Ordinance may come to reopen old cases of income tax review

Ordinance may come to reopen old cases of income tax review

New Delhi: The government is exploring legal options to deal with the old cases of tax review. These include adding an ordinance to the Income Tax Act. In these cases of tax review, notices were issued between April 1 and June 30 under the old rules. This move of the Income Tax Department has been challenged in the High Courts by several companies and individual taxpayers. They have filed petitions challenging the validity of these notices. They argue that this step of the department is illegal and arbitrary as action cannot be taken under the old provisions of the Income Tax Act.

Dozens of taxpayers in cities like Delhi, Mumbai and Kolkata have got interim stay orders from high courts on the notice of the department. Two officials with knowledge of the matter said that such legal remedies can be considered if the orders of the courts are not favorable and the notices issued in that period are asked to be withdrawn. Officials said the department is studying the interim orders of the high courts and is also preparing a reasoned reply in the respective matters. The old income tax laws were effective only till March 31 and under them tax cases for the last six years could be reopened for review. But after the passage of the Finance Bill, 2021, these provisions came to an end. But the tax department declared it valid till June 30 and accordingly issued notices to thousands of taxpayers between April 1 and June 30. 

The new income tax law has come into effect from April. In this, only the cases of the last three years can be opened for review. Serious cases of fraud involving tax evasion of Rs 50 lakh or more can be opened up to 10 years. The tax department is of the view that taxpayers cannot challenge any specific move of the department as various deadlines related to tax compliance have been extended amid the second wave of the COVID-19 pandemic. The Central Board of Direct Taxes (CBDT) had informed about the extension due to the situation arising out of the second wave of the pandemic. 


Amazon India to set up digital centers in various cities to support small industries

Amazon India to set up digital centers in various cities to support small industries

New Delhi: E-commerce company Amazon India is planning to open digital hubs in various cities to connect Micro, Small and Medium Enterprises (MSMEs) with its platform and empower them in online business. These centers will help small industries in their digital business by providing awareness and related facilities about e-commerce and will accelerate their growth.

Pranav Bhasin, Director (MSME, Sales Partner Experience), Amazon India said this. The company has opened a digital center for MSMEs in Surat, Gujarat earlier this month. This center will act as a resource center and will help in meeting the needs of MSMEs as well as solving their problems. Through these centers, the company will provide awareness and understanding about e-commerce, export market information, etc. 

Bhasin said, “We have planned to set up digital centers near clusters of small industries in the country to empower MSMEs in the field of digital business and to address their problems.” However, he did not say that Amazon. In which cities and by when India plans to open such digital centers. It is noteworthy that MSMEs play an important role in the country's economy. It contributes about 30 percent of the total Gross Domestic Product (GDP) and 48 percent of the exports. 

Bhasin said, “We recently opened the first Amazon Digital Center in Surat, Gujarat. This center will cater to all the needs of MSMEs to become digital entrepreneurs. In this, MSMEs will be given all kinds of support in terms of benefits of e-commerce and logistic support, digital marketing, GST and taxation. are MSMEs. These centers will help them in their digital business and accelerate their growth. We have set a target of digitally enabling one crore MSMEs by 2025, including through Amazon Digital Center. 

On benefits to MSMEs from e-commerce, Bhasin said, “From the beginning, we have been focused on digitally empowering MSMEs and other vendors by using technology to connect and reduce operational costs for them. . Our investments in technology and infrastructure have fueled their growth." He said, "It is because of our efforts that today lakhs of small and medium businesses are joining us. 

More than 10 lakh artisans and weavers and over 1.5 lakh local offline stores are working with Amazon through franchisees. More than 70 thousand small manufacturers have now launched global brands and exports have already crossed $3 billion.” He added that Amazon.in has more than 8.5 lakh sellers and more than 90 per cent of them are MSMEs. . More than fifty percent vendors are from small and medium towns like Aligarh in Uttar Pradesh, Angul in Odisha, Idukki in Kerala.