Raju and Prasad | Chartered Accountants in India, Financial Advisory Services, Tax Consultant

May 14, 2018

Applicability of Standard Deduction under Section 16 of the Income Tax Act

The Central Board of Direct Taxes Vide Press Release dated 05th April 2018 clarified that taxpayer who is in receipt of pension from his former employer shall be entitled to claim a Standard deduction of Rs. 40,000/- or the amount of pension in a year, whichever is less, under Section 16 of the Act......

May 14, 2018

Extension of due date for linking PAN with Aadhar

The Central Board of Direct Taxes Vide Order F.No 225/270/2017/ITA.II dated 27/03/2018 had extended the due date for linking PAN with Aadhar Card till 30.06.2018......

Jul 23, 2018

Deduction of tax under section 194C will come into operation only in case of payment made by assessee.

The Honorable Supreme Court of India Vide Commissioner of Income Tax-I vs. Daulat Enterprises held that assessee is liable to deduct TDS under Section 194C of the Income Tax Act, 1961 if and only if assessee is liable to make payment to the contractor. If assessee is not liable to make payment either by way of contract or otherwise, but still made the payment, then he need not deduct TDS......

Aug 06, 2018

Inclusion of bonds issued by specified financial institutions for the purpose of claiming exemption from long term capital gains under Section 54EC of the Income Tax Act, 1961.

The Central Board of Direct Taxes vide its Notification No 27/2018 and 28/2018 dated 18th June, 2018 had included the bonds issued by Indian Railway Finance Corporation Limited and Power Finance Corporation of India for claiming the exemption under Section 54EC of the Income Tax Act, 1961. So, for the purpose of claiming exemption from any long term capital gains, the tax payers can also invest in 54EC Capital gain bonds issued by the above institutions......

Aug 06, 2018

Further extension of time limit for date of linking PAN with Aadhar

The Central Board of Direct Taxes vide its order F.No 225/270/2017/ITA.II dated 30th June, 2018 has further extended the time limit for linking PAN with Aadhar till 31st March, 2019.....

Aug 18, 2018

Amendments & Insertions made in Form 3CD

The Central Board of Direct Taxes Vide Notification No. 33/2018. Income Tax 8th Amendment) Rules has made substantial changes in Form 3CD whereby reporting requirements relating to GST, Cash Transactions,Transfer Pricing, etc. have been prescribed, applicable w.e.f. 20th August 2018......

Aug 18, 2018

Extension of due date for filing Income Tax Return for AY 18-19

The Central Board of Direct Taxes Vide Order F.No 225/242/2018/ITA.II dated 26/07/2018 has extended the due date for filing Income Tax Return from 31-07- 2018 to 31-08-2018......

Aug 18, 2018

Assessee can claim depreciation on the assets if he could not run the factory on account of stay from the Court and If the assessee had not written of its liability in books of account, said liability could not be ceased under section 41(1) - Vide Decision of High Court of Gujarat in Babul Products (P.) Ltd.vs. Assistant Commissioner of Income-tax, OSD, Range-1, Ahmedabad

The Honorable High Court of Gujarat in the above case has held that if the assessee has closed the business due to a stay order received from the court, he shall be entitled to claim depreciation under section 32. Further, if the assessee has not written off a liability in the books of accounts, it cannot be brought to tax under section 41(1)......

Aug 18, 2018

For issuing a consolidation order for consolidation of appeals pending for a long time, Revenue shall move a comprehensive application before the ITAT, serving a copy in advance to the assessee - Vide decision of High Court of Delhi in BPTP Ltd. vs. Prinicpal Commissioner of Income Tax

The Honorable High Court of Gujarat in the above case has held that if the revenue were to issue consolidation order to the assessee, it can do so only after making an application to the ITAT(Income Tax Appellate Tribunal) supported by a proper reason and should also serve a notice in advance to the assessee......

Aug 18, 2018

Assessees were permitted to file their returns without any insistence of linkage of their Aadhaar with their PAN numbers in view of extension of deadline for PANAadhar linkage till 31-03-2019 - Vide decision of High Court of Delhi in Shreyasen vs Union Of India.

