Income Tax - Page 20

Depreciation eligible on intangible asset viz., goodwill/ customer list

Rentokil India Pvt. Ltd. Vs DCIT (ITAT Chennai)

The issue under consideration is whether the assessee is correct in claiming depreciation on customer list and goodwill by considering it as intangible asset?...

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Reassessment | Section 148 | Decoding Judicial Angle | Issues & controversies

Q1. Whether fresh tangible material is required for reopening the case u/s 148 even when the case is earlier processed u/s 143(1) simply and reopening is done within four years of the end of the assessment year? Ans.  There are more than two views. One set of view from Bombay, Gujarat high court is that […]...

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Waiver of loan cannot be brought to tax u/s 28(iv) as Subsidy

Essar Shipping Limited Vs CIT (Bombay High Court)

The issue under consideration is whether the loan given by the Government which was subsequently waived off can be taxed under Section 28(iv) of Income Tax Act?...

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How to solve short TDS Payment defaults

Many times after filing of TDS return, Assessee received intimation from TDS CPC for short payment of TDS or in other case, when we try to put conso file request on TRACES, system is showing us the pop up message for short payment of TDS. In such case, many of us got confused as how […]...

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Difference between terms Business & Profession for income tax purposes

The Section 2(13) of the Income Tax Act, 1961, contains an inclusive definition of the term business. There are differences between the meaning of words business & profession in various English dictionaries. Also as per the terminology of income-tax difference has been made in the above words yet no demarcating line has been drawn in res...

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An Insight on Joint Development Agreements

CA Sudeep Chhallani Introduction Due to high-sky increase in land prices and avoiding outright purchase of land by making heavy investment today real estate developers often enter into the Joint Development Agreement (JDA) with the land owners wherein the real estate developers are entrusted with the task of developing land. Similarly the...

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Ten Years Imprisonment with Fine to then ITO in A Bribery Case

NA (30/06/2020)

The Special Judge, CBI Cases, Dehradun (Uttarakhand) has sentenced Shri Amrish Kumar Singh, then Income Tax Officer, Khatima, District Udham Singh Nagar (Uttarakhand) to undergo ten years Rigorous Imprisonment with fine of Rs.1.10 lakh in a bribery case....

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India Widens Taxation of Cross Border E-Commerce Transactions

Taxation of cross border e-commerce transactions has been a challenge for the whole world, including India due to location of the supplier, absence of physical presence, characterizing the nature of transaction (goods or service), administrative challenges in tracking and collecting taxes and taxing jurisdiction....

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Rule 11UAC Exemption from deeming provisions of section 56(2)(x)

Notification No. 40/2020-Income Tax [G.S.R. 421(E)] (29/06/2020)

Rule 11UAC Exemption from deeming provisions of section 56(2)(x)-Prescribed class of persons for the purpose of clause (XI) of the proviso to clause (x) of sub-section (2) of section 56- Income Tax Notification No. 40/2020 dated 29th June, 2020. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) Notification No. 4...

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CORRIGENDUM to Income Tax Notification No. 35/2020

Notification No. 39/2020-Income Tax [S.O. 2126(E)] (29/06/2020)

MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) CORRIGENDUM Notification No 39/2020 New Delhi, the 29th June, 2020 TAXATION AND OTHER LAWS S.O. 2126(E).—In the notification of the Government of India, Ministry of Finance, (Department of Revenue) (Central Board of Direct Taxes), number 35/2020, dated the 24th ...

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Transformation from Taxation of Business Income to Taxation of Business Transactions by CBDT

Equalization Levy Background of Equalization Levy:- Equalization Levy was introduced in India in 2016, with the intention of taxing the digital transactions i.e. the income accruing to foreign e-commerce companies from India. It is aimed at taxing business to business transactions. To bring in clarity in this regard, the government introd...

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Step by Step Procedure of Trust Formation

Step by Step Procedure on Trust Formation Every person in this world will earn money by doing business. That means they are selling Services/Goods by fixing a price. Simply, they are expecting something. But the same person will do some deeds without expecting anything. That is Selfless Service. The Person can lawfully do the same [&helli...

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Why it is beneficial to Deposit TDS before 30th June?

Why is it beneficial to Deposit TDS before 30th June despite an extension of TDS Return Due date? As we all know that the government has extended the due date of Quarter 4 of FY 2019-20 to 31st July 2020. But it doesn’t mean Due date to Deposit TDS with interest rate at 9% p.a. […]...

