Budget

Pre Budget Memorandum for Union Budget 2021-22

Income Tax - 1. The threshold limit for audit u.s 44AB and upper limit for offering income under the ‘Presumptive Tax Scheme’ for Income from Business should me made clear i.e. identical. The following is suggested: For Business Income: If the Gross Receipts exceed Rs. 2 Crores Compulsory Audit u.s 44AB should be made mandatory and if it […...

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Beware‼ Penalty on cash receipt of Rs. 2 Lakhs or more

Income Tax - Krishna, from 1st April 2017, for accepting cash people have become very much conservative. Please tell me what precautions anyone should take while accepting cash?...

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Cost Inflation Index Table upto Financial Year 2020-21

Income Tax - Govt. has come out with index table called Cost Inflation Index whose base year was fixed as 1-4-1981. In Finance Bill 2017 the Govt. has taken a very bold step and has shifted the base year from 1981 to 2001 for the benefit of investors....

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TCS Rate Chart for AY 2020-21 and AY 2021-22- Updated

Income Tax - Article contains updated TCS Rate Chart for For Assessment year 2020-21 (Financial year 2019-20) and Assessment year 2021-22 (Financial year 2020-21) updated with latest changes made by press release dated 13th May, 2020 and Finance Act, 2020. It further explains newly inserted TCS Provisions of Section 206C(1G)(a) – TCS on foreign ...

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Countrywise Withholding tax rates / Chart as per DTAA

Income Tax - Country wise Withholding tax rate on Dividend (not being covered under Section 115-O), Interest, Royalty and Fee for Technical Services ...

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ICAI Submits Pre-Budget Memoranda-2021 on Direct & International Tax

Income Tax - The Council of the Institute of Chartered Accountants of India considers it a privilege to submit this Pre-Budget Memorandum - 2021 on Direct Taxes and International Tax to the Government. The memorandum contains suggestions for the consideration of the Government while formulating the tax proposals for the year 2021-22....

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DTPA submits 33 Income Tax Pre Budget Suggestions for 2021

Income Tax - At the outset we convey your honour our Congratulations on introducing Faceless Assessment and Faceless Appeal Schemes and also introducing new Taxpayers Charter. Direct Taxes Vivad Se Vishwas Scheme is also a commendable step to reduce litigations. We assure your honour of our full support in the implementation of the same....

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List of Amendments in Finance Bill as passed by Lok Sabha

Income Tax - Following is the list of Amendments which were proposed in Finance Bill 2020 after its Introduction in Lok Sabha on 01st February 2020. These amendments were passed by Lok Sabha on 23.03.2020 without any discussion due to shortened Parliament Session considering Corona Virus threat. LOK SABHA —– FINANCE BILL, 2020 [As introduc...

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Both Houses of Parliament Adjourned after Budget Session 2020

Income Tax - The Budget Session, 2020 of Parliament which commenced on Friday, 31st January, 2020 has been adjourned sine die today i.e. Monday, the 23rd of March 2020. In between both the Houses also adjourned for recess on Tuesday, the 11th February, 2020 to reassemble on Monday, the 2nd March, 2020 to enable Departmentally related Standing Committe...

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Direct Tax Vivad se Vishwas Scheme- Request for 3 months extension

Income Tax - The Direct Tax Vivad se Vishwas Act, 2020 - Request for three months extension without any extra charge of disputed tax, Interest or Penalty....

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Plea in Madras HC on Penalty on CAs for Filing Wrong Information- Section 271J

V. Venkata Siva Kumar Vs The Union of India (Madras High Court) - A petition has been filed in the Madras High Court challenging the section 271J of the Income Tax Act inserted vide Finance Act 2017. Madras High Court has admitted the plea and issued notice to Finance Ministry.Section 271J of Income Tax imposed a penalty of Rs. 10,000 on Chartered Accountants fo...

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In all cases where additional evidence is admitted, the CIT (A) should be considered to have exercised his powers u/s 250(4) is not acceptable

ACIT Vs. M/s Vimlesh Industries Pvt. Ltd. (ITAT Delhi) - U/s 250(4), the CIT (A) has the power to direct enquiry and call for evidence from the assessee. Under Rule 46A, the assessee has the right to ask for the admission of additional evidence. If the CIT (A) exercises his powers u/s 250(4) to call for additional evidence, the AO need not be given an opp...

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President Assents Finance Act, 2020

NO. 12 OF 2020 - (27/03/2020) - President Assents Finance Act, 2020 on 27th March 2020.  Finance bill 2020 was presented in Lok Sabha on 01.11.2020 and get passed in Lok Sabha on 23.03.2020.  After passing of bill from Lok Sabha the bill was presented in the Rajya Sabha on the same day, which returned the same without considerat...

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Download Finance Bill 2020 as passed by Lok Sabha

Bill No. 26-C of 2020 - (23/03/2020) - Lok Sabha passed the Finance Bill 2020 on 23rd March 2020 without discussing the Various Changes Proposed subsequent to Introduction of Finance Bill 2020 in Lok Sabha on 1st February 2020. Also Read-List of Amendments in Finance Bill as passed by Lok Sabha AS PASSED BY LOK SABHA ON 23.03.2020 Bill N...

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Corrigendum to Form-3 of Direct Tax Vivad se Vishwas Rules, 2020

Notification No. 21/2020-Income Tax [S.O. 1195(E)] - (20/03/2020) - CBDT issues corrigendum to The Direct Tax Vivad Se Vishwas Rules 2020 and notifies that in Form-3, for ‘as per column (7) above within thirty days’, read ‘as per column (8) above within fifteen days’. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES)...

