"26 July 2019" Archive

Section 194I of Income Tax Act, 1961 – TDS on Rent

Section 194I was inserted vide the Finance Act, 1994. The present article covers the important section 194-I of the Income Tax Act, 1961, which deals with the provisions of ‘TDS on Rent’. Meaning of the term ‘Rent’ –  Before going into the nitty-gritty of the provisions of section 194-I of the Income Tax Act, 1961, first [&hel...

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Posted Under: Income Tax | ,

Extension of timeline for completion of assessments in OCM cases

F.No.225/363/2017-ITA-11 (26/07/2019)

Extension of timeline for completion of assessments in OCM cases where no return has been filed in response to notice u/s.142(1) of the Income-tax Act,1961('Act') and the assessments have to be completed u/s.144 of the Act...

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Aadhaar and Other Laws (Amendment) Act, 2019

(1) This Act may be called the Aadhaar and Other Laws (Amendment) Act, 2019. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of...

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Posted Under: Income Tax |

Companies (Amendment) Bill, 2019 – Key Takeaways!

Through this write-up, an attempt has been made to capture and provide an insight of the amendments as contained in Companies (Amendment) Bill, 2019, which are in addition to the amendments proposed by the Second Ordinance 2019....

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Posted Under: Income Tax |

Key Highlights on DIR-3 KYC

The Ministry of Corporate Affairs has amended Companies (Appointment and Qualification of Directors) Rules, 2014 vide notification dated 25th July 2019 Key summary for your reference. 1. E-Form DIR-3 KYC is to be filed by an individual who holds Director Identification Number (“DIN”) or Designated Partner Identification Number (...

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Posted Under: Income Tax |

Disqualification of Directors

Article explains Reasons for : Striking Off Companies & Disqualifying Directors, Circumstances Under Which A Director is Disqualified, Consequences of Disqualification and Remedies Available For Removal Of Disqualification. THE BOMBAY HC HAS TAGGED ALONG ALL THE PENDING WRIT PETITIONS WITH RESPECT TO DISQUALIFICATION & PLACED THEM...

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Posted Under: Income Tax |

Tax Benefits on Home Loan for Joint Owners

Income Tax benefits on Housing Loan for Joint Owner of Rs. 2 Lakh each Section 24(b) of Income Tax Act, 1961 (amended) Conditions for claiming Interest on Home Loan ↓ 1. Income Tax benefits on a joint home loan can be claimed by all the joint owners. 2. Ownership is required for joint owners i.e. […]...

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Posted Under: Income Tax |

TDS Returns – Form 24Q – Amendments

> Form 24Q is categorised in to 2 categories Annexure 1- Annexure 1 of Form 24Q has to be filed in each and every quarter with the details of dedcutee wise breakup of TDS against each specific challan Annexure 2 Annexure 2 of Form 24Q has to be filed only in Quarter 4 with the […]...

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Posted Under: Income Tax |

Impact of Budget 2019 On Real Estate Sector

The Union Budget 2019 was presented on 5th July in the Lok Sabha  by the First Female Finance Minister Mrs. Nirmala Sitharaman. Highlights of the Budget 2019 for Real Estate Sector: 1. Additional tax benefit of Rs 1.5 lakhs to home buyers The government has increased the benefit of tax deduction against interest on home loans for [&hel...

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Posted Under: Income Tax |

DIR-3 KYC / DIR-3-KYC-WEB – What you should know

Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2019 have been notified w.e.f 25th July 2019 EFORM DIR-3 KYC applicable in two cases: Case 1: Where the individual who holds DIN and is filing his KYC details for the first time Case 2: Where the individual DIN holder who has already filed his KYC […]...

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Posted Under: Income Tax |

Section 271AAB Penalty justified if surrendered stock was unaccounted

M/s Royal Lifestyle Jewellers Pvt. Ltd Vs DCIT (ITAT Chandigarh)

Penalty under section 271AAB was justified as the surrender had been made on account of discrepancy /shortage in stock which had not been accounted for by assessee and the same was therefore rightly been held to qualify as “ undisclosed income” as per the definition in section 271AAB....

