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

Nov 17, 2018

Where in order to determine admissibility of assessee's claim under section 10B, date of commencement of manufacture could be ascertained from certificate of registration by competent authority, mere wrong mentioning of said date in Form No. 56G filed in support of claim of deduction, could not be a ground to reopen assessment - Decision of High Court of Madras in MBI Kits International v. Income Tax Officer, Non-Corporate Word1(3), Chennai

Facts of the case:   1. The assessee was formed with an object to carry on the business of manufacturing and testing chemicals. The Madras Export Processing Zone and The Government of India, Ministry of Commerce granted permission to it to carry on the business of manufacturing of test kits used for checking iodized salt.   2. Later, the assessee filed its return of income for assessment year 2010-11, claiming deduction under section 10B. <!-- /.....

Nov 17, 2018

Where DRAT's (Debt Recovery Appellate Tribunal) direction to make pre-deposit was not complied with despite petitioner having sufficient economic activities in foreign country and he did neither disclose foreign assets nor appeared before Court, his writ petitions against order of pre-deposit or for extension of time were to be dismissed - Decision of High Court of Karnataka in Dr. Vijay Mallya v. State Bank of India

Facts of the case:   1. The respondent No. 13 - Kingfisher Airlines had availed Working Capital and Term Loan Facilities from the Consortium of banks in the year 2005. The said loans were later restructured. In relation to aforesaid loans, the respondent No. 14- United Breweries (Holdings) Ltd. provided a Corporate Guarantee and the petitioner-Vijay Mallya furnished his personal guarantee.   2. The borrower ‘Kingfisher’ committed default in repay.....

Dec 16, 2018

TDS deduction under section 194A of the Income-tax Act, 1961 in case of Senior Citizens

It has been brought to the notice of CBDT that incase of Senior Citizens, some Banks are making TDS deductions eventhough the amount of income does not exceed fifty thousand rupees. In view of this, The Central Board of Direct Taxes vide Notification No. 06/2018 dated 06th December, 2018 has clarified that no tax deduction at source under section 194A shall be made in the case of Senior Citizens where the amount of such income or, the aggregate of the amounts of such income credited or paid during the financial year does not exceed fifty thousand rupees. <!-- /wp.....

Dec 16, 2018

Where the assessee society was set up with object of imparting education and it had entered into franchise agreements with satellite schools and also used gains arising out of these agreements in form of franchisee fees for furtherance of educational purposes, it fulfilled requirements to qualify for exemption under section 10(23C)(vi) - Decision of Supreme Court of India in Director of Income-tax (Exemptions) v. Delhi Public Schools Society

Facts of the case:   1. Assessee society was set up with main object to establish educational institutions. It had been claiming exemption under section 10(22) since assessment year 1977-78.   2. Inview of substitution of section 10(22) with section 10(23C)(vi) with effect from 1-4-1999, assessee applied for approval of exemption under section 10(23C)(vi) for assessment year 2008-09 onwards.   3. Ad.....

Dec 16, 2018

SLP dismissed against High Court ruling that where, during scrutiny assessment, Assessing Officer raised several queries asking assessee to justify its claim of deduction under section 10B and after considering assessee's detailed reply allowed deduction, he could not reopen assessment to examine another facet of said claim - Decision of Supreme Court Of India in Deputy Commissioner of Income-tax v. Qx Kpo Services (P.) Ltd.

Facts of the case:   1. For Assessment year 2011-12, Assessee filed its return of income after claiming deduction under section 10B.   2. During scrutiny assessment, Assessing Officer had raised several queries asking assessee about its claim of deduction under section 10B.   3. Assessee replied to such queries in detail, upon which Assessing Officer (AO) passed an assessment order under section 143.....

Jan 19, 2019

CAPITAL EXPENDITURE vs REVENUE EXPENDITURE -Ketan K Waghela, ACA(Mumbai Branch)

The line of demarcation between capital and revenue expenditure is very thin and the ultimate conclusion on the nature of the expenditure is always a question of law and fact. There are numerous case laws widening line between these expenses. As the Act does not define the terms, one has to depend on their natural meaning on case to case basis.   Recently, the case law of Flipkart has created strife in the e-commerce industry and investors. However, on appeal, it was decided in favour of Flipkart by Income Tax Appellat.....

