Wednesday, 31 December 2014

HAPPY NEW YEAR 2015




India Taxes- Due Date Alert for the month January 2015




No
Due Date
Related to
Compliance to be made
1
05.1.2015

Service Tax
Payment of Service Tax for the Month of December 2013
2
07.1.2015

TDS/TCS
(Income Tax)
·        Deposit TDS for payments of Salary, Interest, Commission or Brokerage, Rent, Professional fee, payment to Contractors, etc. during the month of December 2013.

·        Deposit TDS from Salaries  deducted during the month of December 2013

•   Deposit TCS for collections made under section 206C including sale of scrap during the month of December 2013, if any

•    Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of December 2013, if any
3
15.1.2015

TDS/TCS
(Income Tax)
Furnish quarterly statement of tax deducted at source (TDS) and tax collected at source (TCS) for the quarter ended December 2013 in Form 24Q / 26Q / 27Q / 27EQ.
4
20.1.2015

VAT
Payment of VAT & filing of monthly return for the month of December 2013
5
21.1.2015
STPI
Filing of Monthly Softex.
6
31.1.2015

TDS/TCS
(Income Tax)
Issue of TDS Certificate - Non Salary for Q3 FY 2013-13

Tuesday, 30 December 2014

Chargeability of gifts made to HUF u/s 56 of IT Act


In this article  as made an attempt to distinguish between the exemption benefits granted to Individual or HUF  on gift received by them, although both of them are covered by the Act under the same section i.e. 56(2)(vii), leaving other categories of assessees e.g. AOP and BOI  which are not covered altogether under this section.


VIDEO ON PRACTICAL ISSUES ON TAX DEDUCTED AT SOURCE

video

Significant change in processing of Quarterly TDS Statements - CPC (TDS)

Recently CPC (TDS) has issued a communication regarding significant change in processing of Quarterly TDS Statements to deductors.  The new process for Quarterly TDS Statement is identify the errors in Challan/ PANs and provde it the facility to correct before submitting in Quarterly TDS Statements.

Whether 'amalgamation' as term can include transfer of one or more undertakings to another company without actually blending existing companies into amalgamated company - YES: HC

THE issue before the Bench is - Whether "amalgamation" as a term can include transfer of one or more undertakings to another company without actually blending existing companies into the amalgamated company. And the answer is YES.
Facts of the case
The assessee company is engaged in the business of manufacturing of textiles. Upon verification of its return, the assessee had claimed and was granted benefit of investment

Monday, 29 December 2014

Income Tax Return mandatory for Senior Citizen, if Taxable Income is above Rs. 3.00 Lac.

Specially Senior Citizen Taxpayee Income source are as Pension, Interest, Rent, etc. and many more.  In case Taxpayee total income exceeds the aforesaid limit, Sr. Citizen Taxpayee would be required to file Income Tax Return and in case it does not, assessee would not be required to file the tax return.  It means total income exceeds Rs 3 lakh, being the maximum amount up to which tax is not payable by a senior citizen for assessment year 2015-16 (financial year 2014-15). 

Whether when Revenue fails to take action on demand of tax with interest for 27 years and also fails to apply mind to interest waiver application, it is a fit case to reduce interest amount u/s 220(2A) - YES: HC

THE issue before the Bench is - Whether when the Revenue fails to take action on demand of tax with interest for 27 years and also fails to apply mind to interest waiver application, it is a fit case to reduce or waive interest amount u/s 220(2A). YES is the answer.
Facts of the case
The assessee, an individual, was assessed to tax on the file of the ITO for the AYs 1977-78 and

FAQs on E-Filing of TDS Returns

1. What is annual e-TDS/TCS Return?
Annual e-TDS/TCS return is the TDS return under section 206 of the Income Tax Act (prepared in Form Nos. 24, 26 or 27) or TCS return under section 206C of the Income Tax Act (prepared in Form No. 27E), which is prepared in electronic media as per prescribed data structure. Such returns furnished in a CD/Pen Drive should be accompanied by a signed verification in Form No. 27A in