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FAQ on Salary Income

Q.1 What is considered as salary income?​​​​​​​ Ans: section 17​​ of the Income-tax Act defines the term ‘salary’. However, not going into the technical definition, generally whatever is received by an employee from an employer in cash, kind or as a facility [perquisite] is considered as salary. Q.2 What are allowanc...

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Posted Under: Income Tax |

Cashless Economy And The Role of Banks

Traditionally, Indian Economy had been an economy where cash has been the King in the settlement between various parties. This was mainly because organized banking had not spread throughout the length and breadth of the country. However, the nationalization of the banks in the year 1969, by the Central Government to some extent had increa...

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Posted Under: Income Tax |

Misuse of Total Loss Accident Vehicle Documents over Stolen Vehicles

Ref. No: IRDAI/NL/CIR/MOTOD/118/07/2019 (26/07/2019)

If a motor  vehicle has been destroyed or has been rendered permanently incapable of use, the owner shall, within fourteen days or as soon as may be, report the fact to the registering authority within whose jurisdiction he has the residence or place of business where the vehicle is normally kept, as the case may be, and shall forward t...

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Introduction of DIR-3 KYC WEB

Every individual who holds a Director Identification Number (DIN) as on 31st March of a financial year as per these rules shall, submit e-form DIR-3-KYC for the said financial year to the Central Government on or before 30th September of immediate next financial year....

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Posted Under: Income Tax |

Key Changes proposed in Companies (Amendment) Bill, 2019,

Key Changes proposed in the Companies (Amendment) Bill, 2019, which are in addition to the changes made though Ordinance w.e.f. 02.11.2018 1. Section 26– Matters to be stated in prospectus The requirement of registration of prospectus to be replaced with filing of prospectus with the Registrar. 2. Section 29 – Public offer of ...

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Posted Under: Income Tax |

Brief Guide For Export Business In India

If you are planning to start export business or already running export business, then you should know the procedures to set up or grow your export business in India. The Exporter needed to do following things for setting the desired export business in India. 1. Formation of Business Entity: The exporter of India can form […]...

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Posted Under: Income Tax |

GST: Section 50 Interest liability after proposed amendment

Interest liability in terms Section 50 of CGST Act/SGST Act after proposed amendment to Section 50(1) vide Finance Bill 2019 There are divergent views on rationality of charging interest on gross liability of tax even though the Tax Payer (TP) has got certain amount in his credit ledger to discharge part of his tax liability […]...

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Posted Under: Income Tax |

Tax Compliance Procedures to facilitate Foreign Remittances

Introduction Any sum payable to a non-resident including a foreign company is liable to withholding of tax under section 195 of the Income Tax Act, 1961. The tax rate may vary in accordance with the nature of the remittance which should fall within the scope of Section 9. Further, in accordance with the penal provisions […]...

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Posted Under: Income Tax |

Income from investment fund set up in IFSC – Exemption from filing of return

Notification No. 55/2019-Income Tax [S.O. 2672(E)] (26/07/2019)

Central Government, hereby exempts the following class of persons, subject to the conditions specified hereinafter, from the requirement of furnishing a return of income under subsection (1) of section 139 of the said Act from Assessment Year 2019-20 onwards, namely:-...

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CSR from Company law, Income Tax and GST perspective

CSR (Corporate Social Responsibility) from Company law, Income Tax and GST perspective Corporate social responsibility (CSR) can be simply and broadly defined as the ethical role of the corporation in society. The aim of CSR is to increase long-term profits and shareholder trust. It’s like repaying to the society for the resources co...

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Posted Under: Income Tax |

Applicability of GST on freelancers

To have an independent portfolio of work is advantageous and a boon for any freelancer. However, along with it comes the added cautiousness of legal compliances, of which, most of us are completely oblivious to. The chord is struck only when you receive dreadful notices of tax penalties from Tax Authorities. Have you received any [&hellip...

