A. Introduction The words ‘accrues’ and ‘arises’ never stop showing their significance in the tax life in India. Their placement in section 5 which has been kept largely virgin since its inception is one of the reasons for this. The meaning of the above words as given in the celebrated c...

• 
  Vishnu Moorthi H

Issue No. 285 / October 15th, 2024 Dear Professionals, We are glad to present to you the 285th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena! “Taxsutra Database”, a true Income-tax research tool, is an archive of over 129126+ In...

• 
  Taxsutra Database Bulletin

The Tiger Global (TG) Funds case is the latest addition in the long trend of international tax jurisprudence which discusses economic substance and treaty abuse and the ‘substance over form’ principle. In this case, the Delhi HC dismissed Revenue's objections and stated that the view as e...

• 
  Bharath Lakshminarayana
• 
  Vishnu Bagri

MINISTRY OF LAW AND JUSTICE(Legislative Department) New Delhi, the 16th August, 2024/Sravana 25, 1946 (Saka) The following Act of Parliament received the assent of the President on the 16th August, 2024 and is hereby published for general information:- THE FINANCE (No. 2) ACT, 2024No. ...

• 
  MINISTRY OF LAW AND JUSTICE

   FAQs on PFA & Defective for ITR 1 to 6 for A Y 24-25 Question No. Relevant ITR Types Description Response 1 ITR- 6 - PFA/ Defective I have offered income of "ChapterXII-G (tonnage)" in Schedule BP. While calculating the tax MAT is getting calc...

• 
  Union Budget 2024-2025

Bill No. 55-C of 2024 THE FINANCE (No. 2) BILL, 2024 ARRANGEMENT OF CLAUSES CLAUSES CHAPTER I PRELIMINARY 1. Short title and commencement. CHAPTER II RATES OF INCOME-TAX 2. Income-tax. CHAPTER III DIRECT TAXES Income-tax 3. Amendment of section 2. 4. Amendment of section 10....

• 
  Union Budget 2024-2025

Background Re-assessment provisions under the Income Tax Act, 1961 (the Act) were significantly modified by the Finance Act 2021, effective from 1 April 2001. However, these changes led to extensive litigation due to varying interpretations, the Supreme Court’s decision in Union of India...

• 
  Sachin Kumar BP

Buy Back of Shares Pendulum - TRANSITION OVER A PERIOD! Since introduction of section 77A in the Companies Act 1956 (CA’56), the landscape of Buy-Back Tax has been introduced and later been a rollercoaster ride of tax reforms under the Income Tax Act, 1961 (I.T. Act, 1961) in different t...

• 
  Bhavik Shah

INTRODUCTION The Finance Bill, 2024 (“the Bill”), for the purpose of rationalising the provisions of Charitable Trusts and Institutions, proposes certain amendments under the following sub-headings:  1. Merger of trusts under first regime with second regime 2. Merger of trusts under th...

• 
  Dindayal Dhandaria
• 
  Naveen Kumar Dhandaria

Preamble Real estate industry is known for redevelopment. Similarly, reel industry rereleases its classical movies. On those lines, it is now the turn of the tax laws to bring back some of the erstwhile provisions. The Finance (No.2) Bill, 2024 (FB,2024) has brought in few of the older p...

• 
  Hari, G R

  FREQUENTLY ASKED QUESTIONS (FAQs) Dated: 24 JUL 2024 Q1. What are the major changes brought about in the taxation of capital gains by the Finance (No.2) Bill, 2024? Ans. The taxation of capital gains has been rationalised and simplified. There are 5 broad parameters to this ra...

• 
  Union Budget 2024-2025

MEMORANDUM EXPLAINING THE PROVISIONS IN THE FINANCE BILL, 2024 Clauses referred to are clauses in the Bill) FINANCE (No. 2) BILL, 2024 PROVISIONS RELATING TO DIRECT TAXES Introduction The provisions of Finance (No. 2) Bill, 2024 (hereafter referred to as "the Bill"), relating to ...

• 
  Union Budget 2024-2025

Budget 2024-2025 Speech of Nirmala Sitharaman Minister of Finance July 23, 2024 Hon'ble Speaker, I present the Budget for 2024-25. Introduction 1. The people of India have reposed their faith in the government led by the Hon'ble Prime Minister Shri Narendra Modi and re-elected it ...

• 
  Union Budget 2024-2025

BILL No. 55 OF 2024 THE FINANCE (NO. 2) BILL, 2024 (AS INTRODUCED IN LOK SABHA) THE FINANCE (No. 2) BILL, 2024 _______ ARRANGEMENT OF CLAUSES ______ CHAPTER I PRELIMINARY CLAUSES 1. Short title and commencement. CHAPTER II RATES OF INCOME-TAX 2. Income-tax. CHAPTER III DIRE...

• 
  Union Budget 2024-2025

A. Introduction The Provisions of Section 269SS of the Income Tax Act, was introduced to curb cash transactions and prevent the proliferation of black money.  The section mandates that loans, deposits, or specified sums exceeding ₹20,000 must be transacted through account payee instrumen...

• 
  N V Lakshmi
• 
  N.V. Krishnan

A Introduction Prior to Finance Act, 2021, the scheme of reassessment was governed by provision of section 147-151 of the Act. Further, scheme of assessment/reassessment based on search was governed by the provision of section 153A/153C of the Act. The Finance Act, 2021 replaced the erst...

• 
  Ved Jain

  F.No. 173/03/2021-IT A-I (Pt.2) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes (ITA-1 Division) North Block, New Delhi Dated, the 27th June, 2024  *** ORDER Subject: Order under section 10 of the Direct Tax Vivad se Vishwas Act, 2...

• 
  Ministry of Finance

Issue No. 284 / June 17th, 2024 Dear Professionals, We are glad to present to you the 284th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!  “Taxsutra Database”, a true Income-tax research tool, is an archive of over 127520+  Inc...

• 
  Taxsutra Database Bulletin

In the recent assessments, it has become a standard feature for the tax officer to ask for various reconciliations between the books of the taxpayer and information gathered by the government, through various returns /transactions filed/carried out by the taxpayer. One such reconciliation...

• 
  Mukund Madhusudhan

The Protocol signed between India and Mauritius on March 7, 2024 to amend the DTAA to include the Principal Purpose Test (PPT) clause and also to amend the preamble which is yet to be ratified and notified. The Protocol has been a subject of heated discussions due to the huge ramification...

• 
  Mukund Madhusudhan

Issue No. 283 / April 25th, 2024 Dear Professionals,   We are glad to present to you the 283rd edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!    “Taxsutra Database”, a true Income-tax research tool, is an archive of over 12703...

• 
  Taxsutra Database Bulletin

Issue No. 282 / March 14th, 2024 Dear Professionals,   We are glad to present to you the 282nd edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!    “Taxsutra Database”, a true Income-tax research tool, is an archive of over 12666...

• 
  Taxsutra Database Bulletin

SUPREME COURT OF INDIA F. No. 4 /Judl./202414th February, 2024 CIRCULAR The following will be the procedure/modalities relating to circulation of Letters for adjournment of cases: 1) Procedure in after-notice miscellaneous matters: a) No letters for adjournment shall be entertained i...

• 
  Supreme Court Of India

MINISTRY OF LAW AND JUSTICE(Legislative Department) New Delhi, the 15th February, 2024/Magha 26, 1945 (Saka) The following Act of Parliament received the assent of the President on the 15th February, 2024 and is hereby published for general information:— THE FINANCE ACT, 2024 NO. 8 OF...

• 
  MINISTRY OF LAW AND JUSTICE

Issue No. 281 / Feb. 08th, 2024 Dear Professionals, We are glad to present to you the 281st edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena! “Taxsutra Database”, a true Income-tax research tool, is an archive of over 126250+  Inco...

• 
  Taxsutra Database Bulletin

  Interim Budget 2024-2025 Speech of Nirmala Sitharaman Minister of Finance February 1, 2024 Hon’ble Speaker, I present the Interim Budget for 2024-25. Introduction 1. The Indian economy has witnessed profound positive transformation in the last ten years. The people of India are...

• 
  Budget 2024

BILL No. 14 OF 2024 THE FINANCE BILL, 2024 (AS INTRODUCED IN LOK SABHA) AS INTRODUCED IN LOK SABHAON 1ST FEBRUARY, 2024 Bill No.14 of 2024 THE FINANCE BILL, 2024ABILL to continue the existing rates of income-tax for the financial year 2024-2025 and to provide for certain relief to t...

• 
  Budget 2024

Issue No. 280 / Dec 27th, 2023  Dear Professionals,  We are glad to present to you the 279th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!  “Taxsutra Database”, a true Income-tax research tool, is an archive of over 125660+  In...

• 
  Taxsutra Database Bulletin

Issue No. 279 / Nov 16th, 2023  Dear Professionals,  We are glad to present to you the 279th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!  *********************** Journals Current Status  ITR Vol 457 PART 1 Date...

• 
  Taxsutra Database Bulletin

In a recent judgment, the SC ruled that a notification under Section 90(1) is necessary and a mandatory condition for a court, authority, or tribunal to give effect to a DTAA, or any protocol that has the effect of altering the existing provisions of law. This judgement upsets the steady ...

• 
  S Ramanujam

Issue No. 278 / Sep 22nd, 2023 Dear Professionals, We are glad to present to you the 278th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena! Journals Current Status   ITR Vol 456 PART 3 Dated 14th Aug 2023 I...

• 
  Taxsutra Database Bulletin

Taxation of charitable institutions has seen a paradigm shift in the recent times due to frequent amendments. One such amendment is related to the allowability of inter-trust donation which has been introduced through the Finance Act, 2023.  Mr. Saurabh Kedia and Ms. Megha Dhandhania (Ch...

• 
  Saurabh Kedia
• 
  Megha Dhandhania

GOVERNMENT OF INDIAMINISTRY OF FINANCECENTRAL BOARD OF DIRECT TAXBOARD FOR ADVANCE RULINGS A HANDBOOK ONADVANCE RULINGS HANDBOOK ON ADVANCE RULINGS DISCLAIMER This handbook should not be construed as an exhaustive statement of law and procedures. In case of doubt, reference should be ...

• 
  CBDT

Issue No. 277 / Aug 9th, 2023 Dear Professionals, We are glad to present to you the 277th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena! *********************** Key Takeaways from Handpicked Rulings  1) HC: Prosecution initiat...

• 
  Taxsutra Database Bulletin

Background The advent of online gaming has revolutionized the entertainment industry, attracting millions of gamers worldwide, including a rapidly growing player base in India. According to news reports, India's gaming market size is estimated to be around US$ 2.6 billion in FY22 with ov...

• 
  Aditya Goyal
• 
  Sudeep Das

Issue No. 276 / July 5th, 2023 Dear Professionals, We are glad to present to you the 276th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena! *********************** Key Takeaways from Handpicked Rulings  1) HC: Absent ulterior mo...

• 
  Taxsutra Database Bulletin

CBDT issued Circular No. 19/2019 that mandates a computer-generated Document Identification Number (DIN) in all communications issued by the income-tax authorities on or after Oct 1, 2019 for ensuring accountability in official dealings. CBDT also laid down certain exceptions whereby manu...

• 
  Deepak Chopra

The Hon'ble Supreme Court in a recent judgment deleted Section 69A addition made in the hands of the transport contractor on the value of short-delivered 'bitumen'. The Supreme Court held that the bitumen is not a valuable article under Section 69A and the Assessee being a carrier of good...

• 
  S Ramanujam

Issue No. 275 / May 15th, 2023 Dear Professionals, We are glad to present to you the 275th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena! *********************** Expert Column  Not long after Govt.’s Notification bringing cert...

• 
  Taxsutra Database Bulletin

Not long after Govt.’s Notification bringing certain activities by CAs, CS and CWAs under the PMLA ambit viz. handling of clients assets, money etc., another Notification has specified certain activities that need to be taken note of by the other business entities rendering similar servic...

• 
  S Ramanujam

Issue No. 274 / April 18th, 2023 Dear Professionals, We are glad to present to you the 274th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena! *********************** THE FINANCE ACT, 2023‘ COST INFLATION INDEX  ****************...

• 
  Taxsutra Database Bulletin

  As per CBDT Notification No. 21 of 2023 dt. Apr 10, 2023 following table should be used for the Cost Inflation Index :-   Sl. No. Financial Year Cost Inflation Index (1) (2) (3) 1 2001-02 100 2 2002-03 105 ...

• 
  CBDT

MINISTRY OF LAW AND JUSTICE(Legislative Department) New Delhi, the 31st March, 2023 / Chaitra 10, 1945 (Saka) The following Act of Parliament received the assent of the President on the 31st March, 2023 and is hereby published for general information:— THE FINANCE ACT, 2023No. 8 OF 2023...

• 
  MINISTRY OF LAW AND JUSTICE

AS PASSED BY LOK SABHA ON 24.03.2023 Bill No. 17-C of 2023 THE FINANCE BILL, 2023 —————— ARRANGEMENT OF CLAUSES —————— CHAPTER I PRELIMINARY CLAUSES 1. Short title and commencement. CHAPTER IIRATES OF INCOME-TAX 2. Income-tax. CHAPTER IIIDIRECT TAXESIncome-tax 3. Amendment o...

• 
  Lok Sabha

Issue No. 273 / March 21st, 2023  Dear Professionals, We are glad to present to you the 273th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena! *********************** Expert Column  Mr. Sandesh Kumar (Practice Leader, Guru & Jan...

• 
  Taxsutra Database Bulletin

Mr Sandesh Kumar (Practice Leader, Guru & Jana) discusses the proposed amendment in Section 48 by Finance Bill, 2023 to provide that the cost of acquisition or the cost of improvement shall not include the amount of interest claimed under Section 24 or Chapter VIA. The author apprises tha...

• 
  Sandesh Kumar

Mr. Rajesh Patil (Chartered Accountant) discusses the amendments proposed in the Finance Bill, 2023 with respect to Charitable Institutions. The author throws light on all the amendments that will affect taxability and compliance. He also analyses the consequences on lapse in re-registrat...

• 
  Rajesh C Patil

The tax regime for charitable trusts has been undergoing transformative amendments in successive Union Budgets. This year too, several amendments have been proposed that makes compliance and taxation more stringent for the charitable trusts. Mr. S. Ramanujam (Chartered Accountant) discus...

• 
  S Ramanujam

Mr. Kapil Mahna and Ms. Sakshi Mittal (Chartered Accountants) delve into the amendments proposed by the Finance Bill, 2023 impacting the  non-governmental organisations (NGOs) in India, with an objective to ensure effective monitoring of the same. The authors shed light on the evolving ta...

• 
  Sakshi Mittal
• 
  Kapil Mahna

Mr. Dindayal Dhandaria and Mr. Naveen Kumar Dhandaria (Chartered Accountants) focus on the anomalies or unintended oversights in the Finance Bill, 2023. The author apprises that as per the new Section 115BAC introduced by the Finance Bill, 2023 read with Section 87A no income tax would be...

• 
  Dindayal Dhandaria
• 
  Naveen Kumar Dhandaria

Mr. Dindayal Dhandaria and Mr. Naveen Kumar Dhandaria (Chartered Accountants) discuss the issue of inter-charity donations and the proposed amendment in the conditions for application of income by the charitable trust or institution, by the Finance Bill, 2023. The authors apprise that the...

• 
  Dindayal Dhandaria
• 
  Naveen Kumar Dhandaria

Issue No. 271 / February 8th, 2023   Dear Professionals, We are glad to present to you the 271th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!  *********************** Lot's more at Taxsutra Database   Budget 2023-2024: Fin...

• 
  Taxsutra Database Bulletin

Ms. Urvi Asher (Consultant - Manohar Chowdhry & Associates) discusses proposals specifically impacting startups. She is of the view that extension of the time limit for set-off of losses from 7 years to 10 years may not be a material factor in commercial transactions, viz. where a startup...

• 
  Urvi Asher

Annexure - A Frequently Asked Questions (FAQs) on e-Verification Scheme 2021. Note: I. The FAQs on the e-Verification Scheme, 2021 (hereafter ‘FAQs’) aim to provide general guidance in understanding the procedures and processes of the e-Verification Scheme, 2021 issued vide Notificatio...

• 
  Ministry of Finance

HIGHLIGHTS OFFINANCE BILL, 2023 Note: The contents of this document are for information purposes only, to enable public to have a quick and an easy access to information, and do not purport to be legal documents. Viewers are advised to verify the content from original Finance Bill, 2023!...

• 
  Ministry of Finance

Mr. A. Sekar (Chartered Accountant) writes about the proposed increase in TCS rate on foreign remittance made through the Liberalised Remittance Scheme (LRS). The author highlights that the TCS applicable to the category of ‘Overseas Tour Package’ and ‘any other case’, an exorbitant rat...

• 
  Sekar A

Mr. A. Sekar (Chartered Accountant) focuses on the proposed increase rate of TCS on foreign remittance through the Liberalised Remittance Scheme (LRS). The author highlights that the TCS applicable to the category of ‘Overseas tour package’ and ‘any other case’, an exorbitant rate of 20% ...

• 
  Sekar A

Mr. A Sekar (Chartered Accountant) addresses the practical issues likely to arise due to the proposed amendment to impose an upper limit of 10Cr. on the maximum deduction that can be claimed under Section 54 and 54F; He apprises that the primary objective of deduction under Sections 54 an...

