Income Tax, Wealth Tax and Direct tax Code Related News

  • Jul
  • 04
  • 2015

Separate or disassemble parts of plant, even if assembled abroad, considering size of the plant, quality for exemption u/s 10B

Added In Income Tax
It would be incongruous and inappropriate in the context of Section 10B of the Act to hold that the respondent-assessee, an 100% export oriented unit, who had refurbished a mini cement plant in Zambia and established a mini steel mill in Kazakhstan, were not engaged in manufacture or production of articles or things.

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  • Jul
  • 04
  • 2015

Capital Gains for Resident Individual & HUF – F.Y. 2014-15

Added In Income Tax
I have prepared a chart on the subject matter of Capital Gain for FY 2014-15 on Shares and Mutual Funds after considering the recent amendments related to changes in taxation of shares and Mutual fund and Considering the complexity involved in the matter. I have tabulated information for quick reference and the same are self explanatory :-

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  • Jul
  • 04
  • 2015

AO cannot made addition for Anonymous donations treated as Income by Assessee

Added In Income Tax
Respective court was of the view that section 68 has no application because the same had already been taken in income of the assessee so it no where remains undisclosed. Moreover the assessee has duly discharged its onus to prove the credit worthiness of the donor by giving the list of the same and the financial statements, PAN card copy, their ITR’s ,etc .

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  • Jul
  • 04
  • 2015

Explanatory Circular for Compliance Window under Black Money Act

Added In Income Tax
Considering the stringent nature of the provisions of the new law, Chapter VI of the Act, comprising sections 59 to 72, provides for a one-time compliance opportunity for a limited period to persons who have any foreign assets which have hitherto not been disclosed for the purposes of Income-tax. This circular explains the substance of the provisions of the compliance window provided for in the said Chapter VI of the Act.

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  • Jul
  • 04
  • 2015

Notification of Black Money Rules and issue of Explanatory Circular

Added In Income Tax
Notification of Black Money Rules and issue of Explanatory Circular for Compliance Window under Black Money Act The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015 (the Rules) have been notified vide notification no. G.S.R. 529 (E) dated 02-07-2015. These Rules provide the method of determination of Fair Market Value […]

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  • Jul
  • 04
  • 2015

Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Rules, 2015

Added In Income Tax
Notification No. 58/2015 Dated- 2nd of July, 2015 G.S.R. 529 (E).- In exercise of the powers conferred by sub-sections (1) and (2) of section 85 of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015), the Central Board of Direct Taxes with the approval of the Central Government hereby makes the following rules, namely:-

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  • Jul
  • 03
  • 2015

Exemption u/s 11 cannot be denied on giving interest free loan and renting of property

Added In Income Tax
Interest free loan given by the assessee society to another society with identical object cannot be treated as investment or deposit in which event there is no violation of section 13(1)(d) row’s. 11(5) of the Act. The case of the assessee herein is that both the assessees have similar objects and were registered under section 12A of the Act and interest free loan was returned subsequently.So exemption u/s 11 cannot be denied .

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  • Jul
  • 03
  • 2015

Application of provision of section 14A r.w. Rule 8D without recording satisfaction cannot be upheld

Added In Income Tax
It is a trite law as per provision of section and various judicial pronouncement that AO must record satisfaction regarding to non-correctness of the claim of the assessee u/s 14 A. He must ensure that there is an error in calculation of expenditure relating to the income which relates to the exempted income.

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  • Jul
  • 03
  • 2015

Tax Treatment of Composite Rent, Unrealised Rent and Rent Arrears

Added In Income Tax
The  Article covers following topics : 1. Discussion on charging section i.e. section 22 with focus on meaning of various terms viz: Building Land appurtenant to a building Owner Deemed owner Property used for the purpose of business or profession 2. Tax treatment of composite rent : Composite rent i.e. rent of building and charges […]

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  • Jul
  • 03
  • 2015

All about Section 44AE of Income Tax Act, 1961

Added In Income Tax
The provisions of section 44AE are applicable to every person (i.e., an individual, HUF, firm, company, etc.). Unlike section 44AD, in case of section 44AE there is no restriction on which categories of assessees can opt for the scheme.. All sorts of assessees can opt from this scheme.

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