"January, 2018" Archive - Page 40

Clarify provisions of section 44AD: ICAI

(4) Where an eligible assessee declares profit for any previous year in accordance with the provisions of this section and he declares profit for any of the five assessment years relevant to the previous year succeeding such previous year not in accordance with the provisions of sub-section (1)...

Read More
Posted Under: Income Tax |

Exclude agricultural land from the ambit of Section 43CA: ICAI

This section provides for adoption of stamp duty value in case of transfer of land or building or both held as stock-in-trade. Several issues have cropped up due to implementation of this section in its present form and suggestions thereof are as under...

Read More
Posted Under: Income Tax |

Allow Capitalization of foreign exchange loss for domestically acquired asset: ICAI

Section 43A was inserted in the Income-tax Act, 1961 by Finance (No. 2) Act 1967, which permitted Capitalization of Foreign Exchange Fluctuation Loss in the borrowing used for acquisition of assets outside India....

Read More
Posted Under: Income Tax |

ICAI suggestions on depreciation on assets acquired in satisfaction of debts Section 43(1)

In many cases, assessees engaged in the business of financing assets, acquire such assets which were used by the borrower for the purpose of his business or profession. Post-acquisition of such assets, the finance companies lease out the same to another person under operating lease....

Read More
Posted Under: Income Tax |

ICAI suggestions on taxability of interest on Non-Performing Asset

Section 43D of the Act provides that income by way of interest in relation to bad and doubtful debts of a public financial institution or a scheduled bank or a cooperative bank or a state financial corporation or a state industrial investment corporation or a housing finance company...

Read More
Posted Under: Income Tax |

Section 40A(3) Allow cash Payment to electricity companies: ICAI

Currently, bill payments related to electricity consumption made to electricity companies are not allowed through cheque in case payment is made after a certain date or delayed/late payment after due date. Assessee in such situations is left with no option but to pay in cash....

Read More
Posted Under: Income Tax |

Restrict disallowance for TDS defaults on payments to non-resident to 30%: ICAI Suggests

In relation to section 40(a)(ia), Explanatory Memorandum to Finance (No.2) Bill 2014/CBDT Circular No. 1 of 2015 explained that disallowance of whole of the amount of expenditure in case of payments to residents for whom TDS ...

Read More
Posted Under: Income Tax |

Disallowance of expenses incurred in favour of members – Section 40(ba)

In many cases, a consortium may be formed by two or more members to jointly bid for big projects wherein each of the members brings in his own expertise and resources. If the consortium is assessed as AOP...

Read More
Posted Under: Income Tax |

Section 40(a)(ia): Disallowance of expenditure for non-deduction of tax at source on payment made to resident

Section 40(a)(ia) is amended via Finance (No. 2) Act, 2014 to restrict the amount of disallowance for non-deduction of tax to 30% of expenditure. The proviso is also amended to the effect that 30% of such sum shall be allowed as a deduction in computing the income of the previous year in which tax has been paid....

Read More
Posted Under: Income Tax |

Allow deduction for Corporate Social Responsibility Costs: ICAI

Corporates are currently involved in various areas of social responsibility / community development as part of nation building. Further, the concept of Corporate Social Responsibility Costs has been introduced under Companies Act, 2013. The expenditure is mandatory in its nature and as such it is a statutory levy. Accordingly it deserves...

Read More
Posted Under: Income Tax |