S. debt is set to hit $40 trillion, months earlier than expected, as bond yields rise The Washington Post The National Debt Is Wreaking Havoc With Bonds.
U.S. debt is set to hit $40 trillion, months earlier than expected, as bond yields rise The Washington Post The National Debt Is Wreaking Havoc With Bonds. Where We Go From Here. Barron's No One Wants to Talk About the Debt WSJ The National Debt Is About to Top $40 Trillion. Here’s Why the Stock Market Doesn’t Care — and Why You Should Money Talks News Crowding Out: How Rising Public Debt Squeezes the Economy Bipartisan Policy Center
New Delhi: The Income Tax Department has launched a nationwide verification exercise covering nearly 400 entities suspected of making large, potentially unexplained foreign remittances, and is also examining the role of professionals who certified the transactions.V. Rajitha, commissioner of income tax and official spokesperson of the Central Board of Direct Taxes (CBDT), said in a statement on Tuesday that the department had identified the entities through ground intelligence and analysis of data on outward foreign remittances over the past three years.“Preliminary verification found that the amounts remitted abroad did not appear to have a clear correlation with the entities' reported turnovers,” the spokesperson said.The department also found that the stated purposes of some remittances, including payments for freight, import of software and consulting services, did not appear to match the information gathered during ground-level verification. Some of the entities also did not appear to be operating from the addresses they declared.VerificationThe verification exercise comes against the backdrop of the government seeking to tighten the regulatory framework for foreign contributions. The Foreign Contribution (Regulation) Amendment Bill, 2026, introduced in the Lok Sabha in March, was referred to a Joint Parliamentary Committee on 12 August for examination. Among other provisions, the Bill proposes a framework for the supervision, management, and disposal of assets arising from foreign contributions when an organisation's FCRA registration is cancelled, suspended, or expires.The network came to light during a search operation involving a group of fictitious charitable trusts allegedly engaged in providing accommodation entries against bogus donations or contributions, the CBDT spokespersons said in a statement.The latest verification exercise, launched on 18 August, covers 394 entities, including 117 entities located in land-border states, as well as 36 professionals who issued certificates for foreign remittances.The department is examining the entities making the remittances, the persons behind them and the professionals who certified the transactions, it said.However, clarifying the status of the probe, the official said, “Further investigations are currently underway.”The department's data analysis also found that a large number of Form 15CB certificates had been issued by a relatively small group of professionals. This has prompted scrutiny of whether adequate due diligence was undertaken before the certificates were issued.Form 15CB is a certificate issued by a chartered accountant for certain foreign remittances, certifying their taxability, applicable tax rate, and tax deducted at source (TDS) before the payment is made.As per the Income Tax Department's official norms, the certificate covers details such as the nature of the payment, taxability, TDS rate and deduction.The tax regime changed from 1 April 2026 with the Income Tax Act, 2025 replacing the Income Tax Act, 1961. Under the new framework, Form 146 is the equivalent of the earlier Form 15CB, while Form 145 corresponds to Form 15CA. As per the Income Tax Department rules, the relevant thresholds have been retained in the Income Tax Rules, 2026, with the provisions set out under Rule 220.The department's current guidance says Form 146 is required for a taxable payment exceeding ₹5 lakh in a financial year to a person outside India or a foreign company, with a chartered accountant certifying details, including the purpose of the payment and applicable tax deduction.The CBDT spokesperson further said that accountants issuing Form 15CB/Form 146 are expected to exercise due care, diligence, and professional judgement, and to examine the underlying transactions and relevant facts before certifying remittances.The verification exercise also covers entities located in districts along India's land borders that have been remitting significant amounts of money abroad.Ab
Net direct tax collections grew faster than gross receipts, led by non-corporate taxes and strong securities transaction tax collections.The data are significant for the government’s finances because direct taxes are a major source of revenue for funding expenditure and keeping the fiscal deficit on track. India’s net direct tax collections rose 23.09% year-on-year to ₹8.11 trillion between 1 April and 10 August, from ₹6.59 trillion in the corresponding period a year earlier, pointing to strong tax revenue mobilization early in FY27 and outpacing the growth assumed for the broader economy in the Union budget.According to provisional tax collection data released by the government on Tuesday, gross direct tax collections increased 19.75% to ₹9.55 trillion, from ₹7.97 trillion in the year-earlier period.The data are significant for the government’s finances because direct taxes are a major source of revenue for funding expenditure and keeping the fiscal deficit on track. The FY27 budget has pegged the Centre’s net tax revenue at ₹28.67 trillion, while gross receipts from corporation tax and taxes on income, including securities transaction tax, are budgeted at about ₹26.97 trillion.The ₹9.55 trillion gross direct tax collection by 10 August is equivalent to roughly 35% of the ₹26.97 trillion budgeted from corporation tax and taxes on income for the full year. This is notable given that only a little over four months of FY27 had elapsed by 10 August.Non-corporate taxes leadThe strongest contribution came from non-corporate tax, which includes taxes paid by individuals, Hindu undivided family (HUFs), firms, associations of persons, bodies of individuals, local authorities and artificial juridical persons.Gross collections under this category rose 22.29% to ₹5.41 trillion, from ₹4.42 trillion a year earlier.Corporate tax collections also increased, but at a slower pace, rising 14.33% to ₹3.80 trillion from ₹3.32 trillion in the year-earlier period. Non-corporate taxes therefore accounted for more than half of gross direct tax collections during the period and grew substantially faster than corporate tax.Securities transaction tax (STT) recorded the sharpest growth among the major components, rising 51.30% to ₹33,823.74 crore from ₹22,354.31 crore a year earlier.The rise in STT collections points to continued activity in the securities market, although STT remains a relatively small component of overall direct-tax receipts.Refunds remain subduedRefunds rose only 3.79% to ₹1.43 trillion from ₹1.38 trillion a year earlier. As a result, net collections grew faster than gross collections—23.09% compared with 19.75%.“Data shows strong growth in gross non-corporate taxes and STT collections, and a slowdown in refunds. This is leading to 23% growth in net collections. It is expected, however, that the pace of refunds will increase over the next few months,” said Rohinton Sidhwa, partner, Deloitte India.Gross corporate tax collections, meanwhile, are growing at a more modest 14%, Sidhwa said.About the AuthorDhirendra KumarDhirendra Kumar is a seasoned policy reporter with about 20 years of experience in deep, on-ground reporting across key economic and governance sectors. His work spans finance, public expenditure, disinvestment, public sector enterprises, textiles, trade, consumer affairs, and agriculture, with a strong focus on uncovering structural policy shifts and their real-world impact. Kumar has been awarded the Chaudhary Charan Singh Award for Excellence in Journalism in Agricultural Research and Development, recognising his contribution to reporting on critical issues in the farm sector. He has also been a recipient of a fellowship in international trade from the National Press Foundation, which has further strengthened his coverage of global trade dynamics and their implications for India. Kumar is known for breaking complex policy developments into clear, accessible stories. His reporting focuses on
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