The Honorable High Court of Delhi in the above case has held that the assessees can file their Income Tax Returns for the relevant year without having to link their Aadhar number with PAN......

Sep 16, 2018

Insertion of Rule 11UAB

Section 28(via) of the Income Tax Act, 1961 states “The fair market value of inventory as on the date on which it is converted into, or treated as, a capital asset determined in the prescribed manner shall be chargeable to tax under the head "Profits and gains of business or profession”. Central Board of Direct Taxes vide Notification No. SO 4213(E) dated 30-08-2018 inserted new Rule 11UAB which provides rules for the determination of fair market value of inventory: <table style="height: 88px;" width="412"> <tbody> <tr> <td style="width: 198px;">Inventory</td> <td style="width: 198px;">Fai.....

Sep 16, 2018

When department had correct address of assessee furnished in return of income, sending notice at incorrect address available with bank and then drawing presumption of service of notice on ground that notice was not received back unserved, cannot be sustained

The Honorable High Court of Allahabad in the above case has held that when new address has been furnished by the assessee in his return of income, notices cannot be sent at an old address available on records. https://www.taxmann.com/filecontent.aspx ?Page=CASELAWS&id=101010000000183116 &isxml=Y&search=&tophead=true&tophead =true.....

Sep 16, 2018

Where assessee had availed deduction under section 80-IC for a period of 5 years at the rate of 100 per cent, he would be entitled to deduction on substantial expansion for remaining 5 assessment years at the rate of 25 per cent and not at rate of 100 per cent

Deduction under Section 80-IC is available to manufacturing units situated in the State of Sikkim, Himachal Pradesh and Uttaranchal and North-Eastern States. The exemption under section 80-IC is provided at the rate of 100% of such profits and gains for five assessment years commencing with the initial assessment years and, thereafter, 25% for next five years. The deduction is limited to a period of 10 years. In the above case, the assessee had claimed a deduction of 100% for the first five Asst. Years. Later, the assessee had again claimed 100% deduction for the 6th Asst. Year on the ground t.....

Sep 16, 2018

Where assessee had entered into agreement with UK based university for providing certain technical services for which it had agreed to bear Indian taxes, liability of assessee to deduct TDS under India-UK DTAA from payments made to UK University was to be computed on gross amount of fees paid to University

The Honorable High Court of Madras in the instant case has held that TDS on payments made to non-residents for technical services has to be deducted on the gross amount including the tax liability undertaken by the assessee. https://www.taxmann.com/filecontent.aspx?Page=CASELAWS&id=101010000000183448&isxml=Y&search=&tophead=true&tophead=true.....

Sep 16, 2018

Where petitioner had failed to make full and true disclosure of undisclosed income with reference to foreign property and foreign bank accounts, of which petitioner was a beneficial owner i.e., Income Tax Settlement Commission had rightly rejected settlement application filed by petitioner as invalid

The Honorable High Court Of Delhi in the above case has held that in case the assessee has filed an application with ITSC for the settlement of cases relating to him, the ITSC has right to reject the application made in case the applicant doesn’t disclose the details of undisclosed income, bank accounts and the property in his name. https://www.taxmann.com/filecontent.aspx?Page=CASELAWS&id=101010000000183441&isxml=Y&search=&tophead=true&tophead=true.....

Oct 16, 2018

Extension of due date of furnishing ITRs and Tax Audit Reports of AY 2018-19

The Central Board of Direct Taxes vide its Order under Section 119 of the Act dated 24th September, 2018 has extended the due date for filing of Income Tax Returns & Tax Audit reports till 15th October 2018. However, liability to pay interest under Section 234A remains. Further, pursuant to the order of Bombay High Court in case of Rajasthan Tax Consultants Association v. Union Of India, the due date has been further extended till 30th October 2018 vide Order dated 8th October 2018. 1.https://www.incometaxindiaefilin.....

