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Income Tax - Under the Income tax Act, 1961 Profit or gain from Business or profession is considered income and such income is chargeable to tax. The expenses incurred in relation to business can be deducted from the revenue from Business or profession. However, there is certain restriction on such deduction of expenses....
Read MoreIncome Tax - Section 40(a)(ia) of Income Tax Act, 1961 deals with non compliance of provision of TDS where payment is made to a Resident. 30% cent of any sum payable to a resident on account of interest, commission or brokerage, Rent, Royalty, fees for professional services or, fees fir technical services payable to a resident, or amounts payable to a...
Read MoreIncome Tax - The provisions of Section 40(a)(ia) of the Act were brought on Statute by Finance Act 2004, w.e.f. 01.04.2005, i.e the same is applicable for assessment year 2005-06 and subsequent assessment years....
Read MoreIncome Tax - In Recent past we noticed that department has taken late payment of TDS very seriously and in addition to imposing Interest and Penalty for Late Payment, they also start initiating Criminal Prosecution against those responsible for Deduction and Payment of TDS....
Read MoreIncome Tax - There have been substantial debate around the point whether the term ‘payable’ used in section 40(a)(ia) would include amounts outstanding at the end of the year or both amounts outstanding as well as paid during the year....
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 MoreDCIT Vs Amol Dicalite Ltd. (ITAT Ahmedabad) - Retrospective amendment in law does change tax liability in respect of an income, with retrospective effect, but it cannot change tax withholding liability, with retrospective effect....
Read MorePr. CIT Vs Komal Amin Exports Pvt Ltd (Gujarat High Court) - When the commission paid to the non-resident agents was neither received or deemed to be received in India nor accrued or was deemed to accrue in India, no income was chargeable to tax under the provisions of the Act. When the payment made by assessee to the overseas agent for services rendered abro...
Read MoreSunil Kumar Vs ITO (ITAT Delhi) - Assessee had incurred only office expenditure and no expenditure relating to transportation of goods such as loading, unloading charge etc., has been debited, we are of the considered opinion that the assessee actually engaged himself not in the transportation business, but only facilitating or arra...
Read MoreCIT Vs Infosys Technologies Ltd. (Karnataka High Court) - CIT Vs Infosys Technologies Ltd. (Karnataka High Court) Payment for bandwidth charge utilization was royalty and TDS was required to be deducted under section 195 of Income Tax Act, 1961 and on failure to deduct TDS, the disallowance under section 40(a)(i) was rightly made by the Assessing Officer. ...
Read MoreITO Vs Shri Anil Kumar Nevatia (ITAT Kolkata) - ITO Vs Shri Anil Kumar Nevatia (ITAT Kolkata) The ld. DR vehemently argued that the assessee had used the same truck numbers for transporting its goods and hence explanation of the assessee that payments were made only to the truck drivers and that no oral or written contract was entered into with t...
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 a ...
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 Amol Dicalite Ltd. (ITAT Ahmedabad) -
Pr. CIT Vs Komal Amin Exports Pvt Ltd (Gujarat High Court) -
Sunil Kumar Vs ITO (ITAT Delhi) -
CIT Vs Infosys Technologies Ltd. (Karnataka High Court) -
ITO Vs Shri Anil Kumar Nevatia (ITAT Kolkata) -
Pr. CIT Vs DLF Commercial Projects Corporation (Delhi High Court) -
Pr. CIT Vs West Bengal Housing Infrastructure Development Corporation Limited (Calcutta High Court) -
Shri Digamber Jain Bees Panthi Ajmeri Amnay Panchayat Bada Dhada Vs ITO (ITAT Jaipur) -
Pr. CIT Vs Make My Trip India Pvt. Ltd. (Delhi High Court) -
Ms. Sachi Sarees Vs ACIT (ITAT Kolkata) -