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India-Singapore Double Tax Avoidance Treaty

Double Tax Avoidance Treaty India-Singapore The Double Taxation Avoidance Agreement is a tax accord between two countries to avoid taxing of same income by two countries levying their own tax. Double Taxation unjustly penalizes income flow between the countries and thereby discourages trade & commerce between the countries. To mitigat...

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FAQs on TDS on Contracts | Section 194C | Income Tax Act 1961

Q.1 Who is responsible to deduct tax u/s 194C? A.1. Any person responsible for paying any sum to any resident contractor for carrying out any work (including supply of labour for carrying out any work) under a contract in pursuance of a contract between contractor and person specified, shall deduct in context at the time […]...

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All about Section 44AE of Income Tax Act, 1961

In this advance learning we will cover the provisions of the presumptive taxation scheme provided in section 44AE. The scheme of section 44AE is designed to give relief to small assessees engaged in the business of goods carriage....

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Minimum Alternate Tax (MAT) | Section 115JB | Income Tax Act 1961

Law makers observed that there is many companies which are disclosing massive profit in the accounts as laid in the Annual General Meeting (AGM) before the shareholder but at the same time these companies also showing profit nil or bit above nil for the income tax purpose....

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Section 80CCD- Deduction for National Pension Scheme Contribution

Deduction under Section 80CCD for National Pension Scheme Contribution is one of the most popular deduction. Many users take advantages of this deduction at the time of filing of their Income tax Return....

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Capital Loss from Listed Shares and Equity Mutual Funds

In India, the income from long term capital gains on transfer of Shares and Mutual Funds on which security transaction tax (STT) has been paid, is exempt from levy of income tax under section 10(38) of the Income Tax Act, 1961 (‘the Act’). This is a well known exemption amongst the tax payers and investors in India. ...

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What is Domestic Transfer Pricing?

Applicability of transfer pricing provisions was earlier limited to International Transactions only. With effect from 01.04.2013, the scope of Transfer Pricing provisions is extended to 'Specified Domestic Transactions' and is accordingly applicable from A.Y. 2013-14....

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Whether writing of bad debts in accounts sufficient to claim deduction U/s. 36(1)(Vii)?

The Delhi High Court, has held in CIT vs. Samara India(P) Ltd. (2013) 216 Taxman 93 , following the decision of Supreme Court in T.R.F. Ltd. Vs. CIT(2010) 323 ITR 397:190 Taxman 391(SC), that for an assessee to claim deduction in relation to bad debts it is, now, no longer necessary to establish that debt had become irrecoverable and it i...

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Utility for computation of Deduction of Rent for Non-Salaried Individuals – 80GG

Rent Deduction U/s 80GG Utility Section 80GG, of Income Tax Act 1961-2020 An assessee  not being person claiming deduction of House Rent Allowance (HRA) or by whatever name its called u/s 10(13A) is eligible to claim deduction under this section. Conditions to be met for this deduction : Assessee or his spouse or minor child […]...

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No TDS on Reimbursement of Relocation Expenses of Outbound Employees

Global E-Business Operations Vs The DDCIT (ITAT Bangalore)

Global E-Business Operations Vs DDCIT (ITAT Bangalore) When a claim was made by the assessee that there was no income of element embedded in the remittances, the AO has not examined the claim of the assessee in a proper perspective. They have merely said only few evidence have been filed. Another reason given was that […]...

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Advances for purchase of vehicles/plant/machinery allowable as bad debt

PCIT Vs Hybrid Financial Services Ltd (Bombay High Court)

PCIT Vs Hybrid Financial Services Ltd (Bombay High Court) Under Section 36(1)(vii) of the Act, the amount of any bad debt or any part thereof which is written off as irrecoverable in the accounts of the assessee for the previous year is to be allowed as deduction in computing income under Section 28 of the […]...

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Equalisation Levy-Expanded Scope after Finance Act 2020

Equalisation levy was initially brought to impose tax on online advertisement including provision of digital advertising space on certain entities which did not have any physical presence in India but which earned revenue from Indian advertisers. The levy required every resident making payment for such services to deduct 6% equalization l...

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Land Purchased for establishing a university – Section 11 Exemption Allowed

ITO(E) Vs Om Charitable Trust (ITAT Delhi)

Whether the AO was correct in denying the exemption u/s 11 to the assessee against Purchase of Land and FLAT in preparation to establishing a university and not in the nature of any 'real estate' operation ?...

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No Section 234B Interest for Advance Tax Shortfall due to Retrospective Amendment

DCIT Vs Reliance Industries Ltd. (ITAT Mumbai)

Whether the interest u/s 234B for less payment of advance tax will be levied on account of additions made to total income, consequent to retrospective amendment?...

