Business & Economy

Small fixed deposits also come under income tax scanner

What is India News Service, Monday, 15 March 2005, 1300 hrs IST

It is not just the Banking Cash Withdrawal Tax (BCWT) but the proposed Section 206A in the Income Tax Act that has the high-networth taxpayers and the tax planners worried. 

Beginning next month the ploy of splitting fixed deposits and recurring deposits into small amounts to escape the taxman\92s radar will no longer work. 

The proposed Section 206A in the Budget seems to have been lost in the din created by the BCWT. Under the new section every bank, cooperative society or public company will be required to file quarterly details of all the accounts where the income earned in the account is less than Rs 5,000. 

This will mean that even if someone earns Re 1 interest in a quarter, the tax authorities will get the details. The amendment comes into effect from beginning of June 2005 and requires a soft copy of the details to be filed for quarters ending June, September, December and March. 

\93Now, not only would tax authorities ask the taxpayers why they have been avoiding tax by splitting deposits but also ask the source of all these deposits. In case the taxpayer is not able to come up with answers, he may be in trouble,\94 a tax expert said.

MphasiS buys firm for $16 m: Overall strategy to strengthen its footprint in the US markets.

Bharti makes another block deal for Rs 2467 cr: Bharti televenutures made two block deals totalling 11.20 crore shares for a consideration of Rs 2467 crore, constituting six per cent of the company's equity.

\91Iran-India pipeline has enough safeguards\92: There is immense gain for India by way of transit fee if the gas pipeline is extended up to China, the petroleum minister said. 
 
Warburg Pincus sells 6 pc of Bharti: Private equity firm Warburg Pincus has sold around 6 per cent of its stake in Bharti Tele-Ventures Ltd for around $560 million, while continuing to hold 108.1 million shares of the private telecommunication major. 

CCEA to vet IA plane buy: Of the Rs 911.73 crore budgetary allocation for Indian Airlines for 2005-06, the allocation of Rs 325 crore comes with a linkage to purchase of 43 aircraft. Negotiations for buying the planes as part of its fleet expansion plan, an official spokesperson said on Monday. 

PNB to return Rs 1,170 cr as Govt capital: Punjab National Bank (PNB) will give back to the Government about Rs 1,170 crore on return of three crore equity shares. Post-issue, on return of capital, Government holding in the bank would come down to 57 per cent from the existing level of 80 per cent. 

Preferential issues sweep markets: Companies plan to mobilise Rs 1,500 cr though the issue of 245 mn equity. 

IIM-A farm business grads reap rich harvest: ABM graduates have received overseas calls and top offers at home as well 

Business papers 


Business Standard
Economic Times
Business Line
Financial Express