Jan 19, 2019

Procedure, format and standards for filing an application for grant of certificate for deduction of Income-tax at any lower rate or no deduction of Income-tax under section 197(1)/collection of the tax at any lower rate under 206C(9) TRACES portal

Earlier, Vide Notification No. 74/2018 dated 25-10-2018, Rule 28/37G of the Income-tax Rules, 1962 has been amended to provide for filing an application electronically for grant of certificate for deduction of Income-tax at any lower rate or no deduction of Income-tax. On 31-12-2018, The Central Board Of Direct Taxes vide Notification No. 8/2018 has laid down the procedures, formats and standards for grant of such certificate.   <a href="https://www.incometaxindia.gov.in/communications/notification/notification_8_2018_.....

Jan 19, 2019

Where for relevant years scrutiny assessments were pending and likelihood of substantial demands upon assessee after completion of scrutiny cannot be ruled out and any demand that would arise from processing of said assessments would have to be adjusted against refund claims, there was no merit in writ petition claiming for direction to Assessing Officer to expeditiously process said returns and issue refund for these years - Decision of High Court of Delhi in Vodafone Mobile Services Ltd.v. Assistant Commissioner of Income-tax

Facts of the case:   <ol><li>The assessee-company (Vodafone) was engaged in providing telecommunication services.</li><li>Two amalgamations involving merger of certain Vodafone group companies were undertaken to re-structure business operations and increase operational efficiencies. The revised e-returns of income pertaining to assessment year 2014-15 and assessment year 2015-16, were filed claiming refunds of Rs. 1,532.09 crores and Rs. l,355.51 crores, respectively. The return of income pertaining to assessm.....

Jan 19, 2019

SLP dismissed against High Court ruling that where on examination of special audit report, filed after passing of original assessment order, it was found that claims made by under section 80G were prima facie bogus and issue of a reassessment notice on basis of said report was justified - Decision of Supreme Court Of India in Multi Commodity Exchange of India Ltd. v Deputy Commissioner of Income-tax

Facts of the case:   <ol><li>For the Assessment Year 2010-11, the Assessee company's income was assessed under section 143(3).</li><li>Later, in a report of Auditor (after completion of assessment) it was observed that claims made by assessee towards placement fees paid to its subsidiaries, advertisement expenses and donations paid to a charitable trust under section 80G were prima facie bogus.</li><li>The Assessee also could not substantiate their genuineness by providing relevant documents and evidences.</li.....

Feb 26, 2019

Monetary limits for filing/ withdrawal of Wealth Tax appeals by the Department before ITAT, HCs and SLPs/appeals before SC

Circular No. 3 of 2018 dated 11-07-2018 specifiies the monetary limits for filing of income tax appeals by the Department before Income Tax Appellate Tribunal, High Courts and SLPs/ appeals before Supreme Court. Para 11 of the Circular states that such monetary limits shall not apply to writ matters and Direct tax matters other than Income tax and filing of appeals in such cases shall continue to be governed by relevant provisions of statute and rules. As there is no charge under Wealth Tax Act, 1957 w.e.f 1 st April, 2016, Central Board of Direct Taxes vide Circular N.....

Feb 26, 2019

For computing capital gain tax, date of allotment of flat by DDA would be date on which purchaser of flat can be stated to have acquired property - Decision of High Court Of Bombay in Principal Commissioner Of Income Tax-3, Mumbai v. Vembu Vaidyanathan

Facts of the case:   <ol><li>The assessee filed its return of income for the AY 2009-10 and claimed long-term capital gain arising out of capital asset in the nature of a residential unit.</li><li>During the course of assessment, the Assessing Officer came to the conclusion that the gain was a short-term capital gain.</li><li>The assessee argued that the residential unit was acquired on the date on which the allotment letter was issued by the builder which was on 31-12-2004.</li><li>The Assessing Officer howev.....