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No Section 194J TDS on IUC charges paid by Telecom Operators

DCIT-TDS Vs Vodafone India Ltd. (ITAT Mumbai)

Whether interconnection usages charges (IUC) is in the nature of fees for technical services and whether the assessee is liable for TDS under section 194J of Income Tax Act, 1961?...

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Section 194H TDS not applies on Bank Guarantee Commission

M/s. Navnirman Highway Project Pvt. Ltd. Vs DCIT (ITAT Delhi)

The issue under consideration is whether TDS under section 194H is applicable from payment of bank guarantee commission to the bank?...

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Ao verified loan based on CASS parameter: CIT(A) cannot invoke jurisdiction u/s 263

Citystar Ganguly Projects Ltd. Vs PCIT (ITAT Kolkata)

ITAT states that AO had made specific enquiry into loan transactions of assessee based on the CASS parameter. In response to enquiries made under section 133(6), loan creditors had filed their documents/details to substantiate/prove their identity(ies), creditworthiness and genuineness of the loan transactions. AO having examined all the ...

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Classification of Enterprises as MSME W.E.F. 01.07.2020 

It is important to note that the industry was waiting for definition change in MSME for quite a long time. As there was fear among MSME that if they grow in terms of number, they might lose the title of being MSME and lose benefits of Government provided for MSME....

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Cess: An allowable expenditure?

It is a well settled principle that ‘Income-tax’ of a taxpayer is a not an allowable business expenditure. However, whether the ‘Income-tax’ payable by the taxpayer also includes ‘Cess’ or does not include such ‘Cess’ is a matter of debate....

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Section 148- Revenue cannot travel beyond reasons recorded & same cannot be supplemented at the Later stage

Gateway Leaisng Pvt Ltd Vs ACIT (Bombay High Court)

Gateway Leaisng Pvt Ltd Vs ACIT (Bombay High Court) Section 148- Revenue cannot travel beyond reasons recorded & same cannot be supplemented at the Later stage. Reasons which are recorded by the Assessing Officer for re-opening an assessment are the only reasons which can be considered when the formation of the belief is impugned; suc...

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Residential Status & Scope of Income

RESIDENTIAL STATUS We already know, tax is charged on Total Income. The computation of this total income further depends upon the residential status. The followings are the importance of residential status; Importance of Residential Status: 1. Total Income of an assessee cannot be determined without knowing his residential Status. 2. Resi...

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Due Date Extension by SEBI & CBDT on 24 & 25th June 2020

Today I will talk about some due dates extension. Just to update you about your compliance calendar.  If you are feeling worry about that how to file compliances on time as due dates is going to end soon than don’t worry as there are so many extension is made by Income tax department and SEBI […]...

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Equalisation Levy: A New Digital Tax Regime

Equalisation Levy or commonly referred to as ‘Google tax’ was brought in the year 2016 by the then Finance Minister Late Sh. Arun Jaitley as part of implementation of OECD (Organization for Economic Cooperation and Development) Action Plan on taxation of digital transactions (BEPS Action Plan-1). It was observed that business these da...

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Furnishing Info of Remittance to Non-Resident- Form 15CB / 15CB

FURNISHING INFORMATION REGARDING REMITTANCE TO NON-RESIDENT A person making payment to a Non-Resident /Foreign entity is required to furnish an undertaking in Form 15CA in digital mode. In some cases, department requires a Certificate From CA, in Form 15CB to be uploaded with the Form 15CA. The relevant provisions have been included in In...

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Role of Litigator – An unfinished Saga!

If this healthy rule is not followed, the result will only be undue harassment to assessees and chaos in administration of tax laws. Thus, recognising the principle of natural justice which encourages equity, fairness and equality, must be followed at every staggered procedure....

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Whether Revised Return can be filed after intimation is issued u/s 143(1)?

[ACIT v. Padma Logistics &Khanij (P.) Ltd. - In present case, Kolkata Tribunal ordered that the intimation issued u/s 143(1) of the Act does not preclude the assessee from filing a revised return of income....

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NIL Form GSTR-1 filing via SMS from 1st week of July 2020

Release ID: 1634831 (27/06/2020)

NIL statement in Form GSTR-1 can now be filled via SMS from the 1st week of July 2020 NIL statement in Form GSTR-1 can now be filled via SMS from the 1st week of July 2020.  Previously on 8th June, a similar facility for the Form GSTR-3B had been announced. This will benefit approx 12 […]...

