"04 February 2020" Archive

Union Budget 2020-21: Analysis of Direct Tax Proposals

In the backdrop of the economic slowdown, the Hon’ble Finance Minister has presented the 2020 Union Budget. However, the budget does not live up to the expectations of the various stakeholders. The largesse shown to the corporate sector, by the Taxation Laws (Amendment) Act, 2019, has not been followed up with any concession to individu...

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Posted Under: Income Tax | ,

Section 271CA Penalty for failure to collect tax at source (TCS)

The provisions of section 206C of the Income Tax Act, 1961 mandates the specified categories of the seller to collect the tax (i.e. TCS) from the specified categories of the buyer, of the specified goods, at the given specified rates. In case the specified seller fails to collect the TCS, then for such failure, he […]...

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Posted Under: Income Tax |

Budget 2020 –A Step Towards Rationalization-Key Highlights

1. Start-ups – The existing provisions of section 80-IAC of the Act provide for a deduction of an amount equal to one hundred per cent of the profits and gains derived from an eligible business by an eligible start-up for three consecutive assessment years out of seven years, at the option of the assessee, subject […]...

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Posted Under: Income Tax |

The curious case of Non-GST Goods

There are various provisions and terms in the Act where multiple interpretations are possible and all of which seems to be correct. One such issue for which no clarification has yet been received from the government is about Non-GST goods. ...

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Posted Under: Income Tax |

Assets Reconstruction Company

Short Note on Asset Reconstruction Company explaining Background of Assets Reconstruction Company, Meaning of Assets Reconstruction Company, Meaning of Assets Reconstruction, Objects of Assets Reconstruction Company, Registration of Assets Reconstruction Company and Functions of ARC in India. Background of Assets Reconstruction Company:- ...

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Posted Under: Income Tax |

Section 15BAC- New Vs. Old Tax Regime for individuals and HUFs

NEW TAX REGIME [SECTION 115BAC] – In Finance Bill, 2020 a new section 115BAC has been inserted to provide concessional slab rate of tax for individuals and HUFs. Further, this section is optional and option has to be exercised on or before the due date of filing return. However, to avail the benefit of concessional […]...

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Posted Under: Income Tax |

Proposed New Tax Regime for Resident Co-operative societies

Proposed New Tax Regime for Resident Co-operative societies by Budget 2020 A Co-Operative Societies can pay tax @ 22% (effective tax rate is 25.17%) under section 115BAD only if it fulfils the following conditions: a) The total income of the company has been computed without claiming specified deduction, exemption or incentives; b) The op...

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Posted Under: Income Tax |

DDT – Discontinued Distribution tax!

In yet another bold move after the Ordinance announcements, the Finance Bill, 2020, inter alia, proposes to abolish dividend distribution tax (DDT), thereby, boosting investible funds and higher dividend payouts by corporates. Currently, DDT is payable by domestic companies at the effective rate of 20.56% on the dividends proposed to be p...

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Posted Under: Income Tax |

Budget 2020-Analysis of Proposed Changes in Transfer Pricing Law

Key Highlights of Transfer Pricing Proposal in Union Budget 2020-21: > As per amended provisions, Form 3CEB filing date is 31st October 2020 for FY 2019-20. > Dispute Resolution Panel forum is now not limited to Transfer Pricing disputes only but also allowed to non residents for all disputes. > Provisions of interest limitation ...

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Posted Under: Income Tax |

Synopsis of Union Budget 2020-21

Article discusses  about  Proposed Changes vide Fiannce Bill 2020-21 in Tax Rates, Concessional Tax Scheme, Changes in Provisions related to Residential Status, Changes in Tax Provisions related to Provident Fund, New TDS Provisions under Section 194O/194J and other Important Changes in TDS, Due date for filing of Form 3CEB, Important F...

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Posted Under: Income Tax |