Category Archives: Income Tax

How to Compute Tax on Profits of professionals on presumptive basis : Commentary on Section 44ADA of Income Tax Act

By | July 23, 2018

Tax on Profits of professionals on presumptive basis Section 44ADA of Income tax Act  Inserted by the Finance Act, 2016, w.e.f. 1-4-2017 regarding  Special provision for computing profits and gains of profession on presumptive basis. we have discussed Commentary on Section 44ADA of Income tax Act Section 44ADA of Income tax Act Read Section 44ADA of Income tax Act… Read More »

List of Income Tax benefits available to Salaried Persons AY 2018-19

By | July 23, 2018

List of Income Tax benefits available to Salaried Persons List of Income Tax benefits available to Salaried Persons  [AY 2018-19] S. N. Section Particulars Benefits A. Allowances 1. 10(13A) House Rent Allowance (Sec. 10(13A) & Rule 2A) Least of the following is exempt: a) Actual HRA Received b) 40% of Salary (50%, if house situated in Mumbai,… Read More »

CBDT CIRCULAR No 4/2018 : Income Tax Return Due date will not be extended

By | July 21, 2018

CBDT CIRCULAR No 4/2018 Summary of CBDT CIRCULAR No 4/2018 (CBDT), clarified on 21.07.2018  that the rumors spreading across in social media regarding extension in due date for non-tax audit cases is fake. The Income Tax department further clarified that there are no such plans to extend this deadline beyond 31st July, 2018. Read  CBDT CIRCULAR No 4/2018 F. No.… Read More »

No Tax on Interest awarded on enhanced compensation of compulsory acquisition of agriculture land : ITAT

By | July 21, 2018

IN THE ITAT BANGALORE BENCH ‘A’ Income Tax Officer, Ward I & TPS v. Basavaraj M Kudarikannur N.V. VASUDEVAN, JUDICIAL MEMBER AND INTURI RAMA RAO, ACCOUNTANT MEMBER IT APPEAL NOS. 1747 AND 1750 (BANG.) OF 2017 [ASSESSMENT YEAR 2013-14] JUNE  1, 2018 Sandeep Goel, Addl. CIT (DR) for the Appellant. ORDER N.V. Vasudevan, Judicial Member – These are… Read More »

Depreciation can be claimed on goodwill : ITAT

By | July 20, 2018

IN THE ITAT SPECIAL BENCH, NEW DELHI CLC & Sons (P.) Ltd. v. Assistant Commissioner of Income-tax, Circle- 3 (1), New Delhi G.D. AGRAWAL, PRESIDENT R.S. SYAL, VICE-PRESIDENT AND BHAVNESH SAINI, JUDICIAL MEMBER IT APPEAL NO. 1976 DELHI OF 2006 [ASSESSMENT YEAR 2001-02] JULY  19, 2018 Rohit Jain, