Category Archives: Income Tax

Interest on FDR can not be capitalised if capital asset is not setup : Bombay HC

By | August 18, 2018

HIGH COURT OF BOMBAY Shree Maheshwar Hydel Power Corporation Ltd. v. Commissioner of Income-tax M. S. SANKLECHA AND SANDEEP K. SHINDE, JJ. IT APPEAL NO. 67 OF 2016 JULY  17, 2018 Manish Kanth and Atul Jasani for the Appellant. ORDER 1. This Appeal under Section 260-A of the Income Tax Act, 1961 (the Act), challenges the order dated 18.3.2015 passed by… Read More »

New Income Tax News 18.08.2018

By | August 18, 2018

New Income Tax News 18.08.2018 New Income Tax News New Income Tax News CBDT to revise Form No 13 for applying Lower deduction of Income Tax /TDS :Draft notification [Video] Govt deferred GST Expenses disclosure in Tax Audit Report : GST / Income Tax News CBDT Circular No 6/2018 : GAAR & GST Compliance disclosure in… Read More »

CBDT to revise Form No 13 for applying Lower deduction of Income Tax /TDS :Draft notification

By | August 17, 2018

F.No.370142/10/2018-TPL Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes (TPL Division) New Delhi, dated the 17th August, 2018 Subject: Draft notification proposing an amendment of the Income-tax Rules, 1962 for making the process of issue of certificate for no deduction, lower deduction and collection of tax electronic – reg.… Read More »

CBDT Circular No 6/2018 : GAAR & GST Compliance disclosure in Tax Audit Report Deferred

By | August 17, 2018

Circular No 6/2018 Govt Deferred General Anti-Avoidance Rules ( GAAR)  & GST Compliance disclosure in Tax Audit Report (Form 3CD) F. No. 370142/9/2018-TPL Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes TPL Division New Delhi, Dated the 17th of August, 2018 Order under section 119 of the Income-tax Act, 1961 Section 44AB of… Read More »

Disclosure of cash transactions in tax audit report

By | August 16, 2018

Disclosure of cash transactions in tax audit report Form 3CD has been Amended vide Notification No. 33/2018, dated 20-7-2018 Requirement of reporting cash transaction is dealt with by clauses 31(ba), 31(bb), 31(bc) and 31(bd). A snapshot of the disclosure requirements under section 269ST is given below: Clause Nature of Transaction Reporting requirement 31(ba) Receipt of Rs. 2 lakh… Read More »

No Income tax on sale of agriculture land just because it is to be used for industrial purpose by purchaser : GUJARAT HC

By | August 16, 2018

HIGH COURT OF GUJARAT Principal Commissioner of Income Tax, Rajkot-1 v. Heenaben Bhadresh Mehta M.R. SHAH AND A Y. KOGJE, JJ. R/TAX APPEAL NO. 672 OF 2018 JUNE  26, 2018 Mrs. Mauna M Bhatt for the Petitioner. JUDGMENT M.R. Shah, J. – Feeling aggrieved and dissatisfied with the impugned judgment and order dated 06.12.2017 passed by the learned Income… Read More »

salary income and Income Tax Questions

By | August 14, 2018

Income Tax on salary income ​What is considered as salary income? S​ection 17(1) ​ of the Income-tax Act defines the term ‘salary’. However, not going into the technical definition, generally whatever is received by an employee from an employer in cash, kind or as a facility [perquisite] is considered as salary. ​What are allowances in salary… Read More »

Interest under Income Tax Act : Free Guide Book : 234A, 234B and 234C : FA 2018

By | August 14, 2018

INTEREST PAYABLE BY THE TAXPAYER UNDER THE  INCOME-TAX ACT Interest under Income Tax Act u/s 234A, 234B and 234C  [As amended by Finance Act, 2018] Introduction of Interest under income Tax Under the Income-tax Act, different types of interests are levied for various kinds of delays/defaults. In this part, you can gain knowledge about the provisions… Read More »

How to Request for Refund Re-issue on IncomeTaxIndiaEfiling

By | August 14, 2018

How to Request for Refund Re-issue on IncomeTaxIndiaEfiling There can be instances such as Incorrect Bank Account details, Incorrect Address, IFSC Code and so on, and then taxpayer may have to request the ITD to re-issue a refund cheque. Refunds are issued through two modes: By crediting the refund amount in Assesse Bank account if… Read More »