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ITR-2 For Financial Year 2019-20 | Key Additions | Online Utility Released

ITR-2/Key Insertions in the Income Tax Return Form “Now Available for E-Filing at Income Tax Portal” Recently, the government (CBDT) notified the Income Tax Return Forms (ITR) for the financial year 2019-20 (A/Y 2020-21). Today i.e. on the 26th of June, 2020, the department has made the Income Tax Return Preparation Software (also kno...

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Extension of due dates under the Income Tax Act

DUE TO THE OUTBREAK OF NOVEL CORONA VIRUS, THE GOVERNMENT HAS FURTHER EXTENDED THE DATES FOR VARIOUS COMPLIANCES UNDER THE INCOME TAX ACT, 1961 (IT Act) AND VARIOUS OTHER SPECIFIED ACTS** BY NOTIFICATION NO.35  / 2020, DATED 24 JUNE 2020 AND COMES INTO FORCE FROM 30 JUNE 2020 Sr. No. Particulars Period Actual Due Date […]...

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What is Financial Identity? How Income Tax Return helps in creating it for you?

Income tax return or Income Tax in general is a word that instantly strikes fear in the mind of the person. And definitely, this fear has a lot to do with the visual media and movies we see where Income Tax Authorities are shown as wealth sucking leach which waits for the opportunity to unleash upon it preys....

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OECD Project to Tax Digital Economy: At the Brink of Collapse?

Last two years have witnessed a large-scale collaborative effort by the international community, under the umbrella of the OECD, towards finding a consensus-based solution for the problem of taxation within the digitalized economy....

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Consider Only Dividend bearing Securities for Section 14A disallowance R.W. Rule 8D(2)(iii)

PricewaterhouseCoopers Private Limited Vs ACIT (ITAT Kolkata)

In the light of judgment of Coordinate Bench of ITAT Kolkata in the case of REI Agro Ltd, we note that only dividend bearing securities should be considered for disallowance under rule 8D(2)(iii) of I.T. Rules....

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Section 234A Interest for extended period if Self-Assessment Tax exceeds ₹ 1 Lakh

PRACTICAL DIFFICULTIES IN CASE OF ASSESSEES LIABLE TO PAY SELF ASSESSMENT TAX OF Rs. 1 LAKH OR MORE FOR THE YEAR ENDED 31.03.2020. As per he CBDT’s Press Release dated 24.06.2020 if the Self Assessment Tax payable is more than Rs. 1 Lakh the whole of the tax is to be paid by the specified […]...

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Myths and misconceptions about Personal Income tax

Gifts received: Gifts received from specified relatives are exempt from income tax, and there is no upper limit also. Similarly, gifts of any amount and from anyone received during your marriage are totally tax-free. Similar is the case with the gifts received under a Will or by way of an inheritance, or from a registered charitable or e...

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Consequences of TDS defaults under Income Tax Act 1961

TDS/TCS compliances is one of the major compliance under Income Tax Act, 1961 and has a wide scope of its applicability to the business organizations. Small businesses are not much aware of the overall implications of non compliances of the TDS/ TCS provisions and ends up in paying the higher penal charges due to not following the deadlin...

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Instruction for ‘Limited Scrutiny’ under CASS are Retrospective

Most of the cases selected for Scrutiny are through Computer Aided Scrutiny Selection (CASS). Only a particular class of cases such as those involving Search, Survey and Reopening of Assessment etc. come under Compulsory Scrutiny. A small Number of cases are manually selected by the Assessing Officers where they consider the Income of a p...

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Ind AS Accounting for foregoing MAT Credit pursuant to Section 115BAA

Consider a situation where RST Limited was a loss making company. Ind ASs were adopted by this company from the year 2016-17. Since FY 2014-15 it has started to profits it was having accumulated MAT credit of Rs. xyz crores lying in the books of accounts as on 31.03.2019....

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Some Important Provisions related to Maintenance of  Accounts under GST

We all know the importance of the maintenance of the accounts under GST. The provisions related to the maintenance of the accounts are given in Section 35 of the CGST Act, 2017  and Chapter VII of the CGST Rules  2017. Here I want to throw some light on  some important provisions under GST  which in […]...

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Some aspects regarding Forms 15CA & 15CB

Some aspects related to forms 15cb & 15ca 1. What is the need of Form 15CB & 15CA? ♦ Person making the remittances to Non-Resident require submitting of Form 15CB & 15CA. ♦ Government has made these provisions to ensure the collection of tax from Non Resident at an earlier stage (when remittance is to […]...

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Stay of demand proceedings before Income-tax Appellate Tribunal

The ITAT may, on an application made by the assessee and after considering the merits of the application, pass an order of stay in any proceedings relating to an appeal filed under section 253(1). If the ITAT is not able to dispose off the appeal under first proviso, the stay can be extended upto 365 […]...

