"12 March 2020" Archive

IGST paid under RCM eligible for ITC

In re Fom Aluminium Machines Pvt. Ltd. (GST AAR Karnataka)

In re Fom Aluminium Machines Pvt. Ltd. (GST AAR Karnataka) The third question which reads as ‘Is IGST paid under RCM eligible for ITC?’ The levy of IGST is only on the inter-state supplies and importation of goods/services is treated as inter-state supply, in terms of Section 7(2)/7(4) of the IGST Act 2017 respectively. The [&...

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Steps taken by DFS related to Disruption on account of Corona Virus

Trade Notice No. 55/2019-20-DGFT (12/03/2020)

All Public Sector banks(PSBs) have been advised: i) to immediately set up special cells to provide full assistance required to industry segments and MSME units affected by Corona Virus and to process such request for assistance with the requisite sensitivity;...

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Last date to file MGT-7 and AOC-4 in J&K & Ladakh extended to 30.06.2020

General Circular No. 09/2020 (12/03/2020)

It has been decided to further extend the due date for filing of e-forms AOC-4, AOC-4 (CFS) AOC-4 XBRL and e-form MGT-7 upto 30.06.2020, for companies having jurisdiction in the UT of J&K and UT of Ladakh without levy of additional fee....

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Common Mistakes In Declaring Business Income U/S 44AD In Income Tax

Individual, HUF and Partnership firm, whose annual turnover does not exceed Rs. 2 crores, are given an option to pay tax by declaring business income under presumptive basis i.e. minimum 8% of the business turnover shall be treated as the net profit and thereafter, the tax shall be payable as per the applicable tax rate […]...

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Need for frequent GSTR-2A reconciliation after 9th October 2019 for optimum utilisation of Working Capital

Need for frequent GSTR-2A reconciliation after 9th October 2019 for optimum utilisation of Working Capital GST was implemented in our country from 1st of July 2017, by passing the GST Act in the parliament on 29th of March 2017. The main object of GST was to implement a simple tax structure with the concept of […]...

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Bonus Issue Under Companies Act, 2013

Bonus Issue: What is a Bonus Issue: Bonus Issue is an issue of shares at free of cost. Bonus shares are issued in the form like 1:1 means- 1 extra share for 1 holding shares or 1:2 means 1 extra share for 2 holding shares, etc. As per Companies Act, 2013 As per Companies Act, […]...

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CARO 2020: Additional Responsibilities on Statutory Auditors – A Detailed Analysis

Ministry of Corporate Affairs (MCA) after consultation with National Financial Reporting Authority (NFRA) notified Companies (Auditor’s Report) Order (“CARO”) 2020 in suppression of CARO 2016. CARO 2020, in comparison of earlier CAROs, emphasis more on Proprietary Elements so that the users of Audit Reports will be well aware of Com...

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Appointment of Managing Director under Companies Act, 2013

APPOINTMENT OF DIRECTORS: As per Section 152 sub-section 2 of the Companies Act, 2013 every director shall be appointed by the company in the general meeting. Furthermore, every individual who has been appointed as a director on or before the appointment furnish to the company a consent in writing to act as a director in […]...

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RBI vs IMAI – SC Judgement dated 4-Mar-2020

RBI vs IMAI – SC Judgement dated 4-Mar-2020 The Supreme Court of India (SC) came out with its awaited judgement on virtual currency ruling the case in the favour of Internet and Mobile Association of India (IMAI) whereby declaring the Reserve Bank of India (RBI) circular no.  RBI/2017-18/154DBR.No.BP.BC.104/08.13.102/2017-18 dated Apri...

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PAN-Aadhaar Linking Possible after 31st March 2020

According to the income tax department, PAN and aadhaar linking is possible even after 31st March 2020. Though there’s a twist here, this linking is possible on condition that the PAN will remain inoperative post the deadline till the date they link the 2 cards. New notification The central board of direct tax has issued a new notifi...

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How to Make Terms And Conditions of Food Delivery Platform?

Recently, the news regarding the acquisition of Uber eats by Zomato has been quite popular. Zomato has acquired the Indian operations of its competitor Uber Eats, the food delivery business run by Uber, for around $350 million with which the transaction marks the first big consolidation move in the cash-intensive online food-delivery ma...