How to Save Income Tax on Capital Gains by Bond Investment : Section 54EC Income Tax

By | August 10, 2018

How to Save Income Tax on Capital Gains by Bond Investment Video Explanation by CA Satbir Singh on how to Save Income Tax on Capital Gains by Bond Investment Sale of Building by Mr Raj is as Follow Date of Sales 01.04.2018 and Sale Consideration received is  Rs 1.00 Crore Cost of Acquisition on 01.06.2008 (FY 2008-09)… Read More »

Income Tax Slabs for AY 2019-20 ( FY 2018-19 )

By | August 9, 2018

Income Tax Slabs for AY 2019-20 ( FY 2018-19 ) Here are the Income Tax Slabs for AY 2019-20 ( FY 2018-19 ) for Individuals , Partnership Firms ,Local Authority,Domestic Company,Foreign Company and Co-operative Society [ Join online GST Course by CA Satbir Singh ] Video Explanation by CA Satbir singh For Individual/HUF/AOP/BOI/AJP : Income… Read More »

Limit for  holding Gold Jewellery under Income Tax

By | August 8, 2018

Limit for  holding Gold Jewellery under Income Tax SECTION 132 OF THE INCOME-TAX ACT, 1961 – SEARCH & SEIZURE – GENERAL – CLARIFICATIONS WITH RESPECT TO GOLD JEWELLERY UNDER INCOME TAX LAW PRESS RELEASE, DATED 1-12-2016 In order to remove any doubt about the current position of Income Tax Law with respect to gold jewellery, the following points are categorically clarified: ♦ There is no limit on holding of gold jewellery or ornaments… Read More »

New Income Tax News 08.08.2018

By | August 8, 2018

New Income Tax News 08.08.2018 New Income Tax News New Income Tax News Use new utilities to File Income Tax Return for AY 2018-19 w.e.f 01.08.2018 Unsecured loan/ Gifts to be added in Income if paying capacity of giver is not proved : HC [Video] Why to Submit Tax Saving Proof to your Employer :… Read More »

Unsecured loan/ Gifts to be added in Income if paying capacity of giver is not proved : HC

By | August 8, 2018

when the assessee failed to prove the capacity of the concerned persons who alleged to have given the unsecured loan and/or gift, it cannot be said that the learned Tribunal has committed any error in confirming the additions made by the Assessing officer and confirmed by the CIT (Appeals) of Rs.19,92,730/- as unsecured cash credit.… Read More »

Action on those Converting Black Money into White during Demonetization

By | August 8, 2018

Ministry of Finance Action on those Converting Black Money into White during Demonetization Appropriate action by the Income-tax Department (ITD) and other Law Enforcement Agencies has been taken against those involved in the misuse of the Scheme of Demonetization. Such actions by the Income-tax Department included among others, conducting search and survey actions in relevant… Read More »

Income Tax Notices for holding of assets by NRIs

By | August 8, 2018

Ministry of Finance Income Tax Notices Posted On: 07 AUG 2018 6:25PM by PIB Delhi Income Tax Notices have been issued by the Income Tax Department and the Enforcement Directorate. In respect of Income Tax Department, assesses including, non-resident assesses are served notices/summons consequent to the initiation of various proceedings under the Income-Tax Act, 1961,… Read More »

ITR is invalid if no application made for condonation of delay for rectifying errors : GUJARAT HC

By | August 6, 2018

The assessee had not furnished the audit report previously. The assessee’s return was required to be accompanied by the report of the audit as referred to in section 44AB of the Act. This was clearly not done. The Assessing Officer was within his rights to raise this defect in the return and seek its rectification.… Read More »

Income Tax on Arrear of Salary with [Video Lecture]

By | August 6, 2018

Income Tax on Arrear of Salary Are arrears of salary taxable?​​​​ Yes . Refer Section 15(c) of Income Tax Act 1961 Video Explanation by CA Satbir Singh in Hindi Illustration on tax treatment of arrears of salary On 1 st January, 2018, Mr. Rajesh received arrears of salary of Rs. 2,52,000 pertaining to the years 2011-12… Read More »

