Thursday, 30 April 2015

India Taxes- Due Date Alert for the month May 2015


Sr No
Due Date
Related to
Compliance to be made
1
05.05.2015
Service Tax
Payment of Service Tax for the Month of April 2015.  
2
07.05.2015
.
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 April 2015.
· Deposit TDS from Salaries deducted during the month of April 2015
• Deposit TCS for collections made under section 206C including sale of scrap during the month of May April, if any
• Deliver a copy of Form 15G/15H, if any to CCIT or CIT for declarations received in the month of April 2015, if any
3
15.05.2015
TDS/TCS
(Income Tax)
Furnish quarterly statement of tax deducted at source (TDS) and tax collected at source (TCS) for the quarter ended December 2011 in Form 24Q / 26Q / 27Q / 27EQ
4
20.05.2015
VAT
Payment of VAT & filing of monthly return for the month of April 2015
5
20.5.2015
STPI
Filing of Softex Form for the month ended April 2015
6
30.5.2015
TDS/TCS
(Income Tax)
Issue of TDS Certificate - Non Salary for Q4 FY and Salary in FY 2013-14

Taxation of Bonus & Dividend Stripping u/s 94.


 

Bonus Stripping u/s 94(8)


Section 94(8) has been inserted with effect from assessment year 2005-06 to curb the practice of creation of losses via Bonus Stripping. Briefly, it says that the loss, if any, arising to a person on account of  purchase and sale of original units shall be ignored for the purpose of computing his income chargeable to tax if the following conditions are satisfied: 

Late Filing Fees and Penalty for TDS/TCS Statements for Asstt. Year 2015-16

Before understanding the penalty provisions for failure to furnish the statement of Tax Deducted at Source or statement of Tax Collected as Source (i.e. commonly known as TDS/TCS return) we shall first have a look at the few basic duties of a person liable to deduct/collect tax at source and due dates for filing of TDS/TCS return.

Whether when method deployed by assessee for computation of capital gains was found to be wrong, it confers jurisdiction on AO to reopen assessment after four years - NO: HC

THE issue before the Bench is - Whether when method deployed by assessee for computation of capital gains was found to be wrong, it confers jurisdiction on AO to reopen assessment after four years. NO is the answer.
Facts of the case
The assessee is an individual. It had filed return of income declaring losses. A notice u/s 143(2) was issued and duly served upon the assesssee. Subsequently, a questionnaire was issued calling for certain details/information and clarifications u/s 142(1) from the assessee, which was duly served upon the assessee. During the year assessee sold an immovable property for Rs.35 lac resulting in capital loss of Rs.4,57,137/-. On the basis of the information received from the

Issuance of TDS Certificates in Form No. 16A duly authenticated by way of digital signature

Section 203 of the Income-tax Act 1961 (“the Act”) read with the Rule 31 of the Income-tax Rules 1962 (“the IT Rules”) requires the deductor to issue certificate of tax deduction at source (TDS) to the deductee. The relevant form for such TDS certificate is Form No.16 in case of deduction under section 192 and Form No.16A for deduction under any other provisions of Chapter XVII-B of the Act. TDS certificate in Form No.16 is to be issued annually whereas TDS certificate in Form No.16A

Wednesday, 29 April 2015

Where service tax is paid by service provider under one category of taxable service, the same cannot once again be demanded from service receiver, under RCM by changing the category of service.

53 taxmann.com 268 (New Delhi-CESTAT)–Coca Cola India (P.) Ltd. vs. Commissioner of Service Tax, Delhi.
 
 
FACTS:
The appellant entered into a contract with an agreement with KPH Dream Cricket Pvt. Ltd. for sponsoring cricket team Kings XI Punjab. On the said contractual consideration, service tax was collected by M/s. KPH from the appellant and deposited with the Central Government under Business Auxiliary Service. However, Revenue contended that the agreement between the parties falls under the category of sponsorship service and as such,

Delhi ITAT clarifies that BEPS is a tax policy consideration; law to be interpreted as it exists in the statute




 

This Tax Alert summarizes a recent decision of the Delhi Income Tax AppellateTribunal (ITAT) in the case of Baker Hughes Singapore Pte. Ltd. on the issue of whether the benefit of presumptive basis of taxation under the Indian Tax laws (ITL) as is applicable to income earned by a non-resident (NR). Although on merits, the ITAT allowed the benefit of presumptive taxation, one of the issues discussed was whether the benefit can be denied on the ground that it leads to Base Erosion and Profit Shifting (BEPS) in India. The ITAT held that BEPS is a matter of tax policy consideration, not relevant for the process of judicial decision making. It was held that law has to be interpreted as it exists in the statute and not as how it ought to have been, based on different ideologies. Thus a benefit cannot be denied where the law otherwise provides for such benefit.

