Income Tax - Page 30

India widens Equalisation Levy base Effective 1st April 2020

Vide Finance Act 2020  Section 163(3) of Income Tax Act, 1961 has now been amended to provide that the Equalisation Levy would now be applicable also to 'to consideration received or receivable for e-commerce supply or services made or provided or facilitated on or after the 1st day of April, 2020'. This amendment expands the scope of Eq...

Read More
Posted Under: Income Tax |

TDS (Income Tax) Deposit for March 2020 & Filing of Return (Q4)

Government of India vide Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 on 31.03.2020. notified relief measures  related to Income Tax return filings, GST compliance, PAN-Aadhar linkage and other statutory and regulatory issues. Income Tax Act 1961 also covers under the Specified Act as per Para 2 of the ordi...

Read More
Posted Under: Income Tax |

Residential Status of an Individual – Amended by Finance Bill 2020

Residential Status of an Individual under the Income Act,1961 as amended by Finance Bill 2020 Residential Status of an Individual determines the liability of an individual to tax in India according to the nature, source, accrual or receipt of Income.  Section 6 of the Income Tax Act, 1961 lays down the criteria for determining the [&hell...

Read More
Posted Under: Income Tax |

Section 271AAD – Fair Interpretation and applicability

Finance Act,2020 has been enacted on 27th March,2020 after receiving assent of The President of India. Through this act section 271AAD has been inserted in Income Tax Act,1961 through Chapter-III of Finance Act,2020. In this article we have made an effort to interpret the section in a fair manner and in true spirit of legislation. [&helli...

Read More
Posted Under: Income Tax |

Section 10(15) Exemption- Interest on Bonds, Debentures, Securities

Provisions of section 10(15) of the Income Tax Act provides exemption towards various Interest Income. The provisions of said section 10(15) are explained in the present article. Interest Income exempted under section 10(15) of Income Tax Act, 1961 Section 10(15) of the Income Tax Act consists of various sub-sections through which various...

Read More
Posted Under: Income Tax |

How to pay no Income tax despite earning Rs. 7.25 Lacs a year?

The Finance Bill, 2020 has come up with a lot of benefits for small and medium taxpayers in such a way that, even those earning Rs. 7.25 Lacs a year need not shell out a single rupee of tax provided they make some eligible investments....

Read More
Posted Under: Income Tax |

Section 194C TDS on Payment to Contractors/Sub-Contractors

Section 194C Note on Deduction of Tax At Source From Payment To Contractors/Sub-Contractors Definition/Meaning Any person responsible for paying any sum to any resident for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between the contractor. The term contractor will include a sub-...

Read More
Posted Under: Income Tax |

CBDT deffer GST & GAAR Reporting in Tax Audit Report by one more year

Circular No. 10/2020-Income Tax (24/04/2020)

Income Tax Circular No. 10/2020-Income -Regarding reporting requirement under clause 30C and clause 44 of the Form 3CD defers GST & GAAR Reporting in amended Income Tax Audit Report amidst Covid-19. Income Tax Circular No. 10/2020 F.No. 370142/9/2018-TPL Government of India Ministry of Finance Department of Revenue Central Board of Di...

Read More

CBDT notifies Protocol Between India And Austria

Notification No. 22/2020-Income Tax [S.O. 1370(E)] (24/04/2020)

Protocol Between The Government Of The Republic Of India And The Government Of The Republic Of Austria Amending The Convention For The Avoidance Of Double Taxation And The Prevention Of Fiscal Evasion With Respect To Taxes On Income, Which Was Signed At Vienna On 8 November, 1999...

Read More

Detailed analysis of Section 115BAA & Section 115BAB

Two new sections (Section 115BAA and Section 115BAB) were introduced reducing the corporate tax rate for domestic companies to 22% and for domestic companies indulged in manufacturing activities to 15%. Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 has also fixed the rate of surcharge to 10% irrespective of th...

Read More
Posted Under: Income Tax |

Tax Impacts of Compound Financial Instruments

Introduction: FINANCE, the seven-letter word is a pivotal aspect of each and every business. Various means and modes of financing have been developed so as to meet the demands of the investors as well as generate money for the businessman. In this ever-changing business environment, generating money has been one of the biggest issues face...

Read More
Posted Under: Income Tax |

Not filed Your IT Return? File it now

Not filing a return on time does have financial implications, especially if you have a net income tax payable and / or if you have losses to be carried forward. This can really hurt especially if the losses to be carried forward are significant. Therefore, your best option is to ensure that you file the income tax return by the deadline....

Read More
Posted Under: Income Tax | ,

Taxability of Prepaid / Sodexo Coupons Under Salary Income

As it is not possible to discuss all the perquisites in one article, let us discuss the taxability of a perquisite which is always in question – taxability of prepaid coupons say for example Sodexo coupons which are very famous. These days many employers are giving sodexo coupons to the employees. The value of the coupons varies from em...

