Income Tax - The section 201(1) of Income Tax Act, 1961 talks about when assesse is not treated as assesse in default. That is, when he had complied certain conditions and furnished the Form 26A. Let’s see what this form is and how it is furnished. Legal Aspects – Analysis of Section 201(1) read with its proviso and […]...
Read MoreIncome Tax - In this article, I am going to have a discussion on Section 40(a)(i) of the Income Tax Act, 1961. Which deals with disallowance of certain business expenditure in case of TDS default is made by the Payer at the time of making payments to a non-resident or foreign company. ...
Read MoreIncome Tax - Digital Technology (DigiTech) & E-commerce Taxation Indian e-commerce and DigiTech industry have been grown to a new height in the past decade. We have seen exponential rise in the way people look at business and the modus operandi of managing a business. From high investments in space and layouts, people have diverted to high investm...
Read MoreIncome Tax - One of the most disputed arguments between assessee and income tax department is that whether payments made towards specified expenditure attracts disqualification u/s 40(a) (ia) and applicability of this section to provisions made at the year end and its implications. Following are the views expressed by the author in this respect. The ...
Read MoreIncome Tax - 1. Prosecution etc. : U/s. 276B If a person deducts tax at source etc. but fails to pay the same to the credit of Central Government as prescribed, he can be sentenced to rigorous imprisonment for a term not less than 3 months and extendable upon 7 years with fine as well. Moreover, u/s 276BB, similar punishment is provided for a person ...
Read MoreIncome Tax - Section 40(a)(ia) is amended via Finance (No. 2) Act, 2014 to restrict the amount of disallowance for non-deduction of tax to 30% of expenditure. The proviso is also amended to the effect that 30% of such sum shall be allowed as a deduction in computing the income of the previous year in which tax has been paid....
Read MoreIncome Tax - The existing provisions of section 40(a)(ia) of Income-tax Act provide for the disallowance of expenditure like interest, commission, brokerage, professional fees, etc. if tax on such expenditure was not deducted, or after deduction was not paid during the previous year....
Read MoreVodafone Idea Ltd. Vs ITO (ITAT Delhi) - Vodafone Idea Ltd. Vs ITO (ITAT Delhi) At the outset, we find merit in the contention of the Ld. Counsel of the Assessee that in the absence of any adverse judgment by the Hon’ble Jurisdictional High Court, i.e., the Hon’ble High Court of Punjab & Haryana, there being divergence of judicial ...
Read MoreKiran Infertility Central Private Limited Vs ITO (ITAT Hyderabad) - We first of all advert to the impugned Section 40(a)(ia) r.w.s.194C and 194J issue of surrogacy payments in case of Shri S.Sesha Sai since the other recipient has never appeared to support the impugned claims till date. The CIT(A)’s identical lower appellate discussion affirming the Assessing Off...
Read MoreR. K. Associates Vs ITO (ITAT Bangalore) - R. K. Associates Vs ITO (ITAT Bangalore) The question for consideration is as to whether the provisions of Section 40(a)(ia) is applicable for computing the income chargeable under the head “Profits and gains of business or profession” or computation of income under any other heads of income als...
Read MoreCelltick Mobile Media (India) Pvt. Ltd Vs DCIT (ITAT Mumbai) - Assessee was not liable to deduct TDS on license fees paid to Israel entity as it had already furnished certificate from a chartered accountant, return of income and computation of income under section 139 and income of assessee was not taxable in India and assessee had already filed the relevant i...
Read MoreAltisource Business Solutions Private Limited Vs ACIT (ITAT Bangalore) - Altisource Business Solutions Private Limited Vs ACIT (ITAT Bangalore) Amounts paid by the assessee to the non-resident computer software manufacturers / suppliers as consideration for the resale / use of computer software, is not payment of royalty for use of copyright in the computer software. Hen...
Read MoreCircular No. 3/2015-Income Tax - (12/02/2015) - Circular No. 3/2015 Section 40(a)(i) of the Act stipulates that in computing the income chargeable under the head "Profits or gains of business or profession", any interest, royalty, fees for technical services or other sum chargeable under this Act either payable in India to a non-resident (not bei...
Read MoreInstruction No. 02/2014 - (26/02/2014) - Sub: Deduction of tax at source under Section 195 read with Sections 201 of the Income-tax Act, 1961 relating to payment made to a non-resident-reg. Section 195 of the Income-tax Act (hereafter referred to as 'the Act') provides that any person, responsible for paying to a non-resident not being ...
Read MoreCircular No. 10/DV/2013-Income Tax - (16/12/2013) - Circular No. 10/DV/2013-Income Tax It has been brought to the notice of the Board that there are conflicting interpretations by judicial authorities regarding the applicability of the provisions of section 40(a)(ia) of the Income-tax Act,...
Read MoreDCIT Vs Pfizer Products(India) Pvt Ltd. (ITAT Mumbai) -
Vodafone Idea Ltd. Vs ITO (ITAT Delhi) -
Kiran Infertility Central Private Limited Vs ITO (ITAT Hyderabad) -
R. K. Associates Vs ITO (ITAT Bangalore) -
Celltick Mobile Media (India) Pvt. Ltd Vs DCIT (ITAT Mumbai) -
Altisource Business Solutions Private Limited Vs ACIT (ITAT Bangalore) -
Sundaram Business Vs Income Tax Officer (ITAT Chennai) -
BYK Asia Pacific Pte. Limited Vs ACIT (ITAT Pune) -
IDBI Bank Ltd. Vs DCIT (ITAT Mumbai) -