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Alignment of DTAAs With Multilateral Instrument (MLI)

Alignment of Double Taxation Avoidance Agreements (DTAAs) With Multilateral Instrument (MLI) Background [Section 90 and 90A] Section 90 of the Act empowers the Central Government to enter into DTAAs with foreign countries or specified territories inter alia for avoidance of double taxation of income under the laws of both, India and that ...

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Selection of sub activity code in spice form

The Ministry of Corporate Affairs has made the process of incorporation of a new company very easy and fast and tried to give facilty of name Reservation, DIN of the Directors GST registration PAN and TAN submission in one E form i.e. Spice , it provides help to the users and its self-descriptive nature helps in filling the Form....

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Income Tax & GST Penal provisions for No entry or false entry in Books

New Penal provisions under Income tax Act Section 271AAD and under GST Section 122(1A) for No entry or false entry in Books of accounts and its consequences The finance bill 2020 has introduced new penal provisions under the Income Tax Act and GST. The reason for introduction of the same is In the recent past […]...

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Section 118 of the Companies Act, 2013

CS Priya Raval  Section 118 of the Companies Act, 2013 Minutes:-Record of the proceedings of a Meeting. Minutes should contain a fair and correct summary of the proceedings of the Meeting. Rule 3 of Companies (Meetings of Board and its Powers) Rules, 2014 Draft Minutes of the Board Meeting shall be circulated to all Directors […]...

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Cenvat credit of duty paid in excess as per final assessment, admissible

CCE Vs Hindalco Industries Ltd. (CESTAT Ahmedabad)

CESTAT Ahmedabad has upheld the Commissioner (A) Order allowing Cenvat credit of the duty paid on  provisionally assessed bill of entry in a case where the final assessment revealed that less duty was payable. The Tribunal in this regard relied upon number of case law and observed that it is settled that even though certain amount of exc...

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Section 54/54F exemption eligible on investment in new property in Wife’s name

Shri Ramphal Hooda Vs ITO (ITAT Delhi)

Shri Ramphal Hooda Vs ITO (ITAT Delhi) Whether the exemption under Section 54F is extendable to the assessee for the total consideration paid by him, for the purchase of the new asset (the residential property) in the joint name or the exemption would be entitled to the extent of the share of the assessee in […]...

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Whether printing service received locally is export when a foreign buyer is paying consideration in US dollars?

In re Swapna Printing Works Private Limited (GST AAR West Bengal)

In re Swapna Printing Works Private Limited (GST AAR West Bengal) Whether printing service received locally is export when a foreign buyer is paying the consideration in US dollars? The Applicant’s supply of the composite printing service is taxable under SI No. 27(i) of Notification No. 11/2017 — Central Tax (Rate) dated 28/06/20...

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Recent amendment in Mutual Funds Regulations| SEBI- Mutual Fund

SEBI vide its notification dated 06th March, 2020 amends the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. These amendments in Mutual Funds regulations have come into force from March 6, 2020. Mutual funds are regulated by the SEBI (Mutual Fund) Regulations, 1996. What is mutual Fund? Different investment avenue...

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AA imposes Penalty of Rs. 50k on DC of ICAI for being negligent

Devendraa P. Kapur Vs ICAI & Others (Appellate Authority of ICAI)

On perusal of the record, it reveals that the Institute was negligent in the non­compliance of the directions of this Appellate Authority. The DC was required to seek extension of time from this Authority had there been any difficulty on any count to dispose of the matter within six months....

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An Investment Manager can manage multiple InvITs: SEBI

SEBI/HO/DDHS/OW/P/910912020 (12/03/2020)

There is no provision in the SEBI (Infrastructure Investment Trusts) Regulations, 2014 (InvIT Regulations) which prevents an Investment Manager to manage more than one InvIT....

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Appellate Authority explains Rule 3(4) of CA Professional Misconduct Rules

Ashok A Jain Vs Director (Discipline), ICAI (Appellate Authority of ICAI)

Ashok A Jain Vs Director (Discipline) (Appellate Authority of ICAI) Now coming to the question if this Board Resolution satisfies the requirement of Rule 3 (4) of the Rules. It has been contended on behalf of the Appellant that this Resolution is a general Resolution in favour of Simon Tippet and not a specific Resolution […]...

