Summary of Income-tax (8th Amendment) Rules, 2020 CBDT amended Rule 44G of Income tax Rules, 1962 for making an application to invoke the mutual agreement procedure (‘MAP’) in Form no. 34F. According to the amended rule, the competent authority in India shall endeavour to arrive at a mutually agreeable resolution on tax disputes in accordance … Continue reading CBDT Amends Rule 44G
Residential Status Calculations for FY 19-20
CBDT issued circular No. 11-2020 clarifying how residency in India will be calculated with respect to an individual's stay in the period of lockdown. If an individual came to India on or before 22nd March 2020, the period between 22nd February and 31st March will not be taken into account, irrespective of whether they could … Continue reading Residential Status Calculations for FY 19-20
The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance No 2, 2020
Here’s a summary of the ordinance no 2 of year 2020: Specified Acts The Wealth Tax Act, 1957The Income Tax Act, 1961The prohibition of Benami Property Transactions Act, 1988Chapter VII of the Finance (No. 2) Act, 2004Chapter VII of the Finance Act, 2013The Black Money (Undisclosed Foreign Income and Assets) and the imposition of Tax … Continue reading The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance No 2, 2020
What we added to the Telescope this week!
Taxability of an offshore discretionary trust having resident and non-resident beneficiaries: Implications at time of accrual of income vs distribution of income Know the tax implications on discretionary trusts that are set up outside India. Offshore discretionary trusts can be set up by a resident or a non-resident of India and have resident as well … Continue reading What we added to the Telescope this week!
Case page and Related features – Income tax
Check out what the case page of Riverus Research Map for income tax looks like Get a timeline of a case Case Map of the case Key points of case ratio Quickly check the issues, arguments and holdingsCheck the profile of the lawyers involved and judges or members too by quick access links To try … Continue reading Case page and Related features – Income tax
The story of an Income Tax Issue
Data, they say, is the new oil. Much like oil, in its crudest form, data has little use. And while oil needs to be processed in an elaborate refinery, data needs a refinery of no less magnitude. I could go on and this comparison would be fun to stretch but let me get to the … Continue reading The story of an Income Tax Issue
Lok Sabha Passes the Taxation Laws (Amendment) Bill, 2019
On December 2, 2019, the Lok Sabha passed the Taxation Laws (Amendment) Bill, 2019 (“The Bill”) which inter alia reduces the corporate tax levied on domestic companies. The Bill is yet to be introduced in the Rajya Sabha and once passed by both the houses will replace the ordinance promulgated by the President in September … Continue reading Lok Sabha Passes the Taxation Laws (Amendment) Bill, 2019
Impact of Changes in the Corporate Tax
The Indian government reduced the corporate tax levied on companies from 30% to 22%. Corporate tax is a direct tax that is levied on the net income or the profits which corporate's generate from their businesses. This change will give a breather to companies and would leave more money in their hands for further investments … Continue reading Impact of Changes in the Corporate Tax
Can AO’s order be termed as erroneous and prejudicial u/s 263 if the assessee has stated transactions are not allowable for deduction but AO has allowed such deductions?
Case: EMDEE DIGITRONICS PVT LTD vs PR. COMMISSIONER OF INCOME TAX-4, ITAT KOLKATA Listen to the case summary EMDEE DIGITRONICS PVT LTD vs PR. COMMISSIONER OF INCOME TAX-4, ITAT KOLKATA here Background: The assessee's return of income was passed on for reassessment u/s 143(2).After the assessment, the AO passed an order u/s 143(3) of the Income … Continue reading Can AO’s order be termed as erroneous and prejudicial u/s 263 if the assessee has stated transactions are not allowable for deduction but AO has allowed such deductions?
Addition made to the income of the assessee (without cross-examination) cannot be sustained
In the case of Shakuntala Agencies Pvt. Ltd. vs. ITO, search and seizure operations at the premise of a third party uncovered incriminating material related to the assessee. The AO and CIT(A) both rejected the assessee’s request to cross examine the relevant person.Tribunal holding: Addition made to the income of an assessee on the basis of … Continue reading Addition made to the income of the assessee (without cross-examination) cannot be sustained