Assessee is entitled to take credit of service tax paid on GTA service under reverse charge before its taxable date

Sarda Energy & Minerals Ltd. vs. CCE, Raipur-I 2014 (35) STR 946 (Tri-Delhl)


FACTS:
Appellant deposited service tax as a receiver of GTA service in December 2004. The liability to pay service tax as a receiver of service arose from January, 2005 onwards. Appellant after payment of service tax took CENVAT Credit. The Department denied the credit on

TDS on ImmovableProperty

  • 1. TDS on ImmovableProperty
  • 2. What is TDS on property?§Applicable on purchase of an immovable property(other than rural agricultural land) w.e.f. 1st June,2013§Value worth Rs.50 lakh or more§TDS @ 1% to be deducted from the salesconsideration§Applicable only when seller is a resident (

Sunday, 28 December 2014

Service Tax Refund to exporters through the Indian Customs EDI System

Circular No. 149/18/2011-ST, 16th December, 2011

So far Service Tax Refund (STR) was made available to exporters (other than
SEZ Units/Developers) on specified services used for export of goods covered in
Notification 17/2009-ST dated 07.07.2009 (as amended) subject to certain
conditions. In this connection, Honourable Finance Minister, had stated in his
Budget Speech that
“There have been considerable difficulties in the sanction of
refunds, relating to tax paid on services used for export of
goods. I propose to shortly introduce a scheme for the
2

Saturday, 27 December 2014

Lesser Known tax saving tips for Individual Taxpayers


For most  of the people  ‘tax savings’ brings to mind life insurance, PPF, NSC, and equity-linked savings scheme, among others, that qualify for tax deduction under Section 80 C of the Income-Tax Act. An individual can claim tax deductions of up to Rs 1 lakh under 80C. and upto Rs. 20,000 under section 80CCF.   However, there are other lesser known avenues that offer additional tax breaks toindividuals. They are not widely discussed as they involve special situations in life such as having a special dependant, paying rent to

CBDT Guidelines For Compounding Of Offences Under Direct Tax Laws

The CBDT has issued a letter dated 23.12.2014 setting out the guidelines for compounding of offences under Direct Tax Laws. The guidelines shall come into effect from 01.01.2015 and shall be applicable to all applications for compounding received on or after the aforesaid date. The Guidelines classify offences into two parts and set out the criteria for compounding of offences under each category. The procedure to be adopted for making the compounding application and the manner in

Friday, 26 December 2014

No TDS in respect of reimbursement of expenses


There have been a number of occasions when some of my clients and some other entities have sought
my opinion regarding the issue whether tax is required to be deducted at source, in respect of
reimbursement of expenses, under the provisions of Chapter XVII-B of the Income-Tax Act, 1961 (the
Act).

Taxability of food coupon/meal voucher at employee hand.

We find a number of organizations that issue food coupons/meal vouchers to employees each month not adhering to perquisite valuation rules issued by the Income Tax Department. Let us examine the text of the perquisite valuation rule governing issuance of meal vouchers and study the underlying conditions that are to be satisfied for availing tax exemption on meal vouchers.
The perquisite valuation rule governing issuance of meal vouchers is as follows. You can take a look

Accounting Treatment for MAT Credit


  •  The Council of Institute of Chartered Accountants of India has issued a ‘Guidance Note on Accounting for Credit Available In Respect of Minimum Alternative Tax (MAT) under the Income Tax Act, 1961’.


