Budget 2024 Updates

TPO gets powers to deal with domestic transactionsOne more Vivad Se Vishwas Scheme; Date to be notifiedNo deduction u/s 37 for settlement amount if paid for violation of any lawFM proposes to lessen tedium of TDS; reduces rates in many casesFM overhauls capital gains regime; to come into play from todayFM hikes exemption limit for long-term capital gain to Rs 1.25 lakh + hikes tax rate to 12.5% on specified financial assetsTourism: Temple corridors to be developed in BiharCGST - Finance Bill proposes to amend Sec 9 to take ENA out of purview of GST + inserts Sec 11A to regularise non-levy of tax on general practice in tradeCGST - Sub-sections to be inserted in Act to relax time-limit to avail ITC u/s 16(4) + New Sec 74A proposed to provide for common time limit for demand notices in fraud cases3.4% of GDP allocated as Capital expenditure to support infra sectorCGST - Proviso to be inserted in Sec 30(2) to provide for enabling conditions for revocation of registration + Amendment in Sec 39 to mandate return filing by TDS deductors even if there is no deduction in a particular monthIGST - Amendment proposed to prohibit refund of unutilised ITC on zero-rated supplyIncome tax - Finance bill revamps re-assessment regime againCustoms - Finance Bill proposes to amend Sec 28DA for acceptance of different types of proof of origin under FTAsFM hikes standard deduction to Rs 75K for new ITR regime + revises tax rates for all income slabs + Rs 7000 Cr revenue foregoneIncome tax - Search & Seizure cases - Block assessment is backBudget withdraws 2% equalisation levyFM reduces corporate tax rate for foreign companies to 35%FM proposes vivad se vishwas scheme + hikes monetary limits for filing appealsFM proposes 20% capital gains tax on short-term assets + listed financial assets held for more than one year to be classified as long-termGovt scraps TDS on Mutual Funds + decriminalises delay in depositing TDS + rationalisation of compounding of offences + revamps reassessment periodBudget proposes comprehensive review of I-T Act, 1961 + simplifies provisions for charities and TDSFM reduces customs duty on gold and silver to 6% + Nil BCD on nickel cathodeBudget proposes to reduce BCD on mobile phone and chargers to 15% + exempts 25 minerals from customs dutyFM exempts cancer medicines from Customs duty + amends BCD for various machinesFM proposes Rs 48 lakh expenditure outlay; 4.9% fiscal deficitFM announces Rs 1 lakh crore fund for developing space economyPromotion of Tourism - Vishnupad temple and Bodh Gaya temple corridors to be supportedFM announces over Rs 11 lakh crore capital expenditure in current fiscalGovt to invest in small Nuclear energy plants in partnership with private playersCentre to ask States to lower stamp duty for women purchasers of housesIBC - More Benches of NCLT to be set up to speed up recoveryFM spikes limit of Mudra loan to Rs 20 lakhsBudget offers financial aid to labour-intensive MSMEs in manufacturing sectorGovt announces 3 crore additional houses under PM SchemeGovt to secure Rs 15K loan for AP from multilateral agenciesGovt to frame new policy for all-round development of Bihar, Jharkhand and OdishaGovt to give one-month salary to all new recruits in formal sector through EPFOGovt to promote vegetable clusters closer to urban settlementsGovt to focus on productivity of agriculture with climate-resilient seedsFM allocates Rs 2 lakh outlay for PM's five schemes for job creation and farmersFM Nirmala Sitharaman presents 7th Union Budget in ParliamentBudget 2024: FM arrives at Parliament; Speech to begin at 11AMEconomic Survey 2023-24 - from GST PerspectiveUkrainian FM goes on tour to ChinaI-T- Additions framed u/s 69A are untenable where affidavits submitted by assessee's parents to explain source of cash deposits, were discarded by AO without consideration : ITATSurvey acknowledges productivity loss due to mental health disordersI-T- Short term capital gains returned by the assessee in terms of provisions of section 50 of the Act on assets held for a period of more than 36 months be treated as long term capital gains: ITATExpenditure on social services up from 6.7% to 7.8% of GDP: SurveyI-T-Additions framed u/s 68 are upheld where assessee is unable to prove genuineness of transaction involving purchase and sale of penny stock: ITATTrade deficit contracts to USD 78 bn from USD 126 bn in 2023I-T-Re-assessment is invalidated when there is no failure on part of assessee to make full and true disclosure of facts necessary for assessment: ITATCorporate profitability has peaked to 15-yr-old high between 2020-2023: SurveyI-T- When cash generated out of sales has been credited in the books of accounts, the provisions of Sec.69A could not be invoked: ITATBudget 2024: More relief for senior citizens & individual taxpayers on card; tweaking of capital gains tax likely; steady capital expenditure to stayI-T- If any amount invested is purely a strategic investment & for purpose of commercial expediency, then AO cannot hold such investments to be for non-business purpose: ITATGoogle backpedals on plan to scrap cookies from ChromeCus - For a HNWI individual, an expensive watch of 'Rolex' make would be his personal effect but same may not be the case if the person is of mere means - Pendant studded with diamonds not liable for confiscation: HCGovt amends Recruitment Rules for Debts Recovery TribunalGST - Even if no date, time or place of hearing is indicated in the notice issued, it was the duty of assessee to file his reply to SCN, which was admittedly received - Plea regarding violation of principles of natural justice cannot be countenanced: HCAbhinav Bindra conferred with Olympic OrderGST - Mismatch between value of e-way bills generated on portal and returns filed in Form GSTR-3B - Petitioner did not provide a comprehensive explanation - To remit sum of Rs.3.50 crores within six weeks - Matter remanded: HCHackers mercilessly hack Bangladesh PM’s website along with police portalsGST - Rule 30 of Rules, 2017 - Assessing officer ought to have issued summons and obtained clarification rather than estimating the outward supply value at 110% of purchase value - Order set aside and matter remanded subject to remit of 10% disputed tax demand: HCUS law-makers call for resignation of Secret Service chief in Trump assassination caseGST - Net ITC shown incorrectly - An inadvertent error was committed and such error was rectified, albeit irregularly, however, sum recovered from petitioner's bank account - Order set aside and matter remanded: HCKarnataka IT Industries piling pressure on govt to extend working hoursGST - Since notification is declared unconstitutional, Amount of IGST paid pursuant to Entry No. 10 of Notification No. 10 of 2017 is to be refunded along with statutory interest: HCStudy says earth’s water depleting fastFDI inflows slide to USD 26.5 bn in 2024 from USD 42 bn in 2023: Economic Survey
Deposits in Jan Dhan Accounts Not Alarming - Income Tax Department

