Income Tax Department begins action against mining firms

The Income Tax Department is initiating scrutiny against the companies generating black money. The Central Board of Direct Taxes (CBDT) asked the tax officials to view any discrepancies in the financial statements files and actual operations conducting by these companies. Special Investigation Team is taking this issue seriously. According to the sources, discrepancies were found in the returns filed by the firms involved in the mining. Some of the firms were listed in reports as doing illegal mining in the country. Special audit will occur in case of discrepancies and of the firms found guilty in previous year returns.

Special Investigation team asked the CBI officials to take the required actions under law. All the tax offices where e-returns of these companies are going to be checked are asked to take strict actions against tax evaders and black money being generated through this illegal business. All parts of the nation are under the scrutiny of Income tax Department where black money is being generated.

Ruchi Anand and Associates are prominent Tax Consultants in India, who provide services from company registration to ITR filing.

As we all aware regarding the regressive nature of Indirect taxes, that’s why need of direct taxes arises. Tax structure needs to be more balanced because poor people get hurt by indirect tax.

Direct taxes include income tax which is based on the income and profit of a person. Indirect taxes are taxes impose on the goods and services irrespective of income of the person. 

India’s federal and state taxes impose at different supply chain stages and twice the amount of taxation, while forcing transporting vehicles to spend nearly one-fourth of time on border checks and inspections.

In order to get support from states that fear losing revenue, one percent additional levy by states on the cross-border transport of goods granted by the government, it is mandatory for one company transporting from one plant to other.

There is a huge impact of foreign technology on the development of nation like India. The cost of using such technology is very high, that’s why the same technology is not used in India. In order to reduce cost of technology, the rate of withholding tax on royalty payments should be reduced to zero. It will dramatically reduce the cost of Indian arm and other equipment.

 It would reduce the cost of Indian arm and hassles in consent with foreign technology providers. According to Indian Tax System, any non resident whose income is sourced from India, need to file ITR .Indian government is applying investor friendly schemes to uplift Indian economy by providing relief to foreign investors by classifying ITR non mandatory for companies which are located outside India and receiving royalty and interest from India.

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