Oct 16, 2018

Completed Assessment reopened on the ground that certain transactions were not disclosed during the original assessment - Vide Decision of High Court of Madras in Sun Direct TV Pvt. Ltd. V. Assistant Commissioner of Income-tax, Chennai

Facts of the case:   <ol><li>Completed assessments were sought to be reopened by the revenue after a lapse of six years on ground that there were some materials on record and informations that assessee had received money from company SAEHL in name of share subscription along with share premium of Rs.203.98 crores.</li><li>Assessee has also allotted shares to Kalanithi Maran and his wife only at Rs.10 per share without any premium.</li><li>Revenue contended that the Share premium invested by SA.....

Oct 16, 2018

Judgements relating to linking of Aadhar

The Honorable Supreme Court Of India vide Justice K.S. Puttaswamy (RETD.) V. Union of India has held the following – Aadhaar Constitutionally valid - The Aadhaar Act serves legitimate State interest and good governance to ensure fruits of welfare schemes reach to unprivileged and marginalized section of the society by preventing leakages, pilferages and corruption in the implementation of welfare schemes. It does not violate right to privacy, nor is it unconstitutional.   Aadhaar for students n.....

Nov 17, 2018

Online application for grant of lower deduction of TDS certificate

The Central Board of Direct Taxes vide Notification No. 74/2018 dated 25th October, 2018 has notified that the application for grant of lower deduction of TDS certificate can now be furnished online and The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be   - shall lay down procedures, formats and standards for ensuring secure capture and transmission of data and uploading of documents and   - shal.....

Nov 17, 2018

The encashed bank guarantee and the amount paid as penalty on account of assessee's failure to perform its part of the agreement are allowable as a deduction under Section 37(1) - Decision of High Court of Delhi in Principal Commissioner of Income Tax-4 v. Green Delhi BQS Ltd.

Facts of the case:   1. The assessee was engaged in the business of developing, maintaining and operating of Bus-Q-Shelters (BQS), metro stations etc. It entered into an agreement with the Delhi Transport Corporation (DTC) for setting up bus shelters on build, operate and transfer basis.   2. The assessee had also furnished bank guarantee of Rs. 2 crores to DTC as performance security. On DTC invoking bank guarantee, the assessee had approached the H.....

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Blog

Applicability of Standard Deduction under Section 16 of the Income Tax Act

Extension of due date for linking PAN with Aadhar

Deduction of tax under section 194C will come into operation only in case of payment made by assessee.

Inclusion of bonds issued by specified financial institutions for the purpose of claiming exemption from long term capital gains under Section 54EC of the Income Tax Act, 1961.

Further extension of time limit for date of linking PAN with Aadhar

Amendments & Insertions made in Form 3CD

Extension of due date for filing Income Tax Return for AY 18-19

For issuing a consolidation order for consolidation of appeals pending for a long time, Revenue shall move a comprehensive application before the ITAT, serving a copy in advance to the assessee - Vide decision of High Court of Delhi in BPTP Ltd. vs. Prinicpal Commissioner of Income Tax

Assessees were permitted to file their returns without any insistence of linkage of their Aadhaar with their PAN numbers in view of extension of deadline for PANAadhar linkage till 31-03-2019 - Vide decision of High Court of Delhi in Shreyasen vs Union Of India.

Insertion of Rule 11UAB

When department had correct address of assessee furnished in return of income, sending notice at incorrect address available with bank and then drawing presumption of service of notice on ground that notice was not received back unserved, cannot be sustained

Where assessee had availed deduction under section 80-IC for a period of 5 years at the rate of 100 per cent, he would be entitled to deduction on substantial expansion for remaining 5 assessment years at the rate of 25 per cent and not at rate of 100 per cent

Extension of due date of furnishing ITRs and Tax Audit Reports of AY 2018-19

Completed Assessment reopened on the ground that certain transactions were not disclosed during the original assessment - Vide Decision of High Court of Madras in Sun Direct TV Pvt. Ltd. V. Assistant Commissioner of Income-tax, Chennai

Judgements relating to linking of Aadhar

Online application for grant of lower deduction of TDS certificate

The encashed bank guarantee and the amount paid as penalty on account of assessee's failure to perform its part of the agreement are allowable as a deduction under Section 37(1) - Decision of High Court of Delhi in Principal Commissioner of Income Tax-4 v. Green Delhi BQS Ltd.