According to sources for Money Bhaskar, the latest income tax news has been riveting. There have been several new developments that could be questionable, depending on which side you’re on.
Income Tax for Charitable Yoga Income
The Indian Income Tax Department has determined that yoga participants who perform yoga-related actions and activities via trusts that are deemed charitable do not have to pay the service tax. This service tax, falling in at 14 percent, can be quite high when talking thousands of dollars, and this tax break may encourage people across India to participate in more yoga activities. The Central Board of Excise and Customs has, as of the year 2015, decided to include yoga as one of the many activities under “charitable”. Although yoga can be spiritual or religious, anyone can do it, regardless of spiritual persuasion or any spirituality.
Income Tax Mobile App – India
The New Delhi Income Tax Department is currently working on a mobile app to allow people to file their income tax returns. The current expectations for tax returns are looking promising, however, no guarantees are made as of yet. Advance December taxes that are paid in will give the income tax department a better idea as far as how much will be collected. The Central Board of Direct Taxes is a committee that was formed to help with simplifying the Indian income tax laws, and are expected to give their first report by January of 2016.
Tax Break on Rental Income
Developers have had to pay taxes on what is considered as rental income for years on apartments that are unsold; however, the developer’s concerns are going to addressed as an issue in the coming year’s budget by the Confederation of Real Estate Developer’s Association of India. The rental income that developers had previously been taxed on was a given rate at the appropriate market for the area, despite the apartments actually being rented out or not. The problem with this is that when there is a slowdown in the market for buying houses, the developers are stuck with the finished projects. Without a buyer, the developers have to keep the buildings under their care until the building is sold or rented out. The developers are taxed on these buildings, even if they do not want to hold onto these and prefer to sell them or rent them. The new tax law regarding this will deem that one building owned by a person will be treated by the income tax department as a personal residence (self-occupied residence) and the owner will not have to pay income taxes on this property. However, any other property that is owned by the same individual is considered possible to be rented out or sold, and will be taxed as such.
Other Indian income tax news encompasses the income tax department declaring a final assessment of the black money declarations. However, the results have not been found yet.
For more such news related to Indian Income Tax follow Money Bhaskar’s Income Tax News section.