"31 July 2020" Archive

Taxation of Joint Venture Business

Presently we have been witnessing a very different trend in relation to the real-estate development. Earlier, a builder would go for outright purchase of a piece of land from the land-lord and develop the same at his own cost and risk. The scenario in this regard is undergoing a change. The land-lord also desires to have a share in the pr...

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Posted Under: Income Tax |

TDS Certificates – Detailed Discussion

As we all are aware that the TDS return process will consider as incomplete until the Valid TDS certificate has been issued by the deductor. Now if we focus on the word Valid TDS Certificate, it means Form 16/ Form 16A issued by authenticated authority. As on the current date the TRACES have the authorisation […]...

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Posted Under: Income Tax | ,

Advance Ruling | Section 95 to 99 | CGST ACT 2017 | Part I

Simplified GST Series –Chapter -18-Advance Ruling /Section 95-99/CGST ACT 2017 Part I In part I of the Article author explains provisos of CGST ACT 2017 related to Section 95-Definitions  related to Advance Ruling, Section 96-Authority for advance ruling, Section 97- Application for advance ruling, Section 98- Procedure on receipt of a...

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Posted Under: Income Tax |

Landmark Judgement by Gujarat HC on refunds on account of inverted duty structure under GST

Gujarat High Court declared Rule 89(5) of CGST Rules ultra vires the provisions of Section 54(3) of CGST Act, which denies the refund of 'unutilised input tax' paid on 'input services' as part of 'input tax credit' accumulated on account of inverted duty structure....

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Posted Under: Income Tax |

GST E-Invoicing – Enhancement of Aggregate Turnover

GST E-Invoicing – Enhancement of aggregate turnover for applicability of E-Invoicing   CBIC has issued Notification No 60/2020 – Central Tax and Notification No 61/2020 – Central Tax Dated 30th July, 2020 enhancing threshold for preparing E-Invoice to Rs 500 Crores. Earlier the said limit for preparing E-Invoice was Rs 100 Crores. ...

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Posted Under: Income Tax |

Section 54F deduction restricted to only one residential property

Late Susan Cherian Vs ITO (ITAT Bangalore)

The issue under consideration is whether the capital gain deduction benefit is restricted to only one residential property under section 54F of the Income Tax Act?...

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ITC reversal for GST payable under RCM

Section 17(3) of the CGST Act requires reversal of input tax credit where input and input service is used for making exempt supplies. As per section 17(3) of CGST Act, the value of exempt supply shall include Supply where GST is payable on reverse charge basis – The supplier need to reverse input tax credit as he is not liable to pay t...

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Posted Under: Income Tax |

A flat buyer acquire vested right in flat upon payment of consideration & execution of allotment letter

Yogesh Mavjibhai Gala Vs PCIT (ITAT Mumbai)

Yogesh Mavjibhai Gala Vs PCIT (ITAT Mumbai) A flat buyer acquire vested right in the flat upon payment of consideration and execution of allotment letter The holding period for the purpose of capital gain for income tax is calculated from the date of allotment of flat and not from the date of possession of flat. […]...

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Intermediary cannot be considered as exporter of services; Section 8(1), 13(8)(b) r.w.s. 2(13) of IGST Act 2017 are constitutional: HC

Material Recycling Association of India Vs Unoin of India (Gujarat High Court)

. Conjoint reading of Section 2(6) and 2(13), which defines export of service and intermediary service respectively, then the person who is intermediary cannot be considered as exporter of services because he is only a broker who arranges and facilitate the supply of goods or services or both....

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Whimsical Explanation to Section 194O

Section 194O of the Income Tax Act, 1961 (Act), introduced by the Finance Act, 2020, effective from October 1, 2020 mandates the following, which warrants a definite relook into the provisions for appropriate amendments/deletions thereof :-...

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Posted Under: Income Tax |

Income Tax on distribution of surplus by companies / effective Income Tax planning

Considering the recent amendments in Income Tax Act, distribution to shareholder / promoter has become challenging, specifically post introduction of section 2(22)(e). The most viable options to distribute / pull out funds for promoter are incentive pay-out, dividend distribution and buy-back. It is worthwhile to note that dividend income...

