Category Archives: Income Tax

Clubbing of Minor Child Income if Parents Died – CBDT Clarify- Notification No. 5/2017

Clubbing of minor Child income if Parents Died Summary : Till date there was the confusion as how to do Clubbing of minor Child income if Parents Died and who should file Income Tax Return of minor child if he/she has Interest income from Fixed Deposits etc . But as per the following notification  dated… Read More »

Committee to recommend measures for recovery of arrears of taxes

F. No. 385/20/2017-IT(B) Government of India Ministry of Finance Central Board of Direct Taxes ***** Dated: 25.05.2017 Office Memorandum Subject: Constitution of Committee to recommend measures for expeditious recovery of arrears of taxes. A Committee of the following officers is hereby constituted to study the nature and extent of arrears of direct taxes and to… Read More »

Add/ Register as Representative on Income Tax India e-Filing portal

Add/ Register as Representative A new functionality “Add/ Register as Representative” is enabled in e-Filing portal. The existing functionalities of “Legal Heir”, “Liquidator” and “Person Competent to Verify” are consolidated into a single functionality along with additional categories. Central Board of Direct Taxes, e-Filing Project- User Manual-Add/ Register as Representative 1 Introduction As per section… Read More »

Statement of Financial Transaction (SFT) & SFT Preliminary Response – CBDT Clarify

Central Board of Direct Taxes (CBDT) Issues Clarification on furnishing Statement of Financial Transaction (SFT) & SFT Preliminary Response Section 285BA of the Income-tax Act, 1961 requires furnishing of a Statement of Financial Transaction (SFT) for transactions prescribed under Rule 114E of the Income-tax Rules, 1962. The due date for filing such SFT in Form… Read More »

ITDREIN Meaning

ITDREIN TDREIN means Income Tax Department Reporting Entity Identification Number .ITDREIN is the Unique ID issued by Income Tax Department (ITD)  which will be communicated by ITD after the registration of the reporting entity with ITD The ITDREIN is a 16-character identification number in the format XXXXXXXXXX.YZNNN where XXXXXXXXXX  PAN or TAN of the… Read More »

Expense reimbursements not taxable as transfer pricing study showed no profit element

The Mumbai Bench of the Income-tax Appellate Tribunal held that amounts received by the taxpayer as reimbursements of training-related travel expenses, group health insurance, and other incidental expenses under a technical service agreement were not taxable as fees for technical services. Relying in part on the transfer pricing study and transfer pricing order, the tribunal… Read More »

Authority under Prohibition of Benami Property Transactions Act 1988 Notified

MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) Notification No. 40/2017 New Delhi, the 18th May, 2017 (Income-tax) Authority under the Prohibition of Benami Property Transactions Act, 1988 S.O. 1621(E). – In exercise of the powers conferred under sub-section (2) of section 28 read with section 59 of the Prohibition of Benami Property… Read More »

400 benami transaction identified by Income tax Department

Income Tax Department Steps-up actions under Benami Transactions (Prohibition) Amendment Act, 2016   The Income-tax Department (ITD) has initiated actions under the new Benami Transactions (Prohibition) Amendment Act, 2016 (the Act) w.e.f. 1st November, 2016. The Prohibition of Benami Property Transactions Rules, 2016 have been framed in this regard. As per the Act, Benami property… Read More »

Gift received from HUF would be exempt from tax u/s 56(2)(vi) of Income Tax

ITAT Mumbai DCIT Vs Ateev V. Gala  Appeal Number : ITA NO.1906/Mum/2014 Date of Judgement/Order : 19/04/2017 Related Assessment Year : 2010-11 Issue Whether gift received from HUF by a member of HUF falls under the definition of “relative” as provided in the Explanation to clause (vi) of sub section (2) of section 56 of… Read More »

Direct Taxes Law & Practice (Professional Edition) 2017 Book Vinod K Singhania & Dr. Kapil Singhania

Direct Taxes Law & Practice (Professional Edition) by Dr. Vinod K Singhania & Dr. Kapil Singhania (Author) With : Case Studies, Tax Planning ****As Amended by Finance Act 2017 Price Rs 2475 Click to buy online Hardcover: 2368 pages Publisher: Taxmann Publications Pvt. Ltd.; Asst. Year 2017-18 & 2018-19 edition (2017) Author : Vinod K Singhania  Kapil Singhania Edition… Read More »