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Posted Under: Income Tax |

Classification of Items under GST Tax

GST stands for Goods and Service Tax. It is one of the most significant tax reforms in India that has great benefits for the Indian Economy. It not only regulates unorganized sectors of the economy but also encourages the flow of foreign investments in India. GST is mandatory compliance and if a business unit is […]...

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Posted Under: Income Tax |

Crucial Issues on provisions of Section 194N – Cash withdrawals

The Finance Bill 2019 has finally been passed with the insertion of section 194N – TDS on cash withdrawals.  A finer reading of the provisions emerge the following:...

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Posted Under: Income Tax |

No power with CIT(A) to dismiss appeal for non-prosecution

Ashish Dham Vs DCIT (ITAT Delhi)

CIT(A) erred in dismissing assessee’s appeal  and passing a non-speaking order on each of the points which arose for his consideration, therefore, CIT(A) was directed to pass denovo order as per law, in accordance with Sections 250 and 251 for fresh disposal of appeal filed by assessee....

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Lok Sabha approves new Companies (Amendment) Bill, 2019

Bill No. 189-C of 2019 (26/07/2019)

AS PASSED BY LOK SABHA ON 26.07.2019 Bill No. 189-C of 2019 THE COMPANIES (AMENDMENT) BILL, 2019 A BILL further to amend the Companies Act, 2013. BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:— 1. Short title and commencement. (1) This Act may be called the Companies […]...

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Analysis of SBO (Significant Beneficial Owners) Rules

Analysis of SBO (Significant Beneficial Owners) Rules (Applicability, Amendments, E-forms, Definitions, , Penal Provisions etc.) Attention (Dont’s miss the deadline 31.07.2019): Form BEN-2 (Return to the Registrar in respect of declaration under Section 90) notified vide the Companies (Significant Beneficial Owners) second Amendment Rul...

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Posted Under: Income Tax |

Holding Period for LTCG: Allotment Date Vs. Date of execution of agreement

ACIT Vs Ms. Shradha Sudhir Valia (ITAT Mumbai)

Where allotment as well as execution of the agreement did not vest two different capital assets in the hands of the assessee which got exchanged with each other upon execution of the agreement rather the event of allotment as well as execution of agreement was part & parcel of the same transaction and only an improvement in ownership righ...

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Bogus LTCG Addition not sustainable if AO fails to disprove claim of Assessee

Ms. Anupama Garg Vs ITO (ITAT Delhi)

Where assessee had furnished relevant evidences such as copies of bank statement, demat account, share purchase documents and share certificate., etc., to prove its bogus long-term capital gain on sale of shares and no adverse material had been brought on record by AO to disprove the claim of assessee, addition made under section 68 on ac...

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Designing Trust for Indian Tax System

Significant academic research has been conducted to establish factors that lead to voluntary tax compliance. A plain and pessimistic conclusion of some redoubtable research is that taxpayers have an inherent selfish motive to evade taxes;...

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Posted Under: Income Tax |

Eficacy of Tax breaks

A Tax break is a saving on a tax payer's liability and provides savings to tax deductions and exemptions. Tax breaks are an essential component of any taxing statute. However, as a result of the tax breaks, a chunk of revenue otherwise available to the exchequer is lost....

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Posted Under: Income Tax |

RT. Hon’ble James Wilson-Architect of Modern Indian Budgeting System

The Royal proclamation on November 1, 1858 in grand Darbar held at Allahabad was a major event in modern Indian financial history. Lord Canning announced that the Queen had assumed the governance of India....

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Posted Under: Income Tax |

Insight on Companies (Amendment) Ordinance, 2019, as introduced in Lok Sabha

Companies (Amendment) Ordinance, 2019 (Bill) is introduced to replace the second ordinance. Earlier, a bill to replace the first ordinance, the bill which passed in Lok Sabha in January 4, 2019 and which could not get through in Rajya Sabha, and hence the second ordinance was promulgated in February 21, 2019....