Read More
Posted Under: Income Tax | ,

7 things to know about Income-tax ‘Scrutiny’

1. What is Scrutiny? Once the assessee files his return of income, irrespective of whether it is filed within the due date or in pursuance to a notice requiring the assessee to file his return, the department can initiate scrutiny proceedings if it has reason to believe that income is escaping assessment, i.e. income is under stated of...

Read More
Posted Under: Income Tax | ,

Incorrect reporting of Certificates U/s. 197 and action to be taken

Many times we file application for obtaining lower deduction or nil deduction certificate u/s 197. But while obtaining this certificate we might miss out on some important factors due to which incorrect reporting under section 197 will occur and hence assessee will be consider as assessee in default. Incorrect reporting of 197 Certificate...

Read More
Posted Under: Income Tax |

Detailed Analysis- Gifts Taxation under Income Tax Act, 1961

Article explains Income Tax Treatment of Immovable Property Received as Gift Without Consideration or for Inadequate Consideration, Any property other than immovable property received Without consideration of For Inadequate Consideration and all those gifts which are fully exempt under Income Tax under Section 56(2)(X) 1. Cash: If aggrega...

Read More
Posted Under: Income Tax | ,

No TDS on GST component included in bill

As we all aware that currently this is the TDS compliance period is going on. At the time of compliance many tax deductor face the confusion at the time of tax deduction such at what amount the TDS should be deducted and at what amount, when the invoice is issue within ambit of GST? That […]...

Read More
Posted Under: Income Tax |

Assessee subjected to search, cannot be placed on a different pedestal than assessee who is not subjected to search

ACIT Vs. Majestic Commercial Pvt. Ltd (ITAT Kolkata)

In our considered view therefore, although the name of the assessee does not feature in the panchnama, in view of the fact that warrant of authorization executed by the Department contained its name, the proceedings u/s 153A were validly initiated against the assessee....

Read More

Residency Test in India – for Individuals

Taxation of a person depends on his residential status in the country.  Section 6 sub-section (1) of the Income Tax Act, 1961 provides the circumstances under which an INDIVIDUAL is said to be Resident in India.  Once the INDIVIDUAL is said to be resident in India, then we need to find out if he qualifies […]...

Read More
Posted Under: Income Tax |

Presumptive Taxation : Section 44AD

For small businesses to comply with the taxation provisions without consuming much time and resources, the government of India has incorporated a scheme of presumptive taxation. Businesses adopting the presumptive taxation scheme are not required to maintain regular books of account. Section 44AD(1) says : “Notwithstanding anything to t...

Read More
Posted Under: Income Tax |

Benefits to Startups Under Income Tax Act

Startup India campaign was formally launched by Prime Minister Shri Narendra Modi on January 16, 2016, from Vigyan Bhawan, New Delhi. Now, we have marked 5 year journey of startup India initiative. Government is focusing to make India a $5 trillion economy but it won’t be possible without building a strong startup ecosystem in India. [&...

Read More
Posted Under: Income Tax |

Cross border reimbursement – Dilemma continues

Reimbursement can be described as repayment of what has already been spent or incurred. Therefore, it should not be considered a reward or compensation for a service rendered....

Read More
Posted Under: Income Tax |

Income Tax Compliance Handbook

This is a compliance handbook covering important compliance related provisions of Income Tax Act, 1961 and covers following topics- Tax Rates for AY 2020-21 Tax Rates for AY 2021-22 Advance Tax Tax Deducted at Source (TDS) Tax Collected at Source (TCS) Presumptive Tax Scheme Tax Audit Income from Capital Gains Income from House Property T...

Read More
Posted Under: Income Tax |

Section 6 – Residency provisions – Analysis of amendments

Analysis of amendments to Section 6 – Residency provisions under the Income-tax Act, 1961 (‘the Act’) Old Provisions Proposals made through Finance Bill 2020 (Change to Old Provisions highlighted in RED) Amendments made through Finance Act 2020 (Change to Old Provisions highlighted in RED)   I. Resident in India if :- (a) S...

Read More
Posted Under: Income Tax |

Income Tax provisions relating to Private Trust (Family Trust)

The Indian Trust Act, 1882, governs a Private Trust. Private trust is a vehicle through which property can be transferred from one person (owner) to another for the benefit of an individual or an ascertainable group of people. A private trust is created for the benefit of specific individuals i.e., individuals who are defined and [&hellip...

Read More
Posted Under: Income Tax |

Analytical View of Section 139 of Income Tax Act 1961

SECTION 139 OF INCOME TAX ACT’1961 [AMENDED UPTO FINANCE ACT (NO.2) 2019] Ques 1: Why this post? Ans: In the approaching return filing season the aforesaid section namely ‘FILING OF RETURN’ has a great importance and that too w.r.t. amendments it contains till AY 2020-21 i.e. FY 19-20. Thus, the author has come up with […]...