TRACES intimation about outstanding TDS Demand for Asstt. Year 2015-16

Whether payment on sale of shares can be treated as mere accommodation of cash, in case of availability of DMAT account showing credit of share transactions and contract notes from brokers - NO: HC

THE issue before the Bench is - Whether payment on sale of shares can be treated as mere accommodation of cash, in case of availability of DMAT account showing credit of share transactions and contract notes from the brokers. NO is the answer.
Facts of the case
The assessee is an individual. Upon verfication of returns filed by him, the AO observed that the Directors of a company namely Bolton Properties Ltd. had manipulated its share price. Thereafter it was revealed in an investigation report that there were two operators namely

Wednesday, 24 December 2014

Appeal under Income Tax Act,1961

                                                                                
Sections Covered
1) 246A: CIT (Appeals)
2) 254: ITAT ---Final Fact Finding Authority
3) 260A: Supreme Court ---On substantial Question of Law
4) 261: Supreme Court                                                                                                       

S.10A:Free trade zone–Claim can be made before CIT(A)- Though approval of Director of STPI to EOU is sufficient for s. 10A, it is not so for s. 10B. For s. 10B, the approval of the Board appointed under I(D&R) Act is necessary. Claim for s. 10A can be made before CIT(A)[S.10B]

(1) The fact that the assessee is a 100% EOU approved by the Director, STPI does not mean entitle the assessee to deduction u/s 10B if the undertaking is not been approved by the Board appointed in this behalf by the Central Government in exercise of powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951, which is an express requirement for claiming deduction u/s 10B of the Act because of Explanation 2(iv) below section 10B of the Act as held in Regency Creations 27 taxmann.com 322 (Del). The plea of the assessee that the High Court

Capital gain tax for non resident

Taxation of a Non-Resident is always been a question of ambiguity and litigation for the known fact that none of the country never prefer to lose any potential income in the form of taxes and which many times results into either double taxation or illegitimate levy of tax. We have recently seen the case of Vodafone which was more like a roller coaster rise of up and down from various judicial authorities including changes in the laws with retrospective effect and against settling down in favour of the assesse.

Whether if assessee does not claim Sec 80IA benefits in initial years, same can be claimed in subsequent years when conditions stipulated are fulfilled - YES: HC

THE issue before the Bench is - Whether if assessee does not claim Sec 80IA benefits in initial years, same can be claimed in subsequent years when conditions stipulated are fulfilled. YES is the answer.
Facts of the case
The assessee concern is engaged in the business of forging and manufacturing of various types of auto parts. It had filed its return for the AY 2001-02, declaring total income of Rs.47,66,167/-. It had also claimed deduction u/s 80I in the relevant year whereas the business was started on

Tuesday, 23 December 2014

S. 40(a)(ia): Merilyn Shipping 146 TTJ 1 (Vizag) has binding effect in view of the SLP dismissal & the clarification in Janapriya Engineers (AP HC) and so amounts already paid during the year cannot be disallowed

Arcadia Share & Stock Brokers Pvt. Ltd vs. DCIT (ITAT Mumbai)



The Tribunal had to consider whether in view of the Special Bench verdict in Merilyn Shipping & Transport 146 TTJ 1 (Vizag), a disallowance u/s 40(a)(ia) could be made in respect of the amounts that have already been paid during the year and are not “payable” as of 31st March. HELD by the Tribunal: In […]

CBDT Notification reg. undisclosed Income during Search/Survey.

Recently on 18th December, 2014 CBDT has issued a notification regarding "Admission of Undisclosed Income under coercion/pressure during Search/Survey".  In this matter CBDT has already issued a notification on 09.01.2014 during this calender year vide Letter No. 286/98/2012-IT(Inv.II).  Read the notification which is as under :

Download updated e-TDS/TCS Return FVU Ver 4.5 & 2.141 for Asstt. Year 2014-15

Recently, I had published a post regarding uptation of e-TDS/TCS Return FVU features.  The TIN-NSDL has relseased the updated e-TDS/TCS Return FVU utility ver. 4.5 and 2.141 with new features for Asstt. Year 2014-15 which is as under:

Partnership firm of wife & husband acquired property but they could not develop and sold it - conclusion reached by lower authorities that income is to be treated as LTCG instead of business income is proper: HC