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Local Authority within the meaning of section 2(69)(c) of GST Act entitled to GST Exemption

In re Newtown Kolkata Development Authority (GST AAR West Bengal)

In re Newtown Kolkata Development Authority (GST AAR West Bengal) The Applicant is a local authority within the meaning of section 2(69)(c) of the GST Act and is entitled to the exemptions available on the services it supplies in terms of the various entries of Notification No 12/2017 Central Tax (Rate) dated 28/06/2017 (corresponding Sta...

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RBI Announces USD/INR Sell Buy Swaps

Press Release: 2019-2020/2049 (12/03/2020)

Financial markets worldwide are facing intense selling pressures on extreme risk aversion due to the spread of COVID-19 infections, compounded by the slump in international crude prices and a decline in bond yields in advanced economies....

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BCD objects to inclusion of lawyers within definition of Consumer Protection Act 2019

As per the information available, your Ministry is framing Rules under the Act and wants to surreptitiously include the lawyers under the proposed Rules so as to bring the lawyers across the country within the jurisdiction of Consumer Redressal Forum. This is highly deplorable and the lawyers across the country will never accept their inc...

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Companies (Incorporation) second Amendment Rules, 2020

Notification No. G.S.R. 169(E) (12/03/2020)

MCA notifies Companies (Incorporation) second Amendment Rules, 2020 and amend Annexure, in Form No. INC-28 vide Notiufication dated 12th March 2020. GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, 12th March, 2020 G.S.R. 169(E)._ In exercise of the powers conferred by section 3, sub-section (1) of section 7 and s...

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Condonation of delay in filing appeal due to Financial crisis & Labour unrest justified

United Tropican Veneers Private Limited Vs ACIT (ITAT Cochin)

United Tropican Veneers Private Limited Vs. ACIT (ITAT Cochin) These appeals were filed by the ex-Directors of the assessee-company with a delay of 329 days. Petitions for condonation of delay were filed by the ex-Directors along with affidavits of the ex-Managing Directors stating therein that the quantum assessments and penalty orders w...

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Section 54D Exemption from capital gain on compulsory acquisition of land or buildings forming part of industrial undertaking

The exemption provisions of section 54D of the Income Tax Act comes into play only if the following norms are satisfied – 1. There is a capital gain on account of compulsory acquisition of land or building, forming part of the industrial undertaking; and 2. The assessee has re-invested the amount for acquiring new land […]...

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Appellate Authority shows displeasure for use of it to recover dues

Aakansha Vaid Vs ICSI (Appellate Authority of ICSI)

Aakansha Vaid Vs ICSI (Appellate Authority of ICSI) he Authority records its displeasure about the conduct of the Complainant during the entire proceedings. The Complainant lodged a comprehensive Complaint supported with several documents before the Institute on 3rd August 2017. He sent letter dated 1st September 2017 providing certain in...

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Companies (Registration Offices and Fees) Second Amendment Rules, 2020

Notification No. G.S.R. 170(E) (12/03/2020)

MCA notifies ‘Companies (Registration Offices and Fees) Second Amendment Rules, 2020‘ and amends vide Form No.GNL-2 and add the word ‘Filing under Insolvency and Bankruptcy Code, 2016‘ instead of ‘Form 159 of the Companies (Court) Rules,1959′ and also add after first verification column- Particulars of ...

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NCLAT : Defaulting company liable to repay FDR amount alongwith interest to its deposit holders

Ateet Bansal Vs Unitech Ltd (NCLAT)

Following the principle of justice and equity, the defaulting company "Unitech" was liable to repay the amount to its deposit holders principal along with the future interest @12.5% per annum from the date of maturity of the respective FDR till receipt thereof alongwith Rs.50000/- each to assessees towards cost of litigation, costs etc...

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Look out Circular against CA despite co-operation in Investigation not justified

Lakshmi Satyanarayana Dutt Tadikonda Vs Union of India & Ors. (Delhi High Court)

Lakshmi Satyanarayana Dutt Tadikonda Vs Union of India & Ors. (Delhi High Court) In the given case, the petitioner is seeking the withdrawal of the Look Out Circular (LOC) issued against him and no other prayer has been pressed during the course of the arguments by the Ld. Sr. counsel for the  petitioner. The petitioner […]...