Read More
Posted Under: Income Tax |

What CBDT has to do Immediately to Fight Covid-19 Epidemic

While the entire Business Operations are shut down, the Business Community is under stress because many have to shut down their operations permanently due various reasons which are beyond their control, which they might not have dreamt of. To give stimulus to the suffering business community and to fight the epidemic the CBDT can announce...

Read More
Posted Under: Income Tax |

TDS on sale of immovable property – Tedious?

Budget 2013 proposal requires buyers to deduct tax at 1% on the sale consideration payable to resident sellers. However, there is no obligation on the buyer to deduct tax when the immovable property is an agricultural land. In order to avoid the compliance hassles for small tax payers this requirement will not apply if the total conside...

Read More
Posted Under: Income Tax |

How to do Online correction of PAN in TDS Return

Centralized Processing Cell (TDS) has observed from its records that though you have reported deductees with more than Rs. 50,000 of TDS in your Quarterly TDS statements, but the PANs are either 'Not Available' or 'Invalid'. The 'Invalid' PANs appear structurally valid, however, they are actually incorrect, as they are not available in th...

Read More
Posted Under: Income Tax | ,

How to File Income Tax Return without using any software

After incorporating the new facilities on income tax e-filing portal, one can file his/her income tax returns directly on the department website without using any software. Steps to file Income Tax Returns without using software: 1. Log on to www.incometaxindiaefiling.gov.in 2. Click on login option 3. Once you click the login option, you...

Read More
Posted Under: Income Tax | ,

Intricacies of making addition on account of low GP

1. Power of the Assessing Officer to estimate profits Comparison of gross and net margin shown by an assessee is a normal exercise during the course of assessment proceedings. While lower gross profit shown by the Assessee as compared to the preceding years is a red flag for investigation, mere existence of low margin cannot […]...

Read More
Posted Under: Income Tax |

FAQs on E-Filing of TDS Returns

Entities (both corporate and non-corporate deductors) making payments (specified under Income Tax Act) to third parties (deductees) are required to deduct tax at source (Tax Deducted at Source -TDS) from these payments and deposit the same at any of the designated branches of banks authorised to collect taxes on behalf of Government of In...

Read More
Posted Under: Income Tax | ,

Set Off & Carry Forward of Loss under the head House Property

What is set-off of losses means? Set-off of losses means adjustment of losses against the income of that relevant year. Where the losses are not completely set off against income of the same financial year then such losses can be carried forward to the subsequent year or years for set off against income of those […]...

Read More
Posted Under: Income Tax |

Key Direct Tax Amendments vide Finance Act, 2020

Key direct tax amendments to the Finance Bill, 2020 and the provisions of Equalisation Levy, by the Finance Act, 2020 ( President’s assent on 27 March 2020) Article explains Key direct tax amendments vide Finance Act, 2020 to Section 2(15A) – Definition of ‘Chief Commissioner’, Section 6 – Residential Status in India, Se...

Read More
Posted Under: Income Tax |

TDS provisions as amended vide Finance Act, 2020

Article explains Amendments as passed by The Finance Act, 2020 on 27 March 2020 viz viz Amendments as introduced by The Finance Bill, 2020 on 1 February 2020 related to Section 194A and SECTION 197A by which Central Government Is Empowered To Provide For A Lower Rate Of TDS, Section 194J related to TDS In […]...

Read More
Posted Under: Income Tax |

Equalisation Levy- Key Amendments vide Finance Act 2020

KEY BUDGET AMENDMENTS IN THE FINANCE ACT – EQUALISATION LEVY BRIEF BACKGROUND ♣ Equalisation Levy (EQL) was introduced in India by way of Chapter VIII of the Finance Act, 2016. ♣ India was the first country in the world to introduce such a levy. ♣ EQL of 6% was levied on a ‘Specified service’ which […]...

Read More
Posted Under: Income Tax |

Download of conso files without correcting unmatched challans in TDS statements?

Ques: What is online challan correction? Ans: Online challan correction is a utility introduced by the CPC(TDS) wherein any mismatch in the challans in the statements filed by the deductors can be corrected through the online mechanism on the CPC (TDS) Website itself. ...

Read More
Posted Under: Income Tax | ,

Income Tax implications on conversion of a Company into LLP

The onset of Companies Act 2013 has ushered a paradigm shift in operation and management of companies. The benefits which, hitherto were available to Private Companies in the erstwhile Companies Act, have to a large extent receded. While some call it an era of greater transparency, others (particularly small corporates) feel that the new ...

Read More
Posted Under: Income Tax | ,

How to access Income tax Account from Bank Account

If you have forgotten your e-Filing login password and you are unsuccessful with the other options of resetting password, then you can use the new facility to get direct access to your Income Tax Department e-Filing account using the net-banking facility of your bank. Detailed steps  to access Income tax Account from Bank Account Taxpaye...

