What are the effect when Income Tax Return filing after due date ?

Interest u/s 234A:If there is tax due after deducting advance tax ,TDS and self assessment tax then interest will be applicable @1% per month and part thereof up to the date of filing of the return besides interest applicable u/s 234B or 234C.Means this interest is applicable only if there is any tax payable in your return

Whether activity of blending and mixing of reactive dyes amounts to manufacture and same is eligible for Sec 80IC benefits - YES: ITAT

THE issue before the Bench is - Whether the activity of blending and mixing of reactive dyes amounts to manufacture and the same is eligible for Sec 80IC benefits. And the answer of the Tribunal is YES.

Facts of the case

The assessee is engaged in the business of manufacturing of reactive dyes in notified industrial area in the state of Sikkim. Assessee claimed exempt u/s 80IC. AO noticed that assessee

TDS ON SALE OF SHARES BY NRI

This is an common question now a days where equity in an Indian Company is held by an NRI and the simple answer to the aforesaid question is that responsibility to deduct tax at source on payment to NRI of such payment is on the Authorised Dealer (read bank through which payments are made ). Here is the reason for such conclusion.

LLP FINANCIAL YEAR

Financial Year of an LLP, means the period from 1st April of a year to the 31st March of the following year. However, in case of LLP incorporated after 30th September, financial year of an LLP may end on 31st March of the year next following that year. [Section 2(1)(l)]

Is TRC required in case of business profits also.

A new sub-section (4) to section 90 has been inserted by the Finance Act, 2012 w.e.f. 01.04.2013 wherein a non-resident assessee who claims any relief under Double Taxation Avoidance Agreement [DTAA] is required to obtain a Tax Residency Certificate [TRC] from the Government of that country of which he is resident.

Download Latest RPU ver 3.8 applicable w.e.f 04.01.2014 for Form 27A.

All corporate deductors should file Income tax returns for deduction of tax at source (TDS) only in electronic form. ITD has notified revised file formats for preparation of TDS and TCS returns in electronic form. Deductors/collectors can prepare the e-TDS/TCS returns as per these file formats using in-house software or any other third party software and submit the same to any of the TIN-FCs established by NSDL. Deductors/collectors can also directly upload the e-TDS/TCS returns through NSDL-TIN website.

Service Tax Valuation Rules.

 

 

S. 67 was introduced in 2006 w.e.f. 18.04.2006

Merger and amalgamation

Increase in competition has made organizations merger themselves to reap the benefits of a large-sized company. To understand this article, first one need to know the terms – merger, amalgamation, transferor company and transferee company. The term merger and amalgamation has not been defined under the Act. M&A is often known to be a single terminology. However, there is a thin difference between the two. According to dictionary meaning, ‘Merger’ is the fusion of two or more

EXCHANGE RATE W.E.F. 2-1-2014

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, PART-II, SECTION 3, SUB-SECTION (ii), EXTRAORDINARY]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

CENTRAL BOARD OF EXCISE AND CUSTOMS

NOTIFICATION

NO. 01 /2014-CUSTOMS (N.T.)

Karnataka High Court rules software development expenditure is scientific research

We are pleased to release an alert which summarizes a recent ruling of Karnataka High Court (HC) in the case of Talisma Corporation Pvt. Ltd. (Taxpayer) on the issue whether software development expenditure qualifies as “scientific research” which is eligible for 100% deduction on capital expenditure under section 35(1)(iv)

Detailed Procedure to get Tax benefit u/s. 80CCG of Rajiv Gandhi Equity Savings Scheme, 2013.

A new retail investor who has invested in accordance with the Rajiv Gandhi Equity Savings Scheme, 2012 shall continue to be governed by the provisions of that Scheme to the extent it is not in contravention of the provisions of this Scheme and such investor shall also be eligible for the benefit of investment made in accordance with this Scheme for the financial years 2013-14 and 2014-15.

Download Latest FVU Ver. 4.1 for e-TDS/TCS Return w.e.f. 04.01.2014 for Asstt. Year 2014-15

A good news for all dedductors from TIN-NSDL. TIN-NSDL has released latest FVU version 4.1 for TDS Deductor's and TCS Collector's w.e.f. 04.01.2014 (mandatory) to submit TDS Quarterly Statement for Asstt. Year 2014-15.