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Posted Under: Income Tax |

Furniture supply with installation service cannot be construed as Works Contract

The taxpayer had charged GST at the rate of 18% on the supply and installation of furniture in the government department. However, the government department contention is that GST at the rate of 12% should be charged construing it as Work Contract Service...

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Posted Under: Income Tax |

Analysis of impacts of slump sale deal between Reliance & Future group

1. BACKGROUND A. Future Retail Debt Situation A significantly contributing factor which lead to Future Retail deciding to sell off their retail business is the current cash crunch being faced by the group since it defaulted on its Rs 100 Crore repayment on $500 million foreign currency bonds which was due last week. Over the […]...

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Posted Under: Income Tax |

No Service Tax on Octroi Collection in discharge of Sovereign Privilege

Traffic Manager Vs Commissioner of Service Tax (CESTAT Mumbai)

The issue under consideration is whether the service tax is applicable to the collection of Octroi for entry of goods in the discharge of sovereign privilege?...

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Countrywide cartel specializing in defrauding GST system seems to be operating: HC

Amit Beriwal Vs State of Odisha (Orissa High Court)

Amit Beriwal Vs State of Odisha (Orissa High Court) This Court is well aware of the complications thrown in by the new GST regime and the problems posed in its It seems a countrywide cartel specializing in defrauding the GST system is operating to bring the economy to its knees. These complications created by the […]...

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Section 87A of Income Tax Act

As we know that the amended section 87A of Income Tax Act 1961, applicable for the FY 2019-2020 provides COMPLETE tax rebate to those having income less than 5 lacs. It raises concerns for those having income around 5 lacs. The worst hit are those having income just above the prescribed limit, say, 5,01,000 because […]...

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Posted Under: Income Tax |

Section 154 Debatable Point of Law is Not a Mistake Apparent from Record

JMD Auto India Pvt. Ltd Vs ACIT (ITAT Mumbai)

The issue under consideration is whether decision based on a debatable point of view can be treated as a mistake apparent from the record?...

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No TDS on payments to NRI for Purchase of Raw Materials

Honda Cars India Ltd Vs DCIT (ITAT Delhi)

The issue under consideration is whether the provisions of deduction of tax at source (TDS) would be applicable in case of payments made to non-resident Indian for the purchase of raw materials?...

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ICAI Orientation Course & Information Technology Training through virtual mode

Orientation Course and Information Technology Training through virtual mode for Foundation and Direct Entry route students by the Regional Councils and Branch offices of ICAI 1. The course registration will be through https://www.icaionlineregistration.org by paying the requisite fees online. 2. The registered students will be sent the vi...

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Posted Under: Income Tax |

TDS on Sale of Immovable Properties-Section 194IA

Applicability, rate of tax & Tome of Deduction for TDS under Section 194IA on Sale of Immovable Properties -Any transferee responsible for paying any sum of consideration to a resident transferor on transfer of immovable property (other than agricultural land) -Need to deduct TDS on such sum. -Rate of Tax – 1% -TDS is need [&hel...

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Posted Under: Income Tax |

Appointment of Whole-Time Director- Companies Act, 2013

The term director is a title given to the senior management staff of businesses and other large organisations. The term is in common use with two distinct meanings, the choice of which is influenced by the size and global reach of the organisation and the historical and geographic context. Further to this, the term is also used [&hellip...

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Posted Under: Income Tax |

Annual General Meeting – Provisions, Late Holding & Compounding

A meeting means ‘an assembly of people for a particular purpose, especially for formal discussion.’ The Company meetings must be convened and held in compliance with the provisions of the Companies Act. 2013 and the rules framed there under. Annual General Meeting (AGM) Annual General Meeting by its name says that it is to be [&hellip...

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Posted Under: Income Tax |

Govt working with RBI on Industry’s need for loan restructuring: FM

Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman today said that the government is working with RBI on the Industry’s need for the restructuring of loans due to the COVID-19 impact. ...