Read More
Posted Under: Income Tax | ,

Consequences of Late Filing of Your Income Tax Return

While filing your income tax return within due date is important, it does not mean that if for any reason you missed the dead line than you wouldn’t be able to file your income tax returns. But the clock turns on, which means as you have missed the dead line you might receive a notice from the income tax department any time....

Read More
Posted Under: Income Tax | ,

FAQs on Annual Information Return (AIR)

Annual Information Return (AIR) of ‘high value financial transactions’ is required to be furnished under section 285BA of the Income-tax Act, 1961 by ‘specified persons’ in respect of ‘specified transactions’ registered or recorded by them during the financial year. The due date of filing of the return ...

Read More
Posted Under: Income Tax | ,

Lacuna In Section 14A And Rule 8D

Allowance of expenditure incurred in relation to exempted income during the assessment or otherwise would be prejudicial to the revenue that’s why Section 14A was introduced by the Finance Act 2001 with retrospective effect from 1st April 1962 in Chapter IV of the Income Tax Act 1961 which inter-alia provides for the disallowance of the...

Read More
Posted Under: Income Tax |

Analytical Study of Section 269ST of Income Tax Act, 1961

Sec 269ST of The Income Tax Act, 1961 states that No person shall receive an amount of two lakh rupees or more— (a) in aggregate from a person in a day; or (b) in respect of a single transaction; or (c) in respect of transactions relating to one event or occasion from a person, otherwise […]...

Read More
Posted Under: Income Tax |

Income Tax Calculator – Financial Year 2020-21

As another step of simplifying tax laws, the Finance Bill 2020 has introduced a new tax regime for individuals and HUF by insertion of section 115BAC. Now, the individuals and HUF have an option to calculate their income tax liability either under old tax regime or under new tax regime. In order to make an […]...

Read More
Posted Under: Income Tax |

Income Tax Exemption on prescribed allowances/ benefits | Section 10(14)

Section 10(14) of the Income Tax Act provides exemptions towards allowances and benefits granted to the employees to meet certain expenses. Rule 2BB of the Income Tax Rules prescribes the list of allowance which exempted under section 10(14)(i) of the Income Tax Act and section 10(14)(ii of the Income Tax Act. The said exemption covered [...

Read More
Posted Under: Income Tax |

After Appeal department withdraws Order passed in haste during Lockdown

BT India Private Ltd. Vs ITO (Delhi High Court)

In the given case, the writ petitioner has requested Income Tax Department for the adjournment of 3 weeks to respond to the show cause notice on account of the lockdown declared by the Government of India across India so as to effectively deal with the Covid-19 pandemic....

Read More

Direct Tax Vivad se Vishwas Act, 2020- FAQs You must Know

Circular No. 09/2020-Income Tax (22/04/2020)

It has now been clarified that where only notice for initiation of prosecution has been issued without prosecution being instituted, the assessee is eligible to file declaration under Vivad se Vishwas....

Read More

E-mails for facilitating faster refund cannot be misconstrued as harassment: CBDT

Release ID: 1616620 (21/04/2020)

The Central Board of Direct Taxes (CBDT) responding to some observations being circulated on social media alleging that the Income Tax Department is pursuing recovery proceedings and using arm-twisting methods by adjusting outstanding demands of the start-ups, today stated that these observations are completely unfounded and are total mis...

Read More

Amendments in Income Tax Act for AY 2020-2021

The Amendments made to the Income Tax Act in respect of Individual , HUF , Domestic Companies for Assessment Year  2020-21 , Previous Year 2019-20 by way off. 1. The Finance Act 2019 2. The Finance Act (No.2) 2019 3. The Tax Ordinance Act 2019 4. The Taxation and Other Laws (Relaxation of Certain Provisions) […]...

Read More
Posted Under: Income Tax |

Taxation of voluntary Contributions received by Trusts/ Charitable Institutions

Trusts and other charitable institutions generally receive money from Voluntary Contributions from members and from the general public, let us look at the taxation aspects of these voluntary contributions....

Read More
Posted Under: Income Tax |

Treatment of Contribution towards Provident Fund under Income Tax Act, 1961

Contribution towards Provident Fund is one of the area, which requires due consideration of Auditor while conducting Tax Audit. In industry, there are some confusions regarding the treatment of Contribution towards Provident Fund. Through this Article, I am trying to interpret the intent of the Act with regard to these provisions. Employe...

Read More
Posted Under: Income Tax | ,

Section 80P & income from investments – Co-op Credit Societies- a nightmare

Co-operative credit societies enjoy the deduction under section 80P in respect of the whole of their income attributable to banking business. However, the term ‘income attributable to banking business’ has become a vexed term, especially in light of recent judicial developments on the subject matter....