Real estate transaction disclosures in India

Real estate transaction disclosures The draft income computation and disclosure standards concerning real estate transactions is based on a guidance note issued on real estate transactions issued by the Institute of Chartered Accountants of India in 2012. Read a May 2017 report [PDF 372 KB] of KPMG

Unrealised foreign exchange loss on a loan obtained for Asset purchases in India

Unrealised foreign exchange loss, loan to purchase of assets in India The Chennai Bench of the Income Tax Appellate Tribunal held that an unrealised foreign exchange loss on a loan obtained for the purpose of asset purchases was a “revenue loss” and therefore was allowable as deduction. The case is: Hyundai Motor India Ltd. Read a May… Read More »

Expenditure disallowed on dividend income subject to dividend distribution tax -Sec 14A

Expenditure disallowed, dividend income subject to dividend distribution tax The Supreme Court of India agreed to the disallowance of an expenditure under Section 14A of the Income-tax Act, 1961 with respect to dividend income that is subject to the dividend distribution tax. The case is: Godrej & Boyce Manufacturing Company Limited. Read a May 2017 report [PDF… Read More »

Levy of penalty for failure to file audit report under Income Tax for international transaction

Levy of penalty for failure to file audit report The Mumbai Bench of Income-tax Appellate Tribunal upheld a penalty levy for the taxpayer’s failure to file an audit report with respect to its international transaction of receiving foreign remittance from its non-resident Indian director (also a beneficial shareholder) on account of share capital and share premium.… Read More »

Interest on Fixed Deposits from unutilized funds of Power Plant Taxable – income from other source

Held The Hon’ble jurisdictional High Court in the case of CIT v. Rasi Cement Ltd. [1998] 232 ITR 554 (AP) has answered similar questions involved in favour of the Revenue. The question before the Hon’ble High Court was whether the interest earned on surplus funds deposited in the banks during the installation of the company,… Read More »

Tax Practice Manual-Day to Day Tax Practice Guide for Professionals – 4th Edition Book 2017 -Taxmann

Tax Practice Manual-Day to Day Tax Practice Guide for Professionals 2017 Edition by Gabhawala & Gabhawala – Taxmann A Tax Practice Guide Especially Conceived for Chartered Accountants & Tax Practitioners to assist Them in their day-to-day Tax Works (Direct Taxes /Income tax )*****As Amended by Finance Act 2017 Also Incorporating • More than 325 case… Read More »

Tax Treaty Measures to Prevent Base Erosion & Profit Shifting by India

Cabinet approves signing of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting by India The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting. The… Read More »

No Section 68 addition on cash credited in Swiss Bank if information not supplied by Swiss Bank Authority

Held Documents relied by the AO are the copies of the copies which did not have any signature of bank official or name of the bank or the place or the country were the branch was situated. The AO himself admitted in para 6 of the assessment order that the requisite information from the Swiss… Read More »

Section 269ST – Cash Receipt Rs 2 Lakh or more Banned w.e.f 01.04.2017

Section 269ST – Cash Receipt Rs 2 Lakh Banned w.e.f 01.04.2017  Section 269ST of Income Tax Act of India has been inserted by Finance Act 2017 w.e.f 01.04.2017 . It provided restriction on Cash Receipt of Rs 2 Lakh or more.  This provision being new, there is still a lot of confusion and curiosity among people from… Read More »

Operation Clean Portal Launched by Govt of India

The Union Minister of Finance, Shri Arun Jaitley, launches Operation Clean Portal; Will enable citizen engagement for creating a tax compliant society and transparent tax administration Operation Clean Money Phase I: 18 lakh persons identified; More than 9.72 lakh taxpayers submitted online responses for 13.33 lakh accounts involving cash deposits of around Rs 2.89 lakh… Read More »

Benefit of 2016 Income declaration scheme not available even if search proceedings under section 132 initiated after launching of scheme

