income tax rates and brackets in Northern Ireland, a commission has recommended. In its final report, the Independent Tax Commission for Northern Ireland also stated that there should be a transfer of Stamp Duty Property Tax, Landfill Tax and Air Passenger Tax to the decentralized legislature. […]]]>

Stormont should have partial control over the setting of income tax rates and brackets in Northern Ireland, a commission has recommended.

In its final report, the Independent Tax Commission for Northern Ireland also stated that there should be a transfer of Stamp Duty Property Tax, Landfill Tax and Air Passenger Tax to the decentralized legislature.

The only revenue-generating power that was previously used by the executive is the charging of regional tariffs for households and businesses.

Although the administration gained the ability to set its own corporate tax rate in 2015, it never used it to deviate from the UK-wide corporate profits tax.

In its report, the commission made 23 recommendations which provide a framework for implementing further fiscal decentralization for Northern Ireland.

Chairman Paul Johnson said: “As a commission, we have established that there is a strong case for ceding some taxing powers to Northern Ireland to accompany the extensive powers currently enjoyed by the executive over public spending.

“Delegating additional powers would increase the executive’s accountability to the people of Northern Ireland and provide additional tools to stimulate the economy, raise or lower local people’s taxes and change behaviour.”

Mr Johnson acknowledged the report was being launched at a time when Northern Ireland did not have an executive in place, but said the recommendations would take time to consider and reach consensus.

He added: “We hope all parties will take the opportunity to review our report as they prepare for the resumption of devolved government.”

Mr Johnson said: ‘We recommend partial income tax decentralization under which the NI Assembly would have some control over income tax rates and potentially brackets, but where the administration would continue to be carried out by HMRC.

“Most importantly, it would give the NI Assembly the ability to increase revenue, reduce taxes, or vary the progressivity of its tax system, without taking on the added complexity and significant administrative and compliance burden that a complete decentralization of the tax.

He added: “We also recommend the complete decentralization of stamp duty land tax, landfill tax and air passenger duty.

“We recommend that if these taxes are decentralized, the executive should establish a local revenue authority to administer them.

“This will increase local politicians’ accountability for these taxes and provide greater policy flexibility and innovation, while building institutional capacity in Northern Ireland.”

The report also indicates that it is useful for the executive to complete the decentralization of corporate taxation.

Mr Johnson said: “This should be done in close cooperation with the UK Government, with an understanding of how the additional powers would be used and agreement on how any reduction in the main rate of corporation tax would be paid.”

The commission also considered the possibility of the executive branch requesting the decentralization of excise duties.

Mr Johnson said: “Given the existence of the land border with the Republic and their relevance to decentralized health and transport policies, we consider it would be helpful for the NI executive to seek decentralization excise duties on fuel, alcohol and tobacco, but in the longer term.

“We have identified complex administration and compliance issues and further work is needed to determine exactly how the decentralization of these tasks could be operationalized and the corresponding costs involved.”

He concluded: “There is no technical barrier to decentralizing a number of other long-term taxes, but if Northern Ireland is to move towards greater tax decentralisation, we believe that ‘it should start with no more than one major tax, income tax, and a few smaller taxes, and progress from there.

“While there are benefits to be gained from fiscal decentralization in terms of political accountability and the adaptation of local policies to local needs, increased fiscal decentralization carries risks.

“If incomes were to grow more slowly than in the rest of the UK, Northern Ireland could lose. And it is possible to make policy mistakes.

“Ultimately whether or not devolution happens remains a choice for politicians in Northern Ireland and the UK, but we believe that some fiscal devolution could be an important step towards more accountable devolved government. for the people of Northern Ireland.”

The commission was one of two tax bodies set up by Finance Minister Conor Murphy under the terms of the New Decade Deal and New Approach which restored power sharing to Stormont.

The other is the NI Fiscal Council, which will provide ongoing independent oversight of Stormont’s budget process.

Speaking at the launch of the report, Mr Murphy said: “This landmark report clearly identifies the potential benefits of increased local control over taxation.

“More taxing powers would allow locally elected ministers to set taxes according to local needs and circumstances.

“It would give us more options to grow the economy, increase utility revenues and encourage the transition to zero carbon.

“Administering more taxes also presents practical challenges and the report makes useful recommendations in this regard.”