 

Taxation of Forex profit and loss under section 43A

From the ACT.

Notwithstanding anything contained in any other provision of this Act, where an assessee has acquired any asset in any previous year from a country outside India for the purposes of his business or profession and, in consequence of a change in the rate of exchange during any previous year after the acquisition of such asset, there is an increase or reduction in the liability of the assessee as expressed in Indian currency (as compared to the liability existing at the time of acquisition of the asset) at the time of making payment—

Key Features of Pradhan Mantri Suraksha Bima Yojana Jeewan Jyoti Bima Yojana.

Recently, The Finance Minister announced two major social security scheme in his budget speech i.e. Pradhan Mantri Suraksha Bima Yojana and Pradhan Mantri Jeewan Jyoti Bima Yojana.

Important Key Features of Pradhan Mantri Suraksha Bima Yojana is as under:

Free e-Taxation (Android App) for Mobile Tax Payers Users.

Recently we find Free Android Application for Mobile Tax Payers Users i.e. E-Taxation ver. 2.0.

Features:
1. Practical and theoretical knowledge of Direct Tax.
2. Case laws, circulars, notifications, public notice, tax calendar, corporate and taxation news.
3. Mock Test for students appearing for final exam.

Whether Sec 35AB gets attracted where sum incurred towards procurement of technical know-how is revenue in nature - NO: HC

THE issue before the court is - Whether Sec 35AB gets attracted where sum incurred towards procurement of technical know-how is revenue in nature. NO is the answer.
Facts of the case
The assessee company is engaged in the production of engineering related products. The assessee had entered into an agreement with an English company based in UK under name and

Notional interest on interest free security deposit not includible in value of rent agreed upon between parties for the purpose of levy on renting of immovable property.


53 taxmann.com 511 (Mumbai-CESTAT)-Murli Realtors (P.) Ltd. vs. CCEx, Pune-II. [2015]
 
 
  FACTS:
The Appellants leased out their premises on long time lease ranging from five to 10 years against monthly lease rentals and also obtained interest free security deposit. The deposit is returned to the lessee at the end of the lease period. The department held a view that by taking of interest free security deposit, the lease rentals was suppressed. Hence, notional

Tuesday, 28 April 2015

Service Tax Registration to be amended within 30.04.2015

The newly notified procedures for service tax registration mandatorily require the registrants to quote their Mobile Nos. and E-mail ID while applying for the registration.
The order prescribing the procedures also mandated all existing registrants to update their E-mail ID and Mobile Nos. within 30.04.2015, if the same is not yet updated. Accordingly, all existing assessees registered with the service tax department are required to amend their registration within 30.04.2015.
Failure to comply with the said registration requirements may attract penalty under section 77 of the Finance Act, 1994, which may extend upto Rs.10,000

FAQ ON TAX ON INCOME FROM SHARE MARKET.


 
Income from intra-day trading is considered as speculation income and taxed as such. While speculation losses can be set off only against speculation gains, non-speculation business losses may be set off against short/long-term capital gains.

KEY POINTS:

Taxpayers might face several issues while filing Income Tax Returns this year.

A vacation to an exotic foreign destination could become stressful, if you are busy collecting bills to show as expenditure while filing income tax (I-T) returns, instead of unwinding and enjoying yourself. This could soon be the predicament of every citizen leaving Indian shores.

The new income tax return (ITR) form, ironically called Sahaj (meaning easy), asks for details that could make filing tax returns a headache. Here are a few changes that could make the form - currently under review - easier to fill:

Analysis of FVU Version 4.6 and Due Date of 4th Quarter for Asstt. Year 2015-16.

The long awaited FVU has been released late evening on 20th April 2015. Brief analysis of the same is as under:

Mandatory to quote PAN of Responsible Person:
It is now mandatory to quote the PAN of the Responsible Person in all Regular TDS Returns and Correction Statements. It is applicable for all returns / corrections filed on or after 21st April 2015 irrespective of the financial year. This would help the Department identify the person better. 

