"14 June 2020" Archive

New Tax Regime Vs Old Tax Regime

 New Income Tax Regime Vs Old Income Tax Regime The Finance Minister introduced several proposals in relation to the personal tax regime in the Union Budget 2020 presented in the parliament on February 1, 2020. The Budget 2020 introduced a new income tax regime for individual taxpayers. Bringing a revolutionary change in direct tax rates...

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Posted Under: Income Tax |

Taxability of interest earned by Resident Welfare Association

Note on Taxability of Interest Income from fixed deposits made out of corpus fund and maintenance surplus.  PRINCIPLES OF MUTUALITY   The Resident Welfare RWA’S( RWA) is primarily formed with a purpose to maintain, upkeep and provide amenities to the apartment owners/occupiers. Maintenance fee is collected every year for the purpose o...

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Posted Under: Income Tax |

Are you an Accused in False Cheque Bounce Litigation- Do this

In India, the biggest problem with Laws is that anyone can file the case against anyone even with a small iota of evidence as procedure are not taken seriously in trial and lower courts. For ex., it is the onus on the Court to ensure all the facts of the case at the time of […]...

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Posted Under: Income Tax |

Received LEGAL NOTICE | Don’t Panic | Certain Tips to REPLY

The first and foremost action shall be to accept the notice whatever it may be as no-acceptance of the notice means Deemed to be good service and hence it is better to know the contents of the notice and then make the strategy to reply the notice or not and if so, then how. Here […]...

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Posted Under: Income Tax |

Section 138 Case is delayed or Fails, Know Common Mistakes

Section 138 of Negotiable Instrument Act (As amended) [Section 138] is popularly called as Cheque Bouncing case and this is one of the most trusted and success legal remedy being availed almost by all at their first instance till the new law came under Insolvency and Bankruptcy Code for its various benefits and among all […]...

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Posted Under: Income Tax |

Why It Is Dangerous to Avail Online Business & Legal Services?

Why it is Dangerous to Avail Online Business and Legal Services in Business or Else? There are many online legal services offering services such as standard business templates, online business formation companies and or online legal services offering cheap services and forms and templates but what is the reasons that you should not use th...

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Posted Under: Income Tax |

Sample Flat in Under-Construction Project, Beware of TRAP

Sample Flat in Under-Construction Project= BEWARE, of this TRAP and UNDERSTAND Its Purpose and Intention Sample Flats is a term which is coined as part of Marketing Tool and is just an Advertisement by Builders to sell their flat in the market. The concept of Sample Flat is the creativity of Marketers Professional to ensure […]...

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Posted Under: Income Tax |

Ignoring Intellectual Property Protection is Winding Up Business

MSME / Traditional Business = Ignoring Intellectual Property Protection Is Winding Up Business Business has not changed but the way of doing the business has changed and infact the change is on fast track mode thanks to Technology. Due to this fast track mode, many of the traditional business who never changed the way of […]...

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Posted Under: Income Tax |

Is Unregistered MSME Entity eligible for MSME Recovery Proceedings?

What is Statutory Arbitration?  There are various statutes providing for dispute resolution by way of arbitration, even though parties did not have an express arbitration clause between them i.e., Section 7-B of Telegraph Act,1885, Section 52 of Electricity Act, Section 76(2) of Electricity (Supply) Act, etc. In the same manner even Sec...

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Posted Under: Income Tax |

No TDS u/s 194H for Prepaid SIM & 194J for Roaming Charges

Vodafone Idea Limited Vs ACIT-TDS (ITAT Cuttack)

AO considered assessee as assessee in default in respect of non-deduction of TDS under Section 194H and 194J of the Act on payment of commission and fees for professional or technical services and passed an order under Section 201(1) & 201(1A) of the Act....

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Section 80IB: Tax Holiday cannot be granted on Bogus transactions

S.Gurushankar Vs CIT (Appeals) (Madras High Court)

ITAT states that, it has to be pointed out that any tax holiday can be granted to a person who declares a truthful return. It cannot and should not be granted to the person who claims that he purchased medical equipments in the guise of treating poor persons and it is subsequently found that the entire transaction is bogus....