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How to save income tax by investing in the National Pension Scheme (NPS)? https://imjustsayin.net/how-to-save-income-tax-by-investing-in-the-national-pension-scheme-nps/ Tue, 17 May 2022 12:47:44 +0000 https://imjustsayin.net/how-to-save-income-tax-by-investing-in-the-national-pension-scheme-nps/ All taxpayers in the country have a common goal: to save on taxes and increase their income. One can do this by opting for several fiscal investments offered by the financial institutions of the country. If planned in advance, investments can add up and taxpayers can save on taxes. For example, the National pension scheme […]]]>

All taxpayers in the country have a common goal: to save on taxes and increase their income. One can do this by opting for several fiscal investments offered by the financial institutions of the country.

If planned in advance, investments can add up and taxpayers can save on taxes.

For example, the National pension scheme or NPS offers a return of around 12% to 14% after the lock-in period. At the same time, it also allows you to save on taxes.

Saving for retirement

While saving tax is an immediate need, you should also start saving to ensure a relaxed retirement life.

While there’s no rule of thumb on how much you should save for a secure retirement life, most people rely on the 30:30:30:10 rule. This means 30% as an inheritance for the children, 30% to protect you from inflation, 30% to move on and live the retired life comfortably and the rest 10% is for an emergency.

However, asset allocation must also be judicious. For example, the first 30% can be in the form of equity, another 30% can be hybrid (equity and debt), the next 30% can be in the form of income-producing debt, and the remaining 10% must be in the form of debt. liquid assets.

To rationalize saving for retirement, you must choose the right avenues from the first years of your income. Don’t forget to choose investment retirement-friendly products offering fiscal advantages.

Investment options for retirement

Choosing the right investment products is crucial to accumulating considerable sums after your retirement. Here are some of the options you can consider depending on your financial goals, such as saving tax or increasing your wealth or both

  1. Public provident fund

The Indian government offers this savings plan for retirement planning. PPF accounts fall under Section 80C of the Income Tax Act 1961.

It saves you up to Rs. 46,800 annually on tax. There is a cap on annual investment of Rs.1,50,000, and it comes with a lock-in period of 15 years.

So if you are looking long-term returns while benefiting from tax advantages, this plan will be a good choice.

  1. Mutual fund

Private sector employees looking for pension plans may invest in mutual funds. Mutual fund investment returns are quite high, close to 12% to 15% per year.

While you can invest in mutual fund for a long-term and short-term financial goal, long-term investing will pay off if you are planning for retirement. It will get worse and you will be able to grow your wealth. It will be wiser to be able to invest in equity products in the early days and switch to debt funds as you approach retirement age. This investment will provide you with capital for your retirement.

  1. National pension scheme

The NPS or National Pension Scheme is a government-backed retirement savings scheme. the national pension system was introduced to provide social and financial security to India’s working population.

Public, private or government employees, both state and central, are eligible for the NPS scheme. the NPS Eligibility Criteria is less stringent compared to most government pension plans. Anyone between the ages of 18 and 65 can contribute to this pension account at regular intervals.

After holding this account for at least 10 years, you can withdraw a certain amount from the corpus. After retirement, you can withdraw 60% of the entire corpus and the rest can be obtained as an annuity plan.

The NPS is a long-term investment that offers great flexibility. For example, you can invest in public funds, stocks and companies. Equity allocation can be up to 75% of total assets up to 50 years.

But, if you still think, why invest in NPS? Do not forget the tax advantages offered by this plan.

Tax benefits under the National Pension Scheme (NPS)

Remember that you can only claim income tax deductions for your NPS investments if it is a Level 1 account.

You can claim the deductions in the following sections:

  • 80C–You can claim up to Rs.1.5 lakh in deductions from your taxable income by investing the amount or more in NPS.
  • 80CCD(1B)–If you exhaust this limit, you can claim an additional deduction of Rs.50000 under this section. It’s super beneficial.

In addition, if your employer contributes 10% of your (base salary and AD), this amount will be exempt from tax. Let’s understand it with an example.

Suppose an NPS subscriber earns Rs. 5 lakhs as base salary and Rs.3 lakhs as DA or Dearness Allowance. He can claim a tax benefit of Rs.80000 (10% of base salary + DA) thanks to the employer’s contribution. He may benefit from additional tax deductions under Sections 80C and 80CCD(1B).