THIS is a Revenue appeal.
It is argued that the Tribunal order, holding that the order of Commissioner of Income Tax (Appeals) was proper in law in directing the Assessing Officer to treat the income of Rs.5,71,03,487/- (AY 2007-2008) as income from Long Term Capital Gain instead of business income, is not correct as-

Transfer Fees recd by Co-op Hsg Soc from incoming & outgoing members (even in excess of limits) is exempt on the ground of mutuality

CIT vs. Darbhanga Mansion CHS Ltd (Bombay High Court)



The assessee, a Co-operative Housing Society, received a sum of Rs.39,68,000 on account of transfer of flat and garage and credited it to ‘general amenities fund’ as well as ‘repair fund’. The assessee claimed that the said receipt is exempted from tax on the ground of mutuality. However, the AO held that the principles of […]

S. 254(2): If the Tribunal accepts that a mistake has crept in the order, interests of justice is served if the entire order is recalled (suo moto by the ITAT) & appeal re-heard. Appeals should not be disposed off in “light hearted” and “casual manner”

State Bank of India vs. DCIT (Bombay High Court)



During the pendency of the Appeal before the High Court, the Tribunal passed an order on the Miscellaneous Application and revived the appeal filed before it for hearing afresh on merits in relation to withdrawal of deduction u/s 36(1)(viia). However, as the assessee had not asked for recall of the ground challenging the exercise of […]

S. 40(a)(ia): Despite stay by High Court, Special Bench verdict In Merilyn Shipping is binding on the ITAT due to judicial discipline

CIT vs. Janapriya Engineers Syndicate (Andhra Pradesh High Court)



The Tribunal had to consider whether in view of the Special Bench verdict in Merilyn Shipping & Transport 146 TTJ 1 (Vizag), a disallowance u/s 40(a)(ia) could be made in respect of the amounts that have already been paid during the year and are not “payable” as of 31st March. The Tribunal held that as […]

Monday, 22 December 2014

Understanding section 263 & 264 of Income tax act with latest case laws:


The opening of assessment by Commissioner of Income tax by invoking power of section 263 may have adverse impact on the taxpayer & hence it is very important for tax professional to have more information in this respect.

CAG Report Exposes Shocking Carelessness And Blunders By CAs


The Comproller & Auditor General of India (CAG) has issued a report No. 32 of 2014 setting out the results of the performance audit of “Appreciation of Third Party (Chartered Accountant) Certification in Assessment Proceedings of the Department of Revenue”.
The report makes for shocking reading because it exposes the utterly careless manner in which the Chartered Accountants have conducted audits and issued certificates in blatant disregard of all basic norms.
According to the CAG’s report, there has been short levy of taxes to the extent of Rs 2,813.11 crore

Provision for Intermediate Default Communication in course of processing of Original Quarterly TDS Statements

Description: Description: Description: cid:image001.jpg@01CFD96F.3D425BB0TDS Reconciliation Analysis and Correction Enabling System
 
CPC (TDS) communication: Provision for Intermediate Default Communication in course of processing of Original Quarterly TDS Statements
Customer Care:
Toll-Free 18001030344
Description: Description: Description: cid:image002.jpg@01CFD96F.3D425BB0 +91 120 4814600  
contactus@tdscpc.gov.in
 
 
Useful Links :

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Circulars & Notifications
 
 
 

FAQs
 
75/2014

Date of communication : 20/12/2014
Dear Deductor,
Centralized Processing Cell (TDS), in its constant endeavor to improve services, is glad to update you with a significant change in

CPC (TDS) advisory for use of Digital Signatures on TRACES

TDS Reconciliation Analysis and Correction Enabling System
CPC (TDS) advisory for use of Digital Signatures on TRACES
076/2014

Date of communication : 21/12/2014

Dear Deductor (TAN - ),

The Centralized Processing Cell (TDS) has released a new feature on its web-portal TRACES, where a Digital Signature Certificate (DSC) can be used for availing various services offered by the portal.
You are advised to take note of the following key information in this regard:

Analysis of the Constitution Amendment Bill for introduction of GST

Honourable Finance Minister tabled the much awaited Constitutional Amendment Bill in the Parliament yesterday evening as a first step to usher in Goods and Service tax.  It is a clear reflection of the fact that the Government is committed to introduce GST to replace the current indirect tax framework.  Suggested date of implementation as per media reports is 1 April 2016.