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Procedure for declaration & undertaking under Vivad se Vishwas Rules

Notification No. 12 of 2020-DGIT(S) - (19/03/2020) - DGIT(S)-ADG(S)-3/e-Filing Notification/FoR1/VSVS/2020/ Government of India Ministry of Finance Central Board of Direct Tax Directorate of Income Tax (Systems), New Delhi Notification No. 12 of 2020 New Delhi, the 19th March, 2020 Subject- Procedure for making declaration in Form-1 under sub-rule (1...

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CBDT notifies ‘designated authority under ‘Direct Tax Vivad Se Vishwas Act, 2020

F. No. Pr.CCIT(Intl. Tax)/Delhi/VSV/Designated Authority/2019-20/4707 - (18/03/2020) - Notification of 'designated authority under 'the Direct Tax Vivad Se Vishwas Act, 2020'- Which provides to the 'declarant' a mechanism to resolve disputes under the Income-tax Act, 1961...

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Recent Posts in "Budget"

Pre Budget Memorandum for Union Budget 2021-22

1. The threshold limit for audit u.s 44AB and upper limit for offering income under the ‘Presumptive Tax Scheme’ for Income from Business should me made clear i.e. identical. The following is suggested: For Business Income: If the Gross Receipts exceed Rs. 2 Crores Compulsory Audit u.s 44AB should be made mandatory and if it […...

Read More
Posted Under: Income Tax |

ICAI Submits Pre-Budget Memoranda-2021 on Direct & International Tax

The Council of the Institute of Chartered Accountants of India considers it a privilege to submit this Pre-Budget Memorandum - 2021 on Direct Taxes and International Tax to the Government. The memorandum contains suggestions for the consideration of the Government while formulating the tax proposals for the year 2021-22....

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Posted Under: Income Tax |

DTPA submits 33 Income Tax Pre Budget Suggestions for 2021

At the outset we convey your honour our Congratulations on introducing Faceless Assessment and Faceless Appeal Schemes and also introducing new Taxpayers Charter. Direct Taxes Vivad Se Vishwas Scheme is also a commendable step to reduce litigations. We assure your honour of our full support in the implementation of the same....

Read More
Posted Under: Income Tax |

Beware‼ Penalty on cash receipt of Rs. 2 Lakhs or more

Krishna, from 1st April 2017, for accepting cash people have become very much conservative. Please tell me what precautions anyone should take while accepting cash?...

Read More
Posted Under: Income Tax | ,

Cost Inflation Index Table upto Financial Year 2020-21

Govt. has come out with index table called Cost Inflation Index whose base year was fixed as 1-4-1981. In Finance Bill 2017 the Govt. has taken a very bold step and has shifted the base year from 1981 to 2001 for the benefit of investors....

Read More
Posted Under: Income Tax | ,

TCS Rate Chart for AY 2020-21 and AY 2021-22- Updated

Article contains updated TCS Rate Chart for For Assessment year 2020-21 (Financial year 2019-20) and Assessment year 2021-22 (Financial year 2020-21) updated with latest changes made by press release dated 13th May, 2020 and Finance Act, 2020. It further explains newly inserted TCS Provisions of Section 206C(1G)(a) – TCS on foreign ...

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Countrywise Withholding tax rates / Chart as per DTAA

Country wise Withholding tax rate on Dividend (not being covered under Section 115-O), Interest, Royalty and Fee for Technical Services ...

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Posted Under: Income Tax |

Detailed discussion on Section 194-IA

As we all aware that Finance Act, 2013 has introduced Section 194IA. The main reason behind it is to curb black money which is routed through real estate sector. Today I am discussing this section in detail. Extract of Section 194IA: “Payment on transfer of certain immovable property other than agricultural land. 194-IA. (1) Any person...

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Posted Under: Income Tax |

Section 87A Rebate – Income Tax Act – Detailed Analysis

As we all aware that, section 87A is considered as one of the most important section. Since the rebate is very important to reduce the tax Burdon of assessee. But in industry there is always a confusion or doubt faced by professionals on availing the rebate. Hence today I am coverig this topic with in […]...

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Posted Under: Income Tax |

Features of Budget 2020 applicable for individual assessees

Finance Bill 2020 has proposed significant amendments in direct tax provisions. I would like to highlight the changes which are applicable for Individual assessees. Read on. ♣ Dividend Distribution Tax Abolishment: Upto financial year 2019-2020, domestic company was required to pay dividend distribution tax u/s 115-O at the rate of 15%...

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Posted Under: Income Tax |

Short term capital gain under section 111A – Detailed Discussion

Under the provisions of section 111A tax on short-term capital gains, in the case of equity shares in a company or units of an equity oriented fund on which Securities Transaction Tax (STT) has been paid, is levied at the rate of 15%. This rate was increased from 10% to 15% vide Finance Act, 2008 with effect from 1.4.2009. However, in the...

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Posted Under: Income Tax |

E-Book | Vivad Se Viswas Scheme! April Edition

Please find5th edition of our e-book on ‘Vivad Se Vishwas Scheme’ which contain: – Brief about Vivad Se Vishwas Scheme – Analysis of Vivad Se Vishwas Scheme – Emerging issues – Key cases from IDS – The Direct Tax Vivad Se Vishwas Act, 2020 – The Direct Tax Vivad Se Vishwas Rules, 2020 –...

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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...

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Posted Under: Income Tax |

Amendments in TDS provisions under Income Tax Act, 1961

Illuminating insertion /amendments made in TDS provisions under Income Tax Act, 1961 Recently in Finance Bill, 2020; amendment as well as insertion has been made in various  section of Income Tax Act,1961. Some new sections has been inserted under chapter XVII along with amendments in earlier provisions. Accordingly, from now under secti...