Hence, in total, he can claim tax deductions of up to Rs.2.8 lakh in a year.

Therefore, it is fairly clear that NPS can be an ideal tax-saving product that you can include in your financial plan.

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The new amendments to the Charities Income Tax Act 1961: what does it mean for the common man? https://imjustsayin.net/the-new-amendments-to-the-charities-income-tax-act-1961-what-does-it-mean-for-the-common-man/ Sun, 15 May 2022 09:29:00 +0000 https://imjustsayin.net/the-new-amendments-to-the-charities-income-tax-act-1961-what-does-it-mean-for-the-common-man/ Form 10BD and 10BE to take advantage of the Section 80G tax deduction as the May 31, 2022 deadline approaches. In accordance with the application of amendments to the Income Tax Act 1961, from the financial year 21-22, the method of applying the tax deduction under section 80G on gifts facts to NGOs has changed. […]]]>

Form 10BD and 10BE to take advantage of the Section 80G tax deduction as the May 31, 2022 deadline approaches.

In accordance with the application of amendments to the Income Tax Act 1961, from the financial year 21-22, the method of applying the tax deduction under section 80G on gifts facts to NGOs has changed.

Dhaval Udani, Founder and CEO of DanaMojo says, “Previously, the donor only had to provide the receipt obtained from the NGO as proof. However, starting in FY22, the burden of compliance is now shifted to the NGO who must file a donation statement on Form 10BD by May 31 of each fiscal year.

It further adds, “The NGO will also need to provide the donor with a consolidated donation receipt in the form of a Form 10BE to be downloaded from the Income Tax Portal.”

Implications for the common man

The common man generally does not give for the purpose of saving taxes. Experts say the tax benefits are a hygiene factor, not the primary motivation for giving. And so once someone has donated, they would also like to save on their taxes. Often it is forgotten because the amount is low, receipts are lost, donations are forgotten, etc.

Udani points out: “With the new amendment, the common man will now be able to claim all the tax benefits of his donations. And so, it can further motivate them to give more.

Implications for NGOs

NGOs will now have the additional task of complying and filing by May 31, placing an additional burden on their already limited resources. Therefore, “they may focus more on institutional or CSR donations or high net worth individuals. They may decide to forgo individual donations, especially small donations to reduce compliance overhead,” Udani explains.

“It is therefore entirely possible that small and medium-sized NGOs will avoid receiving donations directly from individuals in the future. Even if they are considering retail donations or a retail strategy, they are more likely to use other intermediaries such as GiveIndia, Charities Aid Foundation (CAF), etc., to obtain donations from individuals, avoiding thus the cumbersome and cumbersome task of filing. voluminous declarations,” he added.

Suggestions for the government

In any case, NGOs will have to bear an additional effort and cost of compliance in this regard. Industry experts say the government can take further steps to reduce this effort and increase donations into the country, given that they have now tightened this process and blocked any tax losses. Like;

1. Remove donor address requirement: Since the new statement will require the PAN number for all donations, the donor address will be available via PAN. “The need to re-enter the donor’s address only adds to the reporting workload and is an additional sticking point for the donor,” Udani points out.

2. Provide 100% tax exemption for 80G donations: With all this transparency, adds Udani, “Most fraud related to exemption claimed but no donation made will be rooted out. The government should therefore grant a 100% tax exemption for charitable donations, much like it does for other investments and insurance.

Overall impact

Overall, experts say there will be greater transparency in the system of donations and tax exemptions claimed. This will ensure that people who do not donate, but claim exemptions, will be removed, reducing the government’s tax loss to that extent and it will give us a true picture of 80G donations in the country.

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India Guidelines for Full Review of Tax Returns for FY 2022-23 https://imjustsayin.net/india-guidelines-for-full-review-of-tax-returns-for-fy-2022-23/ Fri, 13 May 2022 13:09:38 +0000 https://imjustsayin.net/india-guidelines-for-full-review-of-tax-returns-for-fy-2022-23/ We note the parameters and related procedures for the mandatory review of tax returns for the financial year 2022-23 as issued by India’s supreme direct tax authority, the CBDT. Mandatory screening for a full examination of tax returns is applicable in certain listed scenarios, for example when information is available on tax evasion from any […]]]>

We note the parameters and related procedures for the mandatory review of tax returns for the financial year 2022-23 as issued by India’s supreme direct tax authority, the CBDT. Mandatory screening for a full examination of tax returns is applicable in certain listed scenarios, for example when information is available on tax evasion from any other authority. Under scrutiny, a detailed inspection of tax returns is carried out by tax officials to confirm the authenticity of various claims, deductions, etc. made by the taxpayer. The guidelines include a new clause which requires the approval of relevant authorities such as the Chief Commissioner/Director etc. before the tax officials can initiate control measures such as investigation, search and seizure, etc.


