Circular : No. 127-Income Tax The question whether the agreement for the avoidance of double taxation of income between India and Pakistan (notified under Notification No. 28, dated 10- 12-1947 [printed here as Annex]) continues to be operative after the outbreak of the Indo-Pakistan armed conflict of December 1971 has been examined and it has been decided that it is no longer operative for the assessment year
Circular No. 125-Income Tax The Institute of Chartered Accountants of India have represented to the Board requesting for reconsideration of its earlier instructions that a power-of-attorney in favour of chartered accountants was required to be stamped in the manner prescribed in the Stamp Act.
Circular No.126 – Income Tax The rates of income-tax for the assessment year 1973-74 in the case of all categories of taxpayers (corporate as well as non-corporate) are specified in Part I of the First Schedule to the Finance Act, 1973. These rates – summarised in Annexure I to this circular – are the same as those specified in Part III of the First Schedule to the Finance Act, 1972 for purposes of computation of
Circular No. 124-Income Tax The Finance Act, 1969 introduced, with effect from April 1, 1970, a new provision in section 80MM for the concessional taxation of income received by an Indian company by way of royalties, technical service fees, etc., from any business concern in India in consideration of providing technical know-how or rendering services in connection with the provision of such technical know-how.
Circular No. 123-Income Tax The Allahabad High Court have held in their judgment dated 24-3-1971 in the case of CIT v. Bharat Bhandar [1974] 94 ITR 315 that rebate under sections 84 and 88 should be allowed to a registered firm as well as its partners. The Board has accepted the decision and has decided that the law as laid down by the Allahabad High Court should be applied to all cases covered by sections 15B/ 15C
Circular No. 122-Income Tax The Board in consultation with the Ministry of Law has re-examined the question of taxability of the salaries paid to the gardeners of the buildings belonging to the employers and occupied by the employees as a perquisite. Section 17(2)(iv) provides that the term “perquisite” includes “
Circular No. 121-Income Tax In partial modification of Ministry of Finance (Department of Revenue and Insurance) Circular No. 112 [F. No. 275/64/73-ITJ], dated 31-5-1973 it is hereby clarified that the provisions of section 194D inserted by the Finance Act, 1973, providing for deduction of income-tax at source from payments of income by way of insurance
Circular No. 120-Income Tax A doubt has been raised whether at the time of deducting tax from the insurance commission credited to an agent’s account adjustment for the debits made earlier is permissible or not. At the time a proposal is brought by an agent, his account is credited with the appropriate amount of commission.
Circular No. 119-Income Tax Section 45 provides for the taxation of capital gains arising on the transfer of capital assets. Sections 54, 54B and 54D grant exemption in respect of capital gains arising on transfer of property used for self-residence, land used for agricultural purposes and compulsory acquisition of lands and buildings under any law
Circular No. 118-Income Tax Reference is invited to the instructions contained in the Board’s Circular No. 2 (WT) of 1967, dated 31-10-1967 [printed here as Clarification 3] regarding valuation of unquoted equity shares of investment companies, holding companies and managing agency companies.