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Due date extended for Tax filing for FY 19-20, BUT not for interest-free Tax payments

Notification No. 35/2020-Income Tax (24//0/6/20)

Due date for income tax return for the FY 2019-20 (AY 2020-21) has been extended to 30th November, 2020 by the CBDT vide Notification No 35/2020. Hence, the returns of income which are required to be filed by 31st July, 2020 and 31st October, 2020 can be filed upto 30th November, 2020. However, Tax filing […]...

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Payment of expense for marketing ‘Marriott / Rennaisance’ brands is Royalty

Marriot International Inc. Vs DDIT- International Taxation (ITAT Mumbai)

Marriot International Inc. Vs DDIT-International Taxation (ITAT Mumbai) In the instant case, the assessee has undertaken the job of marketing the “Marriott / Rennaisance” brands. There is no doubt that the assessee company belongs to Marriott group. Further the claim of the assessee that it was undertaking the marketing work on cost t...

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No TDS on Reimbursement of Leased Line Expense to Parent Company

DCIT Vs International Flavours & Fragrances (I) P. Ltd., (ITAT Chennai)

DCIT Vs International Flavours & Fragrances (I) P. Ltd., (ITAT Chennai) Where assessee-company reimbursed community expenses to foreign company for utilising leased lines services situated outside India, said payment not being in nature of ‘royalty’ within meaning of section 9(1)(vi), assessee was not liable to deduct tax ...

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Section 195 TDS applicable only when amount is chargeable to tax in the hands of recipient

C.U.Inspections (I) Pvt. Ltd Vs DCIT (ITAT Mumbai)

C.U.Inspections (I) Pvt. Ltd Vs DCIT (ITAT Mumbai) Mere fact that the payment in question is not reimbursement of expenses to the holding company would not per se expose the expenditure to disallowance u/s 40(a)(ia) of the Act. It has been noticed supra that the disallowance u/s 40(a)(ia) is activated when there is failure on […]...

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No TDS deductible on Reimbursement of USA office Expenses

Himalya International Ltd Vs DCIT (ITAT Delhi)

As per Explanation 2 attached to section 9(1)(vii) of the Act in the case of remittance or reimbursement of expenses where no element of taxable income in India is found, then the question of tax deduction at source does not arise....

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Depreciation should be considered for evaluating operating results of comparables

AMD Research & Development Centre India Pvt. Ltd. Vs DCIT (ITAT Hyderabad)

AMD Research & Development Centre India Pvt. Ltd. Vs DCIT (ITAT Hyderabad) The method of depreciation adopted by the various comparable companies has an impact on the operating result of the respective comparable companies, which is highlighted in the above charts. The assessee company’s percentage of depreciation to total expenditu...

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No disallowance of interest U/s 14A if assessee’s own capital is more than investments fetching exempt income

DCIT Vs Hero Moto Corp. Ltd (ITAT Delhi)

No disallowance of interest can be made u/s 14A if the assessee’s own capital is more than the investments fetching exempt income. Similar view has been taken by the Hon’ble Gujarat High Court in the case of CIT vs. Suzlon Energy Ltd. (2013) 354 ITR 630 (Guj)....

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Equalisation Levy-A Big Leap Towards Trapping Digital Economy

EL-Equalisation Levy, Assessee-Any Person Resident or Non-Resident with Permanent Establishment 1. EMERGENCE OF EL Can you imagine the life without Technology? Certainly not. It is very appealing to the case with Digital Economy too. Today the way of doing business has changed drastically and dramatically. All tangible and intangible good...

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Opted new Tax Regime- Claim conveyance, travel allowance

Notification No. 38/2020-Income Tax [G.S.R. 415(E)] (26/06/2020)

Perquisites & Allowances to Taxpayer opting Lower Tax Rate Option- Section 115BAC CBDT issued Notification No. 38/2020-Income Tax Dated- 26/06/2020 amending rule 2BB  of Income Tax Rules to allow taxpayers who are opting for the new tax regime (section 115BAC)  to claim exemption for allowance to meet cost of travel and daily expens...

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Practical Issues in Penalty U/s. 271D & 271E r.w. Section 269SS and 269T

Provisions Of 269SS, 269T, 271D AND 271E As Per Finance Bill 2014 And Finance Bill 2015 And Some Issues Regarding Penalty U/S 271D, 271E And Relating To Amendments. Consequences of contravention of section 269SS: Section 271D of Income Tax Act 1961 provides that if a loan or deposit is accepted in contravention of the provisions of sectio...

