Income derived from property held under trust or of an institution (‘trust’) wholly for charitable/religious purpose is exempt, if 85% of the income is spent on the objects of the trust, during the year. If the amount spent is less than 85% of the income, the shortfall is taxable, unless the trust has complied with the conditions mentioned in the table below.
A recent media report suggests that the Governments of India and Mauritius are slated to renegotiate the India-Mauritius Tax Treaty (Treaty). The Treaty is one of the few tax treaties that provides for an exemption, from taxation in India, of capital gains arising from alienation of shares of an Indian company. At this stage, it is not known whether the renegotiation would seek to eliminate the capital gains exemption or introduce an anti-treaty shopping provision or merely strengthen the exchange of information clause of the Treaty.
NC Notification No. 57/2010-Income Tax In exercise of the powers conferred by sub-section (1) read with clause (b) of the Explanation to section 35AC of the Income-tax Act, 1961 (43 of 1961), the Central Government, on the recommendations of the National Committee for Promotion of Social and Economic Welfare, hereby notifies the institutions approved by the said National Committee, mentioned in column (2) of the Table
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Recent negotiations between the Competent Authorities (CAs) of India and the USA under Article 27 of the India-US tax treaty (Tax treaty), which deals with the Mutual Agreement Procedure (MAP), provides for a dispute resolution mechanism where the CAs shall endeavor by mutual agreement to resolve the situation of taxpayers subject to taxation not in accordance with the provisions of the Tax Treaty.
The Finance Ministry has decided to arm its tax authorities with exhaustive financial and personal data of Indian residents who use the exemption clauses under the Double Taxation Avoidance Agreement (DTAA) and escape paying taxes in one of the countries. The ministry will request countries, including the US and Switzerland to supplement their data on Indian residents with PAN card information and other vital details.
The sectoral regulator Irda today said it has finalised the IPO guidelines for insurance companies and has referred the same to the capital markets watchdog Sebi for final approval which is expected soon.”We are expecting the guidelines shortly. We have given our observations. The matter is currently with the Securities and Exchange Board of India (Sebi),” Insurance Regulatory and Development Authority (Irda) chairman J Harinarayan told PTI.
The Employees Provident Fund (EPF) is expected to retain the interest rate for its six crore account holders at 8.5 per cent in 2010-11, with a formal announcement likely to be made in August.”I hope that the recommendation of 8.5 per cent by the Finance and Investment Committee of the EPFO will be retained,” Central Provident Fund Commissioner S Chatterjee told PTI.
Builders are all set to legally challenge the imposition of the service tax levied by the Centre on flats under construction. The Maharashtra Chamber of Housing Industry (MCHI), which has leading developers as its members, is considering filing a writ petition in the court against the service tax, which has been imposed since July 1.
Opposing the government’s decision to levy service tax on rentals, several retailers and multiplexes across cities have obtained stay orders against the move from their respective high courts over the last one month. The Union Budget for 2010-11 had brought the rental income from immovable property under the purview of service tax with retrospective effect from June 1, 2007 by treating the renting of immovable property as a service.