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Higher discount justified if Goods imports in Bulk & maintain inventory by incurring Additional Cost

Lutron GL Sales & Services Pvt. Ltd. Vs Commissioner of Customs (CESTAT Delhi)

Lutron GL Sales & Services Pvt. Ltd. Vs Commissioner of Customs (CESTAT Delhi) The issue under consideration is whether the percentage of enhancement to the transaction value ordered by the Deputy Commissioner of Customs is justified in law? In the present case, the appellant M/s Lutron GL Sales & Services Pvt. Limited imports lig...

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Contribution to PNB Employees Pension Fund Trust allowed

Punjab National Bank Vs Add. CIT (ITAT Delhi)

Whether the disallowance of contribution made to PNB Employees Pension Fund Trust, which the assessee claims to be its legitimate business expenditure is justified in law?...

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MBBS Seat Blocking Scam | Suppression of Fees | Decision in favour of Assessee

Ananda Social & Education Trust Vs ACIT (ITAT Bangalore)

Ananda Social & Education Trust Vs ACIT (ITAT Bangalore) The issue under consideration is whether Addition relating to suppression of fee receipts of Management/ NRI quota and Post graduate seats are justified in law? The assessee is a charitable trust established for educational purposes in the year 1980. It has set up a medical coll...

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Online Coaching is Education u/s 2(15) & eligible for tax Exemption

NIIT Foundation Vs CIT (ITAT Delhi)

NIIT Foundation Vs CIT (ITAT Delhi) Online Coaching considered as Education u/s 2(15) hence eligible for Exemption under section 11/12 The issue under consideration is whether the CIT(A) is correct in holding that the activity carried out by the Appellant is not in the nature of ‘education’ within the meaning of Section 2(15) ...

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Best Salary Structure for Employees drawing Salary between 3 lac-12 lac

The Finance Minister introduced several proposals in relation to the personal tax regime in the Union Budget 2020 presented in the parliament on February 1, 2020. The Budget 2020 introduced a new income tax regime for individual taxpayers. Bringing a revolutionary change in direct tax rates, Finance Minister Nirmala Sitharaman has propose...

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Posted Under: Income Tax |

Provisions: Secretarial Standards (SS-1) on Meetings of Board of Directors

(SS-1) on Meetings of Board of Directors The Board may, by a Resolution passed at a Meeting, delegate certain powers to any Committee of Directors, the Managing Director, the Manager or any other principal officer of the company or in the case of a branch office of the company, the principal officer of the branch office, on such condition...

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Posted Under: Income Tax |

Taxability of Dividend for Residents & Non Residents w.e.f 01.04.2020

Dividend Taxability provisions of Income Tax Act with effect from 01st April 2020. Recently, there have been number of changes in the taxation provisions of dividend. Following are the provisions of Tax rates that are applicable to residents and non residents with effect from 1st April 2020, the situation in which dividend would be taxabl...

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Posted Under: Income Tax |

SC to soon decide on exigibility of interest on interest on deferred loans during moratorium

The Reserve Bank of India, in view of the Covid pandemic, realised the financial emergency and liquidity crunch in our economy due to lockdown, announced moratorium for all loans for a certain period. However, there is dispute about the chargeability of interest  by the Banks/ Financial Corporations on this extended period. The business ...

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Posted Under: Income Tax |

Challenges under Black Money Act, 2015

Challenges under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 1. Introduction 1.1 The problem of black economy is deep rooted in almost all high tax jurisdictions and has become an issue of discussion at almost all global forums. All the countries have felt the need of reducing the generation [&helli...

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Posted Under: Income Tax |

TDS on Rent under section 194I of Income Tax Act,1961

What is the definition of Rent? Rent is defined as the payment made under any lease, sub-lease, tenancy or any other agreement or arrangement. Such payment is made for the use of land or building or for land appurtenant to a building, machinery or plant or equipment or furniture or fittings....

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Posted Under: Income Tax | ,

Taxation of Gifts received by an Individual/HUF

As per section 56(2)(vii) of Income Tax Act, gifts received by an individual or a hindu undivided family in the form of money or property (without consideration or with inadequate consideration) is taxable as income under the head Income from Other Sources provided such income falls under five categories mentioned below and such income do...

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Posted Under: Income Tax | ,

Due date for filing Revise TDS Return?

On filling income tax return, one of the crucial part is to fill the TDS claim during the relevant financial year which should be match with TDS Credit reflects in Form 26AS. On non-matching of TDS claimed with TDS credit reflected in Form 26AS, demand will be raised by IT department on processing of return under section 143(1) of Income ...