DDT in Limca Book of Records - Third Time in a rowTIOL-DDT 2987
08 12 2016

THE Income Tax Department yesterday tweeted:

1. There has been considerable decrease in inflow of funds in Jan Dhan Accounts after Government alerted people against allowing misuse of Accounts

2. In the 1st week after demonetisation was announced, (8th-15th Nov,2016), total deposits received in Jan Dhan Accounts was Rs. 20,206 crores.

3. On the 1st & 2nd December, 2016, the inflow into Jan Dhan Accounts has been reduced to Rs. 410 crores and Rs. 389 crores respectively.

4. Average per Account deposit in Jan Dhan Accounts is Rs.13,113 from 8th Nov to 2nd Dec which is not alarming, given the need to bring all cash to banks.

5. To investigate deposits in Jan Dhan Accounts belonging to others,Department has identified local clusters/banks where inflow of deposits was abnormal.

Income Tax Staff to be diverted to Investigation Directorate

THE CBDT Chairman in a letter to all the Principal Chief Commissioners has asked them to spare some officers to the DG, Investigation. The Chairman says,

1. As you are aware after notification of the Government on 08.11.2016 declaring the old high denomination currency notes of Rs. 1000/500 invalid from 9.11.2016, investigation Directorates have intensified enforcement actions in detecting serious irregularities.

2. They are, however, seriously handicapped because of non-availability of manpower.

3. The current drive is likely to continue in the coming weeks.

4. I understand that many assessing officers in the field-formation are left with very little time-barring workload. Reorganisation of work can spare many of such officers.

5. In view of the above, I request you to identify such officers as also Inspectors and make them available to the DsGIT (Inv.) of your region, immediately.

CBDT Chairman's D.O. Letter No.414/61/2016-IT(Inv.I) (Pt.)., Dated December 07, 2016

Rs.3.81 Trillion worth bank notes supplied by RBI and there is more - RBI

THE Reserve Bank of India Deputy Governor R. Gandhi in a Statement yesterday stated:

1. There have been several questions about the decision to withdraw the legal tender status of the Rs. 1000 and the old series of Rs. 500 notes.