Delhi Tribunal rules on carry forward of business loss in intra-group change in shareholding (Yum Restaurants)

We are pleased to release a Tax Alert which summarizes a recent decision of the Delhi Bench of Income Tax Appellate Tribunal (Tribunal) in the case of Yum Restaurants (India) Pvt. Ltd. (Taxpayer) v. ITO in the context of restriction on carry forward of past years’ business losses under the Income Tax Laws (ITL) in the event of change in shareholding beyond the threshold limit of 51%.
I

Whether Revenue can resort to reopening of assessment merely on ground that Customs had seized assessee's goods and levied penalty - NO: HC

THE issue before the Bench is - Whether Revenue can resort to reopening of assessment merely on ground that Customs had seized assessee's goods and levied penalty. And the verdict goes against the Revenue.
Facts of the case
The assessee is an individual, who had received a notice u/s 148, issued beyond the period of four years from the end of the relevant AY. Consequently, the first proviso to Section 147 would be applicable. Assessee's counsel had submitted that the re-assessment proceedings were bad in

Friday, 19 December 2014

10 GMS OF GOLD PRICE HISTORY FOR LAST 89 YEARS.


DEDUCTIONS UNDER CHAPTER VI-A OF THE ACT FOR THE ASSTT. YEAR 2015-16 FOR SALARIED EMPLOYEE Part - III

As per the recently issued a circular by Central Board of Direct Taxes for Salaried Employee regarding calculation of Exemption under Chapter VI-A to compute Income Tax for Asstt. Year 2015-16.  In this  circular many amendments has been made including Tax Exemption Limit increased for Asstt. Year 2015-16.  In the 2nd Part you will see all the deductions u/s. 80CCC, 80CCD, 80CCG etc.  This is the Third part to cover important Deductions under Chapter VI-A regarding Medical Reumbersment, Memdical Treatment, Physical Disability etc for Salaried Employee for Asstt. Year 2015-16 which is as under :

Companies (Amendment) Bill 2014

Companies (Amendment) Bill 2014 was introduced in lok Sabha by Shri. Arun Jaitley on 08th December 2014 and same been passed by Lok Sabha on 17 December 2014.
Companies Act, 2013 (Act) was notified on 29th August, 2013. Barring provisons relating to Chapters XV to XX and certain other provisions relating to setting up of/exercise of powers by National Company Law Tribunal (NCLT)/National Company Law Appellate Tribunal (NCLAT); Investor Education and Protection Fund (IEPF’); National Financial Reporting Authority (NFRA)

Whether if assessee makes wrong claim of royalty which actually pertained to earlier AYs, it is fit case to attract penalty if assessee fails to give valid reasons for making such claims twice - YES: HC

THE issue before the Bench is - Whether if assessee makes wrong claim of royalty payment which actually pertained to earlier AYs and was also allowed by the Revenue, it is a fit case to attract penalty if the assessee fails to give valid reasons for committing such an error of making claims twice against same TDS certificates. YES is the answer of the High Court.
Facts of the case
The assessee company was engaged in the business of leather chemical manufacture and

Thursday, 18 December 2014

IFRS 12 Interests in subsidiaries disclosures

Interests in subsidiaries disclosures

An entity shall disclose information that enables users of its consolidated financial statements
  1. to understand: (i) the composition of the group; and (ii) the interest that non-controlling

