"28 July 2019" Archive

Denial of Entire Exemption, or Limited only to the Amount Diverted-Judicial Decisions

The article attempts to examine whether violation of the conditions laid u/s 13(1)(c), r.w.s 13(3) and 13(2)(b) would lead to only disallowance of monetary value of the benefit given to the prohibited person(s), or would result in denial of the entire exemption claimed by the assessee u/s 11 and 12 of the I.T. Act....

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Posted Under: Income Tax |

Reduction of Income Tax Litigation

Krishna Mohan Prasad Principal Director General of Income Tax (Legal & Research) krishna.m.prasad@incometax.gov.in Sh. Krishna Mohan Prasad is an IRS officer of 1984 batch and is currently posted as Principal Director General of Income Tax, Directorate of Legal & Research, New Delhi. He had worked extensively as Commissioner (Appe...

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Posted Under: Income Tax |

Advance Pricing Agreement Programme in India

Executive Summary A separate code on transfer pricing under sections 92 to 92F of the Income Tax Act, 1961 (hereafter, the ITA) covering intra-group cross-border transactions became applicable from 1 April 2001. The regulations are based on the arm's length principle and provided for determination of arm's length price of international...

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Posted Under: Income Tax |

Advances need to be made in the field of ‘Advance Rulings’

Valuable resources of the nation get wasted in pursuing the litigation in various courts of law before a final or conclusive view emerges out. Since, conventional methods of appeal and further appeals have proven to be time consuming and costly better way to manage disputes would be to have clarity in advance in which context the institut...

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Posted Under: Income Tax |

Brokerage paid by purchaser cannot be taken into account for Section 50C

ITO Vs Smt. Rajani Manhar Bhagat (ITAT Ahmedabad)

Since the market value of immovable property sold by assessee had to be Rs.2,60,05,348/- and the purchase consideration together with costs towards obtaining vacant property should stand at Rs.2,26,00,000/-, therefore, the long term capital gain would be Rs.34,05,348/- as per section 50C and the brokerage costs incurred on sale considerat...

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Authority for Advance Rulings and Settlement of Tax Disputes

The concept of Advance Rulings has global background and perspectives. The system is in vogue in several countries though procedurally there may be dissimilarities. The first document which shed light on this important concept is the International Bureau of Fiscal Documentation (IBFD) which was published in 1997-2000. It contained articl...

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Posted Under: Income Tax |

Delay in TDS deposit without reasonable cause punishable with imprisonment & fine

ITO (TDS) Vs Ichibaan Automobiles Pvt Ltd (ACMM)

Deposit of TDS deducted to the credit of the Central Government with delay of 12 months without having reasonable cause was punishable with rigorous imprisonment of 3 months and fine of Rs.5,000/­ (Rs. Five Thousand only) each for having committed offence.....

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Posted Under: Income Tax |

Income Tax Tips for Pensioners

Income Tax Tips for Pensioners (Assessment Year 2019-2020) 1. The pensioner should use ITR -1 2. PANCRAD NO should be User ID 3. Create and use Password 4. He/She should select the following a. Original/Revised Return b. Select Bank A/C c. Select prefill consent etc 5. Read instructions carefully 6. Select PART A General information [&hel...

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Posted Under: Income Tax |

Taxation of Income from Cross-border Interest

Let us understand the concept of Interest in the context of cross-border taxation with the help of an example. When an Indian Company borrows money by way of Loan from a person resident of Germany, the Indian Company will pay Interest at agreed rate to such Non-resident. Now, the question arises, which country gets the right to tax such I...

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Posted Under: Income Tax |

Salaried employee? Know how to file Income Tax Returns online

If you are a salaried employee and want to know how to e-File your tax returns or file your Income Tax return online, please read this. Salary is the primary source of your income, for a salaried employee. You may also have interest income from a bank. A salaried employee needs to choose Form ITR-1 […]...

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Posted Under: Income Tax |