Read More
Posted Under: Income Tax | ,

Gratuity – Legal Provisions and Taxation

ratuity is a reward for long and meritorious service. In 1972 the government passed the Payment of Gratuity Act that made it mandatory for all employers with more than 10 employees to pay gratuity. Gratuity shall be payable to an “employee” on the termination of his employment...

Read More
Posted Under: Income Tax | ,

Delay in payment of TDS for One day & 3% Interest

The concept of TDS requires that the person, on whom responsibility has been cast, is to deduct tax at the appropriate rates, from payments of specific nature which are being made to a specified recipient....

Read More
Posted Under: Income Tax | ,

NIL TDS – File Declaration for Non-filing of TDS statement on TRACES

Many times, we faced this situation where we have TAN but we do not have any transaction for which we need to file any TDS return for that quarter. So in such situation most of people just don’t file return as well as they don’t even intimate regarding this to the department. Due to this […]...

Read More
Posted Under: Income Tax | ,

One TDS challan for Payment Under Different sections & Years

Advisory to deductors making TDS payment through multiple challans in a month As we all are aware that, many times deductors used to pay TDS through multiple challans because of different section under which TDS deducted or the year of two payments are different or there are different deductees. This multiple payment challan is really [&h...

Read More
Posted Under: Income Tax |

Company- Old Tax Regime or new Tax Regime- Which one to opt?

Whether Company should continue with the Old tax regime or to pay tax under new tax regime? Since the financial year 2019-20 has already gone and currently in this lockdown situation due to Covid-19 pandemic, most of the companies are having their working from home, so I think it’s the right time to decide for […]...

Read More
Posted Under: Income Tax |

Major Direct Tax Proposals of Finance Act 2020

Financial Year 2020-21 (Assessment Year 2021-22)  Personal tax 1. Optional new tax regime for individuals and HUF  The FA 2020 has brought in place a new tax regime with effect from AY 2021-22. It is optional for taxpayers and provides lower tax rates. However, it does not permit the following: Specified deduction under section 80C [&he...

Read More
Posted Under: Income Tax |

Art of Drafting of Appeal for filing of Appeal before CIT (Appeals)

Art of Drafting of ‘Statement of Facts’ and ‘Grounds of Appeal’ for filing of Appeal before Commissioner of Income-tax (Appeals) Statement of Facts and Grounds of Appeal are most important, but it observed that these are largely casually framed. Once the assessee decides to challenge the tax demand, it has to file ...

Read More
Posted Under: Income Tax |

Clarification on Section 115BAC of the Income tax Act, 1961

A New section, 115BAC has been introduced vide clause 53 of the Finance Act, 2020 with respect to tax on Individuals and HUF. The said section will apply from AY 21-22 and subsequent AY’s. The said scheme provides for concessional rate of tax as follows: Sl. No Income New Rate – 115BAC Existing Rates 1 […]...

Read More
Posted Under: Income Tax |

Rejection of documents amounts to ‘Prejudicial to Interest of Revenue’ if AO taken one of the possible views

The Dynasty Vs The State of Assam (Gauhati High Court)

The Dynasty Vs The State of Assam (Gauhati High Court) Conclusion:  Where two views were possible, an interference by an appellate or a revisional court would be unwarranted merely because the other view appeared to be more attractive, thus, no interference was required in the judgment of the Assam Board of Revenue in respect of the [&h...

Read More

Director remuneration cannot be disallowed merely for approval post payment

PCIT Vs MLS CBRE South Asia Private Limited ((Delhi High Court)

PCIT Vs MLS CBRE South Asia Private Limited ((Delhi High Court) So far as the amount of Rs.4,73,39,848/- being the excess. Remuneration paid to Sh. Anshuman Magazine is concerned, we find the assessee has obtained approval of the competent authority though on 18.07.2011 i.e. much after the date on which such remuneration has been paid. I...

Read More

Section 68 cannot be applied in relation to the sales receipt

Shree Sanand Textiles Industries Ltd. Vs DCIT (ITAT Ahmedabad)

The ITAT Ahmedabad has harped upon the mechanical practices adopted by the Assessing Officers to make addition u/s 68. The moot point is that a sale which already forms part of books of account cannot be added again u/s 68 due to the reasons that Sales are already recorded in the books of accounts and the addition of the same amounts t...

Read More

Whether it is Mandatory to Mention Nature of Penalty w.r.t. Section 270A in Assessment Order

Section 270A(8) states that where an under-reported income is in consequence of any misreporting by any person, such person shall be liable to pay 200% penalty on an amount of tax payable on such under-reported income.As per the said sub-section, penalty in case of misreporting is equal to 200% of under-reported income....

