The Central Board of Direct Taxes (CBDT) have directed the Income Tax Department (ITD) to make arrangements for receiving income tax returns on 31st July 2010, the due date for filing tax returns by most taxpayers, as that day happens to be a Saturday.
Some companies take large loans to take the benefit of tax deduction. It means if the loan amount is high, the companies need to pay higher amount of interest and all this interest will be tax free. Means companies may use it as a tax saving instrument. Like if the companies take the equity capital instead of loan, then the companies need to pay dividend which is almost like interest amount and the dividend is not tax free, one need to pay income tax first and then distribute dividend to the shareholders. But now government is planning to introduce ‘thin capitalization’ rule to check this type of tax evasion.
In the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 7/2010-Central Excise (Non Tariff), dated the 27th February, 2010 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 123(E), dated the 27th February, 2010, at page 60 in line 18,