Feb 26, 2019

Sections 10(34) and 115BBDA are constitutionally valid - Decision of High Court Of Delhi in Rajan Bhatia v. Central Board of Direct Taxes

Facts of the case: The assessee challenged the constitutional validity of proviso to section 10(34) along with provisions of section 115BBDA on grounds that section 115BBDA does not have any 'base', and that the provision makes discrimination between a resident assessee and a non-resident assessee, as the provision only applies to a resident assessee. It was also submitted that the provisions under challenge are arbitrary, ultra vires and violative of article 14.   Judgement:  <!-- wp:list {".....

Feb 26, 2019

Formation of opinion by another Assessing Officer on same set of documents and materials cannot give justifiable ground to Assessing Officer of present assessee to resort to reassessment - Decision of High Court of Bombay in Integra Garments & Textiles Ltd. v. Income Tax officer, Ward 6(3)(2), Mumbai

Facts of the case:   <ol><li>Assessee in its income tax return had shown a receipt of on transfer of leasehold rights in a property in favour of one Morarji Textiles and after claiming indexed cost and other related deductions, offered to tax the capital gain arising out of such transfer.</li><li>During scrutiny, the Assessing Officer did not disturb petitioner's treatment to said receipt.</li><li>Later, Assessing Officer of Morarjee Textiles had held that leasehold rights belong to Morarjee Textiles itself an.....

Mar 18, 2019

Notified provisions of 56(2)(viib)

Section 56(2)(viib) lays down that where a private limited company receives any consideration from any person being a resident, for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares shall be chargeable to tax under the head Income from Other Sources. This clause shall not apply where the consideration for issue of shares is received - by a venture capital undertaking from a venture capital company or a venture capital fund; or by a company from a class or class.....

Mar 18, 2019

Where there was failure of assessee to establish credit worthiness of investor companies, Assessing Officer was justified in passing assessment order making additions under section 68 for share capital / premium received by assessee company - Vide decision of Supreme Court of India in Principal Commissioner of Income-tax v. NRA Iron & Steel (P.) Ltd.

Section 68 of the Income Tax Act, 1961: Where any sum is found credited in the books of an assessee and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not satisfactory in the opinion of the Assessing Officer, the sum so credited may be charged to income-tax as the income of the assessee. Provided that where the assessee is private limited company and the sum so credited consists of share application money, share capital, share premium, any explanation offered by such assessee-company shall be deemed to.....

Mar 18, 2019

SLP dismissed against High Court ruling that where assessee educational society had utilised its income for purchase of land for further extension of school building, which was for educational purpose only, exemption under section 10(23C)(vi) could not be denied - Vide decision of Supreme Court Of India in Commissioner of Income-tax (Exemption) v. Managing Committee, Arya High School, Punjab

Facts of the case:   <ol><li>The Assessee educational society filed an application for grant of registration under section 10(23C)(vi).</li><li>Commissioner (Exemptions) denied same on ground that there was no evidence that assessee had utilised its income for educational purpose.</li><li>The assessee further appealed to the Income Tax Appellate Tribunal. The Tribunal after examining records found that during relevant assessment year, assessee had utilised its income for purchase of land for further extension .....

Mar 18, 2019

Only companies other than subsidiary companies, associate companies and joint ventures are eligible for purpose of registeration as valuer under rule 3(2) of Companies (Registered Valuers and Valuation) Rules, 2017 - Vide decision of High Court of Delhi in Cushman and Wakefield India (P.) Ltd. v. Union of India

Facts of the case:   <ol><li>The petitioners were engaged in the business of real estate consultancy services including provision of real estate valuation services.</li><li>The petitioner is a subsidiary of a reputed body corporate and is universally recognized as a lauded leader in providing valuation service.</li><li>The petitioner filed writ petition for declaring rule 3(2) of the Companies (Registered Valuers and Valuation) Rules, 2017 as unconstitutional.</li><li>According to petitioner, rule 3(2) of .....

Apr 18, 2019

Extension of due date for linking of Aadhar and PAN

The Central Board of Direct Taxes vide Notification No. 31/2019 dated 31st March 2019 has extended the last date for linking of PAN and Aadhar till 30th September 2019. However, after 01st April 2019, it is mandatory to quote Aadhar Number while filing the income tax return.   https://www.incometaxindia.gov.in/communications/notification/notification_31_2019.pdf .....