• 
  Sekar A

FINANCE BILL, 2023 PROVISIONS RELATING TO DIRECT TAXES Introduction The provisions of Finance Bill, 2023 (hereafter referred to as "the Bill"), relating to direct taxes seek to amend the Income-tax Act, 1961 (hereafter referred to as 'the Act'), to continue reforms in direct tax system...

• 
  Budget 2023

BILL No. 17 OF 2023 THE FINANCE BILL, 2023 (AS INTRODUCED IN LOK SABHA) THE FINANCE BILL, 2023_______ ARRANGEMENT OF CLAUSES______ CHAPTER I PRELIMINARY CLAUSES 1. Short title and commencement. CHAPTER II RATES OF INCOME-TAX 2. Income-tax. CHAPTER III DIRECT TAXES Income-tax...

• 
  Budget 2023

Budget 2023-2024  Speech of Nirmala Sitharaman Minister of Finance February 1, 2023 Hon’ble Speaker,             I present the Budget for 2023-24. This is the first Budget in Amrit Kaal. Introduction This Budget hopes to build on the foundation laid in the previous Budget, and t...

• 
  Budget 2023

Dear Patrons, The year 2022 will be remembered forever in the tax jurisprudence primarily for Supreme Court judgments on - Reassessment & Charitable Institutions. There were several other Supreme Court judgments that left a lasting impression viz., Apex Labs, Wipro, Checkmate, etc. It wa...

• 
  Taxsutra Database Insight

CBDT recently announced Common ITRs to simplify and streamline compliance as per the best practices. This step is perceived as a major breakthrough in the annual compliance framework. Mr. Ameet Patel (Partner, Manohar Chowdhry & Associates) and Mr. M.V. Surendra Kalyan (Manager, Au...

• 
  Ameet N. Patel

Issue No. 269 / November 28th, 2022  Dear Professionals,  We are glad to present to you the 269th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!   ***********************   Judicial “forward & backward reference”  1) [TS-5017-...

• 
  Taxsutra Database Bulletin

CIRCULAR INCOME-TAX ACT Finance Act, 2022 — Explanatory Notes to the Provisions of the Finance Act, 2022 CIRCULAR NO. - 23/2022, DATED 3rd NOVEMBER, 2022 AMENDMENTS AT A GLANCE Section of Income-tax Act. 1961 Particulars 2 Definitions 10 Incom...

• 
  Ministry of Finance

Issue No. 268 / October 17th, 2022  Dear Professionals,  We are glad to present to you the 268th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!  *********************** Expert Column  More frequently than not, we come across w...

• 
  Taxsutra Database Bulletin

More frequently than not, we come across writ petitions challenging withholding of tax refund by the Revenue after processing of return. The issue is crucial given the mandate for revenue collection and on the other hand, the need for running the businesses smoothly. The legal battles aga...

• 
  K Senguttuvan, Advocate

Issue No. 267 / September 21st, 2022  Dear Professionals,  We are glad to present to you the 267th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!    Journals Current Status   ITR Vol 447 Part 1 Dated - 12th Sep 2...

• 
  Taxsutra Database Bulletin

Issue No. 266 / Aug 26th, 2022 Dear Professionals,  We are glad to present to you the 266th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!  *********************** Expert Column Mr. S. Ramanujam (Chartered Accountant) in this ...

• 
  Taxsutra Database Bulletin

Mr. S. Ramanujam (Chartered Accountant) in this article analyses the recent Madras HC ruling on various questions pertaining to search and seizure. The author is of the view that with searches becoming frequent nowadays and covered extensively by the media, it is pertinent that the taxpay...

• 
  S Ramanujam

Issue No. 265 / 8th Aug, 2022 Dear Professionals,  We are glad to present to you the 265th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!   Journals Current Status ITR Vol 444 PART 5 Dated - 27th June 2022 ...

• 
  Taxsutra Database Bulletin

Application of mind by the authorities specified under statutes is a sine qua none while forming subjective opinions based on facts and circumstances. Malay Chaturvedi (Advocate) analyses the Supreme Court's views on the principles of satisfaction & approvals. He discusses the recent Sup...

• 
  Malay Chaturvedi

Issue No. 264 / July 21st, 2022 Dear Professionals,  We are glad to present to you the 263rd edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!  Journals Current Status ITR Vol 444 PART 2 Dated - 06th June 2022 ...

• 
  Taxsutra Database Bulletin

Issue No. 263 / June 27th, 2022 Dear Professionals,  We are glad to present to you the 263rd edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!    ***********************   Judicial “forward & backward reference” 1) [TS-52-SC-2008...

• 
  Taxsutra Database Bulletin

TDS on Benefit or Perquisite was introduced through Section 194R by Finance Act, 2022 with effect from 1st July 2022. Recently, CBDT released ‘Guidelines for the removal of difficulties in the Practical Implementation of Section 194R’; Mr. Ishu Garg (Intern, SGPM & Associates) points out ...

• 
  Ishu Garg

F.No.225/101/2021-ITA-IIGovernmentof IndiaMinistry of FinanceDepartment of RevenueCentral Board of Direct Taxes*********** Room No. 245-A, North Block,New Delhi, the 23rd April, 2022 To All Pr. CCsIT/DGsIT/Pr.CCIT(Exemption)/Pr. CCIT(International-tax) Madam/Sir, Subject: Revised Ins...

• 
  CBDT

Issue No. 262 / June 10th, 2022 Dear Professionals,  We are glad to present to you the 262nd edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!   ***********************   Judicial “forward & backward reference”   1) [TS-29-SC-200...

• 
  Taxsutra Database Bulletin

Issue No. 261 / May 20th, 2022    Dear Professionals,     We are glad to present to you the 261th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!   ***********************  Expert Column  The Supreme Court decided the controver...

• 
  Taxsutra Database Bulletin

The old reassessment regime has been fundamentally changed by the amendments introduced in Finance Act 2021 with subsequent amendments in the Finance Act 2022, through which a legal authorization is provided to Revenue to reopen the assessment based on the “information” which is defined s...

• 
  Viral Shah

The Supreme Court’s balancing act in the reassessment controversy has garnered mixed reactions and invocation of Article 142 to render ‘complete justice’ has resulted in saving the reassessment notices issued under the erstwhile regime. Mr. Prakash Sinha (Partner, Prakash Sachin & Co.,...

• 
  CA, Prakash Sinha.

The Supreme Court decided the controversial issue of validity of notices issued u/s 148 between April 01, 2021 to June 30, 2021 which was followed by CBDT Instruction No. 1/2022 dated May 11, 2022 providing its interpretation of the judgment and the uniform procedures to be followed by th...

• 
  Dharan V Gandhi

Issue No. 260 / May 10th, 2022    Dear Professionals,     We are glad to present to you the 260th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!     ***********************   Judicial “forward & backward reference”    a) (20...

• 
  Taxsutra Database Bulletin

Dear Professionals,     We are glad to present to you the 259th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!   ***********************  Judicial “forward & backward reference”  a) [TS-7445-ITAT-2017(Jaipur)-O] Affirmed by...

• 
  Taxsutra Database Bulletin

Finance Act, 2021 introduced Section 89A providing relief from taxation in income from retirement benefit accounts maintained in a notified country by non-resident, effective from AY 2022-23. The Government recently introduced Rule 21AAA and Form No. 10-EE to operationalise Section 89A an...

• 
  S Ramanujam

Dear Professionals,    We are glad to present to you the 258th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!  *********************** Expert Column   Period of limitation has taken centre stage over the last two years due...

• 
  Taxsutra Database Bulletin

Recently, CBDT notified the ITR for AY 2022-23. Though the tax law itself has not substantially changed, some very important changes feature in the new ITR Forms. Dr. CA Abhishek Murali (President, All India Tax Payers’ Association (AITPA)) provides a lucid comparative analysis of ITR for...

• 
  Dr. CA Abhishek Murali

Period of limitation has taken centre stage over the last two years due to the onset of the pandemic and the same has been one of the main grounds for challenging a notice or an order issued by the tax authorities. In this regard, Ms. Vidushi Maheshwari (Advocate), highlights the signific...

• 
  Vidushi Maheshwari

MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 30th March, 2022 / Chaitra 9, 1944 (Saka) The following Act of Parliament received the assent of the President on the 30th March, 2022 and is hereby published for general information:— THE FINANCE ACT, 2022 No. 6 OF 2...

• 
  MINISTRY OF LAW AND JUSTICE

Issue No. 257 / March 17, 2022 Dear Professionals,    We are glad to present to you the 257th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!  *********************** Expert Column CBDT issued Circular No. 3/2022 to clarify its...

• 
  Taxsutra Database Bulletin

CBDT issued Circular No. 3/2022 to clarify its position on applicability of the Most Favoured Nation (MFN) Clause in the Protocol to India’s Double Taxation Avoidance Agreements with several countries. Mr. S.P. Singh (Ex-IRS & Ex-Senior Director, Deloitte) and Mr. Sharad Goyal (Founding ...

• 
  S. P. Singh
• 
  Sharad Goyal

Investments in digital assets have been rising across the country. Due to the increase in the frequency and volume of transactions of Virtual Digital Assets, for the first time, the provisions for taxation of Virtual Digital Assets have been introduced in the Union Budget 2022 Mr. B.P. S...

• 
  Sachin Kumar BP

The pendency of appeals at various judicial fora has been a grave concern for the taxpayers and tax administrators. The Government in recent times has taken steps to reduce the pendency by increasing the tax-effect thresholds for Revenue's appeals. The Finance Bill, 2022 introduced ...

• 
  Dharan V Gandhi

Issue No. 256 / March 03, 2022 Dear Professionals, We are glad to present to you the 256th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!   *********************** Expert Column Indisputably, global warming is a looming threa...

• 
  Taxsutra Database Bulletin

The author, Dr. CA Abhishek Murali,in his article explores the implications of updated return u/s 139(8A), vide Finance Bill, 2022. He highlights that the extended time period for updated return is upto 24 months from the end of the relevant Assessment Year. He addresses the scope and app...

• 
  Dr. CA Abhishek Murali

The Author Mr. Harish Kara (Chartered Accountant), writes about the rationalization of provisions applicable to Charitable Trusts through the amendments proposed by the Finance Bill, 2022 relating to taxability of Trusts and the implications thereof. He analyses the amendments proposed un...

• 
  HARISH KARA

Issue No. 255 / February 14th, 2022   Dear Professionals,     We are glad to present to you the 255th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!   Taxsutra Database Budget Special   *********************** Expert C...

• 
  Taxsutra Database Bulletin

Mr. Prakash Sinha (Partner, Prakash Sachin & Co. Chartered Accountant) examines the legality of Virtual Digital Assets. He analyses the definition of Virtual Digital Assets under newly inserted section 2(47A) and states that the term has been defined widely, thereby including every form o...

• 
  CA, Prakash Sinha.

Section 14A of the Income-tax Act provides that no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income that does not form part of the total income as per the provisions of the Act. The Finance Bill, 2022 proposed to amend Section 14A, by ins...

• 
  Arpith Jain

Mr. Pradip R Shah (M/s Pradip R Shah & Co.) in his analytical article examines the proposals pertaining to withholding tax provisions on benefits or perquisites provided to resident assessees. He delves into a comparative of the proposed provisions with extant provisions of Sections 194A ...

• 
  Pradip R. Shah

Issue No. 254 / February 08th, 2021 Dear Professionals, We are glad to present to you the 254th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!   Taxsutra Database Budget Special   M...

• 
  Taxsutra Database Bulletin

Mr. Dindayal Dhandaria (Chartered Accountant) extensively discusses the amendments proposed by Finance Bill, 2022 meant to rationalize the provisions u/s 10(23C) and 12A/12AA. He analyses the amendments from the perspective of computation of taxable income, maintenance of books, audit, pe...

• 
  Dindayal Dhandaria

Mr. Vishnu Bagri and Mr. Amar Kumar (Chartered Accountants, Singhvi, Dev & Unni LLP) discern the newly introduced regime for taxation of Virtual Digital Assets and discuss the accrual of income from crypto transactions and its characterization. They opine that “The characterization of the...

• 
  Vishnu Bagri
• 
  Amar Kumar

The Finance Bill 2022 proposes to remove the concessional tax rate of 15% plus applicable surcharge and cess under Section 115BBD of the Act, applicable on dividends received by Indian companies from specified foreign subsidiaries, with effect from Apr 1, 2023. The proposed amendment enta...

• 
  Swetha Prasad A
• 
  Varsha N

Mr. Dindayal Dhandaria (Chartered Accountant) in this article, analyses the proposed amendment for taxability of contributions received as corpus donations and challenges in execution of the same. The author explains that Section 11(1)(d) of the Act provides that a voluntary contribution ...

• 
  Dindayal Dhandaria

Dividend income has been subject to the various amendments over the course of years. The author, Mr. A. Sekar (Chartered Accountant), delves into the taxability of dividend received from a company and implications of proposed amendment by insertion of sub-section (4) to Section 115BBD. Th...

• 
  Sekar A

Mr. S. Ramanujam, in his article, analyses the proposed amendment to section 37 and predicts the possible effects of the same on the Pharma Companies. The Finance Bill 2022 proposes to insert another explanation under sec 37(1) that will be Explanation No.3 to include the expenditure incu...

• 
  S Ramanujam

The Finance Bill, 2022 proposed to amend Section 170(2A) to clarify on the validity of proceedings in case of business reorganization. The section provides that the assessment or other proceedings pending or completed on the predecessor in the event of a business reorganization, shall be ...

• 
  RAMPRASAD T

FINANCE BILL, 2022PROVISIONS RELATING TODIRECT TAXESIntroduction   The provisions of Finance Bill, 2022 (hereafter referred to as "the Bill"), relating to direct taxes seek to amend the Income-tax Act, 1961 (hereafter referred to as 'the Act'), to continue reforms in direct tax system t...

• 
  Budget 2022

BUDGET 2022-2023SPEECH OFNIRMALA SITHARAMANMINISTER OF FINANCEFebruary 1, 2022 Hon'ble Speaker, I present the Budget for the year 2022-23. Introduction1. At the outset, I want to take a moment to express my empathy for those who had to bear adverse health and economic effects of the pa...

• 
  Budget 2022

  Ministry of Finance   HIGHLIGHTS OF THE UNION BUDGET 2022-23 Dated: 01 FEB 2022   The Union Budget seeks to complement macro-economic level growth with a focus on micro-economic level all inclusive welfare. The Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman...

• 
  Budget 2022

BILL No. 18 OF 2022 THE FINANCE BILL, 2022(AS INTRODUCED IN LOK SABHA)THE FINANCE BILL, 2022ARRANGEMENT OF CLAUSES CHAPTER IPRELIMINARY CLAUSES 1. Short title and commencement. CHAPTER II RATES OF INCOME-TAX 2. Income-tax. CHAPTER III DIRECT TAXES Income-tax 3. Amendment of sec...

• 
  Budget 2022

Issue No. 253 / January 20th, 2021   Dear Professionals,     We are glad to present to you the 253rd edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!   Status of Journals Updated   IT...

• 
  Taxsutra Database Bulletin

Indisputably, global warming is a looming threat to the environment caused by emission of harmful greenhouse gases (GHG) into the atmosphere. In an attempt to rein this threat, the United Nations Framework Convention on Climate Change has introduced Certified Emissions Reduction (‘CERs’) ...

• 
  Sachin Kumar BP
• 
  Akella A S Prakasa Rao

Issue No. 252 / December 31st, 2021 Dear Patrons, As we end an exceptional year with its ups and down, we look back at the experiences we earned and events that we witnessed. Taxwise, we always have a lot to learn and still look forward to with each passing year. The year 2021 gave us c...

• 
  Taxsutra Database Bulletin

Issue No. 251 / December 13th, 2021   Dear Professionals,    We are glad to present to you the 251st edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!   Status of Journals Updated    ITR V...

• 
  Taxsutra Database Bulletin

Issue No. 250 / November 26th, 2021   Dear Professionals,    We are glad to present to you the 250th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!   Status of Journals Updated    ITR Vol 438 PART 4 ...

• 
  Taxsutra Database Bulletin

The term “Assessment” under the Income-tax law covers a wide range of functions depending on the nature of assessment to be carried out, and the specific provisions in law governing the same. CA Dindayal Dhandaria in his article covers implications wherein assessments are required to be ...

• 
  Dindayal Dhandaria

Issue No. 249 / November 1st, 2021 Dear Professionals,  We are glad to present to you the 249th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena! Status of Journals Updated  Journals Dated ITR Volume No. ...

• 
  Taxsutra Database Bulletin

Recently, the SC in Mitsubishi Corporation hearing a batch of appeals filed before it, held that for chargeability of interest u/s 234B prior to FY 2013-14, the amount of income-tax deductible or collectible at source can be reduced while computing the advance tax liability. Ashwath Pai ...

• 
  Ashwath Pai
• 
  Sudeep Das

The Taxation Laws in India are litigation prone, and even though Indian Judiciary is internationally recognised for its detailed and unbiased verdicts on controversial issues, it lags behind when it comes to the time involved in closing an assessment. CA Sachin Kumar BP (Chief Strategic ...

• 
  Sachin Kumar BP

The Courts are usually flooded with writ petitions against statutory authorities over non-adherence to the principles of natural justice which has led to evolution of the principles in various dimensions. Recently, the Madras High Court thought it fit to dispose of an income-tax appeal pr...

