Anuradha Shukla

The Public Accounts Committee has summoned Sebi chief Madhabi Puri Buch and economic affairs officials on October 24. They will review GST frauds, recent tax notices to corporates, and queries relating to the Comptroller & Auditor General's reports on revenue losses worth Rs 32,000 crore.

Synopsis The Income Tax Department is probing over a dozen event management companies for suspected tax evasion and underreporting of income from overseas performances. Celebrities linked to these companies are also under scrutiny, with 11 companies already receiving notices. The scope of the investigation is expanding. Lessons from the Grandmasters

The GST Council's GoM is considering moving 58 goods and 24 services, including luxury handbags, sunglasses, and cosmetic procedures, to a 28% GST slab from 18% or 12%. The initiative aims to redefine luxury items and is expected to significantly boost GST collections in phases.

The Indian government projects an 8-9% rise in the FY25 fertiliser subsidy due to the Middle East crisis, leading to price increases. Current subsidy is ₹1.64 lakh crore, down from ₹1.88 lakh crore. Key Middle East suppliers and shipment issues may necessitate further budget adjustments.

The government is anticipating loan disbursement for state capital expenditure to be 15-20% less than planned for fiscal 2025. The slowdown is due to spending delays from general elections. The initial allocation was ₹1.5 lakh crore, but this may be reduced to ₹1.30-1.35 lakh crore. Efforts are ongoing to boost spending in the second half.

Synopsis A GST Council panel proposes expanding the definition of affordable housing from ₹45 lakh to ₹55 lakh, potentially boosting the sector. The panel also recommended higher tax on luxury homes above ₹15 crore but opposed GST on joint development agreements.

The Centre has categorized blended aviation turbine fuel under mineral items, introducing excise duties, and is considering voluntary use by 2024 and mandatory by 2027. The aviation industry is concerned about increased fuel costs and potential need for incentives, with ongoing consultations among various ministries.

The Central Board of Direct Taxes (CBDT) has introduced monetary limits for waiving or reducing interest on tax payments. This move aims to streamline the process and provide relief to taxpayers facing genuine hardships, while also including safeguards to minimize misuse.

The Indian government is likely to maintain its direct tax collection target of ₹22.07 lakh crore for the current financial year, despite slower-than-expected corporate tax growth. This confidence stems from robust personal income tax collection, projected to exceed estimates by ₹1.3 lakh crore and offset the shortfall in corporate tax revenue.

The Central Board of Direct Taxes (CBDT) has collected ₹35,500 crore in outstanding taxes between April and September of this fiscal year. This sum includes ₹23,000 crore in corporate tax and ₹12,500 crore in personal income tax.