On May 11, 2022, the Central Board of Direct Tax (CBDT), the supreme statutory body for direct tax in India, issued Guidelines for the Screening of Income Tax Returns (ITRs) and Procedures for Thorough Review at the during the 2022-23 financial year.

According to the new guidelines, such control would be applicable in cases where information on tax evasion is available from any other authority. In addition, it has also been clarified that, in some cases, the review must be conducted with the prior administrative approval of the Senior Commissioner/Senior Director/Commissioner/Director.

For example, in cases relating to investigation, search and seizure, it is mandatory to obtain prior approval before forwarding them to the National Faceless Assessment Center (NaFAC) to serve the necessary review notices. .

The new guidelines, issued under Instruction No. F.No.225/81/2022/ITA-II, specify the necessary parameters for the compulsory selection of the ITR for a comprehensive examination and simultaneously prescribe the compulsory selection procedure in such cases.

Here we list the specified parameters and their selection procedure.

Parameters and Procedures Specified for Compulsory Examination of Tax Returns in India

Case-Specific Parameters and Procedures for Mandatory Review

Case

Settings

Compulsory selection procedure

Cases relating to Inquiry u/s 133A of the Income Tax Act, 1961

Returns filed for the tax year relevant to the preceding year in which the investigation was conducted under Section 133A of the Act subject to the exclusion below:

Exclusion:

Cases, where the following conditions are fulfilled, are excluded from the selection for the compulsory control:

  1. Account books, documents, etc. were not confiscated;
  2. The returned income (excluding any disclosure of heretofore undisclosed income made during the investigation) is not less than the returned income from the previous tax year; and
  3. The person evaluated has not withdrawn from the disclosure referred to in the clause mentioned above.

Cases shall be selected for mandatory review with prior administrative approval from the appropriate authorities (Senior Commissioner/Senior Director/Commissioner/Director) concerned, who shall ensure that such cases are transferred to the central u/s 127 charges of the Income Tax Act within 15 days of service of notice u/s 143(2) of the Act by the relevant Assessing Officer (AO).

Search and seizure cases

Valuations in cases of search and seizure to be made under Sections 153A, 153C are read together with Section 143(3) of the Income Tax Act and also for the return filed for the year of relevant taxation to the preceding year in which the search was made under section 132 or a requisition was made under section 132A of the Act.

Cases will be selected for mandatory review with prior administrative approval from the relevant competent authorities, who will ensure that such cases are transferred to central charges u/s 127 of the act within 15 days of service of notice u /s 143(2)/142(1) of the Act by the relevant AO.

Where such cases are not centralized and an ITR is filed in response to notice u/s 153C, the relevant AO will serve notice u/s 143(2) of the Act.

Where such cases are not centralized and no ITR is filed in response to the u/s 153C notice, the relevant AO must serve a u/s 142(1) notice of the Act requesting information.

Cases in which notices u/s 142(1) of the Income Tax Act, calling for a return, were issued and no return was provided

Cases where no statement was provided in response to a notice u/s 142(1) of the Act.

The AO must upload the underlying documents, on the basis of which the u/s 142(1) notice was issued, to ITBA, for access by the National Faceless Assessment Center (NaFAC).

The Department of Income Tax (Systems) will forward these records to NaFAC, which will take the necessary action.

The u/s 142(1) Act notice requesting information must be served on the assessee through NaFAC.

Cases in which Income Tax Act u/s 148 notices were issued

Whether return is provided or not provided in response to u/s notice 148 of the law.

Cases where u/s 148 law notices were issued as a result of search and seizure/investigation actions conducted on or after April 1, 2021

These cases will be selected for mandatory review with prior administrative approval from the relevant competent authorities who will ensure that these cases, if not under central charges, are transferred to central charges u/s 127 of the law within 15 days after service of notice u/s 143(2)/142(1) of the Act requesting information by the relevant AO.