Whether even if there is no transfer of property rights to power agent, capital gains can be taxed in his hand - NO: HC

THE issue before the Bench is - Whether even if there is no transfer of property rights to power agent, capital gains can be taxed in his hand. NO is the answer.
Facts of the case
The assessee is an individual. He is a power agent of one Mr.M.Viswanathan, who is the actual owner and vendor of the property. The said Viswanathan entered into a registered power of attorney on in favour of the assessee without any consideration. After the execution of power of

No Capital Gains On Transfer Of TDR/ FSI: Bombay High Court + Other Imp Updates

CIT vs. Sambhaji Nagar Coop. Hsg. Society Ltd (Bombay High Court)

S. 45/ 48: Gains on sale of TDR received as additional FSI as per the D. C. Regulations has no cost of acquisition and is not chargeable to capital gains
Only an asset which is capable of acquisition at a cost would be included within the provisions pertaining to the head “Capital gains” as opposed to assets in the acquisition of which no cost at all can be conceived. In the present case as well, the situation was that the FSI/TDR was generated by the […]

Changes in e-TDS/TCS RPU & FVU validations.

It is proposed to release new version of NSDL Return Preparation Utility (RPU) and File Validation Utility (FVU) incorporating the below features:

Wednesday, 17 December 2014

Analysis of section 92 to understand Transfer Pricing .


92
·         Any income arising from an international transaction or specified domestic transaction shall be computed having regard to the arm’s length price.    
·         For the removal of doubts, it is hereby clarified that the allowance for any expense or interest arising from an international transaction shall also be determined having regard to the arm’s length price
·        

IFRS 12 Aggregation of disclosures for investments

Aggregation of disclosures for investments

An entity shall decide, in the light of its circumstances, how much detail it provides to satisfy the information needs of users, how much emphasis it places on different aspects of the requirements and how it aggregates the information. It is necessary to strike a balance between burdening financial statements with excessive detail that may not assist users of financial statements and obscuring information as a result of too much aggregation.

Whether in case of Joint Development Agreement, transfer of land in lieu of developed area would crystallise only on the day developer hands over developed area - YES: ITAT

THE issue before the Bench is - Whether in case of Joint Development Agreement, the transfer of land in lieu of developed area would crystallise only on the day the developer hands over the developed area. And yes is the answer of the Tribunal.
Facts of the case
The assessee is an individual. He had filed his return declaring an income of Rs.3,54,480/-. The case of assessee was selected for scrutiny and notices u/s 143(2), 142(1) were issued. It

GST News

We are pleased to release the GST News Alert providing an insightful coverage of the latest GST updates and the key developments that are likely to impact trade.

This News Alert summarizes the following updates –

Mumbai Tribunal ruling on scope of international transaction and deemed international transaction for applicability of transfer pricing provisions (Vodafone)

We are pleased to release a tax alert which summarizes a recent ruling of the Mumbai Income Tax Appellate Tribunal (ITAT) in the case of Vodafone India Services Pvt. Ltd. (Vodafone Services or  Taxpayer) on the scope of the definition of international transaction and deemed international transaction for applicability of transfer pricing (TP) provisions of the Indian Tax Laws (ITL).

Tuesday, 16 December 2014

IFRS 12 Disclosure of interests in other entities

Disclosure of interests in other entities

An interest in another entity refers to contractual and non-contractual involvement that exposes the reporting entity to variability of returns from the performance of the other entity. Consideration of the purpose and design of the other entity may help the reporting entity when assessing whether it has an interest in that entity and, therefore, whether it is required to provide the disclosures in  IFRS 12. That assessment shall include consideration of the risks that the other entity was designed to create and the risks the other entity was designed to pass on to the reporting entity and other parties.
A reporting entity is typically exposed to variability of returns from the performance of another entity

Deduction for Salaried Employee under Chapter VI-A for Asstt. Year 2015-16 - Part-II