Common Reasons for Rejection after Correction in TDS/TCS Payment Challans

Correction in Challans of TDS payments filed may in certain cases be rejected by the department. There are a number of common reasons of rejection of Correction in TDS/TCS Payment Challans.

In some cases persons are unable to find the exact cause of rejection even after having tried all possible methods. The most common errors or rejection of TDS/TCS revised Payment Challans given as under:

Whether when assesse shows certain advance received from non-resident majority shareholder towards exports in books for 10 years, such a sum cannot be construed as taxable receipt u/s 41(1) unless same is written off in books - YES: ITAT

THE issue before the Bench is - Whether when the assesse shows certain advance received from its non-resident majority shareholder towards exports in its books for a record 10 years, such a sum cannot be construed as taxable receipt u/s 41(1) unless the same is written off in the books. And the answer goes in favour of the assessee.

Facts of the case

Whether provisions of sec194A are applicable to interest paid to a company whose shares are held by either Central or State Government - NO: ITAT

THE issues before the Bench are - Whether the provisions of section 194A are applicable to interest paid to a company whose shares are held by either Central or State Government; Whether in case interest on mobilisation advance is recovered by the contractee from running bills before releasing the contract charges to the assessee, it can be said that assessee has credited the interest paid or payable to the account of the assessee and Whether in such case it can be said that there is a violation of provisions of section 194A of the Act. And the verdict favours the assessee.

Facts of the case

What is a valid ‘Gift DEED.

There are various legal modes of transfer of property; one of them is via a ‘gift deed’. So what is a gift deed – certain tangible, moveable or immoveable property can be transferred from one person to another, where the person who is giving is the ‘donor’ should comply with certain legal formalities. The deed document accounts for what and how much is being transferred and stands as a legal document accounting for the transfer.



Important things to know about Gift Deed

• Donor must be of contractual age as permitted by law
• Any Minor cannot be a donor or assign a gift deed.
• A Donee (receiver of the gift deed) can be a minor and the gift can be accepted on his behalf by a Guardian.
• The Guardian can act as the manager of the deed till the Donee is an adult.
• Onerous property cannot be given to a Minor.
• While framing of the gift deed, the Donor must be self willing to make the gift and not be pressurised in any manner.
• Similarly, when accepting the gift the Donee must willingly accept it, he also has the

CAPITAL GAIN TAX PLANNING FOR NRI

A Non Resident Individual (NRI) is entitled to all the deductions / exemptions that are available to a resident under the head “Capital Gains” with the same provisions. If an NRI makes an effective tax planning then his capital gain could be completely exempt from tax.
Here are some tax saving tips for NRI to invest the capital gain efficiently to claim maximum exemption:

New Provisions under Act, 2013 for Loans and Investments by Companies.

As per new Act, 2013 the new provision has amended for Loan and Investment by Company i.e. "company shall unless otherwise prescribed, make investment through not more than two layers of investment companies". Now this section is not limited to inter corporate loans and investment but its scope has been extended to loans and investment to any person also.

Whether Section 54F benefits can be denied on ground that house purchased by assessee was not fit for residence as it had no doors nor windows - NO: HC

THE issues before the Bench are - Whether Section 54F benefits can be denied on the ground that the house purchased by the assessee was not fit for residence as it had no doors nor windows and Whether the report of an Inspector is the sole criteria of allowing exemption u/s 54F - Whether in case it is proved that prior to sale, the vendor lived in the house and the same was sold along with the residential construction, exemption u/s 54F can't be denied. And the verdict goes against the Revenue.

Facts of the case

when abatement is claimed, it should be from value inclusive of all materials used for providing service: CESTAT

THE applicant is engaged in construction of commercial and residential complexes. While executing such projects, applicant was receiving steel and cement from their customers. The applicant was receiving only the value of services undertaken by them. They claimed abatement under notification 15/04-ST and 1/06-ST and paid service tax on 33% of consideration received. Revenue was of the view that such abatement is available only if value of the entire materials