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Posted Under: Income Tax | ,

Income-tax on buyback of shares by unlisted companies

Under the existing provisions of the income-tax law, transfer of shares in an Indian company by a shareholder (which includes buy-back of shares under section 77A of the Companies Act, 1956) is subject to tax under the head capital gains. ...

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Posted Under: Income Tax |

Share premium in excess of fair market value to be treated as income

It is proposed to insert a new clause in section 56(2). The new clause will apply where a company, not being a company in which the public are substantially interested, receives, in any previous year, from any person being a resident, any consideration for issue of shares. In such a case if the consideration received for issue of shares e...

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Posted Under: Income Tax | ,

What should NRI (Non resident Indians) take from Budget 2020?

Finance Act, 2020 has come up with some landmark amendments in the Income Tax Act, 1961 in relation to taxation of income for Non-resident Indians making it more difficult for such people to maintain their ‘Non-resident’ tag so as to keep their foreign income out of the Indian Income Tax applicability. Indian citizens having a [&helli...

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Posted Under: Income Tax |

Key Amendment by Finance Act 2020 applicable from 01-04-2020

Key Amendment made by Finance Act 2020 applicable from 01-04-2020 1. Change Relating to Residential Status [section-6]: 1.1 Number of days to stay in India reduced for NRI: A Citizen of Indian or person of Indian origin having total income exceeding ₹ 15 lakh other than foreign income, who comes on a visit to India […]...

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Posted Under: Income Tax |

Residential Status as per Finance Act 2020

Modification of residency provisions In order to bring prevent tax abuse the Finance Act, 2020  modified the Residency Provision. According to the un-amended Section 6, an individual is said to be resident in India in any previous year, if he— (a) is in India in that year for a period or periods amounting in all […]...

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Posted Under: Income Tax |

Finance Act 2020 Analysis of International Taxation related amendments

Article mainly explains Amendments vide Finance Act, 2020 relating to Residential Status, Amendment Removing Dividend Distribution Tax and Impact thereof, Incorporation of MLI and Introduction of Equalization Levy on E-Com Operators....

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Posted Under: Income Tax |

Amendment to Finance Bill 2020 vide Finance Act, 2020

Amidst the COVID-19 outbreak and lockdown in various states, the Finance Bill 2020 ( Bill) introduced vide Union Budget 2020-21 was passed by both Houses of Parliament, with certain amendments. On 27 March 2020, the Bill has received President’s assent. Read-President Assents Finance Act, 2020 Key amendments by Finance Act , 2020 in Com...

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Posted Under: Income Tax |

Section 80D Deduction for health insurance premium

It is proposed to amend this section 80D to include any payment made by an assessee on account of preventive health check-up of self, spouse, dependant children or parents(s) during the previous year as eligible for deduction within the overall limits prescribed in the section. However, the proposed deduction on account of expenditure on...

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Posted Under: Income Tax | ,

Check-list and calculation Utility – Vivad Se Vishwas Scheme

I have has made an attempt to prepare an UTILITY covering a CHECK LIST and a detailed CALCULATION for working an amount payable/refundable on opting for the recent amnesty scheme ‘VIVAD SE VISHWAS’ pronounced by the Government. Accordingly to me, this utility works as a ready rackoner and a complete calculator. The same is att...

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Posted Under: Income Tax |

President Assents Finance Act, 2020

NO. 12 OF 2020 (27/03/2020)

President Assents Finance Act, 2020 on 27th March 2020.  Finance bill 2020 was presented in Lok Sabha on 01.11.2020 and get passed in Lok Sabha on 23.03.2020.  After passing of bill from Lok Sabha the bill was presented in the Rajya Sabha on the same day, which returned the same without consideration, which effectively means […]...

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New TCS Provisions & Practical Issues | Section 206C(1H)

Union Budget 2020: New TCS Provisions & Practical Issues related to Section 206C(1H) of the Income tax Act, 1961 The recent Union Budget 2020 is with regard to Tax Collection at Source (TCS) which is embedded in section 206C of the Income Tax Act-1961, has proposed to widen the TCS net with following 3 additional […]...

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Posted Under: Income Tax |

Section 115BAC Concessional tax regime also applicable to PROFESSIONAL

Section 115BAC – Concessional tax regime for individual and HUF- applicable also for PROFESSIONAL The Finance Bill, 2020 has proposed concessional tax regime for individual and HUF by inserting Section 115BAC to the Income-tax Act, 1961. This provision provides an option for payment of taxes at the reduced rates. However, the benefi...

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Posted Under: Income Tax |

Vivad se Vishwas Act, 2020- Amount Payable, Relief, Eligibility, Exclusion

Direct Tax Vivad se Vishwas Act, 2020 is An Act to provide for resolution of disputed tax and for matters connected therewith or incidental thereto. During the Union Budget, 2020 presentation, the ‘Vivad se Vishwas’ Scheme was announced to provide taxpayers a lucrative opportunity to settle direct tax disputes by waiving interest and ...

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Posted Under: Income Tax |

List of Amendments in Finance Bill as passed by Lok Sabha

Following is the list of Amendments which were proposed in Finance Bill 2020 after its Introduction in Lok Sabha on 01st February 2020. These amendments were passed by Lok Sabha on 23.03.2020 without any discussion due to shortened Parliament Session considering Corona Virus threat. LOK SABHA —– FINANCE BILL, 2020 [As introduc...

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Posted Under: Income Tax |

Both Houses of Parliament Adjourned after Budget Session 2020

The Budget Session, 2020 of Parliament which commenced on Friday, 31st January, 2020 has been adjourned sine die today i.e. Monday, the 23rd of March 2020. In between both the Houses also adjourned for recess on Tuesday, the 11th February, 2020 to reassemble on Monday, the 2nd March, 2020 to enable Departmentally related Standing Committe...

