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

Income from Agriculture: 5 Questions and their Answers

Agricultural income in India is categorised as a valid source of income and includes: income from sources that comprise agricultural land, income from buildings on or related to an agricultural land and commercial produce from an agricultural land.  Agricultural income is defined under section 2(1A) of the Income Tax and Act and such income earned by a … Continue reading Income from Agriculture: 5 Questions and their Answers

Income from House Property: 4 Questions and their Answers

Income from house property is chargeable to tax under Section 22 of the Income Tax Act. As per Section 22, tax on house property is chargeable on the annual value of any property, consisting of any buildings or lands connected to it, owned by the assessee. The determination of annual value in this case is done on … Continue reading Income from House Property: 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

Capital Expenditure vs Revenue Expenditure

The question about the nature of expenditure has always been a highly contested issue in tribunals and courts in India. Characterising an expenditure as revenue or capital has tax implications. Revenue expenditure is taken into account while computing taxable profits and would be eligible for a tax deduction whereas on capital expenditure only depreciation can … Continue reading Capital Expenditure vs Revenue Expenditure

Alert: Second instalment of Advance Tax is due

As per section 208 of the Income Tax Act, advance tax is the income-tax which is payable in instalments if the tax liability in a financial year exceeds Rs. 10,000. Advance Tax is payable in the year in which the income is received. Under the scheme of advance tax payment, income received under every head … Continue reading Alert: Second instalment of Advance Tax is due