Income Tax, Wealth Tax and Direct tax Code Related News

  • May
  • 23
  • 2015

Change in Rate of Service Tax- Adverse Impact of Rule 7 of Point of Taxation Rules, 2011 on recipient of service

Added In Income Tax
Sandeep Kumar Singh Introduction: The Finance Bill, 2015 has received the assent from Hon’ble President of India on 14.05.2015. The proposed increase in the rate of service tax from 12.36% to 14 % has also been notified vide notification no. 14/2015-S.T. dated 19.05.2015. The increased rate will be effective from 01.06.2015.

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  • May
  • 23
  • 2015

TDS on withdrawal from PF wef 1st June 2015

Added In Income Tax
The Finance Act, 2015 (20 of 2015) has Inserted a new section 192A regarding the payment of accumulated provident fund balance due to an employee. The Provision Shall Take effect from 01st June 2015. Income Tax should be deducted at source (TDS) at the following rates if at the time of payment of the accumulated PF balance is more than or equal to Rs. 30,000/-, with service than 5 years:-

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  • May
  • 23
  • 2015

Prevent artificial avoidance of permanent establishment status

Added In Income Tax
ACTION 7 – Prevent the Artificial Avoidance of PE Status Develop changes to the definition of PE to prevent the artificial avoidance of PE status in relation to BEPS, including through the use of commissionnaire arrangements and the specific activity exemptions. Work on these issues will also address related profit attribution issues.

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  • May
  • 22
  • 2015

Requirement of TDS in case of corporations whose income is exempted U/s. 10(26BBB)

Added In Income Tax
CIRCULAR No. 07/2015 Date- April, 23, 2015 The Central Board of Direct Taxes (the Board) had earlier issued Circular No. 4/2002 dated 16.07.2002 which laid down that in case of such entities, whose income is unconditionally exempted under Section 10 of the Income-tax Act (the Act) and who are statutorily not required to file return of income as per Section 139 of the Act, there would be no requirement for tax deduction at source (TDS) from the payments made to them since their income is anyway exempted under the Act.

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  • May
  • 22
  • 2015

Draft scheme of proposed rules for computation of ALP

Added In Income Tax
The Finance Minister in his Budget speech, while introducing the Finance (No. 2) Bill 2014, had made an announcement that range concept for determination of ALP would be introduced in the Indian transfer pricing regime however, the arithmetic mean concept will continue to apply where the number of comparables is inadequate.

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  • May
  • 22
  • 2015

Valuation of perquisite in respect of free education

Added In Income Tax
Fixed education allowance given in cash by the employer to the employee to meet the cost of education of the family members of the employee is exempt from tax to the extent of Rs. 100 per month per child (up to a maximum of two children). Moreover,any allowance granted to an employee to meet hostel expenditure of his child is exempt from tax to the extent of Rs.300 per month per child for a maximum of two children.

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  • May
  • 21
  • 2015

A brief Study on International Taxation

Added In Income Tax
International taxation in a simple language means the study of Taxation beyond the National Level. Though we all are very much aware about our Indian Taxation Laws but as time is demanding something more so, there is a need to study the taxation at another level.

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  • May
  • 21
  • 2015

New ITAT Rules for Filing Appeals and Seeking Adjournment

Added In Income Tax
All applications for adjournment shall be filed atleast three weeks in advance, except in exceptional cases for which reasons for filing them beyond that period shall be clearly stated in the application. The application will be filed in duplicate and the copy served in advance on the opposite party. In case the opposite party writes ‘not opposed’ on the application,

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  • May
  • 21
  • 2015

TDS on premature withdrawals from Recognized Employee’s Provident Fund (EPF)

Added In Income Tax
Provident Fund (PF) is one of the best fixed-income instruments. This is so because PF is the ONLY debt product apart from PPF, where the interest rate is not only quite attractive but more-importantly tax free as well. Secondly, there is no limit on the amount. Disciplined saving every month is another plus point.

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  • May
  • 21
  • 2015

DCIT and Inspector of Income Tax from Delhi convicted for accepting bribe

Added In Income Tax
Four Years Rigorous Imprisonment with Fine of Rs. Two Lakhs Each To Then Deputy Commissioner Of Income Tax And Then Inspector For Accepting Bribe Of Rs. Two Lakhs The Special Judge for CBI Cases, Saket Court, New Delhi has today sentenced Sh. Arun Kumar Gurjar then Deputy Commissioner of Income Tax, Delhi and Sh. Baljeet […]

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