Friday, 10 August 2012

Tax on employees’ salary is a “non-monetary” perquisite exempt u/s 10(10CC)

DIT vs. Sedco Forex International Drilling Inc (Uttarakhand High Court)

The assessee-employer entered into agreements with the employees pursuant to which it agreed to bear the income tax payable by the employees on their salary. The question was whether such tax payment was “income in the nature of a perquisite, not provided for by way of monetary payment, within the meaning of clause (2) of section 17” so as to be exempt in the hands of the employee. HELD by the High Court:

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GAAR Not Applicable to Genuine Capital Market Transactions: Telangana High Court

In a significant ruling, the Telangana High Court held that General Anti-Avoidance Rules (GAAR) cannot be invoked merely because a transacti...