The ITAT held that for the computation of MAT, profits disclosed as per the audited accounts should be adopted, provided the accounts are prepared in the prescribed format. If the accounts are not so prepared, the Tax Authority may substitute the amount declared as per the Profit and Loss Account (P&L) with the appropriate amount, regardless of the fact that the accounts are certified as complying with the prescribed format by auditors.
India may move to a dual Goods and Services Tax (GST) regime next year, but the Cenvat (excise duty) related exemptions, especially area-based ones, will not be withdrawn at one go for ushering in the new tax system. The Finance Ministry is not in favour of doing away with all the Central excise exemptions, numbering about 330, as part of the switchover to the GST regime.
Everyone who works on a computer must be familiar with the term “Cyber Crime”. Initially, when man invented computer and then the technology for communicating between computers was evolved, he would have never thought that the cyber space he is creating could be flooded with any crime i.e. cyber crime. But now almost all of us might have heard the term computer crime, cyber crime, e-crime, hi-tech crime or electronic crime which is nothing but an activity done with a criminal intent in cyber space.
Employee stock options (ESOPs) is a significant employer-granted benefit that too is subject to the above FBT /perquisite-based taxation system. In fact, it almost seems as if the authorities cannot quite make up their minds as to how they wish to tax shares given to employees by their employers on a concessional basis. Having been subject to various changes in their valuation norms, the following is the latest position:
It’s not going to be easy for small and unlisted companies to issue employees stock options schemes (ESOPs) as per the latest Central Board of Direct Taxes (CBDT) rules for valuation of perquisites. The valuation rules for calculating the fair market value of shares allotted to employees is substantially the same as compared to the fringe benefit tax (FBT) regime. “Employers once again have to obtain a valuation from a Category 1 merchant banker to determine the fair market value of the shares for unlisted companies.
Way back on September 25, 2000, Rule 3 governing perquisites (perks) was amended by Notification SO 940(E). The major change brought in was taxing on a ‘cost to employer’ basis, thereby giving perks the colour and character of salary. This in turn resulted in many employers increasing the salary of the employee instead of granting perks, thereby avoiding the requirement to maintain cumbersome records.
The Union Cabinet today approved the proposal to introduce a Bill to amend the Copyright Act, 1957. The Ministry of Human Resource Development has proposed the amendments in order to gain clarity, remove operational difficulties and to address the newer issues that have emerged in the context of digital technology and the internet.
The Chairman of a Branch, after demitting office, should not seek re-election for or hold the said or any other post at Branch level in subsequent years. The Committee also decided that no member should hold two posts simultaneously and that in case, as a result, any difficulty was faced, the matter may be brought before the Institute for its consideration.
When it comes to social security measures, India is still considered to be an evolving country even after more than sixty years of independence. Central Government has announced a new pension scheme (NPS) w.e.f. 1st May, 2009 established under Pension Fund Regulatory and Development Authority. The scheme has been in operation for government employees since 2004 but has been only now opened to Indian citizens which will benefit all citizens, particularly those in private sector employment and those who are self employed.
Savings are generally made from taxable income, which has already been subjected to tax provisions. There are certain savings which, if made enjoy exemption from taxation. Not only this, the income or returns arising from such savings or investments are also exempt from tax and when such savings are redeemed on maturity, they are not subjected to any income tax. Thus, such amounts of savings are never taxed at any pint of time. Such a situation works on a model of exempt- exempt-exempt (EEE). An investment in provident fund or public provident fund or national savings certificate are typical examples of EEE model, at present.