• 
  Mahesh Chhajed
• 
  Hem Chhajed

Issue No. 248 / October 8th, 2021 Dear Professionals,  We are glad to present to you the 248th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena! Status of Journals Updated  ITR Vol 437 Part 1 Dated - 13th Sep 2021 ...

• 
  Taxsutra Database Bulletin

Misinformation about public policies spreads like wildfire on messaging applications and these days the widely used messaging platform of WhatsApp has become one of the mediums to spread fake news. On similar lines, since the past few days two WhatsApp messages regarding applicability of ...

• 
  Dindayal Dhandaria
• 
  Naveen Kumar Dhandaria

Issue No. 247 / September 22nd, 2021   Dear Professionals,    We are glad to present to you the 247th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!   *********************** Status of Journals Updated   ...

• 
  Taxsutra Database Bulletin

Issue No. 246 / September 8th, 2021 Dear Professionals,  We are glad to present to you the 246th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena! Status of Journals Updated ITR Vol 436 PART 2 Dated - 16th Aug 2021 ...

• 
  Taxsutra Database Bulletin

The term computer is not defined under the Income tax Act, however, under Information Technology Act, the function of composing and sending an email and receiving a reply qualifies as a computer. The Amritsar bench of ITAT in a recent ruling held that iPads are communicating devices and t...

• 
  K.Prasanna

The Black Money Act, enacted in 2015 has led to detection of several instances of undisclosed foreign income and  helped the government raise a tax demand of Rs. 8216 Cr by unearthing numerous violations.    Mr. Ruchesh Sinha (Advocate) along with Mr. R.K. Aggarwal and Mr. Pawan Aggar...

• 
  Ruchesh Sinha
• 
  R K AGGARWAL (FCA)

Issue No. 245 / September 1st, 2021 Dear Professionals,  We are glad to present to you the 245th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena! Status of Journals Updated  ITR Vol 435 PART 5 Dated 02nd August 2021 ...

• 
  Taxsutra Database Bulletin

The recent ruling by the Mumbai bench of ITAT in case of Pramod Lele , held that the expression ‘Management consultancy’ could not be brought within the ambit of ‘Technical consultancy’ and it is still a debatable issue whether it constitutes a business receipt or a professional receipt. ...

• 
  Sekar A

Issue No. 244 / August 25th, 2021  Dear Professionals,    We are glad to present to you the 244th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!  *********************** Status of Journals Updated  ITR - Vol 435 PART 4...

• 
  Taxsutra Database Bulletin

  The recent judgment by the Hon'ble Supreme Court in M.M. Aqua, which was also the last judgment by the legendary Justice R.F. Nariman, brings us to delve deeper into the legal position on declaratory statutes. The retrospective applicability of declaratory statutes, typically inserted ...

• 
  Sekar A

Issue No. 243 / August 17th, 2021  Dear Professionals,    We are glad to present to you the 243rd edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!  Status of Journals Updated  ITR - Vol 435 PART 3 Dated - 19 July 202...

• 
  Taxsutra Database Bulletin

MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 13th August, 2021/ Sravana 22, 1943 (Saka) The following Act of Parliament received the assent of the President on the 13th August, 2021, and is hereby published for general information:— THE TAXATION LAWS (AMENDMENT) ...

• 
  Ministry of Finance

The ‘The Taxation Laws (Amendment) Bill, 2021’ was notified in Aug 13, 2021. It withdraws the retrospective amendments on taxability of indirect transfers. The bill is an outcome of India’s long-time tax disputes with UK firms Cairn Energy PLC and Vodafone Group. Indian economy is regarde...

• 
  Sachin Kumar BP

Issue No. 242 / August 9th, 2021 Dear Professionals,  We are glad to present to you the 242nd edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena! Status of Journals Updated ITR - Vol 435 PART 2 Dated - 12th July 2021 ...

• 
  Taxsutra Database Bulletin

AS INTRODUCED IN LOK SABHA Bill No. 120 of 2021 THE TAXATION LAWS (AMENDMENT) BILL, 2021 A BILL further to amend the Income-tax Act, 1961 and the Finance Act, 2012. BE it enacted by Parliament in the Seventy-second Year of the Republic of India as follows:— CHAPTER I PRELIMINARY ...

• 
  Lok Sabha

There has been a wave of changes brought in since the adaptation of information technology more and more in day-to-day activities, be it any kind of activity. Even the change is being adapted by the Income tax department not only by implementing electronic filing of return but also bringi...

• 
  Uttamchand P. Jain

  Issue No. 241 / August 3rd, 2021   Dear Professionals,     We are glad to present to you the 241st edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!   Status of ...

• 
  Taxsutra Database Bulletin

Issue No. 240 / July 26th, 2021 Dear Professionals,  We are glad to present to you the 240th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!   Status of Journals Updated: ITR - Vol 435 PART...

• 
  Taxsutra Database Bulletin

As the pandemic continuing to grip the countries across the globe, its effect can be across sectors, with countries bringing about necessary legislative amendments to provide relief to affected sectors and public at large. The CBDT vide its Press Release dated 25th June 2021 announced tax...

• 
  M R Ashwini
• 
  T Usha Rani

To provide relief to taxpayers in view of the disruptions caused by the Covid-19 pandemic, the Government enacted “Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020” (TOLA). The TOLA seeks to enact legislative amendments in direct and indirect tax laws, wh...

• 
  Dindayal Dhandaria

Issue No. 239 / July 15th, 2021   Dear Professionals,    We are glad to present to you the 239th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!   *********************** Key Takeaways from Handpicked Rulings  ...

• 
  Taxsutra Database Bulletin

Issue No. 238 / July 8th, 2021   Dear Professionals,    We are glad to present to you the 238th edition of ‘Taxsutra Database Bulletin’, where we keep you updated with current trends in the tax arena!   *********************** Key Takeaways from Handpicked Rulings   ...

• 
  Taxsutra Database Bulletin

Issue No. 237 / July 1st, 2021 Dear Professionals,  “Taxsutra Database”, a true Income-tax research tool, is an archive of over 112490+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR (Trib) and also includes recent ‘unreported handpicked rulings of SC, HC & ...

• 
  Taxsutra Database Bulletin

Issue No. 236 / June 24th, 2021 Dear Professionals,  “Taxsutra Database”, a true Income-tax research tool, is an archive of over 112390+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR (Trib) and also includes recent ‘unreported handpicked rulings of SC, HC &...

• 
  Taxsutra Database Bulletin

Issue No. 235 / June 16th, 2021   Dear Professionals,    “Taxsutra Database”, a true Income-tax research tool, is an archive of over 112250+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR (Trib) and also includes recent ‘unreporte...

• 
  Taxsutra Database Bulletin

Retirement planning ensures independence, and enables people to lead a life with an uncompromised standard of living after superannuation. India is yet to implement a robust social security system with retirement benefits, thus, the employees plan their retirement kitty during the tenure ...

• 
  Anurag Jain
• 
  Shubham Goel

Issue No. 234 / June 8th, 2021   Dear Professionals,    “Taxsutra Database”, a true Income-tax research tool, is an archive of over 112115+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR (Trib) and also includes recent ‘unreported handpicked ...

• 
  Taxsutra Database Bulletin

The complex nature of taxation laws, coupled with their progressive & high rates of taxes and long drawn litigations have negatively impacted India's popularity in terms of  "ease of doing business". The Government in recent times has taken several measures to make tax legislation and adm...

• 
  Siddesh Nagaraj Gaddi
• 
  Ravi Garg

Issue No. 233 / June 1st, 2021 Dear Professionals,   “Taxsutra Database”, a true Income-tax research tool, is an archive of over 112090+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR (Trib) and also includes recent ‘unreported handpicked rulings of SC, HC &...

• 
  Taxsutra Database Bulletin

It is not uncommon for Companies to engage in complex restructuring arrangements to leverage their tax positions and make some tax savings by the side. Slump sale has always been one such popular restructuring route sought by corporates, usually looking for partial hive-offs from existing...

• 
  Yutika Lohia

Tax Residency is one of main decisive factors for establishing the category oftaxpayer and devising nexus with a country’s tax laws.Globally, the residential status of a person is a key factor in determining his or her taxability in aparticular country which is different from citizenship....

• 
  Parul Aggarwal

Issue No. 232 / May 25th, 2021   Dear Professionals,     “Taxsutra Database”, a true Income-tax research tool, is an archive of over 112020+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR (Trib) and also includes recent ‘unrep...

• 
  Taxsutra Database Bulletin

There has been a lot of fuss about the tax abuse done by giant tech corporations that have been drawing the attention of the Government as well as the public. Financial crisis of 2008 led to a lot of attention on such tax affairs leading to retaliation by OECD in the form of its BEPS Proj...

• 
  Arpith Jain

Issue No. 231 / May 11th, 2021   Dear Professionals,    “Taxsutra Database”, a true Income-tax research tool, is an archive of over 111850+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR (Trib) and also includes recent ‘unreported h...

• 
  Taxsutra Database Bulletin

The Finance Act 2021 has introduced Section 194Q providing for TDS on purchase of goods with effect from July 1, 2021. Section 194Q is similar to Section 206C(1H) which was introduced by Finance Act 2020, to collect tax at source on transactions between a buyer and a seller. CA Manjula A...

• 
  Manjula A

Issue No. 230 / April 22nd, 2021   Dear Professionals,    “Taxsutra Database”, a true Income-tax research tool, is an archive of over 111620+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR (Trib...

• 
  Taxsutra Database Bulletin

  In India, trusts are set up for the social causes and are approved by the Income-tax Department. The legal framework in India recognizes activities including "relief of the poor, education, medical relief, preserving monuments and environment, and the advancement of any other object of...

• 
  HARISH KARA

  Issue No. 229 / April 7th, 2021   Dear Professionals,    “Taxsutra Database”, a true Income-tax research tool, is an archive of over 111510+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR (Trib...

• 
  Taxsutra Database Bulletin

MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 28th March, 2021/Chaitra 7, 1943 (Saka) The following Act of Parliament received the assent of the President on the 28th March, 2021, and is hereby published for general information:— THE FINANCE ACT, 2021 NO. 13 OF ...

• 
  MINISTRY OF LAW AND JUSTICE

The Finance Bill, 2021 received its Presidential assent on March 28, 2021. It has undergone more than 100 amendments before being passed by the Parliament. In this context, Nitish Ranjan and  Richa Bakiwala (Manager – Taxation at Manohar Chowdhry & Associates), discuss some of the signifi...

• 
  Nitish Ranjan
• 
  Richa Bakiwala

Issue No. 228 / March 19th, 2021 Dear Professionals,     “Taxsutra Database”, a true Income-tax research tool, is an archive of over 111300+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR (Trib) and also includes recent ‘unrepo...

• 
  Taxsutra Database Bulletin

The very first direct tax proposal spelt out by Hon’ble Finance Minister in her budget speech of 2020-21 was, “Relief to Senior Citizens”. The bill proposes to provide senior citizens exemption from filing return of income subject to fulfilment of certain conditions. In this regard, CA An...

• 
  Anand Eriwal

Issue No. 227 / March 9th, 2021   Dear Professionals,     “Taxsutra Database”, a true Income-tax research tool, is an archive of over 111160+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR (Trib) ...

• 
  Taxsutra Database Bulletin

The treatment of excess application over income carried forward to future years has been a topic of debate with divergent views by various Courts. In this backdrop, the author, Mr. Manoj Kumar (Senior Partner, Manoj Kumar Mittal & Co) has elucidated the position pre and post the amendment...

• 
  Manoj Kumar

Abolition of DDT was a welcome move introduced by the Finance Act 2020 which have yielded benefits to many while also creating certain interesting issues that has crept in that needs to be addressed. In this backdrop, author Kalpesh Bafna (General Manager - Finance (Direct Tax & Strategic...

• 
  Kalpesh Bafna

Pursuant to announcement of merger of LVB with DBS India, many investors have been raising queries regarding the claim of loss on shareholding in LVB shares and whether under the tax laws, assessees are entitled to claim the loss in the current financial year and set it off against any ca...

• 
  S Ramanujam

Issue No. 225 / February 23rd, 2021 The ongoing Vivad se Vishwas scheme, 2020 which was introduced with an aim to reduce pending direct taxes litigations, is very beneficial to both the taxpayers and the Revenue. One of the eligibility criteria for the scheme is that an appeal in case of...

• 
  Taxsutra Database Insight

Historically, in business combinations viz amalgamations, demergers, slump sale, etc., the balance consideration/residual value over and above the net tangible assets (assets minus liabilities) taken over, is recorded as ‘goodwill’ towards acquisition of a bundle of business and commercia...

• 
  Sharath Rao
• 
  Amita Jivrajani

The Finance Bill, 2021 proposed an amendment to Section 139 to extend the due date of filing of income tax returns to the spouse of an individual covered under Section 5A and required to file a tax audit report under Section 44AB. In this context, CA Ashish V. Prabhu Verlekar and CA Satya...

• 
  Ashish Prabhu Verlekar
• 
  Satyaprakash Kamath

The government, in the Union Budget 2021, has in an endeavor to adopt the digital way of doing things has further taken ahead the faceless initiative and made announcements regarding the faceless proceedings before the Income-tax Appellate Tribunal (ITAT).  In this backdrop, author Sanjiv...

• 
  Sanjiv Chaudhary

LOK SABHA ———— The following Bills were introduced in Lok Sabha on 13th February, 2021:— BILL NO. 19 OF 2021 A Bill further to amend the Cinematograph Act, 1952, the Customs Act, 1962, the Airports Authority of India Act, 1994, the Trade Marks Act, 1999 and the Protection of Plant Var...

• 
  Lok Sabha

Issue No. 224 / February 16th, 2021   Dear Professionals,     “Taxsutra Database”, a true Income-tax research tool, is an archive of over 110800+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR (Trib) and also includes recent ‘un...

• 
  Taxsutra Database Bulletin

Exploring and evaluating the proposal to introduce faceless ITAT, R.E.Balasubramanyam, (Partner, Balu & Anand, Chartered Accountants) states that the COVID pandemic ensured that all of us had a taste of virtual proceedings before it becomes the norm and has only hastened the process. The ...

• 
  R E BALASUBRAMANYAM

Section 45(4) of the Income Tax Act, 1961 is proposed to be substituted and section 45(4A) inserted vide the Finance Bill, 2021, with consequential amendment of section 48.  CA Dindayal Dhandaria & CA Naveen Kumar Dhandaria explore the proposals and point out the anomalies therein. Noting...

• 
  Dindayal Dhandaria
• 
  Naveen Kumar Dhandaria

  Issue No. 223 / February 3rd, 2021   Dear Professionals,   “Taxsutra Database”, a true Income-tax research tool, is an archive of over 110610+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR (Trib) and also includes ...

• 
  Taxsutra Database Bulletin

  Budget 2021-2022 Speech of Nirmala Sitharaman,  Minister of Finance February 1, 2021 Hon'ble Speaker, I present the Budget for the year 2021-2022.  Introduction 1. Honourable Speaker, the preparation of this Budget was undertaken in circumstances like never before. We knew of c...

• 
  Budget 2021

Income accumulated in Indian retirement funds such as PF & PPF are typically taxed in the year of withdrawal and not in the year of accrual. However, in the absence of a specific provision in the Indian tax law that deferred taxation even in respect of foreign retirement funds, the income...

• 
  Rohini Ramya

BILL No. 15 OF 2021 THE FINANCE BILL, 2021 (AS INTRODUCED IN LOK SABHA) THE FINANCE BILL, 2021ARRANGEMENT OF CLAUSES CHAPTER I PRELIMINARY CLAUSES 1. Short title and commencement. CHAPTER II RATES OF INCOME-TAX 2. Income-tax. CHAPTER III DIRECT TAXES Income-tax 3. Amendment ...

• 
  Budget 2021

FINANCE BILL, 2021 PROVISIONS RELATING TO DIRECT TAXES Introduction The provisions of Finance Bill, 2021 (hereafter referred to as "the Bill"), relating to direct taxes seek to amend the Income-tax Act, 1961 (hereafter referred to as 'the Act'), Prohibition of Benami Property Transact...

• 
  Budget 2021

Issue No. 222 / January 22nd, 2021   Dear Professionals,      We are glad to present to you the 222nd edition of ‘Taxsutra Database Bulletin’, with a new feature “Judicial forward & backward reference”. This new feature aims ...

• 
  Taxsutra Database Bulletin

Most Foreign Companies engaged in turnkey engineering, procurement, construction and installation projects are commonly seen setting up project offices (‘PO’) in India for carrying out their activities in India. In this article, authors Pradnya Shetty and Mihir Patwa (Chartered Accountant...

• 
  Pradnya Shetty
• 
  Mihir Patwa

  F.NO. 370153/39/2020-TPL GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE (CENTRAL BOARD OF DIRECT TAXES) (TAX POLICY AND LEGISLATION DIVISION) New Delhi, 11th January, 2021 ORDER UNDER SECTION 119 OF INCOME TAX ACT, 1961 The Hon'ble Gujarat High Court vide judgeme...

• 
  Ministry of Finance

Issue No. 221 / January 4th, 2021   Dear Professionals,     We are glad to present to you the 221st edition of ‘Taxsutra Database Bulletin’, with a new feature “Judicial forward & backward reference”. This new feature aims to...