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Posted Under: Income Tax |

Finance Act 2019 amendments (Applicable for AY 2020-21 i.e. FY 2019-20)

FINANCE ACT 2019- AMENDMENTS (Applicable for AY 2020-21 i.e FY 2019-20) Some important amendments made by Finance Act 2019 to be noted while filing returns for AY 2020-21 1. Rebate under Section 87A: The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000. The amount of rebate shall […]...

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Posted Under: Income Tax |

Download Finance Bill 2020 as passed by Lok Sabha

Bill No. 26-C of 2020 (23/03/2020)

Lok Sabha passed the Finance Bill 2020 on 23rd March 2020 without discussing the Various Changes Proposed subsequent to Introduction of Finance Bill 2020 in Lok Sabha on 1st February 2020. Also Read-List of Amendments in Finance Bill as passed by Lok Sabha AS PASSED BY LOK SABHA ON 23.03.2020 Bill No. 26-C of 2020 […]...

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Vivad se Vishwas Scheme 2020 for Minimizing Tax-related Litigation

BRIDGING THE  DISPUTE- TRUST DIVIDE for Minimizing Tax-related Litigation Avail this golden opportunity …Settle your Income Tax disputes Objectives of Vivad Se Vishwas Scheme 2020 > Reduce income tax pending litigation > Generate timely revenues for the Government > Help taxpayers end their tax disputes with the department...

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Posted Under: Income Tax |

Instruction to Fill Form 1 & 2 -Direct Tax Vivad Se Vishwas Scheme

CBDT has released Direct Tax Vivad Se Vishwas Rules 2020 vide Notification No. 18/2020-Income Tax Dated- 18/03/2020 and also released following forms- FORM-1- Form for filing declaration, Form-2 – Undertaking Under Sub-Section (5) Of Section 4 Of The Direct Tax Vivad Se Vishwas Act, 2020 (3 Of 2020), Form-3- Form For Certificate Un...

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Posted Under: Income Tax |

Section 194O TDS by E-Commerce Operator

Section 194O TDS by E-Commerce Operator PROVISION When E-Commerce Operator provides its platform to E-Commerce participant for sale of goods or services or both then, E-Commerce operator must deduct 1% TDS at the time of credit of amount of sale of goods, service or both to the account of e commerce participant or at the […]...

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Posted Under: Income Tax |

Direct Tax Vivad Se Vishwas Bill, 2020- Detailed Study

Article explains Direct Tax Vivad Se Vishwas Bill, 2020– Explaining Statement of objects and reasons, Resolution mechanism, Immunity from initiation of proceedings in respect of offence and imposition of penalty in certain cases, Definition of the term Appellant, Appeals covered under the Vivad Se Vishwas Scheme, Appeals not covered...

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Posted Under: Income Tax |

Corrigendum to Form-3 of Direct Tax Vivad se Vishwas Rules, 2020

Notification No. 21/2020-Income Tax [S.O. 1195(E)] (20/03/2020)

CBDT issues corrigendum to The Direct Tax Vivad Se Vishwas Rules 2020 and notifies that in Form-3, for ‘as per column (7) above within thirty days’, read ‘as per column (8) above within fifteen days’. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) CORRIGENDUM Notification No. 21/2020-In...

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Unanswered FAQs on Direct Tax Vivad se Vivadh Act 2020- Part I

In this Article, the Authors briefly deliberated on the issues arising out of FAQs answered by the Board and also fresh questions that need to be answered soon for the tax payers and the administrators to be clear in their approach.  The Act is referred to as VsV Act or the Act and the Designated […]...

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Posted Under: Income Tax |

Vivad se Vishwas Scheme – Practical Aspects

Latest Analysis The Vivad se Vishwas scheme was presented in the Budget 2020 on 1st February 2020. Due to administrative and procedural delays, the President gave assent to the Scheme on 17th March 2020. The Scheme is applicable to all income tax cases in dispute as on 31st January 2020. The pending appeal may be […]...

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Posted Under: Income Tax |

Direct Tax Vivad se Vishwas Scheme- Request for 3 months extension

The Direct Tax Vivad se Vishwas Act, 2020 - Request for three months extension without any extra charge of disputed tax, Interest or Penalty....

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Posted Under: Income Tax |

Is 20% deduction of interest on Net taxable dividend?

As highlighted in Budget 2020, it proposes to allow deduction of interest expenses to the extent of 20% of dividend income. Author in this article is focusing on significant aspect which is whether 20% deduction is on net taxable dividend (after deduction u/s 80M) or on gross dividend income. Proposal for sec 57 in Finance […]...

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Posted Under: Income Tax |

Is taxing dividend costlier for foreign dividend after Budget 2020?

Is taxing dividend costlier for foreign dividend ? Recently Budget 2020 has proposed to tax dividend income in the hand of shareholders and have given the benefit u/s 80M to avoid cascading effect. (Cascading effect is when tax is levied on a same income at every step i.e dividend transferred from Co A to Co […]...

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Posted Under: Income Tax |

Procedure for declaration & undertaking under Vivad se Vishwas Rules

Notification No. 12 of 2020-DGIT(S) (19/03/2020)

DGIT(S)-ADG(S)-3/e-Filing Notification/FoR1/VSVS/2020/ Government of India Ministry of Finance Central Board of Direct Tax Directorate of Income Tax (Systems), New Delhi Notification No. 12 of 2020 New Delhi, the 19th March, 2020 Subject- Procedure for making declaration in Form-1 under sub-rule (1) of Rule 3 and furnishing undertaking i...

