"CA Anand Eriwal is a Chartered Accountant and Law & Commerce graduate from the University of Mumbai, with over 20 years of experience in the field of direct taxation. He has worked with Big Four firms as well as leading Indian corporates and is currently handling direct tax function in a corporate setup."
The proposed amendment disallows any interest deduction against dividend and mutual fund income. As a result, dividends will now be taxed on a gross basis, increasing the tax burden on leveraged investors.
CBDT issued notification No. 18/2021-Income Tax, Dated: March 16, 2021 & inserted a New Rule Rule 29BA. The Rule would be effective from 1 April 2021.
Finance Bill 2021 proposes to introduce a new section, 194Q. Section 194Q of the Income-tax Act, 1961 (‘Act’) would be effective from 1 July 2021. Section 194Q provides for Deduction of tax at source (‘TDS’) on payment of for purchase of goods.