Board’s Report – 3

In continuation of our earlier post dealing with Financial Statements and Boards’ Report, we will read Boards’ report of companies other than One Person Companies here.
Managerial Remuneration [Rule 5(1) of Managerial Remuneration Rules]:
Every listed company shall disclose in the Board’s report-
(i) the ratio of the remuneration of each director to the median remuneration of the employees of the company for the financial year;
The expression “median” means the numerical value separating the higher half of a population from

Whether when assessee fails to establish that deferred revenue is actually declared as income in subsequent AYs, no fault can be attributed if AO resorts to reassessment - YES: HC

THE issue before the Bench is - Whether when assessee fails to establish that deferred revenue is actually declared as income in subsequent AYs, no fault can be attributed if AO resorts to reassessment. YES is the answer.
Facts of the case
The assessee company is engaged in the manufacture and sale of computer hardware and related products. For A.Y 2009-10, the assesee had filed its return declaring a total loss of Rs.

Renting of buildings used for purpose of accommodation


53 taxmann.com 206 (New Delhi- CESTAT)- Jai Mahal Hotels (P.) Ltd. vs. Commissioner of Central Excise, Jaipur. [2015]
 
Prior to 01/07/2010 - Renting of buildings used for purpose of accommodation including hotels, meaning thereby, renting of a building for a hotel, is not liable for service tax under "Renting of Immovable Property Services”.
 

Monday, 27 April 2015

Whether when subsidy is not for buying capital assets and same was received after commencement of production it is to be construed as revenue receipt - YES: HC

THE issue before the Bench is - Whether when the subsidy sanctioned by the State is not for buying capital assets and same was received after commencement of production it is to be construed as revenue receipt. YES is the answer.
Facts of the case
The assessee is a company. It had filed return of income for A.Y. 1996-1997 declaring the total l

Penalty not leviable if service tax with interest paid before issuance of adjudication order.

(37) STR 172 (All.) H.M. Singh  and Co. vs. Commissioner of Customs, C. Ex. & Service  Tax [2015]  

 
FACTS:
The appellants engaged in providing taxable services of "manpower recruitment and supply of agency services" was reimbursed provident fund in respect of manpower supplied and no service tax was discharged on this amount. It was contended that gross

Sunday, 26 April 2015

Taxation aspects in case of corporate restructuring

Now a day’s cross border transactions, mergers and acquisitions and amalgamations, demergers have been increasing significantly…

Saturday, 25 April 2015

Guidelines for claiming an Income Tax Refund

 

The end of a financial year is often a nightmare as this is when people run from pillar to post to file their yearly income tax. But one’s trouble does not end here, especially if the point in case is paying extra taxes. While the process of getting the tax refund might be an arduous one, here are a few steps that can simplify the process.
 

कोशिश करने वालों की कभी हार नहीं होती।

लहरों से डर कर नौका पार नहीं होती,
कोशिश करने वालों की कभी हार नहीं होती।
नन्हीं चींटी जब दाना लेकर चलती है,
चढ़ती दीवारों पर, सौ बार फिसलती है।
मन का विश्वास रगों में साहस भरता है,

S. 271(1)(c) Penalty: High Court Reverses ITAT Third Member Verdict + Imp CBDT Directive On FII Taxation


Kirit Dayabhai Patel vs. ACIT (Gujarat High Court)


S. 2711(1)(c): Immunity against penalty under Expl 5 is available even in return is not filed provided a statement is made during the search, explaining the manner of deriving the income and due tax & interest thereon is paid

In order to get the benefit of immunity under clause(2) of explanation5 to Section 271(1)(c) of the Income Tax Act, it is not necessary to file the return before the due date provided that the assessee had made a statement,

CPC(TDS) follow-up for closure of Short Payment Defaults in excess of Rupees 1 Lakh in TDS Statements filed since FY 2007-08 onwards


026/2015

Date of communication : 25/04/2015

Dear Deductor (TAN - CHEC07239B),

As per the records of the Centralized Processing Cell (TDS), there are outstanding Short Payment Defaults exceeding Rs. 1 Lakh, with respect to TDS Statements filed by you since Financial Year 2007-08 onwards.

Immediate Attention:

Service Tax on legal services provided to business entities held to be constitutionally valid

 (37) STR 6 (Bom.) P C Joshi vs. UNION OF INDIA [2015]
.
 
