"08 July 2019" Archive

Highlights of GST in Union Budget 2019-20

Union Finance Minister Nirmala Sitaraman has presented Union Budget for the year 2019-20. This budget is the modest budget with more of sense than sensation. Let’s study the major proposals of GST and Amnesty Schemes under old indirect taxes....

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Union Budget 2019-2020 -Key Highlights

1. DIRECT TAX No change in income tax slab rates for this year. Deduction exceeded from ₹2,00,000/- to ₹3,50,000/- for the home loan upto ₹45,00,000/-. Surcharge in case of individual: – Assessee Surcharge rate when income is >=₹2Cr but <₹5Cr. Surcharge rate when income is >=₹5Cr. Individual 3% 7% Tax rates in c...

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Details required for Form BEN-2

1. Purpose of the filling form- For declaration of holding Company- In case there is a holding company of the company which is filing this form and such holding company is also required to file the form BEN-2, then the radio button ‘Declaration of holding reporting company’ needs to be selected and the CIN of […]...

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Exemption from deeming of fair market value of shares for certain transactions

The existing provisions of the section 56(2)(x) of the Income-tax Act, inter alia, provide for chargeability of income in case of receipt of money or specified property for no or inadequate consideration. For determining the amount of income for receipt of certain shares, the fair market value of the shares is taken into account. Similarl...

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Budget 2019: Measures for resolution of distressed companies

The existing provisions of section 79 are not applicable to a company where any change in shareholding takes place in a previous year pursuant to a resolution plan approved under the Insolvency and Bankruptcy Code, 2016 (IBC) subject to the condition that jurisdictional Principal Commissioner or Commissioner is provided a reasonable oppor...

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Section 56: Exemption to Category II AIF under Budget 2019

The existing provisions of the said section 56 of the Income-tax Act, inter alia, provide that where a company, not being a company in which the public are substantially interested, receives, in any previous year, from any person being a resident, any consideration for issue of shares that exceeds the face value of such shares, […]...

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Incentives for start-ups under section 54GB & Section 79: Budget 2019

(1) Section 79 of the Income Tax Act provides conditions for carry forward and set off of losses in case of a company not being a company in which the public are substantially interested. Clause (a) of this section applies to all such companies, except an eligible start-up as referred to in section 80-IAC, while […]...

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Section 80EEA & 80IBA Tax incentive for affordable housing

In order to provide an impetus to the ‘Housing for all’ objective of the Government and to enable the home buyer to have low-cost funds at his disposal, it is proposed to insert a new section 80EEA in the Act so as to provide a deduction in respect of interest up to one lakh fifty […]...

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Exemption of interest income of non-resident on Section 194LC Bonds

Budget 2019- Exemption of interest income of a non-resident arising from borrowings by way of issue of Rupee Denominated Bonds referred to under section 194LC The existing provisions of section 194LC of the Act provide that the interest income payable to a non-resident by a specified company on borrowings made by it in foreign currency [&...

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Contributions to unapproved and unrecognized funds allowable as deduction if genuine in nature

Pr. Commissioner of Income Tax Vs M/s State Bank of India (Bombay High Court)

Where employer had incurred genuine expenditure for the welfare and the benefit of the employees, contributions to unapproved and unrecognized funds had to be allowed as a deduction....

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