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S .K. Tyagi

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Taxability of Interest subsidy or Interest Free loan received by an employee from his employer

Income Tax : Now-a -days most of the employers, especially the companies have been providing loans to their employees for the purpose of purcha...

October 23, 2020 15519 Views 2 comments Print

Salary – Tax Treatment of Gratuities

Income Tax : The word ‘Gratuity’, has not been defined in the Income-Tax Act, 1961(the Act). In the absence of any definition of ‘Gratuit...

October 12, 2020 34674 Views 0 comment Print

Reimbursement of Re-location expenses: A Perquisite

Income Tax : Recently, I was approached by a multi-national company for an opinion regarding tax-treatment of the expenses reimbursed by the co...

August 6, 2020 109689 Views 1 comment Print

Taxability of Income governed by Principle of Mutuality

Income Tax : There are a number of entities, the income / surplus of which is governed by the principle of mutuality and therefore, such income...

August 4, 2020 132295 Views 7 comments Print

Tax-treatment in respect of receipt on transfer / sale of Transferable Development Rights (TDRs)

Income Tax : Of late, the concept of Transferable Development Rights (TDRs) has been very much in vogue, in regard to the developers and builde...

August 2, 2020 74996 Views 1 comment Print


Latest Posts in S .K. Tyagi

Taxability of Interest subsidy or Interest Free loan received by an employee from his employer

October 23, 2020 15519 Views 2 comments Print

Now-a -days most of the employers, especially the companies have been providing loans to their employees for the purpose of purchase / construction of a houses or purchase of vehicles. Such loans are either interest-free or at concessional rate of interest. These loans are being advanced in order to make the salary package more attractive as well as by way of a welfare measure.

Salary – Tax Treatment of Gratuities

October 12, 2020 34674 Views 0 comment Print

The word ‘Gratuity’, has not been defined in the Income-Tax Act, 1961(the Act). In the absence of any definition of ‘Gratuity’ in the Act, its meaning as provided in the dictionaries has to be referred to. The word ‘Gratuity’ has been variously defined in the Advanced Law Lexicon by P.R. Aiyar. The aforesaid definition is to be found on page 2038 of Book – 2, 3rd Edition,2005,

Reimbursement of Re-location expenses: A Perquisite

August 6, 2020 109689 Views 1 comment Print

Recently, I was approached by a multi-national company for an opinion regarding tax-treatment of the expenses reimbursed by the company on the re-location of an employee from his present location to the place of employment with the company. Of late, a number of multi-national companies and other big Indian companies have, by way of incentive, have started to make reimbursement of expenses incurred by an employee on re-location of his residence, etc.

Taxability of Income governed by Principle of Mutuality

August 4, 2020 132295 Views 7 comments Print

There are a number of entities, the income / surplus of which is governed by the principle of mutuality and therefore, such income / surplus is not liable to income-tax. In other words, any surplus in the case of mutual concerns is exempt from income-tax and therefore, it would not form part of the gross total income of such mutual concerns.

Tax-treatment in respect of receipt on transfer / sale of Transferable Development Rights (TDRs)

August 2, 2020 74996 Views 1 comment Print

Of late, the concept of Transferable Development Rights (TDRs) has been very much in vogue, in regard to the developers and builders engaged in the business of estate development, as also the Central, State Governments or other semi-Government agencies, which are required to provide civic amenities like roads, playgrounds, parks, etc.

Taxation of Joint Venture Business

July 31, 2020 89735 Views 4 comments Print

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

Sale of a capital asset converted into stock-in-trade: Tax-treatment

July 18, 2020 48213 Views 2 comments Print

In business there are occasions when a capital asset is converted into stock-in-trade and stock-in-trade is converted into capital asset. There may also be occasions when an asset ceases to be a stock-in-trade. In this context, section 45(2) of the Income-Tax Act, 1961 (the Act) is relevant. For the sake of ready reference, section 45(2) is reproduced as follows :

How to avail Maximum benefit under Section 80IB(10)

July 3, 2020 44777 Views 1 comment Print

Recently, I was approached by a Builder Group seeking a number of clarifications, in respect of the incentive granted U/S 80-IB(10) of the Income-Tax Act to Undertakings engaged in the development and construction of Housing Project(s). Apparently, the provisions of S.80-IB(10) look quite simple, but when one goes into the various conditions laid down U/S 80-IB(10) for claiming the benefit thereunder,

Deductibility of TDS on reimbursement of expenses

March 18, 2020 384767 Views 6 comments Print

In this context, it may be stated that the income-tax authorities have been insisting that in view of Answer to Question No.30, as provided in Circular No.715, dated 8.8.1995, issued by the CBDT [215 ITR (St) 12], tax is to be deducted at source out of the gross amount of the bill, including the reimbursements. For the sake of ready reference, the aforesaid Question No.30 and Answer thereto, are reproduced as follows :

No capital gains tax liability on firm U/s. 45(4) on retirement of its partner

March 15, 2020 75005 Views 4 comments Print

As is well-known in income-tax circles, there continues to be a lot of controversy about the interpretation of the provisions of section 45(4) of the Income-Tax Act, 1961 (the Act). Under section 45(4) of the Act, capital gains tax is sought to be charged on a firm in case of transfer of a capital asset and distribution of capital assets, on the dissolution of the firm or otherwise.