Slump Sale and its taxability

Slump Sale - Meaning A Slump Sale is a sale of one or more undertakings by a seller as a going concern to an acquirer, for a lumpsum consideration, without specific values being assigned to individual assets. The concept of Slump Sale was introduced in the income tax law through section 2(42C) [definition of Slump … Continue reading Slump Sale and its taxability

Implications of Change in Beneficial Shareholding

Whether you are buying a business, selling a business or merging two or more businesses, there are multifarious tax issues that need to be navigated. It is crucial to know what you are getting in to when you decide to grow your business through Mergers and Acquisitions (‘M&A’). In any M&A transaction, tax considerations are … Continue reading Implications of Change in Beneficial Shareholding

Claiming deductions on donations: 4 questions and their answers

“Giving is not about making a donation. It’s about making a difference.” And, no act of kindness, no matter how small, is ever wasted. All your acts of kindness in the form of charity and donations come back to you in the form of a tax benefit provided by the Indian Government under section 80G … Continue reading Claiming deductions on donations: 4 questions and their answers

Deductions for Co-operative Societies: 5 questions and their answers

Section 80P of the Income Tax Act, 1961 provides for deduction in respect of income of co-operative societies. These incomes and the respective conditions are briefly as follows- 100% of the profit and gains attributable to certain businesses. 100% of the profit and gains of primary society carrying out supply of milk, oilseeds, fruits or … Continue reading Deductions for Co-operative Societies: 5 questions and their answers

Unexplained cash credits: 5 questions and their answers

Section 68 is one of the few sections in the Income Tax Act of 1961 which has largely remained unchanged. Apart from addition of provisos to cover corporate taxpayers, the purpose of the section has remained unchanged. So what does section 68 say? Amounts credited to an assessee are taxable unless the Act has specifically … Continue reading Unexplained cash credits: 5 questions and their answers

Capital gains exemption for investment in residential house: Top 5 Issues & their answers

  Sale and purchase of house property: Capital gains exemption If buying and selling a house property, Section 54 allows an individual to be exempted from payment of capital gains tax on the profit, if: The seller is an individual or HUF. Asset needs to be classified as a long-term capital asset, being a residential house. … Continue reading Capital gains exemption for investment in residential house: Top 5 Issues & their answers

Being Forewarned is Being Forearmed

Are you an individual who does tax planning meticulously and pays taxes judiciously but still wonders if you are shooting in the dark? We bring to you a series of articles to help you understand what you have to watch out for and help you structure a comprehensive legal strategy backed by sufficient data-driven evidence to … Continue reading Being Forewarned is Being Forearmed