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Posted Under: Income Tax |

Holding of Annual General Meeting through Video Conferencing and Other Audio Video Means

In regard to the obstacles faced by the companies due to of the COVID-19 pandemic, the Ministry of Corporate Affairs (‘MCA’) accessing the practicality of the situation, in view of continuing restrictions on the movement of persons at several places in the country issued General Circular No. 20/2020 dated 05.05.2010 allowing the compa...

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Posted Under: Income Tax |

Comparison between Liaison Office, Project Office & Branch Office

Liaison Office Companies incorporated outside India can open ‘Liaison Office’ (also known as representative office) in India. Liaison office is a place of business to act as a channel of communication between the principal place of business or Head Office.  The Liaison office can undertake only liaison activities, it is not allow...

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Posted Under: Income Tax |

NCLT relaxes timeline of implemented resolution plan

M/s Fincast Founders and Engineers Pvt. Ltd. Vs Shri Rajat Mukherjee RP for Shaifali Foils (NCLT Ahemdabad)

M/s Fincast Founders and Engineers Pvt. Ltd. Vs Shri Rajat Mukherjee (NCLAT Ahemdabad) 1) The instant application is filed under section 60 (5) of the IB Code r.w. Rule 11 of the NCLT Rules, 2016 seeking appropriate direction in Resolution Plan dated 25.05.2019, with following prayer: a. to enable the applicant to comply with the [&hellip...

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Posted Under: Income Tax | |

Tariff Notification No. 65/2020-Customs (N.T.), Dated: 31.07.2020

Notification No. 65/2020-Customs (N.T.)/S.O. 2565(E). (31/07/2020)

Tariff Notification No. 65/2020-Customs (N.T.), Dated: 31.07.2020 in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver - Reg....

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Delhi HC grant Refund along with Interest in case of Zero Rated Supply after 15 days

Jian International Vs Commissioner of Delhi Goods And Services Tax (Delhi High Court)

The issue under consideration is whether the non issuance of refund after 7 days from the date of acknowledgment in case of zero rated supply u/s 90 is justified in law?...

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Deployment of e-form PAS-6 for filing by MCA

Deployment of e-form PAS-6 for filing by Ministry of Corporate Affairs (MCA) Ministry of Corporate Affairs (MCA) with effect from July 15, 2020, has made available, an e-form PAS-6 for filing purpose on its website. Before understanding the filing purpose of e-form PAS-6, let’s understand the background first. Background Rule 9A of Comp...

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Posted Under: Income Tax |

Actual Cost of Production as Assessable Value will be charged in Inter-Unit Transfer of Goods

Hindalco Industries Ltd. Vs Commissioner of Central Excise (Appeals) (CESTAT Kolkata)

The issue under consideration is whether assessee is justified in reducing the assessable value to the actual cost of production in the inter-unit transfer of goods?...

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Indian economy: Energy angle- Renewable energy with latest guidelines

At the request of my daughter, who is an international scholar on renewable energy and trying to increase zero-emission of CO 2 by establishing new products in the market on the behalf of her company, the following article is being written on renewable energy journey made by India and its ambitious targets to be achieved […]...

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Posted Under: Income Tax |

SCN issued invoking Section 73 is not tenable if no willful mis-statement or suppression of facts by taxpayer

Linde Engineering India Pvt. Ltd. & Ors. Vs Union of India (Gujarat High Court)

Linde Engineering India Pvt. Ltd. & Ors. Vs Union of India (Gujarat High Court) Rule 6A of the Service Tax Rules, 1994 provides that services rendered would be treated as ‘Export of services’ when clause (a) to clause (d) refers to provider of service is located in the taxable territory and recipient of service is [&hellip...

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ITAT extends Stay of demand as Delay was Not Attributable to Assessee

Infosys Ltd. Vs ACIT (ITAT Bangalore)

Infosys Ltd. Vs The ACIT (ITAT Bangalore) The issue under consideration is whether the stay application seeking an extension of the stay approve by the Tribunal? In the present case, the assessee submitted that the appeal had been fixed for hearing on January 20, 2020, when the earlier stay order was passed. Thereafter, the case […...