Cases not covered by the clause above:

  1. The AO shall upload the underlying documents, on the basis of which the u/s 148 notice was issued, to ITBA, for access by NaFAC.
  2. The Department of Income Tax (Systems) will forward these records to NaFAC, which will take the necessary action. Notice u/s 143(2)/142(1) of the Act requesting information must be served on the assessee through NaFAC.

Cases related to registration/approval under various sections of the Income Tax Act

Cases where registration/approval under various sections of the law, such as Section 12A, 35(1)(ii)/(iia)/(iii), 10(23C), etc. were not granted or were cancelled/withdrawn by the competent authority, but the assessee was found to be claiming a tax exemption/deduction in the declaration.

However, where such deregistration/approval orders have been rescinded/cancelled under appeal, such cases will not be selected under this clause.

The AO should prepare a list of cases under this parameter with prior administrative approval from the relevant authorities.

The list of such cases shall be submitted by such competent authorities to the Principal Chief Commissioner of Income Tax concerned for onward transmission to NaFAC with a marked copy to DGIT (Systems).

Notice u/s 143(2) of the Act must be served on the assessee through NaFAC.

Cases involving an addition in one or more prior valuation years on a recurring question of law or fact and/or law and fact

Where the addition in one or more prior taxation years on a recurring question of law or fact and/or law and fact (including the question of transfer pricing) is:

  • exceeding INR 2.5 million in eight metro charges in Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune; or
  • exceeding INR 1 million in charges other than eight metro charges.

When such an addition:

  • became final, as no further appeal was filed against the assessment order; or
  • was confirmed by the appeal authorities in favor of Revenue; even if a new appeal by the assessed person is pending, against this order.

The AO should prepare a list of cases under this parameter with prior administrative approval from the relevant authorities.

The list of such cases shall be submitted by such competent authorities to the Principal Chief Commissioner of Income Tax concerned for onward transmission to NaFAC with a marked copy to DGIT (Systems).

Notice u/s 143(2) of the Act must be served on the assessee through NaFAC.

Cases related to specific information regarding tax evasion

Cases for which:

  • specific information indicating tax evasion for the relevant tax year is provided by any law enforcement agency (investigative/intelligence/regulatory/statutory body, etc.); and
  • the declaration for the tax year concerned is provided by the assessee.

The AO should prepare a list of cases under this parameter with prior administrative approval from the competent authorities concerned.

The AO must upload underlying documents containing specific information regarding tax evasion, for access by NaFAC.

The list of such cases shall be submitted by the relevant authorities to the relevant Chief Commissioner of Income Tax for onward transmission to NaFAC with a marked copy to DGIT (Systems).

Notice u/s 143(2) of the Act must be served on the assessee through NaFAC.


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Louisiana State Income Tax Filing Deadline is Monday | app https://imjustsayin.net/louisiana-state-income-tax-filing-deadline-is-monday-app/ Wed, 11 May 2022 16:05:39 +0000 https://imjustsayin.net/louisiana-state-income-tax-filing-deadline-is-monday-app/ BATON ROUGE, La. (AP) — The Louisiana Department of Revenue is reminding people that the state income tax filing deadline is almost upon us. A press release notes that the deadline is Monday and anyone wanting an extension should apply before that date. Taxpayers can file their returns electronically via Louisiana File Online, the state’s […]]]>

BATON ROUGE, La. (AP) — The Louisiana Department of Revenue is reminding people that the state income tax filing deadline is almost upon us. A press release notes that the deadline is Monday and anyone wanting an extension should apply before that date.

Taxpayers can file their returns electronically via Louisiana File Online, the state’s free web portal for individual filers. They can also submit their returns using commercially available tax preparation software. Or they can print and mail the status returns, which are available at www.revenu.louisiana.gov/Forms.