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Patanjali Ayurveda guilty of Profiteering: NAA

Director General of Anti-Profiteering Vs Patanjali Ayurveda Ltd. (NAA)

The Respondent has also claimed that the pricing of products depended on a number of commercial factors. In this connection it would be pertinent to mention that the provisions of Section 171 (1) of the above Act required the Respondent to pass on the benefit of tax reduction to the consumers only and have no mandate to look in to fixing ...

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Custom notifies exchange rate of South African Rand wef 13.03.2020

Notification No. 22/2020-Customs (N.T.) (12/03/2020)

Custom notifies exchange rate of South African Rand w.e.f. 13th March, 2020 vide Notification No. 22/2020-Customs (N.T.), dated the 12th March, 2020 GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) ***** Notification No. 22/2020–Customs (N.T.) New Delhi, dated the 12th Mar...

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NY Cinemas found Guilty of Profiteering: NAA

Shri Himanshu Sharma Vs NY Cinemas LLP (National Anti-Profiteering Authority)

It was alleged that NY Cinemas had not passed on the benefit of reduction in the GST rates on Services by way of admission to exhibition of cinematograph films where price of admission ticket was above one hundred rupees from 28% to 18% ...

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Anti-dumping duty on Sheet Glass import from China extended

Notification No. 06/2020-Customs (ADD) (12/03/2020)

Notification No. 06/2020-Customs (ADD)- Seeks to amend notification No. 07/2015-Customs (ADD) dated 13th March 2015 so as to extend anti-dumping duty on ‘Sheet Glass’ originating in or exported from China PR. GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) Notification No. 06/2020-Customs (ADD) New Delhi, the 1...

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Crude War Target is The U.S Presidential Election

Target is Donald Trump. Yes, the crude oil crash and the war is targeted to get Trump to lose the election since major funding sources are already dead and will be dead more in the coming days. The coronavirus has killed the economic growth and now the crude will kill the key sources of election […]...

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Major Port Authorities Bill, 2020 introduced in Lok Sabha

Bill No. 78 of 2020 (12/03/2020)

THE MAJOR PORT AUTHORITIES BILL, 2020- A BILL to provide for regulation, operation and planning of Major Ports in India and to vest the administration, control and management of such ports upon the Boards of Major Port Authorities and for matters connected therewith or incidental thereto....

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Ind As 40 Investment Property

Definitions   Investment Property:  It is the property (land or a building, part of a building or both) held by the owner or by the lessee under a finance Lease to earn rentals and capital appreciation or both, rather than use for (a)  Production or supply of goods or services; (b)  For administrative purposes; (c)  Sale […]...

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Analysis of Notification 41/2017 of Integrated Tax (Rate)

Please find the article ‘Analysis of Notification 41/2017 of Integrated Tax (Rate)‘ . The Readers shall be benefited by this article which contains complete analysis about supply of goods at reduced rate of tax to the exporter. The rate of GST has been reduced on all supplies with effect from with effect from 23-10-2017 by vi...

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Procedure of Incorporation or Registration of Private Limited Company

Introduction: With the upcoming dynamic changes and advancement of new ideas, now a days people and mostly start-ups are thinking of setting up of a Separate Entity to run their business and among option of registering business with Sole Proprietorship, Partnership, Limited Liability Partnership, One Person Company and Private Limited Com...

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S.2(47) Transfer: The Mist Clears on Development Agreements

The Apex Court has finally provided closure to one of the most litigatious aspect of the Income Tax statute. While deciding the appeal in the case of Seshasayee Steels (P.) Ltd v. ACIT [2020] 115 taxmann.com 5 (SC), the Apex Court has interpreted section 2(47) of the Income Tax Act, 1961 which defines the term […]...

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Summary of FAQ on Vivad Se Vishwas Tak Scheme

Direct Tax Vivad Se Vishwas Scheme as passed by Loksabha on 04-03-2020 is accompanied by 55 FAQs isuued on the same day. The purpose is to remove doubts and facilitate speedy implementation. The clarifications issued under FAQs have been categorized into following heads 1. Clarifications on Cases eligible for Scheme 2. Cases Not eligible ...

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Taxability of non residents engaged in shipping business

The assessee who is covered us 172 and 44B is not required to maintain the books of accounts and get his accounts audited us 44AB in no cases. since section 44AA and 44AB doesn't covered 44B transactions. Hence even if they report the normal income lower than what is calculated us 172 , then also they is not required to maintained the boo...