• 
  Taxsutra Database Bulletin

Deduction u/s 80JJAA is a Game changer since Budget 2016 as the amended law is with a view to encourage employment generation. Author CA Sunil Maloo (Managing Partner, Sunil Maloo & Co) highlights that the benefit u/s. 80JJAA is an additional deduction of 30% of additional employee cost i...

• 
  Sunil Maloo

Issue No. 220 / December 7th, 2020  Dear Professionals,     We are glad to present to you the 220th edition of ‘Taxsutra Database Bulletin’, with a new feature “Judicial forward & backward reference”. This new feature aims to update readers about the judicial impact of a ruling in terms...

• 
  Taxsutra Database Bulletin

  OFFICE OF THE CHIEF COMMISSIONER OF INCOME TAX-03, CENTRAL REVENUE BUILDING, IP. ESTATE, NEW DELHI-119002, E-mail: dethi.addicit.hq.coord@incometax.gov.in       Dated. 06.10.2020 F. No.CCIT-03/(Hqrs.)(Coord.) /Valuer/2020-21/ 3281) Order u/s 34AD of the Wealth Tax Act, 1957 In e...

• 
  CBDT

The word retrospective signifies looking back at, thus retrospective effect of law means giving effect to the amendment in the existing law before the date in which the changes/amendment was brought in. Authors Rajesh Kumar & Anjali Jain, Advocates in their article discuss the nuances of ...

• 
  Rajesh Kumar

  Issue No. 219 / November 19th, 2020   Dear Professionals,    We are glad to present to you the 219th edition of ‘Taxsutra Database Bulletin’, with a new feature “Judicial forward & backward reference”. This new feature aims to update readers...

• 
  Taxsutra Database Bulletin

Pursuant to a M.O.U. between the CBIC and the Income Tax Department, information contained in GST Return has, recently, been made part of Annual Information Report in Form 26AS. In this backdrop, Chartered Accountants Dindayal Dhandaria and Naveen Kumar Dhandaria discuss the purpose which...

• 
  Naveen Kumar Dhandaria
• 
  Dindayal Dhandaria

   Issue No. 218 / November 6th, 2020   Dear Professionals,    We are glad to present to you the 218th edition of ‘Taxsutra Database Bulletin’, with a new feature “Judicial forward & backward reference”. This new feature a...

• 
  Taxsutra Database Bulletin

Issue No. 217 / October 17th, 2020   Dear Professionals,    We are glad to present to you the 217th edition of ‘Taxsutra Database Bulletin’, with a new feature “Judicial forward & backward reference”. This new feature aims to...

• 
  Taxsutra Database Bulletin

On Aug 13, the Government launched a transparent platform for faceless assessment, faceless appeals and Citizens Charter. In this backdrop, author CA Sachin Kumar BP (Partner, Manohar Chowdhry & Associates, Chartered Accountants) discusses the niceties and nuances of the new scheme and st...

• 
  Sachin Kumar BP

    Issue No. 216 / October 1st, 2020   Dear Professionals,   “Taxsutra Database”, a true Income-tax research tool, is an archive of over 108925+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR (Trib) and also...

• 
  Taxsutra Database Bulletin

MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 29th September, 2020/Asvina 7, 1942 (Saka) The following Act of Parliament received the assent of the President on the 29th September, 2020 and is hereby published for general information :— THE TAXATION AND OTHER LAW...

• 
  Lok Sabha

The Finance Act 2015 amended the test of residence for foreign companies to provide that a company would be treated as resident in India if its “place of effective management” (POEM) in the previous year is in India. The intention of the provision is to target shell companies and companie...

• 
  Rishabh Jain

Issue No. 215 / September 11th, 2020   Dear Professionals,   “Taxsutra Database”, a true Income-tax research tool, is an archive of over 108650+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR ...

• 
  Taxsutra Database Bulletin

Recently, the Mumbai bench of the Tribunal in the case of Renu T Tharani (“the assessee”) [TS-6762-ITAT-2020(Mumbai)-O], held the peak credits appearing in the HSBC bank account of one GWU Investments Ltd, a Cayman Islands Company, shares of which were held by the family trust of the asse...

• 
  Bharath Janarthanan

  Issue No. 214 / August 27th, 2020   Dear Professionals,    “Taxsutra Database”, a true Income-tax research tool, is an archive of over 108430+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR (Trib) and also include...

• 
  Taxsutra Database Bulletin

Earlier this month, Supreme Court in a historic three-member bench judgment, Vineeta sharma vs Rakesh Sharma [TS-5061-SC-2020-O], clarified the scope of inheritance by a female of HUF property. Considering HUF as a valuable tool for tax purposes, S. Ramanujam (Chartered Accountant), in hi...

• 
  S Ramanujam

Issue No. 213 / August 12th, 2020    Dear Professionals,   “Taxsutra Database”, a true Income-tax research tool, is an archive of over 108150+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and IT...

• 
  Taxsutra Database Bulletin

With a view to curb tax avoidance, BEPS Action Plan 6 imposes minimum standards to prevent grant of treaty benefits obtained by circumvention of either the treaty itself (e.g. treaty shopping through conduit finance arrangements) or of domestic tax legislations. Under the MLI provisions, ...

• 
  Vrinda Bagaria

Finance Act 2020 re-introduced the classical system of taxing dividends in the hands of the shareholders as was prevalent in the past and will apply to dividends distributed on or after 1 April 2020. The effective DDT rate of 20.56% was also significantly higher than the maximum rate at w...

• 
  Unnati Sharma
• 
  Upamanyu Manjrekar

  Issue No. 212 / July 29th, 2020   Dear Professionals,   “Taxsutra Database”, a true Income-tax research tool, is an archive of over 107800+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR...

• 
  Taxsutra Database Bulletin

Totalization agreements / Social security agreement (SSA) are entered into to help the nationals of one country to remain covered in the social security schemes of their home country or to obtain / enhance benefits from coverage in the host country schemes. CA Rohini Ramya (Partner, Taxko...

• 
  Rohini Ramya

  Issue No. 211 / July 13th, 2020    Dear Professionals,   “Taxsutra Database”, a true Income-tax research tool, is an archive of over 107560+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR (...

• 
  Taxsutra Database Bulletin

With a view to curb tax avoidance across various developed and developing countries, OECD Action Plan 15 provided for development of a Multilateral Instrument (‘MLI’) to counter abuse of Tax treaties or Tax treaty network for gaining tax advantages. Under the MLI provisions, Article 7 (wh...

• 
  Kinjesh Thakkar

  Issue No. 210 / June 25th, 2020    Dear Professionals,   “Taxsutra Database”, a true Income-tax research tool, is an archive of over 107400+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR,...

• 
  Taxsutra Database Bulletin

  Issue No. 209 / June 10th, 2020   Dear Professionals,   “Taxsutra Database”, a true Income-tax Research is an archive of over 107375+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and which also includes ...

• 
  Taxsutra Database Bulletin

Author Advocate Dharan Gandhi in Part 3 of his article discusses nuances further to reimbursement in cases of secondment of employees and examines the possibility of constitution of various forms of PEs upon such secondment. Considering that when senior employees are seconded, they are mo...

• 
  Dharan V Gandhi

The “cess” was introduced in the Finance Act, 2004, as “an additional surcharge” and the issue on deductibility of ‘education cess’ while computing income from business or professional has been a debatable one for a while now. Author Prabhat Agarwal (Chartered Accountant), in his article...

• 
  Prabhat Agarwal

  Issue No. 207 / May 27th, 2020   Dear Professionals,    “Taxsutra Database”, a true Income-tax Research is an archive of over 107310+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and wh...

• 
  Taxsutra Database Bulletin

Authors Sunny Bansal and Akanksha Gupta (Chartered Accountants) in their article unveil the issues and interpretations surrounding Sec. 115BAB recently introduced vide the Taxation Laws (Amendment) Act, 2019 providing a reduced rate of 15% for manufacturing entities. The authors analyse t...

• 
  Sunny Bansal
• 
  Akanksha Gupta

Earlier in Part 1 of his article, Dharan V. Gandhi ( Advocate) deliberated on tax implications in respect of payments made by Indian companies to their overseas counterparts for secondment of employees, more particularly employees deputed at senior positions. In Part 2, this week the auth...

• 
  Dharan V Gandhi

Issue No. 206 / May 21th, 2020    Dear Professionals,   “Taxsutra Database”, a true Income-tax Research is an archive of over 107240+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and which also includes recent ‘unreporte...

• 
  Taxsutra Database Bulletin

  Issue No. 205 / May 13th, 2020   Dear Professionals,    “Taxsutra Database”, a true Income-tax Research is an archive of over 107070+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and which also includes rece...

• 
  Taxsutra Database Bulletin

The inordinate delays in issue of refunds, particularly in the cash-crunch times of COVID-19 crisis, have prompted certain taxpayers to take the custody battle to Courts, latest ruling on the issue being in the case of Vodafone Idea Ltd by the Apex Court. BS Nagaraj and GL Rinitha, Chart...

• 
  B S Nagaraj
• 
  Rinitha G L

Recent developments in India concerning International Taxation, could be seen as an albatross around the neck for the non-resident e-commerce players. With an increase in compliance burden and potential increase of costs, many of the e-commerce players consider unilateral measures taken b...

• 
  Bharathi Krishnaprasad
• 
  Harshit Khurana

Issue No. 204 / May 6th , 2020   Dear Professionals, “Taxsutra Database”, a true Income-tax Research is an archive of over 106870+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and which also includes recent ‘unreported handpicked ruling of SC, HC & I...

• 
  Taxsutra Database Bulletin

Registration u/s 12AA is condition precedent to claim exemption under Sections 11 to 13 of the IT Act and charitable institutions also need to be registered u/s 80G of the IT Act for its donors to avail deductions. At the stage of granting registration, objects of trust / institution, pur...

• 
  Jatin Proothi

 Issue No. 203 / April 29th, 2020    Dear Professionals,   “Taxsutra Database”, a true Income-tax Research is an archive of over 106700 + Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and whi...

• 
  Taxsutra Database Bulletin

In order to fight COVID-19, countries across the globe are taking measures on restriction on travel, imposing lockdown etc. Owing to the same, many employees of a foreign entity could be stranded and forced to work remotely from India and in many cases, the employees stay-period may excee...

• 
  Sachin Kumar BP

Issue No. 203 / April 22nd, 2020     Dear Professionals,  “Taxsutra Database”, a true Income-tax Research is an archive of over 106680+ Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and which also includes recent ‘unreported handpicked ruling of SC, H...

• 
  Taxsutra Database Bulletin

The economic effects of social-distancing measures to contain the COVID -19 virus; along with plummeting consumer and business confidence, have delivered a sharp blow to near-term growth prospects and has slowed down the economy drastically. In a globally connected world, cross border mov...

• 
  Venkat Nalam
• 
  Divya B

Issue No. 202 / April 15th, 2020    Dear Professionals, “Taxsutra Database”, a true Income-tax Research is an archive of over 106700 + Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and which also includes recent ‘unreported handpicked ruling of SC, HC...

• 
  Taxsutra Database Bulletin

Multinational companies often depute their employees overseas to perform certain assigned activities, to provide technical assistance, or provide skill-development opportunities to employees etc. Reimbursement of salary costs of such ‘Seconded Employees’, unless carefully structured, can ...

• 
  Dharan V Gandhi

  Issue No. 201 / April 8th, 2020     Dear Professionals,   “Taxsutra Database”, a true Income-tax Research is an archive of over 106600 + Income Tax Rulings reported across ITR, CTR, Taxman, DTR, ITD, TTJ, and ITR(Trib) and which...

• 
  Taxsutra Database Bulletin

Introduction Allowability of the exemption under Sec 54 and 54 F for investment in residential house without depositing in the capital gains account scheme has been subject matter of litigation for a considerable length of time. The conflicting judgments of various high courts has kept t...

• 
  CA T G Suresh
• 
  Arjun Suresh

Taxability of ‘Fees for technical services’ / 'Fees for included services' in matters of cross border deputation of employees is one of the most contentious issues with the Income Tax Department trying to bring such payment within the ambit of Fees for Technical Service. One of the most s...

• 
  Taxsutra Database Insight

  The Gazette of India REGISTERED NO. DL—(N)04/0007/2003—20 CG-DL-E-31032020-218979 EXTRAORDINARY PART II — Section 1 PUBLISHED BY AUTHORITY [No. 21] NEW DELHI, TUESDAY, MARCH 31, 2020/CHAITRA 11, 1942 (SAKA) MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 31...

• 
  MINISTRY OF LAW AND JUSTICE

MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 27th March, 2020/Chaitra 7, 1942 (Saka) The following Act of Parliament received the assent of the President on the 27th March, 2020, and is hereby published for general information:— THE FINANCE ACT, 2020 12 OF 2...

• 
  MINISTRY OF LAW AND JUSTICE

AS PASSED BY LOK SABHA ON 23.03.2020 Bill No. 26-C of 2020 THE FINANCE BILL, 2020 ------ ARRANGEMENT OF CLAUSES ------ CHAPTER I PRELIMINARY CLAUSES 1. Short title and commencement. CHAPTER II RATES OF I NCOME-TAX 2. Income-tax. CHAPTER III DIRECT T AXES Income-tax 3. Am...

• 
  Lok Sabha

*List No. 1 LOK SABHA FINANCE BILL, 2020 [As introduced in Lok Sabha] Notice of amendments S.No Name of Member and text of Motion Clause No SMT. NIRMALA SITHARAMAN   1. Page 8, after lines 16, insert - 3   "(ia) in clause (...

• 
  Lok Sabha

Taxability of ‘Fees for technical services’/'Fees for included services' in matters of cross border deputation of employees is one of the most contentious issues with the Income Tax Department trying to bring such payment within the ambit of Fees for Technical Service. One of the most sig...

• 
  Taxsutra Database Insight

MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 17th March, 2020/Phalguna 27, 1941 (Saka) THE DIRECT TAX VIVAD SE VISHWAS ACT, 2020 NO. 3 OF 2020 [17th March, 2020.] An Act to provide for resolution of disputed tax and for matters connected therewith or incide...

• 
  MINISTRY OF LAW AND JUSTICE

Vide Finance Bill 2020, Government proposed to collect TCS in respect of two transactions, namely, overseas remittances and TCS on sale of goods above specified limit. The Memorandum to the Finance Bill 2020 states that the intent of expanding the scope of TCS provisions is to widen and d...

• 
  Deepak Manoharan
• 
  Abhishek Singhvi

To reduce direct tax litigation after the success of 'Sabka Vishwas Scheme’, Lok Sabha on 4th March passed 'Direct Tax Vivad se Vishwas Bill, 2020'. Also, the CBDT on 5th March, 2020 released 55 FAQ clarifying technical interpretations on the Scope / illegibility, Calculation, Procedure, ...

• 
  Taxsutra Database Insight

Tax litigations are vexatious, both for the assessees and the Government. One of the ambitious schemes introduced by FM in the Union Budget 2020 to tackle this, is the dispute settlement scheme known as ‘Vivad se Vishwas’ (From Dispute to Trust). Also, CBDT has issued FAQs last week to cl...

• 
  CA R Krishnan

  AS PASSED BY LOK SABHA ON 4.3.2020 Bill No. 29-C of 2020 THE DIRECT TAX VIVAD SE VISHWAS BILL, 2020 A BILL to provide for resolution of disputed tax and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Seventy-first Year of the Republic o...

• 
  Lok Sabha

The expression used in Sec. 80-IA is “Profits and gains derived from any business of an Industrial Undertaking etc” and the expression “derived from”’ is narrower then ''attributable to'' the business. The source of the income must be directly connected with the business and generated the...

• 
  Taxsutra Database Insight

Profits and gains arising from the transfer of a capital asset by a partner to a firm shall be chargeable as the partner`s income of the previous year in which the transfer took place under sub-section (3) to section 45. Circular 495 dated 22-9-1987 explained the intention of the sub-sect...

• 
  Taxsutra Database Insight

Finance Minister Mrs Nirmala Sitharaman in her Budget 2020 speech has proposed to incorporate taxpayer’s charter in the income tax statute, while emphasizing that, “An important aspect of both ease of living and ease of doing business is fairness and efficiency of tax administration. We w...

• 
  Subham Kumar
• 
  Ankita Baid

As Govt. of India aims to settle the unresolved issues with the 'Direct Tax Vivad se Vishwas Bill, 2020' [“The Scheme”], the Union Cabinet approved amendments to “The Scheme” with a view to increase its scope to cover litigations pending in revision, arbitration, DRP cases, etc.  The Fin...

• 
  Taxsutra Database Insight

1. Tax on dividend income Following amendments are suggested in regard to scheme of taxability of dividend in the hands of shareholders:- (a) In order to give relief to small shareholders, provisions of section 80L which were earlier providing for exemption upto Rs.12,000/- of dividend ...

• 
  Advocate V P Gupta

The Govt. of India has been offering amnesty schemes practically every ten years to put an end to litigation in various forms and at various stages under Direct & Indirect Tax  and the Schemes have been described as the “very last opportunity”. The constitutional validity of VDIS, 1997 wa...

• 
  Taxsutra Database Insight

The Direct Tax Vivad Se Vishwas Bill, 2020 [“Bill”] was introduced in Lok Sabha on Dec 5th 2020 to reduce pending litigation related to Direct Taxes. The Bill will be enacted as law once it is approved by both houses of the Indian Parliament. Author V P GUPTA , Advocate examines the propo...