Read More
Posted Under: Income Tax |

Section 115BAC – A New Tax Regime for Individuals and HUFs

Similar to benefit of the concessional new tax regime for companies introduced in the Finance Act 2019, the Government came up with the concessional tax provisions for Individuals and HUFs by inserting a new Section 115BAC under the Income Tax Act, 1961 (‘Act’) with effect from FY 2020-21. The broad provisions are enumerated below: El...

Read More
Posted Under: Income Tax |

COVID-19 enhancing the Transfer Pricing Risk

The Coronavirus (‘COVID-19’) pandemic has already caused major health crisis in almost entire world and has led to disruption of the global economy. The situation has resulted in economic slowdown and is likely to get worse in coming time. The International Monetary Fund (‘IMF’) has stated that the global economy has already enter...

Read More
Posted Under: Income Tax |

No section 68 addition can be made on the basis of mere statements

Modern Malleables Limited Vs DCIT (ITAT Kolkata)

Modern Malleables Limited Vs DCIT (ITAT Kolkata) Conclusion: Addition made u/s. 68 only on the basis of two statements which could not stand the scrutiny of law, was not justified and therefore, the addition could not be sustained as per law. Held: AO got information from the Investigation Wing pursuant to search operation conducted at [&...

Read More

Personal Income Tax “Old Regime Vs New Regime”

Brief about new Personal Income Tax Regime & Key Highlights New section 115BAC is inserted in Income Tax Act by the Finance Act 2020 and it is applicable w.e.f 1st April 2020 and will be applicable on Individuals and HUFs for assessment year 2021-22 and subsequent assessment years. Under this section taxpayers i.e Individuals and [&he...

Read More
Posted Under: Income Tax |

Budget 2020: Amendments related to Non-Profit organization (NPO)

FM has proposed various amendments in Union Budget 2020 which includes Amendments in Section 12A, Section 80G, 12AA etc related to Registration of Charitable Trust or Non-Profit organization (NPO). Article discusses the same in detail- Question: My NGO has life time validity of 12A and 80G certificate, should I apply for fresh registratio...

Read More
Posted Under: Income Tax |

Vivad se Vishwas Scheme : An Insight

Article on The Direct Tax Vivad Se Vishwas Act, 2020  covers critical analysis, useful insights of the Scheme on eligibility to opt for the Vivad Se Vishwas Scheme, calculation of amount payable to settle the dispute, immunity from other proceedings, etc. Article also cover procedural aspects of Vivad Se Vishwas Scheme. The Government ha...

Read More
Posted Under: Income Tax |

Exemption for payment from approved superannuation fund Section 10(13)

Provisions of section 10(13) of the Income Tax Act exempts payment received from an approved superannuation fund. The present article briefly explains the term ‘approved superannuation fund’ and covers exemption available under provisions of section 10(13). Basic understanding of the term ‘approved superannuation fund’ and tax ben...

Read More
Posted Under: Income Tax |

Section 115BAC Concessional Tax Regime for Individual & HUF

Analysis of newly inserted section 115BAC (Concessional Tax Regime for Individual and Hindu Undivided Family) 1. The Finance Act, 2020 inserted new section 115BAC, the section provides that notwithstanding anything contained in other provision of Income Tax Act, 1961, Income tax payable in respect of Income of a person being individual an...

Read More
Posted Under: Income Tax |

Limiting refund of ITC amount on ZERO-RATED Export of Goods: A set- back to SEZ units

Central Government vide Notification No. 16/2020 Dated March 23, 2020 has amended the definition of Zero-rated export of goods for the purpose of claiming of refund on the ITC u/s 89(4) of the CGST Rules, 2017. CHAPTER X of the CGST Rules, 2017 provides the provision and procedure related to the refund under the GST regime....

Read More
Posted Under: Income Tax |

OECD develops database to provide insights on Global profiles of MNEs

OECD develops database to provide insights on Global profiles of Multinational Enterprises (MNEs) 1. Background Multinational Enterprises (MNEs) have been at the forefront of changes in the global economy over the last few decades, as trade and investment barriers have been removed and transportation and communication costs have declined....

Read More
Posted Under: Income Tax |

Extension of Quarterly TDS/TCS statement filing dates

Circular No. NSDL/TIN/2020/006 (20/04/2020)

All the due dates, prescibed or notified under the Income Tax Act which fall during the period from March 20, 2020 to June 29, 2020 have been extended to June 30, 2020....

Read More

CBDT revising Income Tax return forms due to Covid-19

(Release ID: 1616035) (19/04/2020)

In order to enable income taxpayers to avail full benefits of various timeline extensions granted by the Government of India due to Covid-19 pandemic situations, the CBDT is revising the return forms for FY 2019-20 (Assessment Year 2020-21) which shall be notified by the end of this month....

Read More

Taxability of STCG to Non-Resident u/s 111A vis-à-vis Non Discrimination Clause of DTAA

Taxability of Short Term Capital Gain (STCG) to Non-Resident u/s 111A vis-à-vis Non Discrimination Clause of DTAA- Taxation of a Non-Resident is always been a question of ambiguity and litigation for the known fact that none of the country never prefer to lose any potential income in the form of taxes and which many times results into ei...