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ICAI FAQs on LLP Settlement Scheme, 2020

The Ministry of Corporate Affairs has provided a one time opportunity to the LLPs to make good their default by filing pending documents and to serve as a compliant LLP in future by introducing LLP Settlement Scheme, 2020 vide General Circular No 02/2020 dated 4th March, 2020 which will be applicable from 16th March, 2020 to 13th June, 20...

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Whether Loss or Damages or interest is Operational Debt as defined under IBC

As per Operational Creditor, Flipkart took delivery first few batches of LED TVs and later on refused to take delivery on the ground of lack of warehouse space. In good gesture Operational Creditor warehoused the LED TVs for a temporary period. For said period Operational Creditor had paid excess custom duties. Flipkart had failed to coll...

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Challenges In E-Invoicing System Under GST

As we all are aware that E-invoicing system is mandatory from 01st April, 2020 for all taxpayers whose turnover exceeds Rupees 100 crore in previous financial year, we all would have done the basic research about what is E-invoice, it’s process flow and how it’s generated. Now let us have insight of certain significant areas and chall...

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Brief on Internal Audit Series 100 and 200

Definition:-  Internal audit provides independent assurance on the effectiveness of internal controls and risk management processes to enhance governance and achieve organisational objectives What is key terms/features of Internal Audit Independence: Internal audit shall be an independent function, achieved through the position, organiza...

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AAAR: Breakwater is not ‘plant and machinery’ but a ‘civil structure’, not eligible for ITC

The Hon’ble AAAR, Maharashtra in the matter of M/s Konkan LNG Private Limited [Order No. MAH/AAAR/SS-RJ/14/2019-20 dated November 6, 2019] upheld the decision of Hon’ble AAR, Maharashtra to disallow that Input Tax Credit (ITC) of taxes paid on breakwater wall construction which saves the jetty and cargo from high tide and forceful sea...

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Exemption from capital gain on transfer of agricultural land – Section 54B

Section 54B of the Income Tax Act provides an exemption from the capital gain arisen on the transfer of agricultural land by acquiring another agricultural land. The present article explains the provisions attached with the exemption available under section 54B of the Income Tax Act. However, before understanding the exemption available u...

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Travel Advisory (II) for COVID-19 for Indians intending to travel abroad

More than 100 countries across the world now have reported cases of COVID-19. People traveling to these countries or people who have travelled abroad might come in contact with people affected with COVID-19 during their stay or even while in transit at the airports. Within these countries, few countries have reported very large number of ...

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How to Create Hindu Undivided Family (HUF)

A Hindu Undivided Family can be created by following ways: 1. Blending of individual property with the family Hotchpot 2. Receipts of Gifts 3. Doing Joint labour for the benefit of HUF 4. Inheritance through a specific bequest under a Will 5. Partition of a larger Hindu Undivided Family 6. Reunion of separated coparceners...

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National Pension Scheme in India

National Pension System (NPS) is a pension cum investment scheme launched by Government of India to provide old age security to Citizens of India. It brings an attractive long term saving avenue to effectively plan your retirement through safe and regulated market-based return....

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Assessment and Taxability of Hindu Undivided Family (HUF)

Hindu Undivided Family (HUF)​ ♠ Hindu Undivided Family (‘HUF’) is treated as a ‘person’ under section 2(31) of the Income-tax Act, 1961 (Act). HUF is a separate entity for the purpose of assessment under the Act. ♠ Under Hindu Law, an HUF is a family which consists of all persons lineally descended from a common […]...

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S.194C TDS on payment to transporter owing more than 10 Goods Carriage

As there is no rationale for exempting payment to all transporters, irrespective of their size, from the purview of TDS, it is proposed to amend the provisions of section 194C of the Act to expressly provide that the relaxation under sub-section (6) of section 194C of the Act from non-deduction of tax shall only be applicable to the payme...

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Solutions to errors while doing E-TDS Return

Invalid File Header Record Length. Invalid File Creation Date. Invalid File Sequence Number. Invalid TAN/TFC Id. Invalid TAN of Deductor / Employer / Collector. Invalid PAN of Employer /Deductor/Collector ...

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