• 
  Advocate V P Gupta

Finance Bill, 2020 proposed to amend Section 43CA, 50C and 56 of the IT Act to increase in the safe harbour limit from 105% to 110%. It becomes an utmost aspect of concern that many times, there is a significant variation in the value of the properties within same locality considering whi...

• 
  Dharan V Gandhi

The Finance Bill, 2020 proposes to make a plethora of procedural changes in the matter of granting exemption to Charitable Institutions from income tax and continuance thereof. Author Dindayal Dhandaria, Chartered Accountant, examines the nuances of the proposals and their impact on the c...

• 
  Dindayal Dhandaria

Bill No. 29 of 2020 THE DIRECT TAX VIVAD SE VISHWAS BILL, 2020 A BILL to provide for resolution of disputed tax and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Seventy-first Year of the Republic of India as follows:— 1. Short title. Thi...

• 
  Lok Sabha

The Union Budget 2020, presented by Hon’ble Finance Minister Nirmala Sitharaman on 1st Feb, 2020 has announced a new regime for individual taxpayers to make a choice between the old and new regimes with an objective that the taxpayers would be able to file their Income tax returns themsel...

• 
  Budget 2020

Finance BILL, 2020 proposes to amend the tax residency of non-residents by inserting sub-section (1A) to Section 6 to deem an Indian Citizen to be resident in India, if such an individual is not liable to tax in any other country or territory by reason of his residence or domicile or any ...

• 
  Shyam Nori

The Union Budget 2020 has proposed, of what can be termed as a sigh of relief especially to the India inbound investors community and is likely to attract foreign investments. Finance Minister Mrs. Nirmala Seetharaman has proposed to make the provisions of section 115-O redundant and inop...

• 
  Deepak Manoharan
• 
  Nathansha Dilip

In its endeavor to reduce tax litigation, Government in the Budget 2020 has taken quite a few steps. One such step which is likely to be very effective is the proposal to reduce the rate of TDS u/s. 194J in cases of fees for technical services (other than professional services) from 10% t...

• 
  Dindayal Dhandaria
• 
  Naveen Kumar Dhandaria

FINANCE BILL, 2020 PROVISIONS RELATING TO DIRECT TAXES Introduction The provisions of Finance Bill, 2020 (hereafter referred to as "the Bill"), relating to direct taxes seek to amend the Income-tax Act, 1961 (hereafter referred to as 'the Act'), Prohibition of Benami Property Transacti...

• 
  Budget 2020

BILL No. 26 OF 2020 THE FINANCE BILL, 2020 (AS INTRODUCED IN LOK SABHA) THE FINANCE BILL, 2020 ARRANGEMENT OF CLAUSES CHAPTER I PRELIMINARY CLAUSES 1. Short title and commencement. CHAPTER II RATES OF INCOME-TAX 2. Income-tax. CHAPTER III DIRECT TAXES Income-tax 3. Amendme...

• 
  Budget 2020

   MINISTRY OF FINANCE (Department of Economic Affairs) (BUDGET DIVISION) NOTIFICATION F. No. 2(2)-B(D)/2020.—The following is published for genered information.— Budget 2020-2021  Speech of Nirmala Sitharaman Minister of Finance Minister of Finance February1, 2020 Hon’ble S...

• 
  Budget 2020

The ’make available‘ clause in respect of Fees for Included Services (FIS)/ Fees for Technical Services (FTS) is more or less similarly defined under the Income Tax Act and under several DTAAs. We have various HC, AAR and ITAT rulings that have held that an amount paid for technical servi...

• 
  Taxsutra Database Insight

There is a fervent debate regarding disallowance of employees’ contribution of provident fund post the “due date” and inclusion of such contribution as income of the employer owing to conflicting judgments of various high courts and the CBDT Circular No. 22/2015, dated 17-12-2015. Authors...

• 
  CA T G Suresh
• 
  Arjun Suresh

Government of India vide Notification No. S.O 115(E) dated 8th January 2020 deferred the effective date of applicability from 9th January 2020 to 1st day of April, 2020. The authors, CA Mukesh Kumar M, CA Swetha A, Vivek V & Varsha at M2K Advisors Pvt Ltd have written this well-researche...

• 
  CA Mukesh Kumar M

CBDT recently notified a new E-Assessment Scheme to reduce interaction between assesses and assessing officers. It has also been announced that over 58,000 notices have been issued under this new scheme, notified on Sep 12, 2019, in respect of AY 2018-19. Authors, Dindayal Dhandaria & Na...

• 
  Dindayal Dhandaria

Continuing our series relevant for the first assessment after demonetisation (OCM) at Taxsutra Database Insight, we have compiled recent 15 cases that operate at the intersection of presumptive taxation, assessment of cash deposits after demonetization and additions u/ss. 68 to 69C. Some ...

• 
  Taxsutra Database Insight

Continuing our series relevant for first assessment after demonetisation, we look at 21 cases, of which 3 were decided in Revenue’s favour. Most cases are culled from cases arising out of earlier instances of demonetisation in India. All cases discussed below have as an important factor ...

• 
  Taxsutra Database Insight

A very common reason for litigation involving unexplained cash credits is that the AOs often reject books of accounts and apply Gross Profit (GP) rate based addition to business income, and also an addition on account of unexplained cash credits. The assessee invariably strenuously object...

• 
  Taxsutra Database Insight

Dr. CA Abhishek Murali analyses the implications of Section 68 and visits the loaded question of who bears the onerous burden of proving its contention – the assessee, or the revenue. He also discusses whether Section 68 can apply when books are rejected, or a best judgment assessment u/s...

• 
  Dr. CA Abhishek Murali

  AS PASSED BY LOK SABHA ON 2.12.2019 Bill No. 362-C of 2019 THE TAXATION LAWS (AMENDMENT) BILL, 2019 A BILL further to amend the Income-tax Act, 1961 and to amend the Finance (No. 2) Act, 2019. BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows...

• 
  MINISTRY OF LAW AND JUSTICE

Economic Turnaround by sweeping reforms: Taxation Aspects and Issues 1.0 Background and Overview The Indian economy grew by merely 5% in the first quarter of the financial year (‘FY’) 2019-20, down from 5.8% in the previous quarter. Registering a continuous downward spiral, the GDP grow...

• 
  VINAY DESHMANE
• 
  Dhwanil Shah

MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 20th September, 2019/Bhadra 29,1941 (Saka) The Taxation Laws (Amendment) Ordinance, 2019 No 15 OF 2019 Promulgated by the President in the Seventieth Year of the Republic of India. An Ordinance further to amend the ...

• 
  MINISTRY OF LAW AND JUSTICE

MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 1st August, 2019/Shravana 10, 1941 (Saka) The following Act of Parliament received the assent of the President on the 1st August, 2019, and is hereby published for general information:— THE FINANCE (NO. 2) ACT, 2019NO...

• 
  Finance Act, 2019

  AS PASSED BY LOK SABHA ON 18.7.2019Bill No. 55-C of 2019  THE FINANCE (NO. 2) BILL, 2019 Bill No. 55-C of 2019 ARRANGEMENT OF CLAUSESCHAPTER I PRELIMINARY   CLAUSES 1. Short title and commencement.   CHAPTER IIRATES OF INCOME-TAX   2. Income-tax.   CHAPTER IIIDIRECT TAXES...

• 
  Budget 2019

Bill No. 55 of 2019 THE FINANCE (NO.2) BILL, 2019 AS INTRODUCED IN LOK SABHA   THE FINANCE (NO.2) BILL, 2019_________ARRANGEMENT OF CLAUSES__________CHAPTER IPRELIMINARY CLAUSES1.Short title and commencement. CHAPTER IIRATES OF INCOME-TAX 2. Income-tax. CHAPTER IIIDIRECT TAXES In...

• 
  Budget 2019

Finance (No.2) Bill, 2019 PROVISIONS RELATING TO DIRECT TAXES & RELATED LAWS Introduction The provisions of Finance (No. 2) Bill, 2019 relating to direct taxes seek to amend the Income-tax Act, 1961 (hereafter referred to as ‘the Act’), to continue to provide momentum to the buoyancy i...

• 
  Budget 2019

  MINISTRY OF FINANCE (Department of Economic Affairs) (BUDGET DIVISION) NOTIFICATION New Delhi, the 5th July, 2019 No. F. 2(4)-B(D)/2019.—The following is published for general information:— Budget 2019-2020 Speech of Nirmala Sitharaman Minister of Finance July 5, 2019 Mr.Speak...

• 
  Budget 2019

Rewarding deserving employees through attractive schemes has always been a priority or focus area for HR function of every organization.  Attractive schemes help motivate high performance employees and help company retain best talent with them for a long tenure.  Amongst other schemes, on...

• 
  Amit Nayyar
• 
  Sonal Arora

In addition to general anti-avoidance measures, the Income Tax Act, 1961 (‘Act’) incorporates various provisions designed to prevent the flow of concealed or disguised income in the economy. Section 68 of the Act is one such provision, which empowers Indian Tax authorities to tax suspicio...

• 
  Amit Nayyar
• 
  Vipin Sharma

Recently, the Supreme Court, in an ex-parte decision in the case of NRA Iron [TS-5030-SC-2019-O], ruled upon the applicability of Sec. 68 in the scenario of issue of shares at a high premium while reversing all the lower Courts decisions. The Apex Court held that if upon investigation, th...

• 
  CA, Prakash Sinha.

  Taxsutra Database presents compilation of 100+ handpicked, important rulings reported on Orange during the financial year 2018-19   Issue No. 181 / April 5th, 2019 Sr. No Taxsutra Database Annual Digest - Key Takeaways from Handpicked rulings of F.Y 2018...

• 
  Taxsutra Database Insight

There have been various controversies surrounding the interpretation and application of Section 14A of the Income-tax Act, 1961 (‘Act’), which have been subject to extensive litigation. The most recurrent and significant issue being that of recording of satisfaction by the Assessing Offic...

• 
  CA, Ashish Chadha

The following Act of   Parliament received the assent of the President on the 21st February, 2019, and is hereby published for general information:— THE FINANCE ACT, 2019 No. 7 of 2019 [21st February, 2019.] An Act to continue the existing rates of income-tax for the financial year 20...

• 
  Finance Act, 2019

Budget 2019 has left the stake-holders perplexed as to applicability of some of the proposed amendments. Mr. J V Kodhandapani, FCA and CWA (Pani & Associates), in this article, evaluates one such amendments viz., benefit of re-investment of capital gains in two residential houses. Probing...

• 
  CA, J V Kodhandapani

CA Prakash Sinha (Partner, Prakash Sachin & Co.) discusses the amendment proposed in Sec. 54 i.e., benefit of re-investment of capital gains in two residential houses and examines a critical question viz., whether this amendment is prospective or retrospective. The author states that the ...

• 
  CA, Prakash Sinha.

CA Mahesh Chhajed (Partner, M. S. Chhajed & Co) classifies and highlights the important proposals in the areas of real estate and residential houses, small and medium income earners, TDS and income tax assessments. Author highlights exemption from notional interest on 2nd self occupied pr...

• 
  Mahesh Chhajed

CA Mukesh Kumar M (Partner, M2K Advisors P Ltd) discusses the ‘sops’ proposed in the interim budget such as the direct income support to farmers having cultivable land upto 2 hectare under Pradhan Mantri Kisan Samman Nidhi of Rs. 6000 p.a., extension of interest subvention of 2% to farmer...

• 
  CA Mukesh Kumar M

Welcome back again…..lets continue the journey from Part II and let us discuss more on 56(2)(viib), with related instructions / notifications! Before we proceed further, there are couple of notable judgements from Hon'ble ITAT Bangalore, which were pronounced very recently and are quite ...

• 
  Prashanth K L
• 
  CA Siddanna Biradar

Discussion on the issues on the strength of the available precedence Welcome back…..lets continue the journey from Part I and let us discuss the issues involved U/s 56(2)(viib) in the light of the available precedents! 1. Is section 56(2)(viib) applicable where preference shares are all...

• 
  Prashanth K L
• 
  CA Siddanna Biradar

Introduction to the section, its literal understanding and the issues involved   The recipe for a successful business is one brilliant idea, strong enthusiasm and initial capital!! Mr. X had one such idea, strong enthusiasm and was able to get the funding for his newly incorporated com...

• 
  Prashanth K L
• 
  CA Siddanna Biradar

The Insolvency and Bankruptcy Code ('IBC') was passed by the Parliament in the year 2016. It is well acknowledged that with IBC, Mergers and Acquisitions ('M&A') activity has seen an uptick in the country with Associated Chambers of Commerce and Industry ('ASSOCHAM') predicting almost USD...

• 
  Hardeep Singh Chawla

Section 94B has been inserted in Income Tax Act, 1961 via Finance Bill,2017 to curb the practice of shifting of profits to tax havens through excessive interest payments by primarilyconsidering the recommendations by the OECD under Action Plan 4 of the Base Erosion and Profit Shifting ("B...

• 
  CA Shweta Gupta
• 
  CA Gaurav Garg, CA Arushi Jain

Supreme Court in its recent judgment set a precedent by holding that interest paid by banks to NOIDA  (The New Okhla Industrial Development Authority​ constituted under UP Industrial Area Development Act, 1976) is not liable to TDS u/s. 194A. Vishal Rastogi (AGM Taxation, LG Electronics (...

• 
  Vishal Rastogi

The Finance Act, 2001 inserted section 14A in the Income-tax Act, 1961 with retrospective effect from 01 April, 1962. Section 14A provides that expenditure incurred in relation to exempt income shall not be allowed as a deduction while computing total income. The Memorandum to the Finance...

• 
  Falguni Shah, Partner
• 
  Hiten Kotak, Leader

It is generally believed by practitioners as well as law enforcement agencies that offences related to tax evasion are civil offences. As a result, such offences are not considered cognizable offences and power to arrest without a warrant has not been bestowed with tax officers under the ...

• 
  Mr Smarak Swain

It is that time of the year when the rush for filing of the first batch of income tax returns begins, comprising mostly of salaried employees and small businessmen. There are a number of issues surrounding salary taxation viz. exemption of HRA; taxability of salary received by non-residen...

• 
  Taxsutra Database Insight

The assessment proceedings, completed under Section 143(3) of the Income-tax Act, 1961 ("Act"), have to be conferred sanctity and any reopening of the same has to be on a sound legal basis and not on a mere conjecture or surmise on for frivolous reasons. Existence of "reason to believe" i...

• 
  Advocate Yojit Pareek

It has been a subject matter of debate in the past whether, in absence of specific provisions under the Income-tax Act, 1961 (the Act), can an authority condone delay in filing a statutory form? Whether power to condone the delay is an inherent power of an authority before whom the form /...

• 
  L N Pant
• 
  Darshana Deshmukh

On 9th May 2018, SoftBank chief Masayoshi Son made a historic announcement about the biggest e-commerce deal in the history of the world — the “Flipkart-Walmart deal”. According to the announcement, “Walmart will pay approximately $16 Bn for an initial stake of about 77% in Flipkart. Th...

• 
  Samir Sanghvi

Dawn of a New Era in Income Tax Filing With the dawn of a new era in Income Tax return filing, the CBDT and Government of India have taken into consideration the expected increased compliance. In AY 2018-19 (relevant to FY 2017-18), the tax base of the Indian Income Tax Payer is set to i...

• 
  Abhishek Murali

Overview There has been substantial litigation on the issue of disallowance under section 14A of the Income-tax Act, 1961 (the Act) read with Rule 8D of the Income-tax Rules, 1962 (the Rules). The Supreme Court (SC) in its recent decision in Maxopp Investment Ltd v. CIT [TS-5170-SC-201...

• 
  Percy Chhapgar
• 
  Milin Thakore & Jayesh Desai

Prelude Hong Kong is India’s new Double Tax Avoidance Agreement (‘Tax Treaty or DTAA’) partner. The Government of India and the Hong Kong Special Administrative Region of People’s Republic of China (‘Hong Kong’) signed the DTAA on 18th March 2018.  It is imperative to note here that the ...

• 
  Sudarshan Rangan

The Finance Act 2017, introduced multiple changes and it is necessary to keep track of these amendments while filing the return of income. Further the CBDT introduced the new ITR forms A.Y 2018-19 on 5th April, 2018 with modifications as compared to the ITR forms of the previous A.Y. Here...

• 
  Ameet N. Patel
• 
  Ayesha Aziz

History Section 14A of the Income-tax Act, 1961 (‘Act’) was introduced by the Finance Act 2001 with retrospective effect from 1 April 1962, to provide for disallowance of expenditure incurred/ deemed to have been incurred in relation to earning of income not chargeable to tax in India. ...

• 
  Jaideep Kulkarni

Introduction Section 271(1)(c) of the Income Tax Act, 1961 (“the Act”) is the main and widely used section for levying penalty whether it be for non – appearance, non-compliance of notices or for additions/ adjustments to the total income. It is a known fact that penalty (automatically)...

• 
  Bhavin J. Marfatia
• 
  Virat A. Bhavsar

1. In the light of various references received from the field formation from time to time, existing guidelines on compounding of offences under Income-tax Act, 1961 (the Act) have been reviewed and in supersession of the same, including the guidelines issued vide F.No. 285/90/2008-IT(Inv....

• 
  CBDT

Sharp increase in prosecutions of tax evaders by Income Tax Department The Income Tax Department has accorded the highest priority to tackle the menace of black money. With this objective in mind, the Department has initiated criminal prosecution proceedings in a large number of cases of...