Read More
Posted Under: Income Tax |

Use of single TDS challan for all purposes-Analysis

PC (TDS) Website has made a communication dated 10th Sept’ 2014 in which it has issued advisory for deductors using multiple challans in a month, for payment of Tax Deducted. In this advisory it has discussed the following three key areas- Payment of Tax Deducted under different sections of the Income Tax Act, 1961 Paym...

Read More
Posted Under: Income Tax | ,

Nobel Prize and other Indian Awards are Tax Free?

Krishna, recently Indian resident Mr. Kailash Satyarthi received Nobel Peace Prize with Malala Yusufzai. This consists of a medal and approximately 6 crores and 64 lakh rupees. Is an Indian resident required to pay Income tax on this Prize money? And also please explain how Income tax is levied on Awards, Prizes, Rewards, etc....

Read More
Posted Under: Income Tax | ,

Not filed TDS Return-File NIL Declaration on Traces

The last date for filing the TDS Statements for the Forth Quarter of FY 2019-20 is coming closer. There will be many deductors who did not deduct any tax during the relevant quarter and therefore they will not file any statement for deduction of tax at source u/s 200(3) of the Income Tax Act’1961. But […]...

Read More
Posted Under: Income Tax | ,

Income Tax Benefits related to Research & Development expenses

ISRO succeeded in Mars mission by launching the largest rocket GSLV Mark III in space after lot of efforts and spending crores of rupees on research and development. Similarly if businessmen carry out such R&D, etc. activity, then is there any provision of Income Tax which benefits him?...

Read More
Posted Under: Income Tax | ,

Process for PAN application for Non Resident in India

Indian citizen residing abroad, foreign citizen and other than individual (like company or trust or firm etc.) who wants to apply for PAN should fill the PAN application 49AA. Basically PAN application for Non Resident can be bifurcated into three categories...

Read More
Posted Under: Income Tax |

How to fill Digital signature supported KYC

As we all know that, whenever we visit TRACES website for any of TDS return related work at that time, we always face this issue that every time for any single process eg justification report or conso file, etc we always need to feel KYC and gone through that lengthy process. Hence now department has […]...

Read More
Posted Under: Income Tax | ,

Income Tax Amendments applicable for A.Y. 2020-21

1. Amendment Due to Assent of Finance Act, 2020 a) Change In Tax Rates/ Slab Rates Tax Rates for Individual, HUF, AOP, BOI and Artificial Judicial Person (other than  opting for Sec 115BAC) Tax Rates for Co-operative Society Particulars Rate of Tax Upto Rs. 10000 10% Rs.10000-20000 20% >20000 30% Tax Rates for Others Particulars [&hel...

Read More
Posted Under: Income Tax |

Clubbing of remuneration income of Spouse from a Concern in which other Spouse has Substantial Interest

Applicability of Clubbing Provisions on remuneration income of Spouse from a Concern in which other Spouse has Substantial Interest ‘Substantial Interest’ by an Individual – Meaning The following are the two cases where it can be said that an individual has a “substantial interest”— In the case of a company –...

Read More
Posted Under: Income Tax |

No Surcharge and Education Cess on tax rates prescribed under DTAA

JCDecaux S.A. Vs ACIT (ITAT Delhi)

Surcharge and Education Cess was not leviable on receipts in the nature of Royalties and reimbursements of other expenses, which was offered to tax by assesse on gross basis under the India - France DTAA....

Read More

Tax on Transfer of Singapore Company under India Belgium Treaty: ITAT explains

Sofina S. A. Vs ACIT (ITAT Mumbai)

Sofina S. A. Vs ACIT (ITAT Mumbai) Transfer of shares of Singapore Company could not be regarded as a transfer of shares of its Indian subsidiary in absence of see-through approach under clause 13(5) of India Belgium Treaty Conclusion: Gain arising from transfer of shares of A Pte. Ltd., Singapore by the assessee to M/s […]...

Read More

Petition filed after 3 year of order suffers from laches: HC

Magnolia Mayura CHS Ltd. Vs Union of India (Bombay High Court)

Magnolia Mayura CHS Ltd. Vs Union of India (Bombay High Court) Petitioner’s appeal before the CIT(A) was dismissed on 31st March, 2016. The Petitioner’s application admittedly made on 9th August, 2016 after the Appeal was dismissed. This application came to be rejected on 22nd September, 2016, as there was no appeal pending. The orde...

Read More

No Income Tax Exemption to School – No clause to provide free education

Rajah Sir Annamalai Vs CCIT (Madras High Court)

Rajah Sir Annamalai Vs CCIT (Madras High Court) The fact that Clause 10 of the Trust Deed states that the fees and charges shall be fixed taking into account the cost of running including future development thereof though without an element of profit motive indicates that the actual intention of the trust is only to […]...