FACTS:
Appellant, an advocate claimed to be affected by the service tax levy on advocates u/s. 65(105)(zzzzm) of the Finance Act, 1994. It was argued that they are engaged not only for aid and advice but also for appearance and representation of a case in the Court.

Service Tax levy on equipment leasing and hire purchases upheld.

 (37) STR 41 (Ker.) Kerala Non-Banking Finance Com vs. UOI [2015]
 
 
 
FACTS:
The appellant, an association of non-banking financial companies    have   filed   writ   petition   challenging    the constitutional  validity  of section  137 of the Finance Act, 2001  by which  Service Tax was  introduced  on "banking and other financial   services"  which includes 'equipment leasing  and hire-purchase It was contended that the Parliament  has

Friday, 24 April 2015

High Court Raps ITAT For 'Ex facie Incorrect' Understanding Of Law


R. W. Promotions P. Ltd vs. ITAT (Bombay High Court)


S. 254(2)/ 260A: Pendency of an appeal filed in the High Court u/s 260A is no bar to the maintainability of a MA filed u/s 254(2)

Merely because the assessee has challenged the order of the Tribunal in an Appeal under section 260A of the Income Tax Act, 1961 before the High Court does not mean that the power under section (2) of section 254 cannot be invoked either by the assessee or by the revenue/Assessing Officer. Such a power enables the Tribunal to rectify any mistake apparent from the record and make amendments. That in a given case would not only save precious judicial time of the Tribunal but even of the higher Court

Check Your New Income Tax Assessment Range Before Filing Returns

With income tax returns filing season commencing soon, taxpayers have been advised to re-check their new assessment ranges, or tax office jurisdiction, as the tax department has carried out a large-scale restructuring and jurisdictional change of its offices country-wide.

Board’s Report – 2

In continuation of our earlier post dealing with Financial Statements and Boards’ Report, we will read Boards’ report of companies other than One Person Companies here.
Particulars of Contracts or Arrangements [Rule 8(2) of Accounts Rules read with Section 134(3)(h)]:
The Report of the Board shall contain the particulars of contracts or arrangements with related parties

Whether mere lumpsum payment in relation to lease rent and maintenance of a pipeline, is required to be apportioned over entire period of lease, for claiming deduction on the same - NO: HC

THE issue before the Bench is - Whether mere payment of lumpsum consideration in relation to lease rent and maintenance of a pipeline, is required to be apportioned over entire period of lease, for claiming deduction on the same. NO is the verdict.
Facts of the case
The assessee company is engaged in the business of manufacturing and selling petrochemicals. The assessee entered into an agreement to terminate the build, own, operate, transfer contract

Supreme Court quashes 1% notional loading in Customs valuation when actual charges are ascertainable

We are pleased to release a Tax Alert on the Supreme Court (SC) decision [2015-TIOL-79-SC-CUS] wherein the SC has held that the proviso (ii) to Rule 9(2) of Customs Valuation (Determination of Price of Imported Goods) Rules, 1988, prescribing the notional fixation of loading, unloading and handling charges at 1% of the FOB value, has been held as ultra vires, especially when such actual costs are ascertainable.

Thursday, 23 April 2015

Kerala High Court rules that VAT cannot be demanded on the profit element of the main contractor where entire contract is executed by sub-contractor


We are pleased to release a Tax Alert on the decision of the Kerala High Court in the case of Surya Constructions vs Commercial Tax Officer and State of Kerala.

The High Court rules that no tax can be leviable in terms of Kerala Value Added Tax Act (KVAT) on the profit element of the assessee when the entire work is sub contracted to a sub-contractor. It holds that there was no sale of material in the course of execution of works contract that emanated from the assessee to the awarder of contract.

The High Court has relied on the decision of the Supreme Court in the case of State of Andhra Pradesh and Other vs Larsen & Toubro and Others, wherein it was held that lack of privity of contract between the awarder of the contract and the sub-contractor would not do away the principle of transfer of property by the sub-contractor.

A much required clarity has been provided on the subject by the ruling.