2. The motivations for the decision are to deal with the problem of high quality counterfeit notes in these denominations and unearth black money that may be held in cash. The decision has not been taken in haste but after detailed deliberations. There had to be a high level of secrecy surrounding this decision and the fact is that such a large country was indeed taken by surprise when the decision was announced. The Reserve Bank and the Central Government were conscious of certain immediate difficulties that the public at large could face and all efforts were made to minimise them and mitigate them. The problems of the common persons were at the top of the policy makers' radar and all dispensations were calibrated to address them without at the same time jeopardising the achievement of the larger policy objectives.

3. The Reserve Bank and the Central Government run note presses are working to their full capacity and all efforts are being made to reach the notes to every part of the country. In fact, during this period (from 10th November 2016 to 5th December 2016), the Reserve Bank has supplied to the public banknotes of various denominations worth Rs. 3.81 trillion.

4. As regards lower denomination notes of Rs.100, Rs. 50, Rs. 20 and Rs. 10, the Reserve Bank, over its counters and through bank branches all over the country, has supplied 19.1 billion pieces of denominations in this period. (Rs.100 - 8.5 billion, Rs. 50 - 1.8 billion, Rs. 20 - 3.1 billion and Rs. 10 - 5.7 billion). This is more than what the Reserve Bank had supplied to the public in the whole of last three years.

5. We reiterate that there is adequate supply of notes and hoarding of notes helps nobody's cause. We also strongly advocate the public to switch to digital payment modes given that there are several options, there are adequate safeguards and there is an increasing acceptability of this mode of payment by a large number of recipients.

I was wondering what 3.81 trillion rupees would mean in a language we, Indians normally understand. I am told:

1 Million = 10 lakhs
1 Billion = 1000 millions = 1,000 x 10 lakhs = 10,000 lakhs = 100 crores
1 Trillion = 1000 billions = 1000 x 100 crores = 1 lakh crore

So, the 3.81 trillion that the RBI, so graciously distributed in the last month amounted to Rs. 3.81 lakh crores. Mind boggling money!

Merger of Plan and Non Plan expenditures

A Member of Parliament asked,

Will the Minister of FINANCE be pleased to state :-

(a) Whether Government propose to merge Plan and Non-Plan expenditure;

(b) if so, the reasons behind the merger of these two classifications in Budget and Accounts; and

(c) what were the recommendation of Rangarajan Committee on this issue?

The Finance Minister replied:

(a) : Yes, Sir.

(b) : The existing distinction between plan and non-plan expenditure in the Budgetary system resulted in excessive focus on ‘plan expenditure' with equivalent neglect of items such as expenditure on ‘maintenance', ‘running expenditure such as salaries and other essential expenditure associated with implementation of scheme' etc. which are classified as non-plan. However, it is the total expenditure, irrespective of plan or non-plan, that generates value for the public. Due to insufficient provision for maintenance, the assets created out of Plan expenditure suffered. School and Hospitals are developed under Plan expenditure and in the absence of sufficient teachers and doctors, whose salary is non-plan expenditure after a certain period, they fail to deliver on expectations. Larger plan outlays for economic and social services have adversely affected allocations for the maintenance of assets, as well as allocations towards basic functions of the government in the general services category. With the merger of Plan and Non-Plan classification, the focus of resource allocations has shifted from the duality of plan and non-plan to a more holistic focus on objectives of development, welfare programmes and fiscal discipline.

(c) : The Rangarajan Committee recommended that Plan and Non-Plan distinction in the budget should be removed in order to facilitate linking expenditure to outcomes and better public expenditure management.

Government, biggest Litigant

A Rajya Sabha Member asked,

(a) whether it is a fact that official agencies like Income Tax, Excise and Customs departments are the biggest litigants before the Courts;

(b) whether Government will direct its agencies to desist from appealing against the verdicts of Tribunals and High Courts as a matter of routine; and

(c) if so, whether the appeals from such verdicts be limited to rarest of rare cases?

The Minister of State in Finance Mr. Santosh Kumar Gangwar answered:

(a): Sir, no such information is available in the Ministry.

(b) & (c): Department of Revenue has already directed its field units to file appeals on merits and not in a routine manner merely on the basis of high revenue effect. Circular No. 21/2015 dated 10.12.2015 issued in this regard has also prescribed very high monetary thresholds for filing appeals before ITAT, High Courts and Supreme Court. Moreover, the revised thresholds have been applied retrospectively resulting in withdrawal of appeals already filed. Till November, 2016, more than 15,800 appeals have been withdrawn by the Income Tax Department from Tribunals and High Courts. Moreover, more than 400 appeals have been withdrawn from High Courts on issues which have been settled in favour of the taxpayers. Further filing of appeal has also been restricted only to cases which have the required merits and which have tax effect exceeding the revised monetary thresholds.