• 
  CBDT

A whopping 2225 prosecution complaints have been filed, with 1052 complaints compounded and 48 defaulters convicted by Courts during the period of April to November 2017 as per press release issued by the Finance Ministry on 12 January 2018. Some of the lapses which can attract prosecutio...

• 
  Taxsutra Database Insight

It is a general phenomenon that for effective implementation and ensuring due compliances under the law enacted by the parliament, provisions for prosecution have been embedded therein. Tax is no different, and is considered to be one of the key source of Revenue for the Government in Ind...

• 
  M.P. Lohia
• 
  Rajendra Agiwal

Recent Trends: Lately, there has been an unprecedented increase in the number of prosecution proceedings initiated by the Income Tax Department. Prosecutions have majorly been initiated for offences like wilful attempt to evade tax or payment of any tax, wilful failure in filing returns...

• 
  Sanjay Sanghvi
• 
  Ashish Mehta

  MINISTRY OF LAW AND JUSTICE  (Legislative Department) New Delhi, the 29th March, 2018/Chaitra 8, 1940 (Saka) The following Act of   Parliament received the assent of the President on the 29th March, 2018, and is hereby published for general information:— THE FINANCE ACT, 2018 NO. ...

• 
  MINISTRY OF LAW AND JUSTICE

The Indian tax laws [Income-tax Act, 1961 (“the Act”)] provides for the taxation of income arising from the “transfer” of a capital asset under the head “Capital Gains”.  Further, the Act also provides a list of transactions that will not be considered as “transfer” (subject to satisfacti...

• 
  Gaurav Bhauwala

Bill No. 4-C of 2018 THE FINANCE BILL, 2018A BILL to give effect to the financial proposals of the Central Government for the financial year 2018-2019. BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:- Chapter I - Preliminary 1. Short title an...

• 
  Lok Sabha

Background In a plethora of decisions, various Courts and Tribunals have held, on the facts of each case, that under real estate Development Agreements (‘DA’), transfer for the purpose of taxability of capital gains in the hands of land owner takes place on entering the DA and granting p...

• 
  Hiten Paurana

The interest received u/s. 244A of the Income-tax Act, 1961 (‘the Act’) is taxable under the head ‘Income from Other Sources’ (‘IFOS’) as has been held by the Delhi High Court in the case of CIT v. Delhi State Industrial & Infrastructure Development Corporation Limited. [TS-5913-HC-2012(D...

• 
  Hiten Paurana

The last few years have witnessed increased scrutiny by the tax department of credits in the books of accounts of the taxpayers and the source of such credits. All this relates back to the department’s agenda and clear mandate of the Government to unearth black money. A common practice, a...

• 
  Sanjay Sanghvi
• 
  Surajkumar Shetty

The present Government had claimed in its election manifesto (2014) that ‘tax terrorism’ and ‘uncertainty’ has been leashed and had promised to provide a non-adversarial and conducive tax environment, as well as to rationalise and simplify tax regime. It had also stated that it will make ...

• 
  Uttamchand P. Jain

1 Prelude Money laundering is not mere siphoning of funds or black money, money laundering arises when money earned through illegitimate means is camouflaged to bring it as earned/originated through legitimate source. In order to curb this practice, The Prevention of Money Laundering Act...

• 
  Sudarshan Rangan

As a member of G20, India has been amending its domestic tax laws to bring it in line with the BEPS Action Plan. The introduction of Equalization Levy, limitation of interest deductibility etc., are some examples.    The Finance Bill 2018 proposes to expand the scope of the ‘business con...

• 
  Subramanian Krishnamani
• 
  S Ananthapadmanabhan

Though India is primarily an agriculture-based economy the conditions and premise for their continued economic viability and growth have remained elusive for long. The Union budget 2018-19 brought in sufficient focus on this sector with a slew of announcements. Significant among those was...

• 
  Sachin Kumar BP
• 
  CA Smita Ramakrishna

Budget 2018 brought in a slew of amendments that expanded the ambit of taxation for the Revenue. While the most talked about amendment was the taxation of Long Term Capital Gains from Listed Equity Transactions, there still remains a few critical anti-abuse provisions that have managed to...

• 
  Abhishek Murali

Background India is again at the forefront of discussions globally; this time for some of the tax related proposals made in the Union Budget. Amidst high expectations and in the backdrop of some big bang reforms, the Hon’ble Finance Minister presented the Union Budget 2018. Several inter...

• 
  Faizan Nursumar
• 
  Bhumit Gangar

F. No. 370149/20/2018-TPL Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, Dated 4th February, 2018 Subject: Frequently Asked Questions (FAQs) regarding taxation of long-term capital gains proposed in Finance Bill, 2018-reg. ...

• 
  CBDT

Section 115-O of the Income-tax Act (‘Act’) requires payment of dividend-distribution tax. Section 2(22) gives an inclusive definition of ‘Dividend’. As per clause (d) thereof, any distribution by a company on reduction of its share capital, to the extent to which it possesses ‘accumulate...

• 
  CA Manan Agarwal

In the present article, I’m dealing with the proposed amendments in the scheme of assessments. There are two amendments. Firstly, we shall deal with e-assessments. E-assessments. The Government is all set to roll out faceless, nameless, paperless and jurisdictionless assessments under t...

• 
  Dharan V Gandhi

Background: The valuation of immovable properties has been a critical factor from Income Tax perspective. The law makers have taken utmost care in last few years to plug the tax evasion using undervaluation of immovable property at the time of its sale. Finance Act 2002 introduced secti...

• 
  CA Sagar S Tilak

Background of ICDS The Central Government had notified ten Income Computation and Disclosure Standards (‘ICDS’) to be applicable from assessment year (AY) 2016-17 for the purpose of computation of income under the head ‘profits and gains from business or profession’ and ‘income from othe...

• 
  Pradeep Kasthala
• 
  Vasudevan C R

INTRODUCTION Delay in furnishing of Returns of Income by assessees has been a cause of concern for the Legislature and punitive measures have been taken from time to time.  Long back, it was provided that an assessee claiming carry forward of loss sustained in any previous year  under th...

• 
  Dindayal Dhandaria

AS INTRODUCED IN LOK SABHAON 1ST FEBRUARY, 2018 Bill No. 4 of 2018 THE FINANCE BILL, 2018 ABILLto give effect to the financial proposals of the Central Government for the financial year 2018-2019.BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:...

• 
  Ministry of Finance

MINISTRY OF FINANCE (Department of Economic Affairs) (BUDGET DIVISION) NOTIFICATION New Delhi, the 1st February, 2018 F. No. 2(10)-B(D)/2018.—The following is published for general information:— Budget 2018-2019 Speech of Arun Jaitley Minister of Finance February 1,  2018 ...

• 
  Ministry of Finance

FINANCE BILL, 2018 PROVISIONS RELATING TO DIRECT TAXES Introduction The provisions of Finance Bill, 2018 relating to direct taxes seek to amend the Income-tax Act, 1961 (hereafter referred to as 'the Act') to continue to provide momentum to the buoyancy in direct taxes through deepenin...

• 
  Ministry of Finance

Sec. 50C of the Income-tax Act was introduced in 2003 for computation of capital gains in real estate transactions. The real estate sector of India prior to 2005 was much unorganised. Deliberate under-valuation of immovable property was often used as a tax-avoidance practice by some taxpa...

• 
  CA Manan Agarwal
• 
  CA Rishabh Khaitan

A section largely relegated to the side, Sec 41(1) has seen a resurgence in recent months, with the income tax using it as a tool to bring to tax benefits gained by the Assessee from the waiver of trade liabilities. Sec 41(1) forms part of Profits Chargeable to Tax under Chapter IV of the...

• 
  Abhishek Murali

Shell companies have been the focus of financial investigations and enforcement activities in recent times. Both Financial Intelligence Unit (FIU) and Serious Fraud Investigation Office (SFIO) have prepared lists of suspected shell companies. Few months back, SEBI had banned trading of 33...

• 
  Mr Smarak Swain

INSTRUCTION NO. 5051/1991 [F.NO. 285/160/90-IT(INV)] DATED 7-2-1991 Under the Direct Tax Laws prosecution against tax offences and tax frauds is a significant provision and requires to be effectively deployed to create an appropriate impact and to subserve as a deterrence against tax ...

• 
  CBDT

The issue whether various payments by MNCs to their foreign counterparts are taxable as royalty or not under the domestic law and the respective Double Tax Avoidance Agreement (“DTAA”), has been a matter of debate. There is a plethora of decisions dealing with this issue. The controversy ...

• 
  Rajesh C Patil
• 
  Bhavishi Vichhi

Sec. 79 in Chapter VI of the Income Tax Act, 1961 (the Act) was introduced as an anti-abuse provision, intended to curb taxpayers’ attempts at transferring losses incurred by a corporate entity by means of transfer of shareholding. This section restricts carry-forward and set-off of losse...

• 
  Taxsutra Database Insight

When an immovable property is transferred, two parties are involved: the seller and the buyer. Transfer of immovable property is transfer of capital asset within the meaning of Section 45 of Income Tax Act. On effecting the transfer, the seller has to pay income tax at 20% on long term ca...

• 
  Mr Smarak Swain

Introduction The recent Delhi ITAT decision in the case of Kaushal Kishore Maheshwari vs ACIT [TS-6590-ITAT-2017(DELHI)-O], has raised a few eye-brows.One cannot underestimate the magnitude of bearing the decision will have on Capital Gain cases across the country; and also for the purpo...

• 
  Abhishek Murali

F.No. 225/270/2017/ITA.II Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes North-Block, ITA.II Division New Delhi, the 31st of October, 2017 Order under Section 119 of the Income-tax Act, 1961 On consideration of representations from vari...

• 
  CBDT

Table of Contents INTRODUCTION A. LEGISLATIVE/ ADMINISTRATIVE CHANGES IN INDIA 1. GAAR 2. Demonetisation and its fall-out 3. Benami Transactions 4. Efforts to get more assessees to file income tax returns 5. GST 6. Panama Leaks 7. Aadhaar numbers linking 8. Co-op...

• 
  Taxsutra Database Insight

The Government has been undertaking drastic attempts to corner black money and tax evaders. In wake of demonetisation, the Government observed frantic monetary transactions conducted through ‘shell companies’. In February 2017, it constituted a special task force to identify such ‘shell c...

• 
  Vikas Kumar
• 
  Chandni Patel

Since independence of India, keeping the unemployment rate under check has been a top priority of every ruling Government.  Even the present Government has taken slew of measures for employment generation such as Make in India, Prime Minister’s Employment Generation Programme, Mahatma Gan...

• 
  Siddharth Kaul
• 
  Prasad Kulkarni

INTRODUCTION 1. The Ministry of Finance vide Notification No. 87/2016 dated 29.09.2016 notified ten Income Computation and Disclosure Standards (ICDSs), operationalizing a new framework for computation of taxable income by all assessees (other than individual or a HUF who is not required...

• 
  Dindayal Dhandaria

Thin capitalisation refers to a scenario where an entity is highly geared, that is, has high proportion of debt as compared to equity.  Interest payments generated on ‘debt capital’ is treated as a finance charge, and are tax deductible while computing the taxable income, thereby aid in r...

• 
  Sujit Parakh
• 
  Amit Nayyar

With the significant developments over the last 12 months, the form of the tax audit report has undergone significant changes. The CBDT issued the first version of Form 3CD on 1st April, 2017 itself. However, since then it has undergone 3 changes vide Notification No. 88/2016 dated 29th S...

• 
  Abhishek Murali

Return filing is an important event and the start of the assessment proceedings. An assessee is expected to file its return of income on time in the prescribed form and verified in the prescribed manner u/s. 139(1). Also, there are various forms to be submitted along with the return of in...

• 
  Taxsutra Database Insight - Tax Audit

The OECD devised the BEPS Action Plan to tackle use of aggressive tax planning strategies used by multinationals that artificially shift profits to low tax jurisdictions with limited or no economic activity.  In October 2015,  the OECD released the final report on the 15 Action items of t...

• 
  Amit Nayyar
• 
  Vipin Sharma

Income tax is a tax on the income of a person. It is quite settled that such income, does not include capital receipts. Prior to introduction of gift taxation u/s 56, gifts received out of natural love and affection were treated as capital receipts not chargeable to tax under the Income-t...

• 
  Dharan V Gandhi

F.No. 225/270/2017/ITA.IIGovernment of IndiaMinistry of FinanceDepartment of RevenueCentral Board of Direct Taxes North-Block, ITA.II Division New Delhi dated the 31st of August, 2017 Order under Section 119 of the Income-tax Act, 1961 ('Act') The Goods and Services Tax ('GST') has com...

• 
  CBDT

F.No. 225/270/2017/ITA.IIGovernment of IndiaMinistry of FinanceDepartment of RevenueCentral Board of Direct Taxes North-Block, ITA.II Division New Delhi dated the 31st of August, 2017 Order under Section 119 of the Income-tax Act, 1961 ('Act') Under the provisions of recently introduce...

• 
  CBDT

Press Release : Section 44AB of the Income-tax Act (‘the Act’) makes it obligatory for every person carrying on business to get his accounts of any previous year audited if his total sales, turnover or gross receipts exceed one crore rupees. However, if an eligible person opts for presum...

• 
  Ministry of Finance

With the commencement of the tax audit season this year, the updated exclusive Taxsutra insight endeavors to compile the key rulings delivered since last tax-audit season till today i.e August 18, 2017, which would impact the transactions typically covered in tax audits. Clause 12: Presu...

• 
  Taxsutra Database Insight - Tax Audit

‘Turnover’, ‘Gross Receipts’, ‘Sales’ are the buzzwords during this Tax Audit season. Incidentally, they are the very starting point of a Tax Audit. They form the qualifying criteria, determine whether a taxpayer is liable to tax audit during a given year. Sec. 44AB of the Income Tax Act ...

• 
  Taxsutra Database Insight - Tax Audit

The power of quasi-judicial authorities is not self empowered it has to be conferred upon them in a manner known to law. In a decision by the Delhi High Court in the case of Mega Corporation, the Court with due respect has left the window open for tax authorities to deal with assessments ...

• 
  Sandeep Bagmar R

In the cat-and-mouse game that is constantly played out between taxpayers and the taxman, one weapon in the taxman's arsenal is the "deeming provision" - changing some term to mean something more (or less) with the intent of conferring an advantage upon the taxman. Taxpayers often contest...

• 
  Taxsutra Database Insight

As the dust begins to settle on demonetization and the taxman hunts for undisclosed income, there is a lurking concern among practitioners and tax officers as to application of law contained u/s. 69A (dealing with unexplained money, etc.). Taxsutra presents you a compendium of important ...

• 
  Taxsutra Database Insight

F.No. 225/270/2017/ITA.II Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes North-Block, ITA.II Division New Delhi, the 31st July, 2017 Order under Section 119 of the Income-tax Act, 1961 The 'due-date' for filing income-tax returns for Ass...

• 
  CBDT

It is common practice that TDS authorities impose penalty on government departments for not filing TDS return u/s 200(3) of IT Act. In this article an attempt has been made to analyze the provision whether this section is applicable to government departments. 1. Section 272A is not appli...

• 
  Pavan Ved
• 
  Apoorva Moonat

Rejection of books of account u/s 145(3) and making a best judgment assessment assessment u/s 144 is a powerful tool in the hands of the Assessing Officer. The Assessing Officer must notice specific defects in the books of accounts of assessee to be able to reject it & make an assessment ...

• 
  Taxsutra Database Insight

As assessees (i.e., taxpayers) are heading towards income-tax return filings (primarily for cases involving the statutory filing due dates, for non-tax audit cases) within 31 July, it may be imperative to note a few relevant provisions under the Income-tax Act, 1961 (“the IT Act” or “the ...

• 
  Gautam Dalvi

It is the return filing season for salaried employees with 31st July being the last date to file returns for such assessees. This article makes an attempt to list the topmost 10 things that should be borne in mind at the time of filing returns of a salaried individual. 1. Quote and Link ...

• 
  CA Sagar S Tilak

Background The provisions of section 271(1)(c) of the Income-tax Act, 1961 (“the Act”) states that penalty shall be levied in case a person either “conceals the particulars of his income” or “furnishes inaccurate particulars of his income”.  Further, as a general practice, the reason for...

• 
  Sharath Rao
• 
  Chandra Prakash Agarwal

In the direction to curb the black money and fabricated transactions, the Finance Act, 2017 has amended the provisions of section 10(38) of the Income-tax Act, 1961(‘the Act’) effective AY 2018-19. Prior to this amendment dated 5 June 2017, the exemption under section 10(38) of the Act w...

• 
  Dinesh Prabhakar

Section 50C was introduced in the Income Tax Laws vide Finance Act 2002 as a measure to curb the incidence of unaccounted money in immovable property transactions via undervaluation. The section seeks to tax sale of immovable properties at lower of the agreement value or the prevailing st...

• 
  Taxsutra Database Insight

Introduction In order to tackle the challenges in the digital economy, the provisions of equalization levy were brought in by Chapter VIII of Finance Act 2016, in line with BEPS Action Plan 1. In pursuance of the same, the Central Board of Direct Taxes ('CBDT') made equalisation levy ('t...

• 
  Ms Darshana Deshmukh

Globalisation of business brings with it the dangers of the same income getting taxed in more than one country, due to overlaps between residence-based and source-based taxation. To mitigate hardship, countries often provide its residents credit for taxes paid in other countries. While u/...

