Daily Archives: March 6, 2016

Taxation of Non-compete fees in case of Profession

Finance Bill 2016 Taxation of Non-compete fees and exclusivity rights in case of Profession The existing provision of clause (va) of section 28 of the Act includes within the scope of “profit and gains of business or profession” any sum received or receivable in cash or in kind under an agreement for not carrying out activity… Read More »

Now Income tax deptt can add income of 26AS,Form No 16 ,Audit Report, in Intimation issued u/s 143(1)

Finance Bill 2016 Legislative framework to enable and expand the scope of electronic processing of information The existing provisions of section 133C empower the prescribed income-tax authority to issue notice calling for information and documents for the purpose of verification of information in its possession. In order to expedite verification and analysis of the information and… Read More »

Extension of time limit to Transfer Pricing Officer

Finance Bill 2016 Extension of time limit to Transfer Pricing Officer in certain cases As per the existing provisions, the Transfer Pricing Officer (TPO) has to pass his order sixty days prior to the date on which the limitation for making assessment expires. It is noted that at times seeking information from foreign jurisdictions becomes necessary for… Read More »

Now Bank Guarantee can be given in lieu of provisional attachment of property under Income tax act

Finance Bill 2016 Provision for bank guarantee under section 281B Under the existing provisions of section 281B the Assessing Officer may provisionally attach any property of the assessee  during the pendency of assessment or reassessment proceedings, for a period of six months with the prior approval of the income- tax authorities specified therein, if he is… Read More »

Penalty Rs 10000 for failure to comply notice of Income tax

Finance Bill 2016 Amendment of Section 272A Existing provision of Sub-section (1) provides for levy of penalty of ten thousand rupees for each failure or default to answer the questions raised by an income-tax authority under the Income-tax Act, refusal to sign any statement legally required during the proceedings under the Income-tax Act or failure to attend… Read More »

Amendment of section 271AAB of Income tax Act

Finance Bill 2016 Amendment of section 271AAB Existing provision of clause (c) of sub-section (1) of section 271AAB provides that in a case not covered under the provisions of clauses (a) and (b) of the said sub-section of section 271 AAB, a penalty of a sum which shall not be less than thirty per cent but which… Read More »

Income Tax penalty under New Section 270A Income Tax Act

 Section 270A of Income Tax Act  ( Section 270A – penalty in cases of under reporting and misreporting of income ) Finance Bill 2016 Rationalisation of penalty provisions Under the existing provisions, penalty on account of concealment of particulars of income or furnishing inaccurate particulars of income is leviable under section 271(1)(c) of the Income-tax Act. In… Read More »

Govt Support to Farmers in Case of Crop Failure

Extending Support to Farmers in Case of Crop Failure Farmers are indebted to both institutional and non-institutional sources of credit. However, borrowing from non-institutional sources is the major reason for debt-related farmers’ distress which is one of the reported reasons for farmers’ suicide in the country. In order to reduce the dependence of farmers on… Read More »

7 Key reforms in Agricultural Marketing

Reforms in Agricultural Marketing To address the demands for marketing of increased and diversified agricultural marketable surplus there is a need to strengthen the network of regulated markets and augment it with alternative marketing channels.  As per the recommendation of the National Farmers Commission (2004), that a regulated market should be available to farmers within… Read More »

Subsidy for Purchasing Combine Harvester

Subsidy for Purchasing Combine Harvester Under the Sub-Mission on Agricultural Mechanization being implemented by the Department of Agriculture, Cooperation & Farmers Welfare, subsidy @ 40% of the project cost limited to a maximum of Rs. 24 lakhs, whichever is less, is extended to the rural entrepreneurs, progressive farmer and self help groups for establishment of… Read More »

Experts Group to Look Into Issues Related to Consolidation of Public Sector Banks

Finance Minister Shri Arun Jaitley: Experts’ Group Would Be Set-Up Immediately to Look Into All Issues Related to Consolidation of Public Sector Banks To Have Strong Banks; Second Edition of Two Day Bankers’ Retreat ‘Gyan Sangam 2.0’ Concludes The Union Finance Minister Shri Arun Jaitley said that the bankers’ themselves have supported the proposal of… Read More »

Payment of interest on refund

Finance Bill 2016 Payment of interest on refund Section 244A inter alia provides that an assessee is entitled to interest on refund arising out of excess payment of advance tax, tax deducted or collected at source. It also provides that the period for which the interest is paid on such excess payment of tax begins from the… Read More »

New Advance tax payment schedule for FY 2016-17

Finance Bill 2016 Rationalisation of advance tax payment schedule under section 211 and charging of interest under section 234C As per the existing provisions of sub-section (1) of section 211, the advance tax payment schedule for a company is fifteen  per cent, forty-five per cent, seventy-five per cent and hundred per cent of tax payable… Read More »

Time limit for assessment in search cases

Finance Bill 2016 Rationalisation of time limit for assessment in search cases It is proposed to amend the time limit for completion of assessments made under section 153A or section 153C cases to bring it in sync with the new time limits provided for other cases. In order to simplify the provisions of existing section 153B… Read More »

Rationalisation of time limit for assessment, reassessment and recomputation

Finance Bill 2016 Rationalisation of time limit for assessment, reassessment and recomputation The existing statutory time limit for completion of assessment proceedings is two years from the end of the assessment year in which the income was first assessable. It is desirable that proceedings under the Act are finalised more expeditiously as digitisation of processes within the… Read More »

Provident Fund act applies to Banks also

MINISTRY OF LABOUR AND EMPLOYMENT NOTIFICATION New Delhi, the 10th February, 2016 S. O. 444(E).— In exercise of the powers conferred by clause (b) of sub-section (3) of section 1 read with section 16 of the Employees` Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952), the Central Government hereby specifies that the said Act shall… Read More »