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Posted Under: Income Tax | ,

GST on Supply of Services by Government – FCM or RCM ?

Government supplies under GST Supplies made by Government to a business entity are generally covered in GST under the Reverse charge mechanism (RCM) basis. However, there is a twist to the tale wherein certain supplies are liable to GST under Forward charge mechanism (FCM) as well. In this article, I would like to clarify Entry […]...

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Posted Under: Income Tax |

Removal of Auditor before term under Companies Act, 2013

As per the Companies Act, 2013 and related rules and provisions, it is mandatory for every company to appoint an auditor from incorporation to their going out of business. Auditor is eligible person, who audits the financial part and working of company. Hence, every company needs to appoint auditor. Notably there are many times, when [&he...

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Posted Under: Income Tax |

Bad Debts Under The Head ‘Capital Gains’

Recently, an interesting question arose before the Delhi ITAT in the case of M/s. Anant Raj Limited v. DCIT1. Where the assessee has offered an income under the head capital gain in past years, can he change the head of income in subsequent years for the related transaction? The ITAT has held in affirmative stating […]...

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Posted Under: Income Tax |

E-Book- Know When to Say No to Cash Transactions -Income Tax Act

E-BOOK: KNOW WHEN TO SAY NO TO CASH TRANSACTIONS Article explain Restrictions on Cash Expenditure (Capital & Revenue),  Incentives to encourage cashless business transactions, Restrictions on Cash Loans, Deposits & Advances, Restrictions on Cash Transactions in Real Estate, Restrictions on Income Tax Deductions, Restrictions on C...

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A Sneak Peak of Recent Amendments /Announcements in GST

The country is under Lockdown form 25th of March 2020 and till the first Unlock the department is working at the backend continuously so that the trade and industry does not suffer much. The due dates for the lockdown are extended and also refunds were disbursed to the taxpayers it will provide them some legroom to […]...

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Posted Under: Income Tax |

RBI discussion paper on Governance in Commercial Banks in India

RBI has put in its web site for public comments a discussion paper titled ‘Governance in commercial banks in India’. The objective of the discussion paper is to align the current regulatory framework with global best practices while being mindful of the context of domestic financial system. Accordingly, some of the major highlights of...

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Posted Under: Income Tax |

Bar on Subsequent Application to Income Tax Settlement Commission

Bar on Subsequent Application to Income Tax Settlement Commission: Conflict between Legislative Intention and Judicial View The scheme of Settlement of cases under the Income Tax Act’1961 is governed by Sections 245A to 245M contained in ‘Chapter XIX-A: Settlement of Cases’. In the common parlance, it is believed that the se...

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Posted Under: Income Tax |

GST on Directors Remuneration – AAR Rulings & CBIC Clarification

Rajasthan bench of Advance Authority Ruling held in the case of Clay Crafts India Pvt. Ltd. that GST shall be applicable on payments made to Director of a Company in any form of Salary, Professional or technical services or by whatever name called. However this ruling is contradictory to the Karnataka bench where the authority […]...

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Posted Under: Income Tax |

Revised TDS rates w.e.f. 14.05.2020 -Impact & Practical issues

Revised TDS rates w.e.f. 14th May 2020 and its impact with Practical case study. Whether Split of Invoice is required or not for May month. To give more liquidity in the hands of assesses, union minister of finance and corporate Smt. Nirmala Sitaraman has announced 25% reduction in TDS/TCS rates on 13th May 2020. Below […]...

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Posted Under: Income Tax |

ITC on Health-Insurance & transportation of employees from 15.04.2020

Now ITC can be availed which was earlier blocked on Health-Insurance and hiring of motor vehicle for transportation of employees from 15th April 2020 Due to COVID-19 epidemic in the country, Government has made certain services obligatory for employer to provide to its employees. In this article, such categories of supplies have been iden...

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Posted Under: Income Tax |

Think, Ensure, Assure and then confirm your Business Name

India has known to be an Entrepreneurs country and in fact, there is no hidden fact that Entrepreneurs are born in India. However, with changing times and laws and its impact, the Traditional Entrepreneurs are not getting themselves upgraded or changed with the system and this has affected them a lot in many ways. I […]...

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Posted Under: Income Tax |

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