Income Tax, Wealth Tax and Direct tax Code Related News

  • Mar
  • 05
  • 2015

Place of Effective Management (POEM) in India & Corporate Taxation

Added In Income Tax
The India Budget, 2015 has proposed the amendment of Section 6 of the Income Tax Act which alters the conditions under which a company is resident in India by including the concept of ‘place of effective management’ or POEM. Instead of the clause during that year, the control and management of its affairs is situated wholly in India, the new clause will read its place of effective management, at any time in that year, is in India.

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  • Mar
  • 05
  • 2015

Budget 2015- Rules for Computation of Net Agricultural Income

Added In Income Tax
[See section 2(13)(c)] PROPOSED RULES FOR COMPUTATION OF NET AGRICULTURAL INCOME Rule 1.— Agricultural income of the nature referred to in sub-clause (a) of clause (1A) of section 2 of the Income-tax Act shall be computed as if it were income chargeable to income-tax under that Act under the head “Income from other sources” and […]

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  • Mar
  • 05
  • 2015

Charitable hospital, university or educational institution can appeal before ITAT against order for refusal to register

Added In Income Tax
Orders passed by the prescribed authority under section sub-clauses (vi) and (via) of clause (23C) of section 10 made appealable before Income-tax Appellate Tribunal Sub-clause (vi) of clause (23C) of section 10 provides that any income received by a person on behalf of any university or other educational institution existing solely for educational purposes and […]

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  • Mar
  • 05
  • 2015

Section 153C Assessment of income of a person other than the person in whose case search has been initiated

Added In Income Tax
Section 153C- Budget 2015- Assessment of income of a person other than the person in whose case search has been initiated or books of account, other documents or assets have been requisitioned Section 153C of the Act relates to assessment of income of any other person. The existing provisions contained in sub-section (1) of the […]

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  • Mar
  • 05
  • 2015

S. 148 Approval for issue of notice for re-assessment

Added In Income Tax
To bring simplicity, it is proposed to provide that no notice under section 148 shall be issued by an assessing officer upto four years from the end of relevant assessment year without the approval of Joint Commissioner and beyond four years from the end of relevant assessment year without the approval of the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner.

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  • Mar
  • 05
  • 2015

Interest U/s. 234B in case of re-assessment and Income Tax Settlement

Added In Income Tax
Budget 2015 Interest for defaults in payment of advance tax in case of re-assessment and where additional income is disclosed before the Settlement Commission under section 245C The existing provisions contained in clause (3) of section 234B of the Income-tax Act provides that where the total income is increased on reassessment under section 147 or […]

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  • Mar
  • 05
  • 2015

Sec. 263 Order which are erroneous and prejudicial to interests of revenue

Added In Income Tax
It is proposed to provide that an order passed by the Assessing Officer shall be deemed to be erroneous in so far as it is prejudicial to the interests of the revenue, if, in the opinion of the Principal Commissioner or Commissioner,— 1. the order is passed without making inquiries or verification which, should have been made; 2. the order is passed allowing any relief without inquiring into the claim; 3. the order has not been made in accordance with any order, direction or instruction issued by the Board under section 119; or 4. the order has not been passed in accordance with any decision, prejudicial to the assessee, rendered by the jurisdictional High Court or Supreme Court in the case of the assessee or any other person.

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  • Mar
  • 05
  • 2015

TDS on Employees Provident Fund Scheme & Submission of Form 15G & 15H

Added In Income Tax
Simplification of Tax Deduction at Source (TDS) mechanism for Employees Provident Fund Scheme (EPFS) Under the Employees Provident Fund and Miscellaneous Provisions Act, 1952 (EPF & MP Act, 1952), certain specified employers are required to comply with the Employees Provident Fund Scheme, 1952 (EPFS). However, these employers are also permitted to establish and manage their […]

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  • Mar
  • 05
  • 2015

Provisions related to maintenance of accounts, audit etc by approved in-house R&D facility

Added In Income Tax
Budget 2015- Prescribed conditions relating to maintenance of accounts, audit etc to be fulfilled by the approved in-house R&D facility Under section 35(2AB) of the Act, weighted deduction of 200% is allowed to a company engaged in the business of bio­technology or manufacturing of goods (except items specified in Schedule-XI) for the expenditure (not being […]

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  • Mar
  • 05
  • 2015

New Formula for determining amount of tax sought to be evaded U/s. 271(1)(c)

Added In Income Tax
Budget 2015- Amount of tax sought to be evaded for the purposes of penalty for concealment of income under clause (iii) of sub-section (1) of section 271 Under the existing provision contained in clause (c) of sub-section (1) of section 271 of the Act penalty for concealment of income or furnishing inaccurate particulars of income […]

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