• 
  Taxsutra Database Insight

The Finance Act 2017 introduced section 50CA and clause (x) to section 56(2) in the Income Tax Act, 1961 (‘IT Act’) w.e.f. 1 April, 2017, to deal with specified transactions undertaken at a value below the fair market value computed as per prescribed guidelines (‘FMV’). Broadly, section 5...

• 
  Aneri Dani

Introduction: MAT provisions u/s. 115JB (earlier, these provisions were part of section 115J) is a self-contained code of assessment. It requires that every company shall pay tax on its book profits arrived by preparing its accounts as per Schedule III to Companies Act 2013 (Part II of Sc...

• 
  Taxsutra Database Insight

Constitution of India is the father of all laws and the authority to levy a tax is derived from the Constitution. It allocates the power to levy various taxes between the Centre and the State. An important restriction on this power is contained in Article 265 of the Constitution which sta...

• 
  Dharan V Gandhi

While determining rate of tax for transactions with non-residents, the first thing to be looked into is Whether the transaction is taxable in India as per Section 9. If the answer is in the affirmative, then we check for existence of Double Taxation Avoidance Agreement (DTAA) between ...

• 
  T. Banusekar
• 
  Nithya Sankaran

Depreciation, an allowance on capital assets acquired and put to use, is a non-cash deduction allowed u/s 32 of the Income Tax Act, 1961. This is one of the allowances originally provided by the Act which has evolved over time with advancements in businesses and judgments by various Court...

• 
  Taxsutra Database Insight

Vignettes of the recent judgment of the Hon’ble Supreme Court in the case of Classic Industries Ltd: In the light of recent developments it is observed that the Hon’ble Supreme Court, in the case Classic Industries Ltd [TS-5082-SC-2017-O] (dated 9th March 2017) has affirmed the decision ...

• 
  Ramakrishnan B

We are now in the final leg of our three article series on the issues emanating from the FAQs released by CBDT on Income Computation and Disclosure Standards (ICDS).  In this article, we are discussing four issues addressed by the FAQs, namely, allocation of general borrowings, treatment ...

• 
  Riaz Thingna
• 
  Gaurav Mittal and Apoorve Bansal

General Anti Avoidance Rules (‘GAAR’) that became effective from April 1, 2017, enables Revenue to go into the substance of a transaction and to disregard the same if the main purpose of such an arrangement is to obtain tax benefits without any commercial justification for creating such a...

• 
  Taxsutra Database Insight

Background In India, General Anti-Avoidance Rule (“GAAR”) shall be effective from 1 April 2017 i.e. applicable from AY 2018-19 onwards. GAAR enables the tax authority to go into substance of the transaction and to disregard if the main purpose of such an arrangement is to obtain tax bene...

• 
  Akshay Dave

This second article is again an attempt to discuss some of the FAQs issued by the CBDT and to highlight some of the potential tax issues emanating therefrom. In the previous article we discussed some of the clarifications issued by the CBDT pertaining to revenue recognition. This time we ...

• 
  Riaz Thingna
• 
  Rishi Harlalka

In Brief:  Clause 83 of the Finance Bill 2017 has sought to introduce Section 269ST in the Income-tax Act relating to mode of undertaking transactions.  Rationale behind introduction of Section 269ST: The logic behind this transaction is to put a restriction on cash transactions and to...

• 
  Ramakrishnan B

Section 45(3) has been introduced in the Income-tax Act, 1961 (Act) by the Finance Act, 1987 w.e.f 01.04.1988. Section 45(3) states that “the profits or gains arising from the transfer of a capital asset by a person to a firm or other association of persons or body of individuals (not bei...

• 
  Geetha Pentakota

The Central Board of Direct taxes (“CBDT”) constituted a committee of tax experts to draft Tax Accounting Standards (“TAS”) with an intention to reduce litigation around contentious tax issues. The committee submitted its report in August 2012, which was put in public domain for their com...

• 
  Arun Chhabra
• 
  Gaurav Mittal

Being some of the most beneficial and widely availed exemption provisions of the Income Tax Act, Sections 54 and 54F have certain conditions attached therein in order to avoid its misuse. The fulfilment of these conditions brings with it litigation so as to determine whether the assessee ...

• 
  Taxsutra Database Insight

Introduction: This article questions the Taxability of Capital Gain (CG), when it is invested in residential property but held for less than three years. This has a reference to the recent Judgment passed by the Hon’ble ITAT Chennai in the case of K.V. Vijayaraghavan Vs. DCIT [TS-7142-IT...

• 
  K Senguttuvan, Advocate
• 
  Subathra Manoharan

As per the present tax laws, conversion of debentures into equity shares are specifically exempt under the Income Tax Act, 1961 (‘the Act’).  However, there is no specific exemption given to conversion of compulsorily convertible preference shares (‘CCPS’) to equity shares. In the past di...

• 
  Rohit Kumar S
• 
  Risha Choudhary

Joint Development Agreement “JDA” is an arrangement in which land owner introduce land and developer agrees to develop land for agreed consideration in cash or kind or both. CURRENT SCENARIO Prior to Finance Bill 2017 in case of JDA arrangement capital gains is chargeable to tax in the ...

• 
  CA Darshak Shah
• 
  Vishal Kheria

Scrutiny notice issued u/s 143(2) of the Income Tax Act, 1961 is the starting point of assessment proceedings whereby AO seeks documents/evidences from the assessee to support the claims made in the return of income. The issue of whether absence of a proper notice u/s 143(2) would be fata...

• 
  Taxsutra Database Insight

The demonetization episode caused choking demand in the real estate sector. Expectations were high that the Budget 2017 would bring in much needed relief in the form of tax reforms. The real estate sector is an important one for the investment and employment potential it has. As against ...

• 
  Subramanian Krishnamani
• 
  S Ananthapadmanabhan

Owing to the nature of transactions involved, Real Estate is one of the most affected industries by the tax regime and amendments therein, particularly direct taxes. In today's insight, we have made an attempt to cover some of the aspects affecting real estate like Sec. 43CA - a section u...

• 
  Taxsutra Database Insight

The post demonetization days have clearly showed how the country is set to leapfrog a few stages to embrace the power of digitalization. Mobile is being rapidly adopted to make e-transactions post demonetization. Key objective of the radical step taken by government was to bring all the t...

• 
  Yogesh Shah
• 
  Vimal Desai and Asmi Chhibber

Finance Bill (FB) for 2016-17 makes an interesting and novel provision with respect to determining rate of tax applicable to a company. So far we have seen classification based on gender (Male, Female), nature of entity (PP, Company), nature of shareholding (Listed co. and Closely held), ...

• 
  Pradip R. Shah

As a part of ‘Additional Revenue Mobilisation (ARM) and Anti-abuse Measures’, the Finance Minister in his Speech proposed to “restrict the exemption from long term capital gains in case of transfer of listed shares by providing that the exemption, subject to notification of certain except...

• 
  Analysis of Finance Bill, 2017

Presently, any income arising from the transfer of a long term capital asset, being an equity share in a company or a unit of an equity oriented fund is exempt under the provisions section 10 (38) of Income Tax Act, 1961 (ITA) subject to following conditions: The transaction i.e; sale ...

• 
  Vidhi Shah
• 
  Ravindra Agrawal

  The Finance Bill 2017 has introduced few interesting amendments to improve tax compliance and ensure that tax returns are filed within the due dates. One such amendment being the insertion of section 234F which proposes to levy a Fee for delay in furnishing of return beyond the due dat...

• 
  Subramanian Krishnamani
• 
  S Ananthapadmanabhan

With an effort to decode and simplify the amendments of Finance Bill, 2017, we bring to you a summary of the amendments vide a series of editions beginning from today.    Capital Gains  Sec. 43, 35AD : Disallowance of depreciation u/s 32 and capital expenditure u/s 35AD on cash paym...

• 
  Analysis of Finance Bill, 2017

With an effort to decode and simplify the amendments of Finance Bill, 2017, we bring to you a summary of the amendments vide a series of editions beginning from today.  Ease of Doing Business 1. Section 197A : Enabling of filing of Form 15G/15H for commission payments specified u/s 194...

• 
  Analysis of Finance Bill, 2017

The amendments proposed in the Finance Bill 2017 on assessment procedures are disconcerting to say the least.  It is ironical that these amendments are clothed in the garb of ‘minimum government and maximum governance’, the professed objective of this Government. Some of the mindless amen...

• 
  G Srikanth

INTRODUCTION 1. While presenting the Union Budget on 1st February, 2017, the Hon'ble Finance Minister, Mr. Arun Jaitley said that there were two tectonic policy initiatives, namely, passage of the Constitution Amendment Bill for GST and demonetisation of high denomination bank notes. He ...

• 
  Dindayal Dhandaria

As quoted by Finance Minister Shri Arun Jaitley in his speech, “India is the world's largest democracy. Political parties are an essential ingredient of a multi-party Parliamentary democracy” Noting that Political parties continue to receive most of their funds through anonymous donations...

• 
  Analysis of Finance Bill, 2017

A “Cashless Economy” is an excellent way to wipe off or at least reduce the scourge of black money, fake money, terrorist money and kickbacks. The intention and action of the Government to do so through the biggest ever demonetization move was laudable. Yes, it had some inconveniences but...

• 
  G.Karthikeyan

Analysis of Finance Bill, 2017 Part - II Measures for Stimulating Growth  1. Sec. 194LC : Extension of eligible period of concessional rate of TDS u/s 194LC from 2017 to 2020  Amendment : It is proposed to amend Sec. 194LC to provide that the concessional TDS rate of 5%on inter...

• 
  Analysis of Finance Bill, 2017

  With an effort to decode and simplify the amendments of Finance Bill, 2017, we bring to you a summary of the amendments vide a series of editions beginning from today.    1. Rates of Taxes The rates of income-tax in case of individuals is as follows:  Upto Rs. 2,50,000 ...

• 
  Analysis of Finance Bill, 2017

Government of IndiaMinistry of FinanceDepartment of RevenueCentral Board of Direct Taxes New Delhi, 1st February, 2017. Press Release Salient Direct Tax Proposals in Union Budget 2017   The Union Budget 2017 was laid before the Parliament today by the Hon'ble Finance Minister of India...

• 
  Budget 2017

Key Features of Budget 2017-2018   INTRODUCTION  - In the last two and half years administration has moved from discretionary, favouritism based to system and transparency based - Inflation brought under control. CPI-based inflation declined from 6% in July 2016 to 3.4% in December, 2...

• 
  Budget 2017

Finance Minister’s Budget speech marks the very beginning of the Budget saga. It carries high significance providing the purpose and object of the introductions, deletions and amendments to the existing statutes. Courts have in numerous instances referred to and relied on the Budget Speec...

• 
  Budget 2017

In the wake of demonetization and ongoing assessments, we had in our edition dated 22nd December, 2016, compiled latest case laws by various Courts including Supreme Court on issues covering unexplained credit, unexplained expenditure, unexplained investments and topics alike. There have ...

• 
  Taxsutra Database Insight

1. Introduction The erstwhile provisions of Section 80JJAA provided for:  a) A deduction of thirty percent of additional wages paid to new regular workmen in a factory for three years (i.e. the 30% deduction would be allowed for 3 years). b) The provisions applied to the business of ma...

• 
  Aditya Bellur

Circular No. 41/2016 was issued on 21.12.2016 which dealt with clarification on Indirect Transfer provisions. After the issue of the aforementioned circular, representations have been received from various FPIs, FIIs, VCFs and other stakeholders. The stakeholders have presented their conc...

• 
  Ministry of Finance

Debentures are popular as instruments used by foreign portfolio investors (FPIs) to invest in India. Debentures are debt instruments. However, varieties of debentures also have some equity features. Broadly, the popular debenture instruments used by FPIs are of three kinds: Non-convertibl...

• 
  Mr Smarak Swain

Benami Transactions (Prohibition) amendment Act, 2016 is effective from 1st November 2016. The objective of the Act is to prohibit a benami transaction so that the beneficial owner would be compelled to keep the property in his own name only and the legal complexities owing to the apparen...

• 
  CA Sagar S Tilak

Slump sale remains a popular form of reorganization, by which assets are transferred from one taxpayer to another. In cases other than a demerger or share transfer, an “undertaking” is transferred via slump sale. Undertaking here, is defined by Income Tax Act (“ITA”) “to include any part ...

• 
  Kunal Savani

Press Information Bureau Government of IndiaMinistry of Finance08-January-2017 14:51 IST Major Achievements of CBDT in Current Financial Year 2016-17 so far include among others Enactment of The Benami Transactions (Prohibition) Amendment Act, 2016, Implementation of The Direct Tax Dispu...

• 
  Ministry of Finance - Year End Review - 2016

In the wake of demonetization and ongoing assessments, we have made an effort to compile and bring to our readers, latest case laws by various Courts including the Supreme Court on issues covering unexplained credit, unexplained expenditure, unexplained investments and topics alike.   1....

• 
  Taxsutra Database Insight

Legal issues involved in assessments [TS-6073-ITAT-2015(Chandigarh)-O]:An addition made on agreed basis cannot be disputed; Non-charging of partners' expenses results in extra-ordinary profits u/s 80IA(10), restricts tax holiday; ITAT refers to assessee’s letter to Assessing Officer and ...

• 
  Taxsutra Database Insight

Purpose of the Guidance Note  This Guidance Note is for providing guidance to the Financial Institutions, Regulators and officers of the Income Tax Department for ensuring compliance with the reporting requirements provided in Rules 114F to 114H and Form 61B of the Income-tax Rules, 1962...

• 
  CBDT Guidance note for FATCA rules & CRS implementation

"To kill two birds with one stone." This is an idiom. The decision of the Government of India to demonetise the running currency for Rs. 500/- and Rs. 1000/- surpasses this idiom. The manner in which this decision has been taken and is being implemented is undoubtedly monumental. It just ...

• 
  Pravin Kishore Prasad

It’s been close to two decades now that provisions of Section 80JJAA[1] are part of the statute book. It was introduced with a view to provide impetus to employers to generate more employment opportunities. The deduction was granted for three years as 30 per cent of additional wages paid ...

• 
  Hiren Bhatt
• 
  Chetan Kakariya

Introduction: 80JJAA was introduced with the sole object of encouraging employers to widen the pool of job opportunities by giving deduction in respect of additional employee cost incurred in the course of such business in the previous year, for three assessment years including the asses...

• 
  K Senguttuvan, Advocate
• 
  Subathra Manoharan

In a recently concluded edition of IFA’s International Tax conference in Bangalore, the topic of Form and Substance was discussed, albeit not for the first time. This time around however, there was a sense of urgency and uncertainty around it with the BEPS clouds gathering coupled with th...

• 
  Vikram Bapat

S 2(14) of the ITA, 1961 defines Capital Asset by exempting only the Agricultural Land, that too located not in the specified urban area without any reference to the compulsory acquisition u/s 96 of RFCTLAAR Act. However, vide Circular No 36/2016 date 25th Oct 2016 the CBDT has extended t...

• 
  K Senguttuvan, Advocate
• 
  Subathra Manoharan

Background The taxation of indirect transfer of shares was a direct fallout of the Supreme Court decision in the Vodafone case in 2012.   The Income-tax Act, 1961 (‘the Act’) was amended vide the Finance Act, 2012 by insertion of Explanation 5 to section 9, seeking to tax sale of shares ...

• 
  CA Rishi Harlalka

The tax treaties provide for allocation of taxing rights between the residence state and the source state in respect of passive income[1]. The passive income’s primary right of taxation is granted to the resident state through paragraph 1, though, paragraph 2 provides that such income may...

• 
  Ashish Karundia

Under section 14A, expenditure incurred in relation to an income which does not form part of total income is not allowed as deduction. Section 10 deals with the incomes which do not form part of total income. Clause 21h of Form 3CD requires the tax auditor to certify the disallowance unde...

• 
  Shashi Kumar

Owing to the recent amendments in the tax audit report, the reporting responsibilities of the tax auditor have considerably increased. The revised Form 3CD now requires reporting for receipt of shares of private limited company without consideration or for inadequate consideration and rec...

• 
  Ravindra Agrawal
• 
  Vidhi Shah

HOW TO FACE THE TAXMAN                                                                    Everyone dreads a taxman and always wished to avoid him but the fact is that taxmen are also human beings, part of society, doing the job assigned to them to the best of their ability. God forbid, l...

• 
  TNC Sridhar

F No. 225/195/2016-ITA  II Government of India Ministry of Finance Department of Revenue Central  Board of Direct  Taxes   Central Board of Direct Taxes, vide order u/s 119 of the Income-tax Act, 1961 ('Act') dated 9th September,  2016, has extended the 'due date' for filing of inco...

• 
  Ministry of Finance

1. Just a Hypothetical concern: It was a sunny morning of the July month for Mr.X, an employee with one of the major IT companies of India. He walked into the office of his consultant for getting some assistance in filing his tax returns for the FY 2015-16. After a brief chat on the natu...

• 
  Prashanth K L

In today’s world of globalization, many multinational companies require to depute their employees overseas on international assignments. Inter alia, such deputations trigger implications under tax, regulatory and other laws. The extent of such implications would largely depend on the mann...

• 
  Sandip Mukherjee

Disclosure of details pertaining to demand raised or refund issued under any tax laws other than Income Tax Act, 1961 & Wealth Tax Act, 1957 along with details of relevant proceedings. What is the scope of reporting, how to ensure completeness and implication: This clause has been insert...