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Finance Minister reaches out to CAs for promoting Vivad se Vishwas scheme

The 'Vivad se Vishwas' Scheme aims at dispute resolution in order to reduce pending litigation, generate revenue for the Government and benefit taxpayers. Over the years, the pendency of appeals filed by taxpayers as well as Government has increased due to the fact that the number of appeals that are filed is much higher than the number o...

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Posted Under: Income Tax |

CBDT notifies ‘designated authority under ‘Direct Tax Vivad Se Vishwas Act, 2020

F. No. Pr.CCIT(Intl. Tax)/Delhi/VSV/Designated Authority/2019-20/4707 (18/03/2020)

Notification of 'designated authority under 'the Direct Tax Vivad Se Vishwas Act, 2020'- Which provides to the 'declarant' a mechanism to resolve disputes under the Income-tax Act, 1961...

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Designated authority under Direct Tax Vivad Se Vishwas Act, 2020 in Delhi

F.No. Pr.CCIT/(Hqrs.)(Coord.)/Delhi/VSV/Designated Authority/2019-20/18641 (18/03/2020)

Principal CIT Delhi, notifies specified jurisdictional PCIT/CIT having their headquarters at specified places to be the 'designated authorities' under Direct Tax Vivad Se Vishwas Act, 2020...

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Designated authority under Direct Tax Vivad Se Vishwas Act, 2020 in UP

Notification No. F.No. Pr. CCIT/ Lko/ Judi./ VSV/Vol.2I/ 2019-20 (18/03/2020)

Principal Chief Commissioner of Income Tax, (UP), East, Lucknow hereby notify that the following jurisdictional Principal Commissioner of Income Tax/ Commissioner of Income Tax as specified in column (2), having their headquarters at the place specified in the corresponding entries in column (4) shall be the 'designated authorities' under...

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Direct Tax Vivad Se Vishwas Rules 2020

Notification No. 18/2020-Income Tax [S.O. 1129(E)] (18/03/2020)

After Assent by President of  of Direct Tax Vivad se Vishwas Act, 2020, CBDT notifies Direct Tax Vivad Se Vishwas Rules 2020 alongwith Relevant Forms which includes Form 1 to Form 5. vide Notification No. 18/2020-Income Tax Dated 18th Mach, 2020. Also Read- Corrigendum to Form-3 of Direct Tax Vivad se Vishwas Rules, 2020 MINISTRY [&helli...

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How to Calculate Tax on Agricultural income

Agricultural income is exempt from Income Tax under section 10(1) of the Income Tax Act, 1961. However, its included, for rate purposes, in computing the Income Tax Liability if following two conditions are cumulatively satisfied: Net Agricultural income exceeds INR 5,000/- for P.Y. 2014-15, and Total income, excluding net Agricultural in...

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CA Challenges Constitutional validity of Vivad se Vishwas Act 2020

CA Satyaprakash Singh from Mumbai has challenged Constitutional validity of Section 9 of Vivad se Vishwas Act, 2020 by FIling a Public Interest Petition with Hon’ble Supreme Court of India. By this Public Interest Petition, the Petitioner is impugning the Constitutional validity of Section 9 of Vivad se Vishwas Act, 2020. The Respon...

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Extend time-line of 31st March 2020 for Vivad Se Vishwas Scheme

Representation for extension of time-lines of 31st March 2020 for payment of 100% of ‘Disputed Tax’ for VSVS in wake of the prevailing economic situations on account of outbreak of Corono Virus, for your consideration....

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Posted Under: Income Tax |

President Assents Direct Tax Vivad se Vishwas Act, 2020

NO. 3 OF 2020 (17/03/2020)

President Assents Direct Tax Vivad se Vishwas Act, 2020 on 17th March, 2020 the Act will help Government to reduce Litigation on Direct Taxes and also offer an Opportunity to Taxpayers to get rid of Litigation by opting this Scheme. Full Text of the Direct Tax Vivad se Vishwas Act, 2020 is as follows- MINISTRY […]...

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Proposed Amendments in Finance Bill, 2020 applicable on Charitable Organisations

Article explains Proposed Amendments in Finance Bill, 2020 applicable on Charitable Organisations and includes Cases Applicable On  Organisations Registered Under Section 12A As Well As Under Section 10(23C) Of Income Tax Act,1961 and Cases Applicable Only On Organisations Registered Under Section 12A. Cases Applicable On  Organisations...

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Posted Under: Income Tax |

Direct Tax Vivad se Vishwas Scheme 2020- Detailed Analysis

Disputed tax in relation to an assessment year or financial year, as the case may be, means the income-tax, including surcharge and cess (hereafter in this clause referred to as the amount of tax) payable by the appellant under the provisions of the Income-tax Act, 1961, as computed under different circumstances...

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Posted Under: Income Tax |

Certain Relaxations Needed to Make More Vishwas In Vivad Se Vishwas Scheme

How much Vivad would be closed and how much Vishwas the Vivad se Vishwas scheme will be able to achieve that in coming months would be in front of all of us,but this scheme has proved the true integrity that we professionals have. It is the professionals who foregoing their professional opportunities and are educating […]...

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Posted Under: Income Tax |

Vivas se Vishwas Scheme – Perspective of CBDT & released FAQ

The Finance Bill 2020, presented the Vivaad se Vishwas scheme [VVS]. The government introduced this scheme because they are positive to receive Rs. 9 lacs crore’s sum, which is stuck into tax litigations. As per a recent conference of date, 6th March on ” VVS” between “The CBDT” officials and the multiple ind...