Apr 18, 2019

Where assessee had developed shopping mall and let out same by providing a variety of services and facilities in mall, it could be found that primary intention of assessee was commercial exploitation of property which constituted its main business, income so derived would be assessed as income from business and not as income from house property

<ul><li>Vide Decision of High Court Of Kerala in Commissioner of Income-tax v. Oberon Edifices & Estates (P.) Ltd.</li><li></li></ul>   Facts of the case:   1. Assessee is a company engaged in the business of construction and promotion of residential and commercial complexes. The assessee constructed a shopping mall by name 'Oberon Mall' in Kochi in the property owned by its sister concern and let out the shop rooms. For the Assessment Year 2009-10, the assessee has shown t.....

Apr 18, 2019

SLP dismissed against High Court ruling that where objects in original trust deed were sufficiently wide and covered range of charitable activities relatable to education, medical aid and help to poor in times of calamities, registration of assessee-trust could not be denied for amended objects clarifying running of diagnostic centre on no profit basis

<ul><li>Vide Decision of Supreme Court Of India in Commissioner of Income-tax (Exemptions) v. Paramount Charity Trust</li></ul>   Facts of the case:   <ol><li>The assessee, a registered public trust, had applied for and was granted registration under Section 12A of the Income-tax Act, 1961. Initially, the object of the Trust had eleven clauses which inter alia included education purpose; research; relief to poor; medical aid in form of donations to the hospitals, dispen.....

Apr 18, 2019

Where assessee-hospital made payments for services rendered towards maintenance of its medical equipments for proper and long functioning, it was required to deduction TDS under section 194C, and not under section 194J

<ul><li>Vide Decision of High Court Of Bombay in Commissioner of Income-tax (TDS)-2 v. Saifee Hospital</li></ul>   Facts of the Case:   <ol><li>The supplier of medical equipments to the assessee hospital had also rendered services of maintenance of these equipments. The assessee deducted TDS under section 194C while making payment for maintenance services. However, the revenue authorities sought deduction of TDS under section 194J.</li><li>Further, The Commissioner (App.....

May 16, 2019

Reporting requirements in Form 3CD

Section 44AB of the Income-tax Act, 1961 requires specified persons to furnish Tax AuditReport in Form No. 3CD. Form No.3CD was amended vide notification no. GSR 666(E) dated 20th July, 2018 w.e.f. 20th August, 2018. However, the reporting under clause 30C (Reporting on impermissible avoidance arrangements)and clause 44 (Break-up of total expenditure of entities registered or not registered under the GST) of the Tax Audit Report was kept in abeyance till 31st March, 2019 vide Circular dated 17-08-2018. The Central Board of Direct Taxes vide Circular No. 9/2019 dated 14.....

May 16, 2019

Tribunal being last Court of appeal on facts, its finding on question of fact is of significance, thus, where Tribunal did not correctly appreciate as to what Assessing Officer and Commissioner (Appeals) held and what was their reasoning which led to their respective conclusion, matter was to be remanded back for adjudication afresh

<ul><li>Vide Decision of Supreme Court Of India in Principal Commissioner of Income-tax v.Ballarpur Industries Ltd.</li><li></li></ul>   Facts of the case:   <ol><li>The assessee is a Limited Company, which is engaged in the business of manufacturing of various kinds of papers. Case relates to AY 1993-94.</li><li>According to the assessee, Mr. G.R. Hada and the assessee were the joint promoters of one Company called M/s Andhra Pradesh Rayons Limited.</li><li>Since a dispute ar.....

May 16, 2019

Reimbursement of service tax, by ONGC to assessee not a part of aggregate amount specified in sub-section (2) of section 44BB

<ul><li>Vide Decision of High Court Of Uttarakhand in Director of Income-tax International Taxation v.Schlumberger Asia Services Ltd.</li></ul>   Facts of the case:   <ol><li>Section 44BB of Income Tax Act, 1961 provides that in case of an assessee engaged in the business of providing services or facilities in connection with, or supplying plant and </li></ol>   machinery on hire used, or to be used, in the prospecting for, or extracti.....