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Tea (Marketing) Control (Amendment) Order, 2020

Notification No. S.O. 2560(E) (31/07/2020)

(1) This order may be called the Tea (Marketing) Control (Amendment) Order, 2020. (2) It shall come into force on the date of its publication in the Official Gazette....

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Pre-emptive rights of Existing Shareholders for further issue of shares

Pre-emptive rights of Existing Shareholders for further issue of shares under Section 62 of the Companies Act, 2013 Currently, Section 62 of the Companies Act, 2013 are in operation to increase subscribed capital of the company by issue of further shares. As per this section further shares can be issued in different mode as under- -By [&...

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Posted Under: Income Tax |

Open offer process under SEBI (SAST) Regulations 2011

SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 – [SEBI (SAST) Regulations 2011] 1. Regulation 12(1) Before PA, acquirer shall appoint a Merchant Banker, who is not associate of the acquirer, as manager to open offer. 2. Regulation 12(2) The Acquirer through such manger to open offer shall made the PA of ope...

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Posted Under: Income Tax |

Collection & Reporting of Margins by TM/CM in Cash Segment

Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/146 (31/07/2020)

If TM / CM collects minimum 20% upfront margin in lieu of VaR and ELM from the client, then penalty for short-collection / non-collection of margin shall not be applicable. However, it is reiterated that Clearing Corporation shall continue to collect the upfront margin from the TM / CM based on VaR and 2.2 The penalty provision for sho...

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Use of digital signature certifications for authentication / certification of filings / submissions made to Stock Exchanges

Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/145 (31/07/2020)

SEBI has received a representation from the Institute of Company Secretaries of India (ICSI) stating that due to the COVID -19 pandemic and precautionary measures for its curtailment, Company Secretaries continue to face operational challenges in carrying out certification and authentication of documents in physical form....

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Clarification on applicability of regulation 40(1) of SEBI (LODR) Regulations, 2015

Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/144 (31/07/2020)

SEBI has received representations from investors expressing concerns that they have not been able to participate in open offers, buybacks and delisting of securities of listed entities since the securities held by them were not in dematerialized form....

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Share application money cannot be treated as Loan unless Transaction is bogus

Voltas Limited Vs ACIT (ITAT Mumbai)

It is not open to the revenue authorities to recharacterize the transaction unless it is found to be a sham or bogus transaction. While there are no specific powers vested in the TPO to recharacterize the transaction, even under the judge made law, such rechracterization can be done by the revenue authorities when the transactions are fou...

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MSME Saksham for MSME Entrepreneurs

Q: What is MSME Saksham? MSME Saksham is one stop knowledge platform for MSMEs launched by SIDBI and TransUnion CIBIL In order to support the revival of India’s economy and strengthen Micro, Small and Medium Enterprises (MSMEs), Small Industries Development Bank of India (SIDBI) in association with TransUnion CIBIL (Credit Information B...

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Posted Under: Income Tax |

Sea Cargo Manifest and Transhipment (Second Amendment) Regulations, 2020

Notification No. 66/2020-Customs (N.T.) [G.S.R. 486(E)] (31/07/2020)

These regulations may be called the Sea Cargo Manifest and Transhipment (Second Amendment) Regulations, 2020. They shall come into force on the date of their publication in the Official Gazette....

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Securities Contracts (Regulation) (Second Amendment) Rules, 2020

Notification No. G.S.R. 485(E) (31/07/2020)

(1) These rules may be called as Securities Contracts (Regulation) (Second Amendment) Rules, 2020. (2) They shall come into force on the date of their publication in the Official Gazette....

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Transhipment of Cargo to Nepal under Electronic Cargo Tracking System (Amendment) Regulations, 2020

Notification No. 64/2020-Customs (N.T.) [G.S.R. 484(E)] (31/07/2020)

(1) These regulations may be called the Transhipment of Cargo to Nepal under Electronic Cargo Tracking System (Amendment) Regulations, 2020. (2) They shall come into force on the day of their publication in the Official Gazette....