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Posted Under: Income Tax |

Direct Tax Vivad se Vishwas Bill, 2020- Brief Study

1. Direct Tax Vivad se Vishwas Scheme is Applicable for all pending income tax, TDS appeals pending before CIT , ITAT, HC, SC and also for orders passed for which time limit for further appeal is not expired and appeals which are not admitted by courts as on 31.01.2020. 2. Direct Tax Vivad se Vishwas […]...

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Posted Under: Income Tax |

Decoding of FAQs on Vivad Se Vishwas

The ‘Vivad se Vishwas’ Scheme was announced during the Union Budget, 2020, to provide for dispute resolution in respect of pending income tax litigation. Pursuant to the Budget announcement, the Direct Tax Vivad se Vishwas Bill, 2020 was introduced in the Lok Sabha on 5th of February, 2020 and passed by it on 4th of March, 2020....

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Posted Under: Income Tax |

Union Budget- 2020: New Compliances for Charitable Trust & Institutions

Impact of Budget 2020 Finance Bill on charitable institutions:- 1) Re-validation of existing registrations All the existing charitable and religious institutions already registered under Section 12A (trusts and institutions registered prior to 1996), Section 12AA (trusts and institutions registered after 1996), Section 10(23C) and Section...

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Posted Under: Income Tax |

All About Direct Tax Vivad Se Vishwas Scheme, 2020

(I) Introduction: In recent time, Government has taken several measures to reduce tax litigations. In Finance Act (No. 2) of 2019, a dispute resolution cum amnesty scheme called “the Sabka Vishwas Legacy Dispute Resolution Scheme, 2019” has been introduced for resolution and settlement of legacy cases of Central Excise and Service Tax...

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Posted Under: Income Tax |

Decoding of Section 115BAB

It is said that a person feels joyous and happy when something unexpected positively happened in one’s life but on other hand unexpected kindness showered on them by almighty God also frightened one’s inner soul simultaneously from an unexpected fear that what will happen if this happiness is taken away back. The same situation is [&h...

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Posted Under: Income Tax |

Areas of “Vivaad” in Vivaad Se Vishwas Scheme

Introduction Although Direct Tax Vivad Se Vishwas Scheme has been launched to end litigation but there are number of grey areas which require clarification or can become source of future litigation. Some of these areas are being highlighted as below: 1. Vivad Se Vishwas Scheme, except section 3 of the Scheme, does not override Income [&he...

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Posted Under: Income Tax |

Abolishment of DDT – Practical challenges for companies & shareholders

With a view to boost investors’ confidence in the Indian market and put India in a competitive position in terms of taxing rights as compared to other countries in APAC region, the Government of India proposed to abolish Dividend Distribution Tax (also known as DDT) with effect from 01 April 2020....

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Posted Under: Income Tax |

Summary of FAQ on Vivad Se Vishwas Tak Scheme

Direct Tax Vivad Se Vishwas Scheme as passed by Loksabha on 04-03-2020 is accompanied by 55 FAQs isuued on the same day. The purpose is to remove doubts and facilitate speedy implementation. The clarifications issued under FAQs have been categorized into following heads 1. Clarifications on Cases eligible for Scheme 2. Cases Not eligible ...

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Posted Under: Income Tax |

No Impact of Deemed Residence Provisions on Seafarers after amendment in Budget 2020

Whether a Seafarer who is a citizen of India and who does not pay tax anywhere will be taxed in India by virtue of the provision explained below? Budget 2020 has added the following provision in section 6 of Income Tax Act, 1961 that, An individual, being a citizen of India, shall be deemed to […]...

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Posted Under: Income Tax |

Salient Features of Finance Bill, 2020 by CA Ved Jain

The Finance Minister presented her Second Budget on 1st February, 2020.  This budget was presented in the backdrop of economic slowdown.  The Indian economy which was supposed to grow at the rate of 6.8% during 2019-2020 has been projected to come down to growth rate of 5.0%....

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Issue clarification for Direct Tax Vivad se Vishwas Bill, 2020

Direct Tax, Vivad se Vishwas scheme covers the case where the writ petition has been filed by the taxpayer before appellate forum i.e. High Court or Supreme Court....

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Posted Under: Income Tax |

Back to classical way to tax dividend income

As dividend become proposed to be taxable, litigation u/s 14A (Expenses incurred in relation to exempt income)  now will be reduced. However, deduction of interest as proposed u/s 57 may lead to kind of litigation as was there u/s 14A....

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Posted Under: Income Tax |

Taxability of employer’s contribution towards retirement benefit scheme (Impact of Finance Bill 2020)

As we know that employers use to contribute to the retirement benefit schemes of employees to enable them to maintain a quality life after retirement. Generally these contribution by employer can be in any one or in combination of following three forms: 1. Contribution to PF (Provident Fund) of the employees (Recognised PF, Unrecognised P...

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Posted Under: Income Tax |

Indirect Tax Updates for the Month of February 2020

A. Updates Related to GST for the Month of February 2020. Finance Bill, 2020 Budget 2020 – Important changes proposed by the Finance Bill 2020 in GST regime: Budget 2020 was presented by the Finance Minister in the lower House of the Indian Parliament on 1st of February 2020. The Finance Bill, 2020 in this regard […]...

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Posted Under: Income Tax |

Direct Taxes Updates- February 2020

A. Summary of Income Tax Notifications and Circulars for February 2020 1. Notification No. 11/2020 dated 13/02/2020– CBDT notifies (Rule 114AAA) prescribing that PAN will become inoperative if a person, who has been allotted PAN as on the 1st day of July, 2017 and is required to intimate his Aadhaar number under section 139AA(2), ha...

