Ahead of the festive season, there is a big update on the income tax system. The Income Tax Department has allowed tax authorities to waive or reduce interest payable to taxpayers subject to specified conditions. According to this, a PRCIT-rank officer can decide to reduce or waive the outstanding interest of more than Rs 1.5 crore. For interest outstanding from Rs 50 lakh to Rs 1.5 crore, a CCIT rank officer will decide the exemption/deduction, while the PRCIT or the Commissioner of Income Tax can decide on the outstanding interest up to Rs 50 lakh. The deduction or exemption of interest payable under Section 220(2A) will be available on fulfillment of three specified conditions.
Update on Income Tax
In a nationwide drive, tax officials have detected around 18,000 fake companies registered under the Goods and Services Tax (GST) that have indulged in tax evasion worth about Rs 25,000 crore. These companies did not buy or sell any goods on the ground. Input Tax Credit (ITC) was prepared by showing the purchase and sale of goods only on paper and taking a large amount from the government in its name.
The CBIC has asked the Customs authorities to disclose the specific nature of the investigation going on while issuing letters/summons in export/import fraud cases and complete the investigation within one year.
What the CBIC says
“Investigation of any case of commercial intelligence/fraud shall be concluded at the earliest, which is normally not exceeding one year,” the CBIC said in a directive issued on November 1. Before initiating the investigation, it is necessary to go through all the information and re-examine the available data to minimize contact with the importer/exporter. CBIC Chairman Sanjay Kumar Agarwal said the guidelines outline the approach of minimum disruption during the investigation of CI fraud cases.