Whether income from use of terrace licensed for mounting radio tower is to be treated as income from house property - YES: HC

THE bone of contention before the Bench is - Whether income from use of terrace licensed for mounting radio tower is to be treated as income from house property. YES is the answer.
Facts of the case

The
assesse, a company is the absolute owner of the terrace floor of property where its registered office is located. It entered into a formal arrangement styled as "Leave and Licence

Wednesday, 22 April 2015

Security services provided by ASIF to tea plantation

[2015] 53 taxmann.com 24 (Calcutta)- McleodRussel (India) Ltd. vs. Union of India       
Security services provided by ASIF to tea plantation estate owner whether amounts to "support services" liable under RCM - High Court quashed the notice of demand but did not answer the issue -leaves it for adjudication to decide following the adjudication procedure u/s. 71 of the Act
 

Board’s Report – 1

In continuation of our earlier post dealing with Financial Statements and Boards’ Report, we will read Boards’ report of companies other than One Person Companies here.
Preparation of Boards’ Report:
The Board’s Report shall be prepared based on the stand alone financial statements of the company

Whether when interim order entitles assessee to receive damages and settles suit for claim of specific performance, it is to be construed as relinquishment of right in property - YES: HC

THE issue before the Bench is - Whether when interim order entitles assessee to receive damages and settles suit for claim of specific performance, it is to be construed as relinquishment of right in property. YES is the answer.
Facts of the case
The assessee company is engaged in the business of rendering engineering and construction

The Insurance Regulatory and Development Authority of India issues draft regulations for registration and operations of branch offices of foreign reinsurers (excluding Lloyd’s)

The Insurance Laws (Amendment) Act, 2015 permitted foreign reinsurers to set up branch offices in India. In order to give effect to this amendment, the Insurance Regulatory and Development Authority of India (IRDA) on 7 April 2015, issued the IRDA [Branch Offices of Foreign Reinsurers (excluding Lloyd’s)] Regulations, 2015 (Regulations).

Delhi High Court declines to interfere with order of lower authorities rejecting Taxpayer’s tax holiday claim that units approved under a single license are distinct



This Tax Alert summarizes a recent ruling of the Delhi High Court (HC) in the case of HCL Technologies (Taxpayer) where, having regard to the factual findings of lower authorities that the units in question were only an extension of the existing unit, the HC declined to examine the Taxpayer’s claim for grant of tax holiday benefit on the basis of the Taxpayer’s contention that units approved under a single regulatory license were separate and independent.

Foreign Trade Policy: Service Export from India Scheme (SEIS)

This is in relation to new Foreign Trade Policy (FTP) announced for the period 2015-2020 effective from April 01, 2015.
 
In the new FTP, Government of India has allowed additional incentives in the form of duty scripts to exporter of services. The Government of India has substituted Served From India Scheme (SFIS) with Service Exports from India Scheme (SEISand rationalized the conditions for acquiring and using duty scripts.
 

 

 

Tuesday, 21 April 2015

Mumbai CESTAT disallows CENVAT credit on telecommunication towers and pre-fabricated buildings/shelters to telecom service operators


CESTAT disallows CENVAT credit on telecommunication towers and pre-fabricated buildings/shelters to telecom service operators 

 

This Tax Alert gives an update on the decision of the Mumbai CESTAT wherein it disallowed CENVAT credit on telecommunication towers and pre-fabricated buildings/shelters to telecom service operators. Appeals of various applicants are taken up together for disposal and a common order is passed.

 

Reimbursement received for incentive paid on behalf of its principal by a commission agent, to various retailers selling products of its principal is not includible in value of BAS.

53 taxmann.com 445 (Chhattisgarh)- Union of India vs. Raj Wines. [2015]
 
 
 
FACTS:
The assessee was engaged in marketing and promoting various kinds of Indian Made Foreign Liquor (IMFL). It received consideration from the beer manufacturer under various heads like Primary Claim/Retail Scheme, commission, merchandise expenses,

मोदी: दुनिया की सैर का हासिल


C rules that fees for technical services paid in connection with setting up f plant, not includible in the value of imported plant and machinery, for levy of Customs duty

We are pleased to release a Tax Alert on the decision of the Supreme Court in the case of Commissioner of Customs, Ahmedabad vs. Essar Steel Ltd.[ TS-132-SC-2015-CUST].
In this case, the assessee entered into a technical services agreement with a foreign supplier, in relation to implementation of a project to set up a plant in India. The purchase order for the import of plant and machinery was placed subsequently.

e-TDS/TCS RPU (Version 4.3) launched with advanced features.

e-TDS/TCS RPU (Version 4.3) for Statements from FY 2007-08 onwards released (20/04/2015)
Key FeaturesReturn Preparation Utility (RPU) version 4.3
  • Quoting of PAN of responsible person for deducting/ collecting tax.
  • Quoting of AIN mandatory only if the TDS/TCS has been deposited by book entry i.e., through transfer voucher.
  • Quoting of BIN mandatory only for the statements pertaining to FY 2013-14
  • Update of tax deposit amount in deductee details enabled for the deductee records where tax has been deducted at higher rate.

