Latest news with #FinanceAct2017
The Hindu
7 days ago
- Business
- The Hindu
Income Tax Appellate Tribunal rejects Congress' appeal against tax demand on ₹199 crore income
The Income Tax Appellate Tribunal on Tuesday (July 22, 2025) has rejected the Indian National Congress' appeal against an income tax demand on an income of ₹199.15 crore, saying that the party filed its returns past the deadline for availing of exemptions due to political parties, and that it also violated cash donation limits. 'We thus conclude that the assessee's return filed on 02.02.2019 is not within the 'due' date to make it eligible for the impugned exemption,' the ITAT said in its order. According to the order, the Congress filed its income tax return for the financial year 2017-18 on February 2, 2019. As per the Income Tax Act, 1961, political parties are allowed a later deadline for filing their returns. For the financial year 2017-18, that deadline was December 31, 2018. In its return, the Congress had declared nil income for 2017-18 after claiming an exemption of ₹199.15 crore under Section 13A of the Income Tax Act, 1961. However, the ITAT ruled that, since the return was filed late, it was not eligible for this exemption. In addition, the assessing officer also found that the Congress had received ₹14.49 lakh as cash donations, which exceeded the limit of ₹2,000 per individual. According to changes made to the Income Tax Act made through the Finance Act 2017, political parties can receive donations above ₹2,000 only through formal banking channels, not cash. Overall, the party's declared total receipts of ₹199.15 crore against expenses of ₹197.43 crore, thereby showing a surplus of ₹1.71 crore. However, the Income Tax Department's assessment order on July 6, 2021, denied that the income could be exempted from tax, making the full receipt amount taxable. The Commissioner of Income Tax (Appeals) then upheld this decision on March 28, 2023, following which the Congress approached the Appellate Tribunal.
Express Tribune
06-03-2025
- Business
- Express Tribune
Petition filed against amendments to debt laws
The Lahore High Court (LHC) has sought arguments on a petition requesting full disclosure of Pakistan's total external debt, including hidden liabilities, markup, and insurance costs. The plea also challenges the Fiscal Responsibility & Debt Limitation (FRDL) Act 2005, claiming it is unconstitutional. Justice Shahid Karim directed the concerned parties to present their arguments on the matter, which questions alleged irregularities in the government's debt calculations and amendments to financial laws. Petitioner Munir Ahmed contended that the federal government had altered the definition of "public debt" in violation of a Supreme Court ruling. The top court had previously ruled that such changes required approval from the federal cabinet and both houses of Parliament. However, the government reportedly bypassed this process and made significant modifications to the FRDL Act 2005 through the Finance Act 2017. According to the petition, the amended debt calculation formula now excludes deposits held by provincial and federal governments within the banking system. As a result, the reported national debt was understated by approximately Rs2 trillion, showing public debt at Rs18.9 trillion as of March 2017. The petitioner further argued that these changes were not included in the original Finance Bill 2017, which was approved by the federal cabinet on May 26, 2017.