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Posted Under: Income Tax |

The Missing Link: The Collaboration between GSTN and TDS

Unprecedented pace of changes happening in the field of Information and Communication Technology (ICT) offers both unfamiliar challenges as well as new vistas for effective tax administration. This article demonstrates as to how the GSTN offers huge possibility, as a real time collaborative tool, for TDS wing of ITD to have an effective ...

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Posted Under: Income Tax |

Transfer Pricing in India

A substantial volume of global trade comprises transactions between related enterprises within groups of multinational enterprises (MNEs). The transactions between such related or associated enterprises may take place under conditions different from those taking place between independent enterprises....

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Posted Under: Income Tax |

Special Court Convicts Four Directors of Kolkata based Company for Non-Compliance of Summons Issued by SEBI

PR No.: 18/2019 (26/07/2019)

SEBI Special Court convicted four directors of the Roofers Realty Limited for not complying with the summons issued by the investigating authority of the Securities and Exchange Board of India (SEBI). SEBI had launched investigation into alleged illegal mobilization of funds from the public by Roofers Realty Limited....

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Cattle feed in cake form exempt from GST: AAR Tamilnadu

In re Chinnakani Arumuga Selvaraja, Proprietor of M/s Sri Venkateshwara Traders (GST AAR Tamilnadu)

In re Chinnakani Arumuga Selvaraja, Proprietor of M/s Sri Venkateshwara Traders (GST AAR Tamilnadu) The product ‘Cattle feed in cake form’ manufactured by the Applicant is classifiable under Chapter Heading 23099010 and stands exempted as per vide Sl.No. 102 of Notification No. 2/2017-Central Tax(Rate) dated 28th June 2017 as ...

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‘Cattle feed in cake form’ classifiable under CTH 23099010

In re Ramu Chettiar Srinivasan (GST AAR Tamilnadu)

The product 'Cattle feed in cake form' manufactured by the Applicant is classifiable under Chapter Heading 23099010 and stands exempted as per vide Sl.No. 102 of Notification No. 2/2017-Central Tax(Rate) dated 28th June 2017...

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Guidelines for LES in Commodity Derivatives Contracts

Circular No. SEBI/HO/CDMRD/DNPMP/CIR/P/2019/84 (26/07/2019)

Discount in fees, adjustment in fees in other segments or cash payment - The incentives during a financial year shall not exceed 25% of the net profits or 25% of the free reserves of the stock exchange, whichever is higher, as per the audited financial statements of the preceding financial year....

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Staggered Delivery Period in Commodity futures contracts

SEBI/HO/CDMRD/DNPMP/CIR/P/2019/83 (26/07/2019)

The applicable staggered delivery periods for various commodity futures contracts as on the date of the above circular were also continued. It is observed that currently there is no uniformity in the length of staggered delivery period for commodity futures contracts across exchanges even for the same commodities....

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Use of Unified Payments Interface (UPI) with ASBA- Reg.

Circular No. SEBI/HO/CFD/DIL2/CIR/P/2019/85 (26/07/2019)

Investors whose bank is not live on UPI as on the date of this Circular, may use the other alternate channels available to them viz. submission of application form with SCSB or using the facility of linked online trading, demat and bank account (Channel I or II at Para 5.1 of Circular dated November 01, 2018)....

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High Court Order in respect of item at EXIM Code 1005 Maize (Corn)

Policy Circular No. 27/2015-2020-DGFT (26/07/2019)

Reference is invited to Notification No. 93 (RE-2013) dated 29.09.2014 which, inter - alia, revised the import policy for EXIM code 1005 - Maize (Corn) (1005 90 00 -Other), removing the item from the State Trading Enterprises" list to Free....

