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CASE LAW SUMMARY In order to attract section 194D, the commission or any other payment covered under the section should be a remuneration or reward for soliciting or procuring the insurance business; the insurance companies do not procure business for the reinsurance company nor does the reinsurer pay commission or other payment for soliciting the [...] Full Article

YESTERDAY was a red-letter day for the Indian Income Tax Department. It was an important day from the taxpayers' angle as well. If the Netizens are thinking in terms of any tax relief, then they need to take a close look at the concept of relief. A fiscal relief is certainly a welcome news even for taxmen in their capacity as taxpayers. Full Article

The new chief executive officer of fraud-hit Satyam Computer Services sold 40,000 shares of the company in the days before the previous  board’s aborted decision to buy two related firms, stock exchange data shows. A.S. Murty was named chief executive with immediate effect by the new government-appointed board on Thursday, Satyam said in a statement [...] Full Article

The Securities and Exchange Board of India (Sebi) is conducting inspection of stockbrokers, who act as depository participants (DPs) and are also into margin-funding business, as there have been instances of client-account mismanagement. The Sebi move follows complaints from some retail investors about misuse of their shares by brokers. According to Sebi officials, a few [...] Full Article

Hedging means managing risk. A fund manager employs a particular hedging technique in order to mitigate a particular type of risk. For example, a market risk can be hedged against by selling a broad collection of securities short, in equal proportion to one's long exposure or by buying put options on an index. You can hedge against interest rate, inflation, currency etc. Tools for hedging include raising cash, selling short, buying or selling options, futures, commodity .. Full Article

R. B. K. Securities vs. ITO (ITAT Mumbai) -Even prior to the amendment to s. 43(5) by the Finance Act 2005 w.e.f 1.4.2006, dealings in Futures & Options and other derivatives products cannot be treated as speculative transactions as they are special kind of transactions, not involving purchase and sale of shares and consequently the loss arising therefrom cannot be treated as a speculation loss. Full Article

Latest Advance Ruling may impact billion-dollar Vodafone takeover case; Capital gains - Transfer of shares between two non-resident entities abroad - Since situs of income is located here, it is taxable in India. TAXING capital gains has always been a tricky subject for the Revenue. If it ever involved two non-resident entities, it always proved to be a much trickier and harder nut to crack. Then came the insertion of the most crucial clause in the statute - the situs of.. Full Article

Will the proposed review of foreign institutional investor (FII) regulations about issuance of ODIs (offshore derivative instruments) have any income-tax implications in India for the foreign investors? The answer appears to be in the affirmative."The proposals may lead to tax cost for the overseas investors and these investors will have to take a re-look at their India investment strategy," cautions Mr Naresh Makhijani, Executive Director, KPMG. Full Article