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Posted Under: Income Tax |

Budget 2020 – Residency Rule & Taxability

Residency Rule √ Generally residential status can be of two types: 1. Resident ⇒ ROR ⇒ NROR 2. Non resident Note: Condition of ROR and RNOR applies only to Individual and HUF Residential Status of an individual *NOTE: Here      PIO =Person of Indian Origin PY = Previous Year ROR = Resident and Ordinary Resident […]...

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Posted Under: Income Tax |

Suggestions/Clarification Under Vivad Se Vishwas Scheme

CLARIFICATION REQUIRED AFTER Circular NO. 7 DT 4-3-2020 on VIVAAD SE VISHWAS SCHEME, 2020 1. As per the scheme appellant will file a declaration before “DA” on prescribed form and “DA” will take 15 days to file issue certificate under 5(1) and then within 15 days the tax is to be deposited. This will defeat […]...

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Posted Under: Income Tax |

Important points of Vivad se Vishwas scheme – 2020 with changes approved by Lok Sabha

Vivad se Vishwas Scheme – 2020 has undergone lot of changes and it has been passed by Lok Sabha on 4th March, 2020. It is a welcome scheme and will help reduce pending litigations. The key features of the scheme, after amendments, are as under :...

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Posted Under: Income Tax |

Vivad Se Vishwas Scheme 2020 – Minimise Tax Litigations

Article explains Why Vivad Se Vishwas Scheme 2020, Benefits of Vivad Se Vishwas Scheme 2020, Applicability of Vivad Se Vishwas Scheme 2020, Disputes Covered under Vivad Se Vishwas Scheme 2020, Eligibility Conditions for Vivad Se Vishwas Scheme 2020,  Exclusions under Vivad Se Vishwas Scheme 2020, SALIENT FEATURES, PAYMENT TERMS of Vivad ...

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Posted Under: Income Tax |

Foreign Travel and its TCS under Income tax w.e.f. 01.04.2020?

In the Union Budget 2020 it is proposed to widen the provisions for levy of TCS (Tax Collected at Source).  The foreign tour operator will be liable to collect tax (TCS) u/s 206C (1G) from the passenger of such tour package @5% (@10% if PAN/Aadhar of passenger is not available) over and above the cost of his tour package....

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Posted Under: Income Tax |

55 FAQs on Direct Tax Vivad se Vishwas Bill, 2020

Circular No. 07/2020-Income Tax (04/03/2020)

After introduction of Vivad se Vishwas in Lok Sabha, several queries have been received from tile stakeholders seeking clarifications in respect of various provisions contained therein. Government has considered these queries and decided to clarify the same in form of answers to frequently asked questions...

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Section 80D CGHS benefit extended to other similar schemes

The existing provisions of section 80D, inter alia, provide that the whole of the amount paid in the previous year out of the income chargeable to tax of the assessee, being an individual, to effect or to keep in force an insurance on his health or the health of the family or any contribution made towards ...

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Posted Under: Income Tax |

Budget 2020 Impact on Residential Status of Seafarer

Impact on the Residential Status of Seafarer after reduction in number of days in Budget 2020 from 182 days to 120 days for deciding the residential status in India As per existing provision, An individual is said to be resident in India, if he— (a) is in India in that year for a period amounting […]...

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Posted Under: Income Tax |

Post Budget Memorandum on Direct & Indirect Taxes Provisions

AIFTP has an 'Indirect Tax (GST) Representation Committee' as well as 'Direct Tax Representation Committee' to monitor and suggest the right path for a well-designed and ideal Indirect & Direct Tax Regime as well as to educate the tax fraternity about the finer aspects of the Tax Law implemented in our country....

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Posted Under: Income Tax |

New Income Tax Regime – Structural Shift in Taxation of Income

Budget 2020 was considered to be unique in many ways. It was the first budget of the decade 2020. Moreover it was the most anticipated budget in recent times as Indian economy was grappling from a slowdown in the growth rate for a couple of quarters. People were expecting significant rate cuts in personal income […]...

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Posted Under: Income Tax |

Direct Tax Vivad se Vishwas Act, 2020 (Amended)

THE DIRECT TAX VIVAD SE VISHWAS Scheme, 2020- An Analysis of the Scheme Article explains Salient Features Of The Direct Tax Vivad Se Vishwas Act, 2020 (‘Scheme’), Steps Involved In Payment Of Tax Arrears, Important Definitions Under The Direct Tax Vivad se Vishwas Scheme, Amount Payable By Declarant (As Per Section 3), Filing Of Decla...

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Posted Under: Income Tax |

TCS provisions applicable from 01.04.2020- A practical analysis

TCS (Tax Collection at Source) provisions changes brought through Finance Bill 2020- A practical Analysis The provisions of TCS (Tax Collection at Source) was brought under Income tax act w.e.f 01.04.1988 with the intention of controlling tax evasion in the unorganised sector. Over a period of time several amendment has been made in TCS p...

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Dispute Vivaad Se Vishwas Scheme 2020- Settle your Tax disputes

BRIDGING THE DISPUTE-TRUST DIVIDE for Minimizing Tax-related Litigation Avail this golden opportunity … Settle your Income Tax disputes KEY DATE Pay by 31st March, 2020 to avoid higher payment ELIGIBILITY Appeals/ writs filed on or before 31.01.2020 and pending. Orders for which lime for filing appeal has not expired on 31.01.2020. ...

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Posted Under: Income Tax |

Direct Tax Vivad Se Vishwas Bill 220-(Including Amendments )

Article explains Direct Tax Vivad Se Vishwas Bill, 2020 alongwith Further amendments proposed in the same in Cabinet Meeting on 12th February 2020 for which Notice also been given to Parliament subsequently. Article explains Key Dates under the Scheme, Definition of Appellant under Direct Tax Vivad Se Vishwas Scheme, Designated Authority,...