Read More

HC dismisses Section 263 notice on the ground of Limitation

PCIT Vs Prince Water House (Calcutta High Court)

PCIT Vs Prince Water House (Calcutta High Court) Order dated 23.03.2015 passed by the AO giving effect to the directions of the tribunal dated 04.03.2014 (passed u/s 254 r.w.s 143(3) of the Act) did not deal with the issue of allowability of premium on account of Accountants Risk Policy. The show cause notice u/s 263 […]...

Read More

HC denies relief from Compulsory 20% deposit in Bogus Cash Credit case

Jindal ITF Ltd. Vs Union of India (Delhi High Court)

Jindal ITF Ltd. Vs Union of India (Delhi High Court) It is seen that the entities M/s Glebe Trading Pvt. Ltd. and M/s. Danta Enterprises Pvt. Ltd. have been used as conduits in availing unsecured loans covered u/s 68 of the Act. The identity and creditworthiness of the above companies and genuineness of the transaction […]...

Read More

Income Tax Amendments/New Provisions of Finance Act 2020

1. All Individuals & HUF can choose to pay tax as per new slab rates without availing exemptions & deductions Option has been given to all individuals/HUF to pay tax as per new slab rates (Optional tax regime) on total income computed without claiming any deductions/exemptions – As per Sec 115BAC inserted by Finance Act, [&helli...

Read More
Posted Under: Income Tax | ,

Theory of telescoping in determining taxability of undisclosed income

This article deals with the theory of telescoping as applied in the Income-tax Law, the manner of its application and as to how and under what circumstances the benefit of telescoping could be claimed / availed by an assessee. Though the said theory has general applicability across the taxability of a wide range of items, […]...

Read More
Posted Under: Income Tax |

Exemption for amount received from Statutory & Recognized PF

Exemption for amount received from Statutory and Recognized Provident Fund Provisions of section 10(11) of the Income Tax Act exempts any payment received from the ‘Statutory Provident Fund’, whereas, provisions of section 10(12) of the Income Tax Act exempts the accumulated balance payable to an employee participating in the ‘Recog...

Read More
Posted Under: Income Tax |

Unabsorbed Depreciation & MAT Credit under Vivad Se Vishwas Scheme

The taxpayers will therefore have to weigh their options carefully before opting for settling their disputes pertaining to reduction in loss/unabsorbed depreciation or MAT credit. Every permutation and combination ought to be examined to determine whether it is advisable to avail the scheme or litigate the matter....

Read More
Posted Under: Income Tax |

Tax on Sale of Property by Non Resident Indian (NRI)

There is lot of confusion about tax implications for NRIs who want to sell any property in India. Many questions come to the mind of both Buyer & Seller about taxation aspect. Doubts mainly arise related to TDS rates, filing of TDS Return, claiming Tax Refund, Capital Gain calculation, exemption from tax and remittance of […]...

Read More
Posted Under: Income Tax |

Analysis of Section 271AAD introduced by Finance Act 2020

In the past we seen that, the GST department endeavours  several cases whereas fraudulent input tax credit has been availed and claimed. GST department stated that, in all cases bogus invoices are been obtained by the suppliers and fraudulently claim the ITC taken to reduce tax liability. The bogus invoices has been issued by the [&helli...

Read More
Posted Under: Income Tax |

Whether assessee can claim TDS deducted by railways on Mobilization advance?

♦ When an assessee (contractor) is awarded a contract by railways/state government (contractee) for the construction or other related services, the contractor is eligible to receive mobilization/secured advance. The Mobilization advance is primarily received after furnishing of Bank Guarantees in favour of the Payee Customer for the exe...

Read More
Posted Under: Income Tax |

Equalisation Levy on e-commerce supply of goods/ services by non-residents

Equalisation Levy (‘EL’) on e-commerce supply of goods/ services by non-residents A. Background of Equalisation Levy provisions –Equalisation Levy is a charge in addition to the Income-tax, which was introduced vide Finance Act, 2016. -Under the erstwhile provisions, Indian residents were required to deduct EL at the rate of 6 p...

Read More
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.
Get all the latest news on income tax with Taxguru. We will offer you all the insight and details about all the updates and trending news on income tax. Get a comprehensive coverage of income tax-related news and regular updates on income tax circulars.

At Taxguru, we give a cohesive understanding off all income tax related circulars. We keep updating all the circulars as and when issued by the income tax department. You could view online or you can download all the latest news on Income Tax and circulars free of cost.

Find all the latest developments and amendments to the Income Tax Act. Get to know all the tips and tricks on how to save income tax and develop your own income tax planning work plan. We keep updating our portal regularly so that you don’t miss out on anything.

Search Posts by Date

November 2020
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
30