In terms of National Litigation Policy, necessary directions have been issued to the field formations to desist from filing appeals in routine manner.

PMLA Appeal - Amount of Fee Payable

RULE 3(2) of the Prevention of Money-laundering (Appeal) Rules, 2005 reads as:

At the time of filing, every appeal shall be accompanied with an amount of fee as given in the Table below, in the form of demand draft payable in favour of the Registrar, Appellate Tribunal, New Delhi.


Sl. No.

Amount of fine imposed

Amount of fee payable


Where the amount of fine imposed under sub-section (2) of section 13 of the Act is Rs. 10,000/

Rs. 1,000/-


Where the amount of fine imposed under sub-section (2) of section 13 of the Act is more than Rs. 10,000/- and upto Rs. 50,000/-

Rs. 2,500/-


Where the amount of fine imposed under sub-section (2) of section 13 of the Act is more than Rs. 50,000/- and upto Rs. 1 lakh.

Rs. 5,000/-

Now, the words and upto Rs. 1 lakh are omitted.

Why? Maybe because now there is no fee prescribed for appeals when fine imposed is more than Rs. 1 lakh; but the Section does not seem to permit any fine and even the maximum penalty imposable is Rs. 1 lakh. Where is the catch?

Delinquent babus - Administrative warning is no Punishment

GOVERNMENT had long ago instructed that where a departmental proceeding has been instituted, and it is considered that a Government servant deserves to be penalized for the offence/misconduct, one of the prescribed penalties may only be awarded and no warning, recordable or otherwise, should be issued to the Government servant.

However, while considering cases for empanelment, the ACC has observed that in many cases, rather than exonerating the officer or imposing a penalty on him, administrative warning is issued even when disciplinary proceedings were drawn against him. Administrative warning is not recognized as a penalty.

So, DoPT reiterates that:

1. As clarified in the Ministry of Home Affairs O.M. No. 39/21/56-Estt.(A) dated 13th December, 1956, warning is administrated by any authority superior to a Government employee in the event of minor lapses like negligence, carelessness, lack of thoroughness, delay etc. It is an administrative device in the hands of superior authorities for cautioning the Government employees with a view to toning up efficiency and maintaining discipline. There is, therefore, no objection to the continuance of this system. However, where a copy of the warning is also kept in the Confidential Report dossier, it will be taken to constitute an adverse entry and the officer so warned will have the right to represent against the same in accordance with the existing instructions relating to communication of adverse remarks and consideration of representations against them.

2. Where a departmental proceeding has been instituted under the provisions of CCS(CC&A) Rules 1965, after the conclusion of disciplinary proceedings, the officer is either exonerated or where it is considered that some blame attaches to the officer, he should be awarded one of the recognized statutory penalties as given in Rule 11 of the CCS (CCA) Rules, 1965 i.e. at least 'Censure' should be imposed. In such a situation, a warning, recordable or otherwise, should not be issued.

3. Warning, letter of caution, reprimands or advisories administered to Government servants do not amount to a penalty and, therefore, will not constitute a bar for consideration of such Government servants for promotion.

A Chairman of CBEC was once issued a warning a few days before his retirement for some lapse on his part when he was a Commissioner more than ten years ago!

DoPT Office Memorandum in F.NO.11012/12/2016-Estt.A-III., Dated December 06, 2016

Milad - Un - Nabi Holiday on Monday

AS per list of holidays circulated by the Government, the holiday on account of Milad-Un-Nabi or Id-E-Milad falls on Tuesday the 13th December, 2016. It has been brought to notice of the Government that in Delhi Milad-Un-Nabi or Id-E-Milad will be celebrated on 12th December, 2016.

Accordingly, it has been decided to shift the Milad-Un-Nabi or Id-E-Milad holiday to 12th December, 2016 in place of 13th December, 2016 as notified earlier, for all Central Government administrative offices at Delhi / New Delhi.

The Government advises that "For Offices outside Delhi / New Delhi the Employees Coordination Committees or Head of Offices (where such Committees are not functioning) can decide the date depending upon the decision of the concerned State Government."

DoPT Office Memorandum in F.NO.12/18/2016-JCA2., Dated December 07, 2016

Until Tomorrow with more DDT

Have a nice day.

Mail your comments to vijaywrite@tiol.in


TIOL Tube Latest

Dr. Shailendra Kumar, Chairman, TIOL Knowledge Foundation, addressing the gathering

Shri Ram Nath Kovind, Hon'ble 14th President of India, addressing the gathering at TIOL Special Awards event.