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Reduction of the demand for telecommunications in the withholding tax on income https://imjustsayin.net/reduction-of-the-demand-for-telecommunications-in-the-withholding-tax-on-income/ Sun, 08 May 2022 01:00:00 +0000 https://imjustsayin.net/reduction-of-the-demand-for-telecommunications-in-the-withholding-tax-on-income/ KARACHI: The telecommunications industry, in its 2022-23 budget proposal, asked the government to restore the withholding tax on income to 10%, a level where it was before the introduction of a bill additional finance earlier this year. “[The present] A 15% taxation reduced industry profitability while hampering the business case for network extensions and service […]]]>

KARACHI: The telecommunications industry, in its 2022-23 budget proposal, asked the government to restore the withholding tax on income to 10%, a level where it was before the introduction of a bill additional finance earlier this year.

“[The present] A 15% taxation reduced industry profitability while hampering the business case for network extensions and service improvements,” the industry said in the letter written to the Department of IT and Telecommunications.

“This hampers the affordability of cell phone ownership and internet services – essential for the entire population at this time, as well as for the country’s economic growth,” the industry wrote.

They added that it was applied unjustifiably to more than 70% of the population living below the poverty line, who had essentially been exempted from income tax.

“This economic segment of the population is neither a return filer with an option to adjust/recover said AIT. Therefore, implementing such tax collection measures across the entire telecom subscriber base only disproportionately increases the cost of owning a mobile phone. »

Pakistan has the largest gender gap in mobile phone ownership (34%) and mobile internet usage (43%) compared to its regional peers.

Sectoral taxes increase the cost of mobile services, which has a strong impact on poorer consumers, especially women, reducing their ability to become mobile broadband subscribers.

In the last budget, the government’s 2021 budget law reduced the AIT from 12.5% ​​to 10% for the 2021 financial year and to 8% beyond.

However, it was only withdrawn six months later through the (supplementary) finance law. 2022. The rate of AIT rose from 10% to 15%, the highest since 2014.

The industry has recommended that the AIT rate be increased in the Finance (Supplementary) Act. 2022 should be resumed and restored as it was until the 2021 finance law.

“As a policy, AIT under Section 236 of the Income Tax Order 2001 (ITO) should be phased out as it adversely affects the falling subscriber base below the taxable limit, and efforts should be focused on more direct tax measures aimed at terse, rather than essential service spending,” the industry players said in the letter.

The industry has also urged the State Bank of Pakistan to remove the 100% cash margin restriction on the import of telecom equipment.

“The telecommunications industry is totally dependent on its equipment to fulfill its obligations of quality of service and extension of network coverage, as required by our respective licenses. Telecommunications equipment is not a luxury item,” the stakeholders said.

“The above comprises nearly 85% to 90% of imported telecom equipment, and the new requirement will have a severe negative impact on the liquidity situation as well as the financing needs of telecom operators,” the industry explained. .

The industry has also called for the harmonization of federal and provincial sales tax laws.

Provinces have introduced their own sales tax laws in their respective jurisdictions, applicable to telecommunications services, Telecoms said.

“These laws are inconsistent with each other and the Federal Excise Act (applicable in Islamabad) has overlapping implications (such as FED in addition to provincial sales taxes, more of a withholding demand of same transaction tax, reverse charge rule) and geared towards short-term revenue goals rather than promoting a fair tax system for all economic segments,” they said.

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Bloomington City Council approves countywide income tax hike https://imjustsayin.net/bloomington-city-council-approves-countywide-income-tax-hike/ Thu, 05 May 2022 11:36:09 +0000 https://imjustsayin.net/bloomington-city-council-approves-countywide-income-tax-hike/ the Bloomington City Council unanimously approved a county-wide income tax hike – albeit slightly lower than what Mayor John Hamilton had proposed. Council members’ vote on Wednesday raised local income tax by 0.69 percentage points, about a fifth less than the mayor’s proposed hike of 0.855 percentage points. Upcoming higher property tax bills: Monroe County […]]]>

the Bloomington City Council unanimously approved a county-wide income tax hike – albeit slightly lower than what Mayor John Hamilton had proposed.

Council members’ vote on Wednesday raised local income tax by 0.69 percentage points, about a fifth less than the mayor’s proposed hike of 0.855 percentage points.

Upcoming higher property tax bills: Monroe County assessments rise by a record $1.9 billion

The 0.69 percentage point hike will mean about $345 more per year in income taxes for individuals or couples who, after various deductions, have a state-adjusted gross income of $50,000. That’s about $69 for every $10,000 earned in taxable income. The tax is a flat tax, which means you pay $69 for every $10,000 of taxable income, whether you earn $50,000 or $50 million.

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