Jun 21, 2019

Extension of Due date for filing TDS Returns in the State of Odisha

CBDT vide Order under section 119 of Income-Tax Act,1961, CBDT extended,   <ul><li>Due date for depositing Tax Deducted at Source (TDS) for the month of April,2019 from 7th May,2019 to 20th May,2019.</li><li>Due date for Filing of Quarterly statement of TDS for the Last Quarter of FY 2018-19 from 31st may, 2019 to 30th June, 2019, and </li><li>Due date for Issue of TDS Certificates in form 16 and 16A from 15th of June, 2019 to 15th of July, 2019.</li></ul> <!-- /wp:list --.....

Jun 21, 2019

Extension of Due Date for filing of TDS statement in Form 24Q

CBDT Vide Order under Section 119 of Income Tax Act, 1961, CBDT Extended due date for filing of   <ul><li>TDS statement in Form 24Q for FY 2018-19 from 31st May, 2019 to 30th June, 2019 and</li><li>TDS Certificate in Form 16 for FY 2018-19 from 15th June, 2019 to 10th of July, 2019.</li></ul>   It’s because of Revision of Form 24Q’s format and Consequent updating of the File Validation Utility for its online filing. <a href="https://www.incometaxindia.gov.in/Lists/Latest%20News/At.....

Jun 21, 2019

Belated Claim of Refund during the course of Assessment Proceedings which resulted into delay in granting of refund could not be a reason attributable to the assessee and couldn’t dismiss the payment of interest for the amount of refund delayed

<ul><li>Vide decision of High Court of Bombay in Commissioner of Income Tax V. Melstar Information Technologies Limited.</li></ul>   Facts of the Case:   <ol><li>The Assessee (Melstar) had not claimed certain expenditure before the assessing officer but eventually raised that claim before the Tribunal.</li><li>Where the Tribunal remanded back the proceedings to CIT(A) and the additional benefit claimed by the assessee was granted. This result Refund and also q.....

Jun 21, 2019

Appeal on Income Tax Appellate Tribunal (ITAT) on remanding back to Commissioner (Exemptions) regarding rejection of Application under section 80G (5)

<ul><li>Vide Decision of High Court of Allahabad in People Cause Foundation v. Income Tax Appellate Tribunal.</li></ul>   Facts of the Case:   <ol><li>The Appellant is a company registered under section 8 of Companies Act, 2013 and had obtained a certificate under section 12A of Income Tax act,1961 (the Act, 1961).</li><li>It also applied for Certificate Under Section 80G of the Act, 1961. The Application was dismissed, against which the Appellant preferred an appeal before IT.....

Sep 23, 2019

Exception to monetary limits for filing appeals specified in any circular issued under section 268A of the Income tax Act, 1961-reg (Specially on the basis of merit incases involved in organized Tax Evasion)

Income Tax vide Circular no. 23/2019 dated 6th September,2019 gives exception to monetary limits for filing of departmental appeals before Income Tax Appellate Tribunal(ITAT), High Courts and SLPs/appeals before Supreme Court.   Board has decided not withstanding anything contained in any circular issued under section 268A specifying monetary limits for filing of departmental appeals before ITAT/HC/SLPs/SC, appeals may be filed on merits as an exception to said circular, where board, by way of special order .....

Sep 23, 2019

Consolidated circular for assessment of start-ups

Income Tax vide circular no.22/2019 dated 30thAugust, 2019 consolidates all circulars regarding Assessment of startups.   Assessment of Start-ups:   Case-1:   Companies recognized by  Department for promotion of  industry and  international trade(DPIIT) which have filed  FORM No.2 and  whose cases are under “Limited Scrutiny” on the  single issue of applicability of section.....

Oct 16, 2019

Clarification in respect of option exercised under section 115BAA of the income tax Act, 1961 inserted through the taxation laws (Amendment) Ordinance, 2019.

Income tax vide circular no. 29.2019 dated 2nd October, 2019.   Section 115BAA provides that,   <ul><li>A domestic company shall at its option to pay tax at a lower rale of 22 percent for any previous year relevant to the Assessment Year beginning on or after 1st April 2020, subject to certain conditions, including that the total income should be computed without claiming any deduction or exemption.</li><li>The option is required to be exercised by the company before the due d.....