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Notification No. 31/2020-Customs (N.T./CAA/DRI), Dated 31.07.2020

Notification No. 31/2020-Customs (N.T./CAA/DRI) [S.O. 2628(E)] (31/07/2020)

Notification No. 31/2020-Customs (N.T./CAA/DRI), dated 31.07.2020- Appointment of Common Adjudicating Authority (CAA) by DGRI-reg. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) (DIRECTORATE OF REVENUE INTELLIGENCE) Notification No. 31/2020-Customs (N.T./CAA/DRI) New Delhi, the 31st July, 2020 S....

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No Addition u/s 40A(3) for Advance Returned Back to Customer in Cash

M/s Ashok Motors Vs DCIT (ITAT Guwahati)

The issue under consideration is whether the addition u/s 40A(3) for advance which is returned back to the customer in cash is justified in law?...

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All about Public Provident Fund- an investment Avenue

Public Provident Fund (PPF) has always been lucrative investment avenue for those who wish to earn stable return without any risk. However the interest rate is subject to revision every quarter, but the returns are assured because investment in PPF is not market linked. The current rate of interest is 7.1% Salaried employees have the [&he...

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Posted Under: Income Tax |

Salient Features of Consumer Protection Act 2019

Once Mahatma Gandhi had said ”Customer is like a God’. In early time also the concept was “the customer is the king” but this concept has been changed by passing of time. We know that for success of any organisation the end users play a very important role. The end users are the main decision […]...

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Posted Under: Income Tax |

Process for Closure of private limited company

Closing of Private limited can be done by below steps/ process. Removal of names of companies from the Registrar of Companies MCA has notified sections 248-252 w.e.f 26.12.2016 and also issued new rules for striking off names of companies referred as Companies (Removal of Names of Companies from the Registrar Of Companies) Rules, 2016 w.e...

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Posted Under: Income Tax |

GST on Import of Software

If supply of software in the physical form (i.e. CD, DVD Packages) of Information Technology Software (branded as well as tailor-made) shall apply as goods under the Customs Tariff Act with HSN Code 8523 80 20. The GST rate for software sold in physical form is also 18%....

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Posted Under: Income Tax |

Issuance of CoO for India’s exports under ASEAN-India FTA- Reg.

Trade Notice No. 23/2020-2021-DGFT (31/07/2020)

It is informed that w.e.f. 01.08.2020, the CoO applications for exports from India to Thailand under ASEAN-India FTA should be submitted through the e-COO Platform by the exporters to the designated issuing agencies i.e. EIA, MPEDA and Textile Committee....

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Section 80IBA (Affordable Housing Scheme / House For All)

After section 80-IB of the Income-tax Act, section 80-IBA shall be inserted with effect from the 1st day of April, 2017. The section was inserted by Finance Act, 2016. Where the gross total income of an assessee includes any profits and gains derived from the business of developing and building housing projects, there shall, subject to th...

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Posted Under: Income Tax |

Transfer Pricing- Corporate Guarantee as an International Transaction

In Transfer pricing proceedings, corporate guarantee given by assessee to its foreign AE is always disputed by the department as an international transaction and adjustment determined on the basis of average bank guarantee rates. However, in number of judgements by tribunal and HC, the stand of the department is overruled and relief grant...

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Posted Under: Income Tax |

PAN compulsory on Transaction above Rs. 2 Lakh

Arjuna, Income tax Department has mentioned in rules, when a person is required to obtain PAN compulsorily and where it is required to be quoted or given. Everyone knows that PAN has to be quoted while opening the bank account, effecting transactions of immovable property. But from 1st January 2016 onwards, the law has been changed and n...

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Posted Under: Income Tax |

Tax Audit Under Section 44AB V/s. Section 44AD 

Article explains provision of Section 44AB and Section 44AD of Income Tax Act, 1961 with reference to Income Tax Audit. While presenting the Union Budget for 2020-21, the Finance Minister announced that currently, businesses having turnover of more than one crore rupees are required to get their books of accounts audited by an accountant....

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Posted Under: Income Tax | ,

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