• 
  HInesh R Doshi

Can Partners' Remuneration, Commission and Interest be subjected to the provisions of section 44AB of The Income Tax Act, 1961. Under the general law of partnership, a firm has no separate legal existence but identified as a collective association and represented by its partners. However...

• 
  Shashi Kumar

SECTION 43B OF THE INCOME TAX ACT 1961 – OVERVIEW FROM A TAX AUDIT PERSPECTIVE A. Scope of Section 43B under the Income Tax Act 1961 (‘the Act’) a) Section 43B provides that certain expenditure/ payments which are otherwise eligible for deduction under the Act shall be allowed as a dedu...

• 
  Mrudulatha Devdas

  DETERMINATION OF TURNOVER IN CASE OF TRADING OF SHARES EITHER ON SPECULATION OR NON SPECULATION BASIS  1. Preamble: 1.1 The broad legal positions are as follows- Dealing in shares whether Investment or Business Dealing in shares can result either in "Business income" (chargeable as...

• 
  N Anush Shanker

Section 43B of the Income-tax Act, 1961 (the ‘Act’) allows deduction for certain expenses on actual payment basis. Time frame is the due date of filing of return of income. Clause (b) of Section 43B cover “any sum payable by the assesse as an employer by way of contribution to any provide...

• 
  Hiren Bhatt
• 
  Chetan Kakariya and Pranav Shukla

“It is only a reimbursement of actual expense incurred….please do not deduct tax on our payments “.  An oft repeated request from a payee.  Let us see in the context of non-salary payments whether this statement hold true. What is a reimbursement? Reimbursement is an act of compensating...

• 
  Subramanian Krishnamani
• 
  Mr Sateesh Bollineni

Article 3(2) of the OECD Model Convention reads: ‘‘As regards the application of the Convention at any time by a contracting state, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that state for the purp...

• 
  Ashish Karundia

The efforts of the Government in promoting the Income Declaration Scheme, 2016 (‘Scheme’) and to make the same a grand success are quite visible. CBDT has already issued various clarifications vide Circular no. 17 dated May 20, 2016, Circular no. 24 dated June 27, 2016, Circular no. 25 da...

• 
  Dharan V Gandhi

Background The Finance Act, 2016  (FA) in the  chapter VIII (comprising clauses 163 to 180) has introduced a new tax i.e “equalization levy” on consideration received or receivable for any specified services. The objective is to impose tax on the consideration received by the non-reside...

• 
  Rajiv Shah

In order to give an impetus and boost to the Indian economy, the government of India has undertaken various initiatives over the years which include developing smart cities, digital India, development of international financial centers, Make in India etc.   Start-up India is a flagship i...

• 
  Amit Ajmera

Interest on Refund – Whether a Debt? Section 244A of the Income Tax Act, 1961 (the Act) provides that when any income tax refund is due to an assessee from the Government, he is entitled to receive simple interest along with the refund. Interest on refund is an automatic event and there ...

• 
  Dr M S Vasan

1. Background:  1.1 The Lokpal and Lokayuktas Act, 2013 (“the Act”) was enacted by the Parliament with effect from 16th January 2014 to provide for the establishment of a body of Lokpal for the Union and Lokayukta for States to inquire into allegations of corruption against certain publi...

• 
  Aditya Y Bhatt
• 
  Rajesh S Kadakia

Section 206C of the Income Tax Act, 1961 (‘ITA’ or ‘the Act’) deals with tax collection at source (TCS). Untill 2011, only sale of specified goods (alcoholic liquor for human consumption, Tendu leaves, Timber obtained under a forest lease or by any other mode, any other forest produce not...

• 
  Manish Shah
• 
  Shraddha Bedmutha & Forum Modi

The Government is leaving no stones unturned in making the Income Declaration Scheme, 2016 (‘the scheme’) a success. This is quite evident from the frequency with which the CBDT is coming out with clarifications. CBDT has already issued various clarifications vide Circular no. 17 dated 20...

• 
  Dharan V Gandhi

CBDT has finally come out with the most awaited clarification and the most peculiar fact about this clarification is that it clarifies an earlier clarification issued by CBDT vide Circular No. 25 dated 30 June 2016. The root of this issue goes to question 5 of the said circular which rea...

• 
  Dharan V Gandhi

The Income Declaration Scheme, 2016 incorporated as Chapter IX of the Finance Act, 2016 is to come into force from the 1st of June,2016. The complete text of the Scheme is available on the website of the Ministry of Finance as part of the Finance Bill 2016. The first of the Tax Payer Edu...

• 
  Ministry of Finance

The Income Declaration Scheme, 2016 provides an opportunity to persons who have not paid full taxes in the past to come forward and declare their undisclosed income and assets. The Board has issued three sets of clarifications in the form of FAQs. The fourth set of Frequently Asked Questi...

• 
  Ministry of Finance

The provisions for Tax Deduction at Source (‘TDS’) were inserted in the legislation to ensure smooth collection of revenue for the Govt. However with anomaly in law, compliance requirements, consequences of failure to withhold TDS and several other hassles TDS provisions have slowly but s...

• 
  Taxsutra Database Insight

Background and Rationale for introduction Section 14A introduced by the Finance Act 2001 with retrospective effect from 1st April 1962 has been one of the most litigated provisions with different courts interpreting it differently. The Section provides for disallowance of such expenditur...

• 
  CA Vivek Newatia
• 
  CA Puja Borar

Condonation of delay is a matter of discretion of the Court and not of right of the applicant and hence, a subjective issue. However, the Courts, over the years, have laid down certain principles which may be considered in this regard. In general, the Courts have held that the approach to...

• 
  Taxsutra Database Insight

The Income Declaration Scheme, 2016 – analysis of additional clarifications The Hon’ble Prime Minister of India, Shri Narendra Modi, in his 21st edition of ‘Mann ki Baat’ program, appealed and at the same time warned the people to come out clean by disclosing the undisclosed income as th...

• 
  Dharan V Gandhi

The issues regarding taxability of JDA have always remained a contentious issue, a subject of litigation between taxpayers and the Revenue. JDA involves certain noteworthy aspects that need to be dwelled upon from a taxability perspective such as incidence of capital gains tax arises whet...

• 
  Taxsutra Database Insight

Background Today E-commerce is a constantly developing business. New Technologies assist global business to be operated without permanent establishment (PE) in Country of source (COS). Today traditional businesses conduct their business with new technologies. And completely new businesse...

• 
  Samir Sanghvi

The Limited Liability Partnership (‘LLP’) Act, 2008 provides for conversion of companies into LLP. However there was a lack of clarity on tax implications on such a conversion. The Government vide Finance Act (No.2) of 2009, introduced Sec. 47(xiiib) which provides that such conversions w...

• 
  Taxsutra Database Insight

In line with the Government’s objective of freeing India from the menace of black money and with the intention of providing last opportunity to come out clean in so far as the undisclosed income is concerned, the Hon’ble Finance Minister of India, Shri Arun Jaitley, introduced The Income ...

• 
  Dharan V Gandhi

Insight on amended Rule 8D dealing with disallowance u/s 14A under Income Tax Act, 1961 Rulings Impacted – compiled by editorial team of Taxsutra Database  CBDT has recently amended Rule 8D[1]  for computation of disallowance of expenditure relating to exempt income u/s 14A. The amend...

• 
  Taxsutra Database Insight - Amended Rule 8D

                                             COST INFLATION INDEX   Financial Year CII Before 1/4/1981 100 1981-82 100 1982-83 109 1983-84 116 1984-85 125 1985-86 133 1986-87 1...

• 
  Cost Inflation Index

As Govt completes 2 years of its term, there are discussions on pace of reforms considering expectations which were set when the Govt came to power. It will be fair to conclude that reforms have been progressive a particularly keeping in mind majority at Centre but not so much at Rajya Sa...

• 
  Uday Ved

Buybacks seem to be in vogue in 2016, with biggies like Wipro, Bharti Airtel, Bharti Infratel, Nalco and Novartis having made announcements for buyback of shares for whopping amounts in the range of INR 2,000 to 3,000 crores.  What has suddenly changed in the recent past, due to which com...

• 
  Yogesh Dharnidharka
• 
  Jainee Seth

1. Equalisation Levy Section 10 Under section 10, a new Clause 50 has been inserted that provides for exemption of income from  “specified services”  chargeable to  equalization  levy  wherein  “specified service” shall have mean as given in section 161(i) of Chapter VIII of the Finance ...

• 
  Finance Act, 2016 Amendments

Background: Section 35(2AB) of the Act1 grants weighted deduction to specified companies2 subject to compliance with conditions as laid down in the section, Rules3 and in the DSIR4 guidelines.  Weighted deduction is granted for capital and revenue expenditure (except for cost of land or ...

• 
  Vipul Soni

The Preamble of our Constitution declares India as a Republic nation, meaning that government exercises its power according to the rule of law. The authority to levy a tax is derived from the Constitution of India which allocates the power to levy various taxes between the Centre and the ...

• 
  Dharan V Gandhi

Treaty override Domestic Law – A global roundup Dr. M.S. Vasan, Managing Partner, MSV Legal (Assisted by Anmol Anand, LLM in Taxation,  George town University Law Centre , Washington DC, USA) Article 27 of the Vienna Convention on the Law of Treaties1 provides that treaties are binding ...

• 
  Dr M S Vasan

Supposedly in a lease what will happen if the lessee does not vacate the property for some reason and still retains possession and continues to pay rent to the lessor bereft an agreement? What will be the tax implications in such a scenario? Let’s visit Sec. 116 of the Transfer of propert...

• 
  Mr. Srivatsan Ranganathan

Background Sec 194-IA was introduced by the Finance Act 2013 with effect from 01-06-2013 wherein any person responsible for paying to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit ...

• 
  Pradeep Kasthala

In the last decade there has been a trend of restructuring of group companies of foreign companies having subsidiaries in India. The parent companies create their hub based on the region and the economic viability. Singapore as such has been most preferred destinations among the asia-paci...

• 
  Sandeep Bagmar R

There are various controversies surrounding the interpretation of section 14A of the Income tax Act, 1961 (‘the Act’), which has been the subject matter of extensive litigation. Recently, there have been various judicial decisions rendered by High Court(s) whereby much needed clarity has ...

• 
  Mr Rohit Garg

The Scheme of Taxation of Capital Gains as it exists in the Income tax Act is quite simple and has remained the same for a long time now. The statute defines the terms ‘capital asset’ and ‘transfer’ and the gain from the transfer of a capital asset owned by the assessee is taxed which is ...

• 
  Bala Subramanyam

Introduction of Limited Liability Partnership in India Limited Liability Partnership (LLP) Act 2008 introduced a new form of organization in India. The year when the LLP Act was introduced there was lack of clarity on its taxability. The question was whether LLP will be taxed like a Dome...

• 
  CA Sagar S Tilak

THE REAL ESTATE (REGULATION AND DEVELOPMENT) BILL, 2016 has been passed by RAJYA SABHA on March 10, 2016 and subsequently by Lok Sabha also. As name suggest, intention of this bill is to regulate and develop real estate sector. Regulation and Development both word has been used in the ti...

• 
  Neeraj Gautam

The charitable activity enjoys tax exemption due to the operations carried on for the benefit of general public. It is in a way the duty of the Government shared by the charitable trusts and hence deserves tax exemption as per the provisions of Income tax law. However, there have been in...

• 
  Prashanth K L

Background On 5 October 2015, the Organisation for Economic Co-operation and Development (OECD) released its final report on the tax challenges of the digital economy (Action 1) under its Action Plan on Base Erosion and Profit Shifting (BEPS).  The Final Report summarizes key features of...

• 
  Akhil Bhalla

Introduction The digital economy in India is growing at a rapid pace at ten per cent per year, significantly faster than the global economy as a whole. Online advertising forms an integral part of the expeditious growth of the digital economy. Considering this accelerated growth, it is ...

• 
  Prabhu Govindan

Taxation of dividends has seen several twists and turns over the years. In order to reduce cost of collection and curb tax evasion through non-reporting of dividends by shareholders, Government had introduced section 115-O in the Income-tax code through Finance Act, 1997. The section pres...

• 
  Mr Arindam Lahri

Proposals related to Income Tax: 1.100% deduction for profits from a affordable housing project – 100% deduction of profits of an undertaking from a housing project is proposed to be given on fulfillment of following conditions: i) project is approved during June 2016 to March 2019; i...

• 
  Neeraj Gautam

The much awaited Union Budget 2016 has finally been unveiled by the Hon’ble finance minister (“FM”),expatiating on a series of policy initiatives and schemes that aim at encouraging startups and existing Micro, Small and Medium Scale Enterprises (“MSME”). They key objective of such scheme...

• 
  Prabhu Govindan

The Budget is out and contains more than the usual number of amendments.  There is definitely focus on infrastructure, fiscal discipline and a conscious effort to boost growth and employment. Added to these regular efforts, there are also some welcome efforts to tackle the new age challen...

• 
  Bala Subramanyam

The 2016 budget was presented today and as promised it was a balanced budget. Here are some of the proposals regarding international transactions. Deferral of Place of effective Management Finance Act , 2015 amended section 6(3) of Income Tax Act, 1961 (Act) so as to provide that a comp...

• 
  Naman Shrimal

The Significance of Finance Minister’s Budget speech is that, it gives the purpose and proposals of the introductions, deletions and amendments to the existing statutes. The financial enactments can neither be static nor be rigid. It not only has to be dynamic and flexible but also be sen...

• 
  TNC SRIDHAR, Advocate

Claiming Deductions and Tax Benefits not claimed in Income Tax Returns   Background   Tax payers sometimes fail to claim / short claim certain deductions/exemptions in the Income tax returns filed. Assessee also realise that additional claim for deductions/exemptions could have been...

• 
  Pritesh Jain

Backdrop Tax implications concerning bonus shares have always been contentious and litigious. As early as in 1921 the issue as to whether the receipt of bonus shares constitutes a taxable income was dealt with in IRC vs. John Blott [1]. It was held that, on issuance of bonus shares nothi...

• 
  Sumeet Khurana
• 
  Rajat Juneja

Social Security Schemes (SSS) in India which provide for retirement, pension planning and social welfare of employees are principally governed by the Employees' Provident Fund (PF) and Employee State Insurance (ESI).It is imperative to note that under such schemes apart from the employer’...

• 
  CA T G Suresh
• 
  Sudarshan Rangan

This article is based on the long debated taxability of share issue expenses incurred by a company. One of the major sources of funding company is infusion of equity.  A company may incur a host of expenses such as professional consultation, underwriting commission, legal expenses, print...

• 
  P Menakshi Sundaram

Overview: Social welfare of the countrymen is a huge responsibility on the Government of any country , however for developing countries like India ,welfare for populace have always been not enough. This gap is filed by welfare associations like charitable trusts supplementing the activit...

• 
  M Venkatesan (Chartered Accountant)

As part of the “Roadmap” laid down in 2010 for introduction of IFRS (Ind-AS), theCentral Board of Direct Taxes (‘CBDT’) started working on drafting ‘Income Computation and Disclosure Standards’ (‘ICDS’) to align the tax treatment with the Ind-AS. Finally, the CBDT vide Notification No. 32...

• 
  Jayesh Karia

The Central Board of Direct Taxes (CBDT), Department of Revenue, recently operationalised a new framework for computation of income, by notifying Vide Notification No. SO 892(E) dated 31-3-2015 the 'Income Computation and Disclosure Standards' (ICDS) from April 1, 2015. The standards hav...

• 
  Mukesh Butani

Introduction The year 2015 has ushered in a new era for compliance service providers with the introduction of two sets of new standards issued by the Ministry of Corporate Affairs (MCA) & the Central Board of Direct Taxes (CBDT) respectively. The MCA notified the Companies (Indian Accoun...

• 
  Sachin Kumar BP

Ind – AS and Prior Period items Under the current Indian GAAP prior period items have to be disclosed separately in the financial statements of the period in which the error pertaining to a prior period is discovered. However under Ind – AS material prior period errors are to be correcte...

• 
  Sachin Kumar BP

Section 10(23C) relating to educational institution vis – a – vis section 11 exemption for such institution   As per section 10(23C), the income of certain funds, Universities, educational institutions, hospitals, etc., are not includible in the total income. There are about fourteen su...

• 
  S Sukumar, B.Sc., FCA., DISA., LLB

Background Section 145(2) of the Income Tax Act was amended by Finance (No.2) Act, 2014 in order to provide that the Central Government may notify from time to time Income Computation and Disclosure Standards to be followed by any class of assessees or in respect of any class of income. ...

• 
  Advocate K Vaitheeswaran

In Part I of the two article series author had analysed the impact created on computation of deferred tax i.e. timing or permanent difference keeping the remaining nine ICDS in the backdrop, six of which are dealt with in Part I, namely, valuation of inventory, construction contracts, rev...

• 
  M Venkatesan (Chartered Accountant)

Prelude The Pronouncement of CBDT on Income computation and disclosure standards has significantly impacted the computation of deferred taxes. This article aims at bringing light on the deferred tax aspect of ICDS. CBDT has pronounced 10 standards applicable from AY 2016-17 for all asse...

• 
  M Venkatesan (Chartered Accountant)

The reopening of assessment under Section 148 of the Income Tax Act (the Act) has been a continuous saga of litigation and uncertainty. Even when it appears that some finality is emerging, a new issue arises and it goes through the entire gamut of litigation all over again. This issue has...

• 
  Advocate K R Vasudevan