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Taxability of Chaotic Interest Incomes from Acquisition of Land

The scope of this write up is an attempt to clarify chaos that is taxability of various incomes (specifically interest) from compulsory acquisition of land. Types of income which an asset under consideration can result are capital gain (if asset is a capital asset), interest on compensation or enhanced compensation....

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Refund Under Provisions of Income Tax Act, 1961

Section 237 of the Income Tax Act, 1961 deals with refund of excess tax paid by the assessee. If any person or assessee satisfies the assessing officer that the amount of the tax paid by him or paid by any person on his behalf during any previous assessment year exceeds the amount with which he is properly chargeable under the act for tha...

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Revised Income Tax Due Dates- CBDT Notification No. 35/2020

Article explains Revised Income Tax Due Dates as CBDT Notification No.35/2020 Dated 24.06.2020 which includes revised date for Income Tax Returns, Income Tax Audit, Investment for claiming Deduction under Chapter VIA, Capital Gains Exemption under Sections 54 to 54GB, Furnishing of TDS / TCS Statements, Issuance of TDS / TCS Certificates,...

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Format of submission to CIT(A) for deduction of employee contributions – section 36(1)(va)

Written submission to CIT(A) for deduction of employee contributions under section 36(1)(va) of Income Tax Act, 1961 25.06.2020 The Commissioner of Income-tax (Appeal) – __, Income-tax Department, _________ In the matter of: ______________ PAN: A/Y: 2018-19 SUB: Submission regarding Appeal No.              u/s 246A of Income-tax ...

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Income Tax and Other Laws – Revised Due Dated WEF 24.06.2020

Notification dated 24 June 2020 - Taxation and other laws (Relaxation of provisions)

The Government came up with a notification No. 35/2020 dated 24th June 2020 for extension of various due dates under the Income Tax Act. Please find below summary and key analysis for your reference: Sr. No. Compliances Due date 1. Compliances (it does not include payment compliances) that fall between 20 March to 31 December […]...

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Due Date extended by CBDT on 24th June 2020

Due Dates Extended by the CBDT (CENTRAL BOARD OF DIRECT TAXES) on 24th June 2020 vide notification No. 35/2020-Income Tax 1. ITR Filing for Financial Year 2018-19: Belated or Revised ITR for Financial Year 2018-19 can be filed by 31st July 2020. The earlier date was 30th June 2020. 2. TDS Return Due Date for […]...

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Further Relaxations for Various Complainces under Income Tax Act

In view of the challenges faced by taxpayers across all sectors to meet statutory and regulatory obligations, the CBDT vide its Notification No. 35/2020 S.O.2033(E) dated 24.06.2020 has decided to provide further relief for making various compliances under Income Tax Act, 1961. Further Relaxations for Various Complainces under Income Tax ...

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Extension of various time limits under Direct Tax Laws

(Issued vide CBDT Notification No. 35/2020 dated 24.06.2020 read with Ordinance dated 31.03.2020) The Government brought the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 on 31st March, 2020 which provided for extension of various time limits under the Direct Tax Laws. In order to provide further relief for ma...

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Taxation of Offshore Poker Sites

This research paper will be focusing on online poker sites with regards to non-residents whose income is accruing in India. There has been a certain boom when it comes online sites wherein more and more people are going online and getting involved in games such as rummy, poker and fantasy leagues. The industry has through […]...

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Evidentiary value & burden to prove under Tax Law

Legal fictions create an artificial state of affairs by a mandate of the legislature. They compel everybody concerned including the courts to believe the existence of an artificial state of facts contrary to the real state of facts. When a fiction is created by law, it is not open to anybody to plead or argue that the artificial state of ...

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Check new deadlines to file ITR for FY20, FY19 & Other due dates

Vide Income Tax Notification No.35/2020 dated 24.06.2020 government extends various due date upto 31st July, 2020. The salient features of which are as under: 1) The time of filing of original as well as revised income tax returns of the FY 18-19 (AY 2019-20) has been extended to 31st July, 2020. 2) The returns of […]...

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Statement of Financial Transaction (Due date 30th June, 2020)

Article explains about Furnishing of Statement of Financial Transaction [Rule 114E], Non Furnishing/Defective Furnishing of SFT (Section 285BA) , Opportunity by Income Tax Authority to rectify defect, Notice in case of non-furnishing of SFT,  Opportunity to rectify defect within 10 days,  Penalty for failure to furnish statement of fina...