Oct 16, 2019

Faceless Assessment for Income taxpayers launched

Income tax of India launched Faceless Assessment for taxpayers.   Centre Government had recently notified e-Assessment scheme to facilitate faceless assessment of income tax returns through completely electronic communication between tax officials and tax payers.   e-Assessment procedure:   <ul><li>Under the new system of faceless e-Assessment, tax payers will receive notices on their registered emails as well.....

Oct 16, 2019

Higher depreciation on certain motor cars, motor buses, motor lorries and motor taxies

Income Tax vide Notification no. 69/2019 dated 20th September, 2019 the Central Board of Direct Taxes, makes the following rules to further amend the Income-tax Rules, 1962 by changing Depreciation rates for  motor cars, motor buses, motor lorries and motor taxies. Changed depreciation rates are as follows:   <table class="wp-block-table"><tbody><tr><td> Block of assets </td><td> Depreciation allowed as per %tage of WDV </td></tr><tr><td> (i) Motor cars, other than.....

Oct 16, 2019

Amendment in Rule 2F [infrastructure debt fund for the purpose of exemption under section 10(47)

Income tax vide Notification no. 66/2019 Central Board of Direct Taxes(CBDT) omitted Rule 2F(5) of Income tax Rules, 1962.   Section 10(47) of Income tax Act, 1961 exempts income of an Infrastructure debt fund, set-up in accordance with rules prescribed in Rule 2F of Income tax Rules, 1962.   Rule 2F(5) in which it says “ an investor in the bond issued by Infrastructure debt fund being a non-resident, the original or initial maturity of bond, at time.....

Oct 16, 2019

Extension of due date for linking of pan with aadhar

Income Tax vide Notification no. 75/2019 dated 28th September, 2019 extends due date for linking PAN with aadhar from 30th September, 2019 to 31st December,2019.   <a href="https://www.incometaxindia.gov.in/communications/notification/notification_75_2019.pdf">https://www.incometaxindia.gov.in/communications/notification/notification_75_2019.pdf</a> .....

Oct 16, 2019

Extension of due date for filling of Income tax returns and tax audit reports for assesses covered under explanation(2) clause(a) to section 139(1) [companies and other than companies (firms)] Income tax vide order no. F.No. 225/157/2019/ITA.II Central Board of Direct Taxes extended due date for filing Income Tax Return and Tax audit report for Assessment Year 2019-20 for assesses covered under Explanation (2) (a) to section 139(1) [companies and other than companies (firms)] from 30th September, 2019 to 31st October, 2019.

Income tax vide order no. F.No. 225/157/2019/ITA.II Central Board of Direct Taxes extended due date for filing Income Tax Return and Tax audit report for Assessment Year 2019-20 for assesses covered under Explanation (2) (a) to section 139(1) [companies and other than companies (firms)] from 30th September, 2019 to 31st October, 2019.   However there is no extension of due date for purpose of Explanation 1 to section 234A (interest for defaults.....

Jan 21, 2020

Clarifications in respect of prescribed electronic modes under section 269SU of the Income-tax Act, 1961

Income tax vide Circular no. 32/2019 dated 30th December, 2019.   A new provision namely Section 269SU was inserted in the Income-tax Act, 1961, vide the Finance (No. 2) Act 2019, which provides that every person having a business turnover of more than Rs 50 Crore shall mandatorily provide facilities for accepting payments through prescribed electronic modes.   Prescribed modes are as mentioned below which is in addition to the facility for other electronic .....

Jan 21, 2020

Relaxation of time-Compounding of Offences under Direct Tax Laws-One-time measure-Extension of Timeline up to 31.03.2020.

Income tax vide Circular No. 1/2020 dated 03rd January, 2020.   The CBDT has received references from the field formation, including requests made by the ICAI chapters, wherein, it has been brought to the notice of CBDT that the taxpayers could not avail the benefit of the one-time relaxation window due to genuine hardships.   With a view to give a final opportunity to such taxpayers, and to reduce the pendency of existing prosecution cases before the court.....

