"21 January 2018" Archive

Section 50CA & 56(2)(x)(c) :Amendment needed in view of double taxation

The Finance Act 2017 inserted a new section 50CA to provide that in case of transfer of shares of a company other than quoted shares, the fair market value of such shares determined in the prescribed manner shall be deemed to be the full value of consideration for the purpose of computing income chargeable to tax as capital gains....

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Posted Under: Income Tax |

Section 44ADA: Increase Threshold limit of Rs. 50 lakhs & Reduce Rate of estimated tax

The Finance Act, 2016 has inserted a new section 44ADA providing for special provision for computing profits and gains of profession on presumptive basis. This measure would definitely help the specified professionals in payment as well as compliances under the income-tax law....

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Posted Under: Income Tax |

GTA services and GST liability

In terms of Notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 (Sr.no.18), the following services are exempt from GST Services by way of transportation of goods (Heading 9965)- (a) by road except the services of— (i) a goods transportation agency; (ii) a courier agency; (b) by inland waterways....

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Posted Under: Income Tax |

Residential Status Of Companies: Concept Of Place Of Effective Management (“Poem”)

Prior to the introduction of the concept of POEM, a Company was said to be resident in India in any previous year if it was an Indian company or during that year, the control and management of its affairs was situated wholly in India. The Finance Act, 2015 amended the above provision so as to provide that a Company would be resident in In...

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Posted Under: Income Tax |

Allow Benefit of presumptive taxation U/s. 44AD to LLP: ICAI

Section 44AD relating to presumptive taxation applies only to businesses run by residents Individual, HUF and Firms excluding LLP. Tax on presumptive basis should be extended to all assessees, including a LLP. Only section 44AD excludes LLP, for which there appears to be no cogent reason. Otherwise under the Act, a LLP and a Firm are tre...

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Posted Under: Income Tax |

Clarify Depreciation on capital asset acquired vide Cash payment: ICAI

system through a bank account, exceeds ten thousand rupees, such expenditure shall be ignored for the purposes of determination of actual cost of such asset. Similar amendment is made in section 35AD. Further, cash payment limit under section 40A(3) is also reduced to Rs.10,000. Thus, the Finance Act 2017 disallowed even the capital expen...

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Posted Under: Income Tax |

Dilution of tax incentive U/s. 35AD by insertion of Section 73A

The underlying idea behind allowing the investment linked incentive granted under Section 35AD of the Act is to enable the taxpayer to set-off the business losses incurred by this write-off against the taxable profits from their existing businesses and reduce their tax liability in the year of deduction and thereby to provide part of the ...

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Posted Under: Income Tax |

Address Concerns in Computation of capital gain in case of JDA: ICAI

The Finance Act 2017 inserted sub-section (5A) in the existing section 45 to provide that the capital gains arising to an individual or Hindu undivided family under a Joint Development Agreement shall be taxed in the year in which completion certificate for the whole or part of the project is received...

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Posted Under: Income Tax |

Section 44AD Presumptive Income – amend definition of eligible business

According to the new provisions, in case of an eligible assessee engaged in eligible business, income shall be deemed equal to a sum @ 8% of the turnover or higher income as per books. Section 44AD is applicable to any business except the business of plying...

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Posted Under: Income Tax |

Section 44AD Allow deduction of interest and remuneration paid to partners by firm: ICAI

The amendment made via the Finance Act, 2016 to disallow deduction of expenditure in the nature of salary, remuneration, interest paid to the partner as per section 40(b) out of presumptive income. This amendment would hit small and medium firms...

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Posted Under: Income Tax |

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