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Extension of Due Date of Income Tax Return – Is It A Myth

Covid 19 and subsequent lockdown for the last 3 months has created immense hardship to one and all. Particularly in Tamilnadu there is strict lockdown till 30th June 2020 and uncertainty exists as to whether normalcy would return in the near future considering the rising cases day by day....

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Income Tax – Due date extensions on 24th June 2020

In order to provide further relief to the taxpayers for making various compliances, the Government has issued Notification No. 35/2020 dated 24th June 2020 amending The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020, thereby extending due dates under various provisions of Income Tax Act....

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Section 10(46) exemption to RERA Authorities of Odisha & Jharkhand

Notification No. 37/2020-Income Tax [S.O. 2041(E)] (25/06/2020)

Notification No. 37/2020- Central Government notifies Odisha Real Estate Regulatory Authority and Jharkhand Real Estate Regulatory Authority in respect of the specified income arising to that board under section 10(46) of Income Tax Act, 1961. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) Notification No. 37/...

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Section 10(46) exemption to RERA Authorities of Andhra Pradesh & Karnataka

Notification No. 36/2020-Income Tax [S.O. 2042(E)] (25/06/2020)

Notification No. 36/2020- Central Government notifies ‘Real Estate Regulatory Authority, Karnataka and Andhra Pradesh Real Estate Regulatory Authority in respect of the specified income arising to that board under section 10(46) of Income Tax Act, 1961. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) Notifica...

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CCI approves acquisition of 9.99% stake in Reliance Jio by Jaadhu Holdings LLC

(Release ID: 1634070) (24/06/2020)

The Competition Commission of India (CCI) approves acquisition of 9.99% stake in Jio Platforms by Jaadhu Holdings LLC. The proposed combination envisages acquisition of approximately 9.99% stake inJio Platforms Limited (Jio Platforms) by Jaadhu Holdings LLC (Jaadhu)....

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Capital Gain on Sale of Shares cannot be treated as Income from other Sources on mere Surmises

New Delhi Television Ltd Vs ACIT (ITAT Delhi)

New Delhi Television Ltd Vs ACIT (ITAT Delhi) On examination of the facts it is apparent that assessee has sold shares which were purchased by it before 13 months of a company and subsequently sold at substantially higher price to the associate concern of the assessee and disclosed the same as capital gain. It is […]...

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Guarantee Fee cannot be treated as Interest- India-Netherlands DTAA

Lease Plan India Pvt. Ltd. Vs DCIT (ITAT Delhi)

Lease Plan India Pvt. Ltd. Vs DCIT (ITAT Delhi) In the present case apparently, AE has not provided any capital to the appellant on which income is earned. It is a corporate guarantee , being a surety to the lender bank of the appellant that, if in a case, in future, the appellant fails to […]...

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Section 115BBE(2) not applicable to Assessment Year 2012-13

ACIT Vs A One Enclave (ITAT Indore)

ACIT Vs A One Enclave (ITAT Indore) At any stage revenue has not disputed the fact that the alleged amount surrendered during the survey was unaccounted business income of the assessee and not from any other sources. Section 11 5BBE of the Act was inserted by Finance Act, 2012 w.e.f. 1.4.2013 which restricts the claim […]...

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No Deemed Dividend on Business transactions via current A/c

Exotica Housing & Infrastructure Company Pvt. Ltd. Vs ITO (ITAT Delhi)

Transactions carried out through current account for business purposes would not fall within the definition of Deemed Dividend.  Therefore provisions of Section 2(22)(e) of the I.T. Act, 1961, would not apply....

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Amendment to Section 40(a)(ia) restricting disallowance to 30% is retrospective

Muradul Haque Vs ITO (ITAT Delhi)

Muradul Haque Vs ITO (ITAT Delhi) Finance (No.2) Act has made amendment to section 40(a)(ia) of the Act w.e.f. 01.04.2015. Various benches of the Tribunals including the Delhi Benches of the Tribunal, have held the amendment made by Finance (No 2) Act to be curative in nature. We further finds the coordinate bench of the […]...

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Multiple independent residential units in same building can be treated as one residential unit for section 54F Exemption

Shri. Navin Jolly Vs ITO (Karnataka High Court)

Multiple independent residential units in same building can be treated as one residential unit for section 54F Exemption and usage of the property has to be considered in determining whether it is a residential property or a commercial property ...

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Decoding ‘One House’, ‘One Unit’ Concept in Section 54F

Assesses wanting to claim exemption u/s 54F should ensure that there is unity of structure and they are indeed just independent units and not independent houses altogether that are located in different places....