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New Delhi International Arbitration Centre Act, 2019

No. 17 of 2019 (26/07/2019)

(1) This Act may be called the New Delhi International Arbitration Centre Act, 2019. 2) It shall be deemed to have come into force on the 2nd March, 2019....

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Share capital addition with premium on mere surmises / conjectures unjustified

ITO Vs M/s. Sankalp Corporate Services Pvt. Ltd. (ITAT Mumbai)

Addition under section 68 made by AO of the entire share capital and premium received during the year  on the basis of negative observation about availability of funds with share applicant was unjustified as the share applicant was the sister concern of assessee, from whom similar share application with premium were received in the earli...

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FCRA Suspension of 10 Associations revoked

Order No. II/21022/58(951)/PFMS/2017/FCRA(MU) (26/07/2019)

And whereas, the associations mentioned in the annexed list have now opened their bank account(s)as mandated under section 17 of the FCRA, 2010 in PFMS-integrated banks and have complied with the Government directions issued under section 46 of the Act. 8. Now therefore, the suspension of the registration under FCRA, 2010 of th...

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Use and File procedure for certain modifications under existing products and riders offered by Life Insurers

Ref No.: IRDAI/ACT/CIR/MISC/124/07/2019 (26/07/2019)

hange in current File and Use procedure: To make the product modification process more efficient, it has been decided that the following modifications to the approved products and riders will be allowed without complete procedure under File and Use:...

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Implementation of IRDAI (Non-Linked Insurance Products) Regulations, 2019

Ref No. IRDAI/ACT/CIR/MISC/125/07/2019 (26/07/2019)

This circular is issued in accordance with the powers vested under Section 14 (2)(e) of the IRDA Act, 1999 read with Section 34(1) of the Insurance Act, 1938, Regulation 38 of the IRDAI (Non-Linked Insurance Product) Regulations, 2019 and Regulation 51 of the IRDAI (Unit-Linked Insurance Products) Regulations, 2019....

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Delhi exempts film “Super 30” from DGST

No. F.3(270)/Policy-GST/2019/1470 (26/07/2019)

The reimbursement of amount equivalent to DGST, payable & deposited on services by way of admission to exhibition of film Super 30 in Multiplexes/ Cinema Halls of Delhi is allowed,...

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‘Intermediary’ or ‘Export’ – Recent circular on Intermediary Services

The scope of intermediary services has been under constant debate both under the service tax regime and after the introduction of GST. A writ petition is also pending before the Gujarat High Court challenging the tax treatment of intermediary services on the ground that the provision imposing tax on intermediary services provided to a rec...

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Posted Under: Income Tax |

IFRS 9 Financial Instruments: Transition Impact on Banks Across Globe

In the first decade of new millennium the world witnessed unprecedented global financial crisis with severe adverse impact on many economies. Unlike previous crisis, large internationally active Banks from advanced economies were at the epicentre of the crisis. The crisis impact was felt across the globe, calling for urgent and unified re...

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Posted Under: Income Tax |

MCA Updates on eForm DIR-3 KYC & LLP Forms

1. Please be aware that the Companies (Appointment and Qualification of Directors) Third Amendment Rules, 2019 have been notified w.e.f 25th July 2019. As per the said notification: i) eForm DIR-3 KYC is to be filed by an individual who holds DIN and is filing his KYC details for the first time or by the […]...

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Posted Under: Income Tax |

CBDT Taxalogue Magazine Jul – Oct 19 | Volume 1 | Issue 1

The Tax Policy, which feels the pulse of the public and addresses their concerns while raising taxes for the Government is considered as the most progressive one. On the other hand, if it ignores the ground reality, it arouses adverse public sentiments....

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Posted Under: Income Tax |

Importance of Risk Based Internal Audit in Banks

Deregulation and liberalization of Indian financial sector call for effective and crucial risk management and internal control system in the conduct of banking business especially after the recent unsavory incidents of fraud and cheatings by some of the prominent borrowers causing a grave crisis in the financial market....

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Posted Under: Income Tax |

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