Recently for current Financial Year and Assessment Year 2015-16, the current Government after Budget-2014 has issued a circular for Salaried Employee regarding computation of income.  In this  circular many amendments has been made including enhancement of  Tax Exemption Limit. Yesterday the First part has published on this blog. To read Part-I Deductions under Chapter VI-A for Salaried Employee for Asstt. Year 2015-16 Click Here. The Part-II is as under :

DEDUCTIONS UNDER CHAPTER VI-A OF THE ACT FOR THE ASSTT. YEAR 2015-16 FOR SALARIED EMPLOYEE

Deduction in respect of contribution to certain pension funds (Section 80CCC)

Deduction for Salaried Employee under Chapter VI-A for Asstt. Year 2015-16 - Part-I

Recently, Current Government after Budget-2014 has issued a circular for Salaried Employee to compute Income Tax.  In this  circular many amendments has been made including increases Tax Exemption Limit for Asstt. Year 2015-16.  This is the First part to cover some important Deductions under Chapter VI-A for Salaried Employee for Asstt. Year 2015-16 which is as under :

DEDUCTIONS UNDER CHAPTER VI-A OF THE ACT FOR THE ASSTT. YEAR 2015-16 FOR SALARIED EMPLOYEE

In computing the taxable income of the employee, the following deductions under Chapter VI-A of the Act are to be allowed from his gross total income:

Deduction in respect of Life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. (section 80C)

Whether when husband gives interest-free cash loan to wife to buy residential house, such amounts are to be clubbed with net wealth of husband as it falls within purview of 'asset' as defined in Act - NO: ITAT

THE issues before the Bench are - Whether when husband gives interest-free cash loan to wife to buy a residential house, such amounts are to be clubbed with net wealth of husband as it falls within purview of 'asset' as defined in Act and Whether giving interest free loan to wife for buying assets can be considered as a strategy to remain below the maximum tax bracket, although the assessee is already paying the tax at a maximum rate. NO is the answer of the Tribunal.
Facts of the case

Monday, 15 December 2014

Salaried Employee's Income Exempt from Income under the head of "Salaries".

As per recently issued a circular by Income Tax Department for Salaried Taxpayee, a few Income exempt from under the head of "Salary".

Any income falling within any of the following clauses shall not be included in computing the income from salaries for the purpose of section 192 of the Act :

Whether redemption fine paid to Customs authority is compensatory in nature and thus, allowable as legitimate business expenditure - YES: ITAT

THE issue before the Bench is - Whether redemption fine paid to the Customs is compensatory in nature and thus, allowable as legitimate business expenditure. YES is the answer.
Facts of the case
The assessee is engaged in the business of import and sale of goods. The assessee entered into an agreement with Export House for import of certain goods. The assessee entered into agreement with the Export House and imported a consignment of "Almonds in Shell". After the

WEALTH TAX


Assessees Liable to Wealth Tax (Section 3)
Wealth Tax is charged for every assessment year in the hands of individuals, HUFs and all companies (private as well as public) on the net wealth as on 31st March.
The following assessees are specifically excluded from the levy of Wealth Tax:

Analysis of Section 14A r.w rule 8D.

Allowance of expenditure incurred in relation to exempted income during the assessment or otherwise would be prejudicial to the revenue that’s why Section 14A was introduced by the Finance Act 2001 with retrospective effect from 1st April 1962 in Chapter IV of the Income Tax Act 1961 which inter-alia provides for the disallowance of the expenditure incurred by an assessee in relation to the income which does not form part of his/her total income. Subsequently, Rule 8D was introduced by the Income Tax (Fifth Amendment) Rules 2008 with prospective effect from 24th March 2008 vide NOTIFICATION NO-45/2008, Dated:  24 March 2008 for computation of