CIT(A) could pass order on issues which weren’t raised earlier in Appeal : HC

By | August 6, 2018

The purpose and object of the orders passed under the Act is to ensure that the Act is properly implemented and the Assessee is not burdened with tax which under the law, it is not obliged to pay. Thus, the finding in the impugned order dated 2nd September, 2004 in the peculiar facts of this… Read More »

Income Tax Exemption for Capital Gain on Residential Property Sale / Transfer

By | August 6, 2018

Income Tax Exemption for Capital Gain on Residential Property Sale / Transfer [As amended by Finance Act, 2018] In this article we have discussed Income Tax Exemption for Capital Gain on Residential Property Sale / Transfer with examples Introduction A person wanted to shift his residence due to certain reason, hence, he sold his old… Read More »

Income Tax on commutation of pension

By | August 5, 2018

 Income Tax Treatment on commutation of pension Pension is described in section 60 of the CPC and section 11 of the Pension Act as a periodical allowance or stipend granted on account of past service, particular merits etc. Thus monthly allowance to the younger brother of a ruler was treated as a maintenance allowance and… Read More »

Capital expenditure incurred in cash : Depreciation Disallowed w.e.f AY 2018-19

By | August 4, 2018

Capital expenditure incurred in cash : Depreciation Disallowed CIRCULAR No. 2/2018 Dated 15.02.2018 20. Disallowance of depreciation under section 32 and capital expenditure under section 35AD on cash payment. 20.1 Sub-section (3) of section 40A of the Income-tax Act provides that revenue expenditure incurred in cash exceeding certain monetary threshold is not allowable except in such… Read More »

Gold /jewellery holding Limit as per Income Tax Act

By | August 4, 2018

what is the current Income Tax regulation regarding gold holdings?   Notification: No. 347(E), dated 20-5-1978 says: Section(s) Referred: 132 ,132(11) Statute: INCOME TAX Date of Issue: 20/5/1978 In exercise of the powers conferred by sub-section (11) of section 132 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies every Commissioner, for the purpose of passing orders on… Read More »

Exp. incurred on education of director’s son not allowed as Business Expense : BOMBAY HC

By | August 2, 2018

Exp. incurred on education of director’s son not allowed as Business Expense In the case in hand, Appellants-Assessee is a company manufacturing copper foils. Son of one of the directors was sent to USA for completing course in Business Administration which was ‘general’ in nature and had no direct nexus with the business activities of… Read More »

Notification No 34/2018 : Information received from foreign jurisdiction can’t be share without CBDT permission

By | August 2, 2018

TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUBSECTION (ii) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, the 25th of July, 2018 NOTIFICATION In pursuance of sub-clause (ii) of clause (a) of sub-section (1) of section 138 of the Income-tax Act,… Read More »

Expenses incurred on abandoned project was revenue expenses as no new Asset is created : MADRAS HC

By | August 1, 2018

The abandoned project was not a new one and it was a decision taken by the Government after about 12 years after the petitioner was invited to take over the project, which was already in existence, as they were an expert in the same line of business. Therefore, on facts, we find that the CIT… Read More »

Penalty imposed is valid for obtaining & repaying cash loans exceeding Rs. 20000 : MADRAS HC

By | August 1, 2018

In course of inspection of the books of A. Kannan, it was found that the appellant assessee had repaid loan of Rs. 20,00,000/- in cash to A. Kannan on various dates. Held Statutory provisions which prohibit acceptance of repayment of loans in cash are binding on all Income Tax payees and breach thereof attracts the… Read More »

New Books for GST , Income Tax & Law Practice (Till July 2018)

By | August 1, 2018

New Books for Tax Practice you can refer these New Books for GST and Income Tax Tax Practice  in India [ Join GST Online Course by CA Satbir Singh]   Buy Click here View Contents of Balance Sheet Decoded Book Taxmann July 2018 Price Rs 962 Buy online Click here  View contents of Insolvency & Bankruptcy Practice… Read More »

New Income Tax News 31.07.2018

By | July 31, 2018

New Income Tax News 31.07.2018 New Income Tax News New Income Tax News Biggest Mistake for not filing Income Tax Return Income Tax Audit u/s 44AB : Limit ,Due date, Applicability and Penalty Revised Income Tax Return filed after issuance of scrutiny notice is valid: Mumbai ITAT TDS on Property Sale -Complete Guide ITR Due… Read More »