  • Reduction in the applicable list of “Nature of Remittances” (Applicable in case of Form no. 27Q).
  • Enhancement of deduction allowed under section 80CCE from Rs. 1,00,000/- to Rs. 1,50,000/-.
  • Incorporation of latest File Validation Utility (FVU) version 4.6 (applicable for TDS/TCS statements pertaining to FY 2010-11 onwards) and FVU version 2.142 (applicable for TDS/TCS statements upto FY 2009-10).
-

A Study on HRA - It is not an Automatic Exemption

HRA HOUSE RENT ALLOWANCE: All salaried people love to have in their salary slip.  Most of salaried people will claim 100% of HRA as exemption in Form 16 J

HRA is one area where even ITO is more interested to know during scrutiny (Read Myths about HRA). His first question in Income Tax Scrutiny is Are you claiming HRA in form 16?   The First document that ITO wants to see after Form 16 is Payment proof of Rent claimed for HRA

CENVAT - Cement used for the purpose of building construction, cannot be said to be an input - foundation made of cement does not fall 'under the category of "capital goods".

53 taxmann.com 209 (Rajasthan)-Union of India vs. Hindustan Zinc Ltd. [2015]
 

FACTS:
Assessee, a manufacturer took credit of inputs namely, cement, explosive, lubricant oil and grease used in mining area treating them as inputs. Department argued that cement was used by assessee for purpose of filling gaps in form of cut and fill for excavation of ores; and obviously, cement had been used as a construction material so as to provide safety to roof of mining area and was, therefore, ineligible for credit that service tax be levied on the entire

SC rules that fees for technical services paid in connection with setting up of plant, not includible in the value of imported plant and machinery, for levy of Customs Duty



 

This Tax Alert summarizes the decision of the Supreme Court in the case of Commissioner of Customs, Ahmedabad vs. Essar Steel Ltd.

Monday, 20 April 2015

Rights of Employees & Others TDS Deductees and Duties of TDS Deductors.

There are some rights of Employee and Other TDS Deductees whose Tax Deduct on their Income of Salary or Other Source of Income as Interest as well as Duties of TDS Deductors which are as under :

Major Changes made in Fin. Year 2014-15 for Filing of Income Return of Asstt. Year 2015-16

TAX RETURN FILER SHOULD BE KEPT IN MIND SOME LITTLE CHANGES AND POINTS WHILE FILING ITR FOR THE A.Y. 2015-2016

Recently Income Tax Department had issued a Notification No. 41/2015 dated 15th April 2015, deemed to have come into force w.e.f. 01st April 2015 regarding filing of Income Tax Return for the Financial Year 2014-15. 

CBDT directs its officials to complete PAN migration activity as per new jurisdiction orders by April 25, 2015

After the new jurisdiction orders have been passed by you/ your officers' subsequent to restructuring, the PAN requires to be migrated to the new Ward/ circle as per the new jurisdiction. It appears that this activity has not been completed by some of the field officers. This is causing inconvenience to a large number of taxpayers. The Chairperson CBDT has desired that this activity of migrating PANs

Business Connections in India

Introduction:-The foreign portfolio investors (referred as foreign institutional investors in the Act) face a difficulty in characterization of their income arising from transaction in securities as to whether it is capital gain or business income. Further, the fund manager managing the funds of such investor remains outside India under the apprehension that its presence in India may have adverse tax consequences. Therefore, in order to end this uncertainty, it is proposed in Finance Bill, 2014, to

Whether when CBDT issues directions to field formations for proper administration, it is to be construed as giving directions for doing assessment in particular manner - NO: HC

THE issue before the Bench is - Whether issuance of letters to authorities for proper administration of Income-tax Act, in exercise of its administrative and vigilance functions, can be equated with giving directions to the authorities for doing assessment in a particular manner. NO is the answer.
Facts of the case
A) The assessee company is engaged in the business of imparting computer education and training to clients in over thirty countries, including learning strategy, formulation, custom

How to determine Residential Status of Individual?