Saturday, 13 December 2014

Online facility for Response to Outstanding Income Tax Demand

Many a times there are Mis match between TDS shown in Form 16 / Form16A and actually deposited by Employer / Other party. However at the time of filing Income Tax Return the assessee claims full TDS as per TDS certificate received. Due to this at the time assessment CPC / AO send intimation of Demand. Further there are various reason and stages where demand raise, however there is no consolidated date based of status of each demand. To make it easier for assessee and to fasten the process Income tax Department has made online option available to update and Reply for any

Whether when assessee engaged in trading of shares incurs expenses on unsecured loan and utilises same for buying shares for investment, such expenses are allowable as per Sec 36(1)(iii) - YES: HC

THE issue before the Bench is - Whether when assessee engaged in trading of shares incurs expenses on unsecured loan and utilises same for buying shares for investment, such expenses are allowable as per Sec 36(1)(iii). YES is the answer.
Facts of the case

Friday, 12 December 2014

Clarification on Service Tax Audit

The CBEC has clarified vide Circular No.  181/7/2014 - Service Tax dated 10th December, 2014 that the Delhi High Court ruling in M/s Travelite (India) Ltd. [2014 (35) S.T.R. 653], quashing Rule 5A(2) of the Service Tax Rules on grounds of having no Statutory Back Up, is now distinguishable as clear statutory backing for new Rule 5A(2) of Service Tax Rules exists in section 94(2)(k) of the Finance Act, 1994. [Section 94(2) was amended w.e.f.

Tribunal allows CENVAT credit on Outdoor Catering Services for employees (to the extent cost is borne by the Company) post the April 2011 amendment of the definition of ‘input services’

We are pleased to present a Tax Alert on the recent decision of the Mumbai Tribunal in the case of Hindustan Coca Cola Beverages Pvt Ltd v. CCE; 2014-TIOL-2460-CESTAT-Mum. The Tribunal allowed the appeal filed by the assessee holding that CENVAT credit is available in respect of Service tax paid on Outdoor Catering Services procured in relation to its employees. The present ruling is significant in light of the fact that it has been

Download Form No. 16 and 16A (TDS Certificate) from TRACES is mandatory TRACES Advice to Deductor.

On 11th December, 2014 TRACES has is issued advisory notice to TDS Deductor, download TDS Certificate (Form 16.16A) is mandatory from TRACES.  Therefore, TDS Deductor register with TRACES.

Download Circular for Income Tax Deduction from Salaries during the Fin. Year 2014-15

Recently, Central Board of Direct Taxes has issued a Circular No.  17/2014 for Income Tax Deduction from Salaries during the Financial Year 2014-15 under section 192 of the income Tax Act, 1961.

Online facility to provide Grievance relating to Income Tax CPC

The facility to provide Grievance relating to the CPC is made available to the assessee in the e-Filing portal. After Login, select Helpdesk –> Submit Grievance–> CPC then from the drop down select Assessment Year, category and sub category of the grievance. Source- CBDT


How to access Income tax Account from Bank Account

If you have forgotten your e-Filing login password and you are unsuccessfull with the other options of resetting password, then you can use the new facility to get direct access to your Income Tax Department e-Filing account using the net-banking facility of your bank. At this time the facility of direct e-Filing Login through Net banking is available through the following banks: Corporation Bank-Retail Banking: https://www.corpretail.com/RetailBank Corporation Bank-Corporate Banking:

Whether date of allotment letter issued by builder of flats is the relevant date for acquisition of property for purpose of Sec 2(42A) - YES: HC

THE issue before the Bench is - Whether date of allotment letter issued by builder of flats is the relevant date for acquisition of property for purpose of Sec 2(42A). YES is the answer.
Facts of the case
The assessee is an individual. The assessment in this case was relates to AY 2009-10. Assessee had purchased the undivided share of land of 2150 sq.ft. out of a large extent of 4 grounds and 400 sq.ft. situated in S.Nos.2766 and 67, RS No.1570/4 at No.1, Binny Road, Chennai. Prior to the purchase of this undivided share in land, assessee had entered into an agreement with