Feb 21, 2020

The procedure of PAN allotment through Common Application Form (CAF) along with registration of Foreign Portfolio Investors (FPls) with SEBl under the Department of Economic Affairs and KYC for opening Bank and Demat Account.

Income tax vide Notification No. 11/2020 dated 7th February 2020 directed a procedure for allotment of PAN by Foreign portfolio Investors.   A Common Application Form (CAF) for the purpose of registration, opening of bank and Demat accounts and application for Permanent Account Number (PAN) has been notified for the Foreign Portfolio Investors (FPls).   Application for allotment of Permanent Account Number (PAN) will be uploaded in CAF as specified by the SE.....

Oct 17, 2020

Income Tax deduction from salaries during FY 2019-20

Income tax vide Circular No. 04/2020 dated 16th January 2020 directed that there is no requirement of deduction of tax for employees who are having an estimated salary income after considering the value of perquisites of Rs. 2,50,000/-(<60 years) or Rs. 3,00,000/-(60 to 80 years) or Rs.5,00,000/-(>80 years).   This corrigendum to the above circular clarifies it as the estimated salary income including the value of perquisites is taxable after giving effect to the exemptions, deductions, and relief as appl.....

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TDS deduction under section 194A of the Income-tax Act, 1961 in case of Senior Citizens

CAPITAL EXPENDITURE vs REVENUE EXPENDITURE -Ketan K Waghela, ACA(Mumbai Branch)

Procedure, format and standards for filing an application for grant of certificate for deduction of Income-tax at any lower rate or no deduction of Income-tax under section 197(1)/collection of the tax at any lower rate under 206C(9) TRACES portal

Monetary limits for filing/ withdrawal of Wealth Tax appeals by the Department before ITAT, HCs and SLPs/appeals before SC

For computing capital gain tax, date of allotment of flat by DDA would be date on which purchaser of flat can be stated to have acquired property - Decision of High Court Of Bombay in Principal Commissioner Of Income Tax-3, Mumbai v. Vembu Vaidyanathan

Sections 10(34) and 115BBDA are constitutionally valid - Decision of High Court Of Delhi in Rajan Bhatia v. Central Board of Direct Taxes

Notified provisions of 56(2)(viib)

Extension of due date for linking of Aadhar and PAN

Where assessee-hospital made payments for services rendered towards maintenance of its medical equipments for proper and long functioning, it was required to deduction TDS under section 194C, and not under section 194J

Reporting requirements in Form 3CD

Reimbursement of service tax, by ONGC to assessee not a part of aggregate amount specified in sub-section (2) of section 44BB

Extension of Due date for filing TDS Returns in the State of Odisha

Extension of Due Date for filing of TDS statement in Form 24Q

Belated Claim of Refund during the course of Assessment Proceedings which resulted into delay in granting of refund could not be a reason attributable to the assessee and couldn’t dismiss the payment of interest for the amount of refund delayed

Appeal on Income Tax Appellate Tribunal (ITAT) on remanding back to Commissioner (Exemptions) regarding rejection of Application under section 80G (5)

Exception to monetary limits for filing appeals specified in any circular issued under section 268A of the Income tax Act, 1961-reg (Specially on the basis of merit incases involved in organized Tax Evasion)

Consolidated circular for assessment of start-ups

Clarification in respect of option exercised under section 115BAA of the income tax Act, 1961 inserted through the taxation laws (Amendment) Ordinance, 2019.

Faceless Assessment for Income taxpayers launched

Higher depreciation on certain motor cars, motor buses, motor lorries and motor taxies

Amendment in Rule 2F [infrastructure debt fund for the purpose of exemption under section 10(47)

Extension of due date for linking of pan with aadhar

Clarifications in respect of prescribed electronic modes under section 269SU of the Income-tax Act, 1961

Relaxation of time-Compounding of Offences under Direct Tax Laws-One-time measure-Extension of Timeline up to 31.03.2020.

The procedure of PAN allotment through Common Application Form (CAF) along with registration of Foreign Portfolio Investors (FPls) with SEBl under the Department of Economic Affairs and KYC for opening Bank and Demat Account.

Income Tax deduction from salaries during FY 2019-20