Delay of 579 days in filing appeals before CESTAT on the ground of depleted staff strength condoned upon imposition of costs.


Maharashtra state Electricity Distribution Company Ltd vs. Commissioner of Central Excise, Pune-III [2015-TIOL-408-HC-MUM-ST408-HC-MUM-ST]

 

FACTS:
Appellant, a Government department had vacancy in the position of Junior Manager and there was 
none attending to the files pertaining to accounts and financial matters. On appointment of a competent officer appeal was filed before the CESTAT.

HELD:
The Hon’ble High Court held that  Government department are working with depleted staff strength and vacancy in the post of Finance and Accounts Manager being a vital factor, delay in filing appeals condoned upon imposition of cost

Friday, 17 April 2015

Mandatory disclosure of Bank accounts in all ITR

CBDT has vide Notification No. 41/2015, Dated-15th day of April, 2015  Notified  ITR-1 ITR-2 ITR-4S ITR-V for A.Y. 2015-16 with several Changes. In such ITRs CBDT has for the first time required an assessee to Compulsorily provide details of all Bank account held in India (including in joint names) at any time during financial year 2014-15 including details of those which were closed

FINANCIAL STATEMENTS AND BOARD’S REPORT


Section 134 of the Companies Act 2013 enumerates provisions related to with Financial Statements and Boards’ Reports. Rule 8 to Rule 12 of the Companies (Accounts) Rules 2014 and Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 also deals with Boards’ Report.
Penalty for Contravention of Section 134:
If a company contravenes the provisions of section 134, the company shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to twenty-five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term

Income tax return for AY 2015-16

Recently Income Tax Department has released New Income Tax Return Form ITR-1, ITR-2, ITR-4S vide Notification 41/2015 dated 15.04.2015 and by this Notification CBDT mandates e-filing for Individuals & HUFs claiming Tax Refund and for ordinarily residents earning overseas income.

CBDT mandates e-filing for individuals & HUFs claiming tax refund and for ordinarily residents earning overseas income



[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (ii)]
GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE
[CENTRAL BOARD OF DIRECT TAXES]
NOTIFICATION
New Delhi, the 15th day of April, 2015
Income-Tax

Gift of house to spouse cannot be disregarded for the purpose of assessee's eligibility for deduction u/s 54F



Gift of house to husband prior to the date of transfer of the original capital asset(other than any residential house) cannot be disregarded for the purpose of reckoning assessee's eligiblity for deduction u/s 54F even if assessee along with her husband and spouse continue to reside in the same house even after the gift. Section 64(I)(iv) will not operate to nullify the gift and would operate only to club income from the gifted house in the hands of the donor spouse. The gift cannot be regarded as a sham merely because assessee along with her husband and spouse continue to reside in the same house even after the gift

Problem in validation of Salary Returns (Form 24Q) for quarter ended March 2015

File Validation Utility (FVU) Ver. 4.5 is the latest FVU released by the Income Tax Department for validating all TDS Returns from financial year 2010-11. While validating Form 24Q (Salary TDS Return) pertaining to FY: 2014-15 (Q4), this FVU is validating the upper limit of Deduction U/s  80C as Rs. 1,00,000 instead of Rs. 1,50,000 which was increased as per The Finance Bill 2014. Owing to this Employers are not able to validate their TDS Returns for Form 24Q for the quarter ended March 2015.

CBDT doubles exemption limit of conveyance allowance; revised limit notified


April 16, 2015

INCOME-TAX (SIXTH AMENDMENT) RULES, 2015 - AMENDMENT IN RULE 2BB

NOTIFICATION NO.39/2015 [F.NO.142/02/2015-TPL]/SO 1002(E), DATED 13-4-2015

In exercise of the powers conferred by section 295, read with clause (14) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—

(1)
 
These rules may be called the Income-tax (6th Amendment) Rules, 2015.
(2)
 
They shall come into force on the 1st day of April, 2015.

2. In the Income-tax Rules, 1962, in rule 2BB, in sub-rule (2), in the Table,—

(a)
 
against serial number 10, in the entry under column(4),relating to the extent to which allowance is exempt, for the letters, figures and words "Rs.800 per month", the letters, figures and words "Rs.1600 per month" shall be substituted;
(b)
 
against serial number 11, in the entry under column (4),relating to the extent to which allowance is exempt, for the letters, figures and words "Rs.1600 per month", the letters, figures and words "Rs.3200 per month" shall be substituted.