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Posted Under: Income Tax |

Angel Tax – A Saviour For Start-Ups

Before understanding the concept of an Angel Tax, let’s know, who is an Angel? Imagine a situation when you have a brilliant business idea but you do not have adequate funds to execute your idea and you look for different sources to fund your business idea. That’s where an investor comes in to rescue you […]...

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Posted Under: Income Tax |

New rules for Cash withdrawal Effective From 1st July 2020

Section 194N of Income Tax Act: TDS on payment of certain amounts in cash Deductor: Bank, Co-operative bank or a post office Threshold limit: If aggregate payment in cash from one or more accounts during a previous year to an account holder exceeds the threshold limit given below: Time of Payment Threshold limit for payment […]...

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Posted Under: Income Tax |

If Interest Free Funds available it presumed that Investments made from that Available Funds

ATS Infrastructure Ltd. Vs ACIT (ITAT Delhi)

Whether the disallowance of Interest u/s 36(1)(iii) is justified in law? If interest free funds available it presumed that Investments made from that available funds....

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Penalty cannot be levied for making a claim which may be erroneous or wrong

Ventura Textiles Ltd. Vs CIT (Bombay High Court)

The issue under consideration is whether the levy of penalty u/s.271(1)(c) of the Act is justified in law for for making a claim which may be erroneous or wrong ?...

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Set off of Brought Forward Losses of Merged Division in Revised Return allowed by ITAT

ACIT Vs Padma Logistics & Khanij Pvt. Ltd (Madras High Court)

ACIT Vs Padma Logistics & Khanij Pvt. Ltd (Madras High Court) The issue under consideration is whether the set off of brought forward losses and unabsorbed depreciation of merged division in revised return is justified in law?  In present case, the assessee Company had filed the original return of income on 28.09.2010 showing total i...

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No conversion from limited to complete scrutiny on mere suspicion 

Dev Milk Foods Pvt. Ltd. Vs ACIT (ITAT Delhi)

The issue under consideration whether conversion of the case from limited scrutiny to complete scrutiny is justified in law?...

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Education Cess & Higher Secondary Education Cess allowable as a Business Expenses

Sesa Goa Limited Vs JCIT (Bombay High Court)

The issue under consideration is whether the Education Cess and Higher and Secondary Education Cess is allowable as a business expenses?...

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Section 10(23C) application Can’t be Rejected merely for Surplus generation

The Indian Institute of Banking & Finance Vs CIT (Exemp.) (ITAT Mumbai)

whether rejection of approval u/s 10(23C) on the allegation of institution existing not solely for the purpose of education but for the purpose of profit is justified in law?...

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What if PAN not linked with Aadhar ?

Consequences of  Non-Linking of PAN with Aadhar 1) PAN will become inoperative. 2)Where a PAN has become inoperative, it will be assumed that PAN has not been furnished/ quoted as required by the law and a penalty of Rs.10,000 may apply as per section 272B of the Income Tax Act. 3) An individual having an […]...

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Posted Under: Income Tax |

Equalisation Levy : Applicability, Features & Penalty

Background of Equalisation Levy Business may be conducted in digital domain without regard to national boundaries. This may dissolve the link between an income – producing activity and a specific location. To tackle taxation issues in transaction conducted in cyber space, equalization levy has been imposed. The Finance Act 2020 has ...

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Posted Under: Income Tax |

How to file Income Tax Return Online

To file Income tax return or to View your tax credit statement in Form 26AS you need to register yourself on the Income tax website https://incometaxindiaefiling.gov.in/ Now the Steps for filling online return are hereunder: ...

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Posted Under: Income Tax |

Minimum Alternate Tax & Alternate Minimum Tax- Provisions

Article summarizes the provisions of Minimum Alternate Tax (MAT) and Alternate Minimum Tax (AMT). The article gives theoretical insights along with examples for sound understanding of the provisions. ...

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Posted Under: Income Tax |

Latest Income Tax News

Income tax is the part of your income which you are required to pay to the Indian government for funding various infrastructural developments, pay salaries to those who are employed by the central or the state governments, etc. All the taxes which are imposed are based on law, and the law which governs provisions about taxes on income is the Income Tax Act, 1961.

Income tax needs to be paid by each and every individual, Hindu Undivided Family, Association of Persons, Body of Individuals, companies, corporate firms, local authorities and every artificial juridical person generating any income based on the income tax slab rates.

Income tax might seem to be a tedious tax for most us, and it has a lot to do with the fact it involves a lot of nitty-gritty and details while calculating and in paying income tax. However, if you need a clear picture about income tax which is simple and easy to understand then you are at the right place.
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