Revised Income Tax Return filed after issuance of scrutiny notice is valid: Mumbai ITAT

By | July 31, 2018

Assessee filed the revised return of income after issuance of notice under section 143(2) of the Act, the Assessing Officer held that the said revised return of income filed by the assessee claiming deduction under section 54 of the Act being invalid is not acceptable Held There is no bar/restriction in the provisions of section… Read More »

TDS on Property Sale -Complete Guide

By | July 30, 2018

TDS on Property Sale Deduction of tax at source from payment on transfer of certain immovable property  Relevant provision regarding TDS on Property sale is covered in Section 194IA of Income tax Act of India Conditions to be satisfied for applicability of section 194-IA : TDS on Property Sale For applicability of section 194-IA following conditions… Read More »

ITR Due Date for AY 2018-19 Extended to 31.08.2018 : CBDT Order

By | July 26, 2018

ITR Due Date for AY 2018-19 Extended The Central Board of Direct Taxes (CBDT) has extended ‘due-date’ of filing Income-tax Return (ITR) from 31st July, 2018 to 31st August, 2018. Download CBDT Order for ITR Due Date Extension for AY 2018-19 F. No 225/242/2018/ITA.II Dated 26th July 2018 Press Release by Finance Department on Extension… Read More »

Notice in name of deceased is invalid , No time limit for legal heirs to intimate death of assessee to Income Tax Department : MADRAS HC

By | July 26, 2018

Can the Income tax Department issue Notice in the name of dead Person ? Video Tutorial by CA Satbir Singh (Voice in Hindi , Slides in English)  explaining why Notice in name of deceased is invalid Revenue does not dispute the factum of death of the said Mr.S.Veerappan on 26.1.2010, as evidenced from the death certificate,… Read More »

New Income Tax News 26.07.2018

By | July 26, 2018

New Income Tax News 26.07.2018 New Income Tax News New Income Tax News Last Date to file ITR for AY 2018-19 (FY 2017-18) GST and Income Tax Calendar July 2018 : Due Dates Allow filing of ITR without furnishing Aadhaar No : Delhi High Court Judgment Form 3CD for AY 2018-19 : Income Tax Audit… Read More »

Last Date to file ITR for AY 2018-19 (FY 2017-18)

By | July 26, 2018

Last Date To File Income Tax Return  for AY 2018-19 Last date to file Income Tax return for AY 2018-19 i.e income earned from 01.04.2017 to 31.03.2018 is given below. ITR Due Date for AY 2018-19 Extended to 31.08.2018 : CBDT Order Note:  Companies or a firm are required to file a return of income… Read More »

Form 3CD for AY 2018-19 New and Old : Income Tax Audit Report :Download/Print

By | July 24, 2018

FORM 3CD [for Form 3CD See rule 6G(2) of Income Tax Rules ] Statement of particulars required to be furnished under section 44AB of the Income-tax Act, 1961 PART – A Summary of Form 3CD  Form 3CD is amended by Notification No 33/2018 Dated 20.07.2018: (Tax Audit Report Form 3CD Amended by CBDT w.e.f 20.08.2018). Here we… Read More »

No reassessment because assessee failed to disclose bank a/c if it was submitted during assessment : Bombay High Court

By | July 24, 2018

HIGH COURT OF BOMBAY Akshar Developers v. Assistant Commissioner of Income-tax, Central Circle-3, Thane M.S. SANKLECHA AND SANDEEP K. SHINDE, JJ. WRIT PETITION NO. 11441 OF 2017 JUNE  7, 2018 Ms. Ritika Agarwal, and Salman Balbale, Adv. for the Petitioner. Sham Walve, Adv. for the Respondent. JUDGMENT 1. Ms. Agarwal, Learned Counsel appearing for the petitioner seeks to amend the petition by… Read More »

Notification No 33/2018 : Tax Audit Report Form 3CD Amended by CBDT

By | July 24, 2018

Notification No 33/2018 Dated 20.07.2018 Summary of Notification No 33/2018 : Tax Audit Report Form 3CD Amended The Central Board of Direct Taxes (CBDT) has revised the Form no. 3CD. Various changes have been made in the form such as reporting of gifts chargeable to tax, particulars of payment in amount exceeding limit specified in… Read More »