Held In the taxing statutes, the Court has to be very slow in interpreting the statutes where intention of the legislature is to curb the evasion of tax. This is a peculiar case where the Government has granted the benefit under the scheme only to the persons who are not covered under Section 132 of… Read More »

One time exemption given to NGOs to file missing Annual Returns

One time exemption given to NGOs to file missing Annual Returns Government has given one final opportunity to all associations/organizations which have applied for renewal of their registration under the Foreign Contrubtion (Regulation) Act, 2010 (FCRA) but not uploaded their Annual Returns from Financial Year 2010-11 to 2014-15. All such NGOs can upload their missing… Read More »

Notice not served due to change of Address , Reassessment Valid u/s 148 of Income Tax

HIGH COURT OF KERALA Smt. Rajee Rajkumar v. Assistant Commissioner of Income-tax, Non-corporate Circle(1), Ernakulam A.M. SHAFFIQUE, J. W.P. (C.) NOS. 17509 & 17571 OF 2016 APRIL  5, 2017 Anil D. Nair, R. Sreejith, Kum. Soumya Prakash and Kum. Mekhala M. Benny, Advs. for the Petitioner. Christopher Abraham and K.M.V. Pandalai, Advs, for the Respondent.… Read More »

Holding period of asset converted into investment from Stock-in-trade to be taken from date of such conversion

Facts of the case During the AY 1995-96, the assessee has shifted the property from the schedule of inventories (Stock in trade) to the schedule of investments. The submitted that the assessee has closed the real estate business and entered into the textile business and converted the stock in trade into investments. The said properties… Read More »

Aadhaar in Income tax Return not mandatory for non-resident & super senior citizen – Notification

Aadhaar in Income tax Return not mandatory for certain Individuals Quoting Aadhaar in Income tax Return w.e.f 01.07.2017 not mandatory for certain Individuals as per notification below :- MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 11th May, 2017 S.O. 1513 (E).—In exercise of the powers conferred by sub-section (3) of section 139AA of the… Read More »

Income Tax Depreciation Rates Chart w.e.f 01.04.2017 – FY 2017-18 (AY 2018-19)

Income Tax Depreciation Rates Chart Below is Income Tax Depreciation Rates Chart as amended by the Income-tax (Twenty Ninth Amendment) Rules, 2016, w.e.f. 1-4-2017 Income Tax Depreciation Rate Chart for Financial Year 2017-18/ Assessment Year 2018-19 onwards  APPENDIX I ( See Note A below) [Effective from assessment year 2006-07 onwards] [See rule 5 of Income… Read More »

Draft ICDS on Real Estate Transactions – CBDT Invites Comment

Draft ICDS on Real Estate Transactions CBDT invited comments on Draft ICDS on Real Estate Transactions as per following press release dated 11.05.2017. PDF Copy of  Draft ICDS on Real Estate Transactions is also provided below :- Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes PRESS RELEASE New Delhi, 11th May,… Read More »

Sushil Chandra reappointed as Chairman of CBDT

F.No.A.12026/6/2017-Ad.I Government of India Ministry of Finance Department of Revenue Office Order No. 100 /2017 The President of India is pleased to re-appoint Shri Sushil Chandra, IRS (IT:80001),Chairman, Central Board of Direct Taxes (CBDT) as Chairman of the Central Board of Direct Taxes (CBDT) in the Department of Revenue, Ministry of Finance for a period… Read More »

Digital Signature Certificate (DSC) Ready Reckoner -Book 2017 – FCA Rahul Agrawal

Digital Signature Certificate (DSC) Ready Reckoner Paperback – 2017 by FCA Rahul Agrawal (Author), One Solution for all your DSC/Token/Java Related Query/ Error/Confusion(Preface) We are aware of fact that in day to day activities, use of digital signature is increasing and users are facing a lot of difficulties in using digital signature. Even people think… Read More »

When AO can and Cannot make adjustment of “ debatable ” issues

Resolution of “debatable” issues The Supreme Court of India addressed when an Assessing Officer can make an adjustment when the issue is “debatable.” If the issue is settled by a High Court having jurisdiction, then the issue is “not debatable.” The case is: Raghuvir Synthetics Ltd. Read a May 2017 report [PDF 475 KB] of… Read More »