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Posted Under: Income Tax |

BCAS Post- Budget Memorandum on Direct Tax Laws 2020-2021

Introduction of the new tax regime under section 115 BAC of the Income Tax Act, 1961, with an objective to simplify the tax procedures, abolition of the Dividend Distribution Tax, Scope of Business Connection, Tax treatment of Provident Fund, Capital Gains etc....

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Posted Under: Income Tax |

Official amendments to Direct Tax Vivad se Vishwas Bill 2020

The Direct Tax Vivad se Vishwas Bill, 2020 (‘the Bill’) was introduced in the Parliament on 5th Feb, 2020. After introduction of the Bill, a notice for moving the following amendments to the provisions of the Bill has been given to the Parliament on 14th Feb, 2020, which is subject to the approval of and […]...

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Posted Under: Income Tax |

TCS on Foreign Travel, Tours Packages, Remittance

The government imposed a tax collection at source akin to TDS on remittances — after an internal survey by the income tax department, showed that a large number of those sending out money had not filed income tax returns....

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Posted Under: Income Tax |

Discussion on ‘Vivad Se Vishwas’ Scheme

The Direct Tax Vivad se Vishwas Bill which was introduced in the Lok Sabha on 5th February, 2020 is expected to come up for passage in the next Parliament session beginning March 2, 2020....

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Posted Under: Income Tax |

Small House Big Tax Benefit

Krishna, Government of India has taken a major step towards ensuring that people get their own house by introducing Pradhan Mantri Awaas Yojna and changes have been made in Tax laws also. Please tell me elaborately regarding this....

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Posted Under: Income Tax |

Key Features of Budget 2020 Income Tax for employees

Budget 2020 for Employees – Budget 2020 proposed a new alternative income tax slab/rates for individual/HUF assesses from Financial Year 2020-21 onwards. – Freedom is given to the assessee to choose between old and new rates. New Tax rates proposed in Budget 2020 for Individuals and HUF are: Income Bracket In Rs Proposed Tax R...

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Posted Under: Income Tax |

Tax Collection at Source (TCS) on Sale of Goods

In order to widen and deepen the tax net, the Finance Bill 2020 proposed to insert in section 206 of the Income Tax Act, sub-section (1H) to levy TCS on sale of goods. Section 206(1H) will be effective from 01st April 2020. Section 206(1H) reads as under: Every person, being a seller, who receives any […]...

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Impact of budget 2020 on charitable trust/Institutions

While a trust is registered under Section 12AA, the registration referred to therein shall be inoperative from the date of approval of the trustor organization pursuant to Section 10(23C) or Section 10(46) or from the date of entry into force of this proviso, i.e. 01/06/20020 as previously stated. New Article 12A(1)(ac) was introduced pro...

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Posted Under: Income Tax |

Vivad se Vishwas-An Analysis

Article analyses Vivad se Vishwas Scheme Proposed by Central Government for disputed Direct Tax Dues and explains Salient features of Vivad se Vishwas bill, 2000 and issues which may arise or which arises on which Government needs to clarify. Tax amnesty/dispute resolution schemes are introduced by the countries world over and are adverti...

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Posted Under: Income Tax |

Summary of Direct Tax Proposals Budget 2020

DIRECT TAX PROPOSALS ♦ New Tax Slabs for Individuals and HUF (Section 115BAC) Finance Bill proposes to give an option to Individuals and HUF to compute the tax liable on income earned at the rate and as per the procedure mentioned below: Income Slab Existing Rate New Tax Rate 0-2,50,000 0% 0% 2,50,000-5,00,000 5% (Rebate […]...

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Posted Under: Income Tax |

Relief Widened Under Vivad Se Vishwas Scheme 2020 (No Dispute but Trust Scheme)

Article explains who can be Beneficiary of Vivad Se Vishwas Scheme, Vivad Se Vishwas Scheme Mechanism, Quantum Of Amount Payable Under Vivad Se Vishwas Scheme:–A) If The Declarant Is Assessee/ Taxpayer And Appeal Was Also Filed By Assessee or B) If The Declarant Is Department And The Department Has Filed Appeal And Lost On An […]...

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Posted Under: Income Tax |

Electoral Bonds: it a legal weapon to curb and mitigate illegitimate funding for political parties?

Article discusses Union Budget 2017 provisions related to ELECTORAL BOND. It discusses if the same is a legal weapon to curb and mitigate illegitimate funding for political parties....

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Posted Under: Income Tax |

Questions arising out of new income tax rates

Honourable finance minister while presenting the budget has provided an option to Individuals and HUFs to pay tax according to new rates. The optional rates as per Section 115BAC and their comparison with existing rates are as following. New Rates Existing Rates Sr. No. Total Income Rate Sr. No. Total Income Rate 1 Up to […]...

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Posted Under: Income Tax |

Budget 2020- Highlights Under Direct Taxes For Individuals

For a developing country like India- what we need the most is a stronger economy which indeed needs a stronger budget which in turn builds a stronger nation altogether. This budget shall propose to give Indian economy an impetus to emerge as more vibrant and stronger. Our Finance Minister released Budget 2020 with an aspiration of [&hell...

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Posted Under: Income Tax |

Section 115BAC- New Income Tax Rates for Individual and HUF

Finance Bill 2020 has introduced new section, Section 115BAC where employee can pay tax on their total income at the rate specified in the Table from the assessment year 1st April, 2021. Table Sr. No. Total Income Rate (1) (2) (3) 1. Upto Rs.2.50 lacs Nil 2. From 2.50 lacs to 5 lacs 5% 3. […]...

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Posted Under: Income Tax |

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