"05 December 2019" Archive

Income Tax Updates for the Month of November 2019

Income Tax Updates for the Month of November 2019 (Notifications, Circulars and other amendments) 1. Tax deducted u/s 194M (TDS by Individual/HUF) to be deposited within 30 days from the end of the month in which tax deducted CBDT Notification No.98/2019-Income Tax dated 18-Nov-2019 a) Sec 194M: Applicable w.e.f 01-Sep-2019 An Individual/...

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Posted Under: Income Tax |

NOC (Communication with previous auditor) – A tool, defense, weapon or?

What should be the correct procedure to adopt when a prospective client tells you that he wants to change his auditor and wants you to take up his work? Is NOC (no objection certificate) required from previous auditor?...

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Posted Under: Income Tax |

GST: Too many glitches to stitch

Any new reform, particularly a tax reform, is bound to have initial resistance. However tax paying businessmen were so frustrated by multiple taxes and compliances under earlier laws that they welcome GST wholehearted hoping  it will solve all their problems and GST will be easy to understand and implement. The government also trumpeted ...

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Posted Under: Income Tax | ,

Time of Supply under Goods and Service Tax (GST) Regime

The chapter IV of the CGST Act determines the time of supply of goods or supply of services. Tax Liability arises from the date of time of supply. Time of Supply determines the point of time: 1. the time when the liability to pay tax arises; 2. the rate of tax applicable with reference to […]...

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Posted Under: Income Tax |

Benefits of Compulsory Insurance/Approved Gratuity Trust for Gratuity Benefits of Employees for Companies with Employee Strength 10 or More

This article is attempt to give more clarity about the Gratuity Benefits, Factors increasing the quantum of Gratuity Benefits Exponentially and Benefits of Compulsory Insurance/Approved Gratuity Trust for Gratuity Benefits of Employees for Companies with Employee Strength 10 or More...

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Posted Under: Income Tax |

Karvy stock broking case: – A fallout of the SEBI Circular

Since last one year, SEBI has brought in a number of new regulations to improve the health of the broking industry. One of the circulars was issued by SEBI on 20th June 2019, which results into fallout of many broker firms, the bigger one is the Karvy....

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Posted Under: Income Tax |

ITAT upheld section 68 Addition- Big Jump in Share Price of unknown Company

Harish Kumar HUF Vs ITO (ITAT Chennai)

Assessee has not tendered cogent evidence to explain as to how the shares in an unknown company had jumped to an higher amount in no time when the fantastic sale price was not at all possible as there was no economic or financial basis to justify the price rise. Also, assessee failed to provide details of persons who purchased the shares....

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Appeal maintainable against determination of Section 115QA liability: SC

Genpact India Private Limited Vs DCIT (Supreme Court)

Genpact India Private Limited Vs DCIT (Supreme Court) Section 115QA of the Income Tax Act, 1961 stipulates that in case of buy back of shares referred to in the provisions of said Section, the company shall be liable to pay additional income tax at the rate of 20% on the distributed income. Any determination in […]...

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RBI Policy Review: RBI pauses as inflation concerns return

The pause in the rate cycle comes as a surprise given the dismal growth for the second quarter of 2019-20 and the likely persistence of a slowdown. Clearly the RBI has responded to hardening headline inflation and rising inflation expectations of households....

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Posted Under: Income Tax |

Property used for business cannot be treated as vacant for section 23

Ideal Hitech Engineering Equipment (P) Ltd. Vs ITO (ITAT Delhi)

We are of the view that the company having occupied the property for its own purposes, no notional rent can be added. It may be germane to mention here that this is the only property owned and occupied by the assessee as its registered office. It is not the case of the AO that the assessee company was having some other premises to have it...

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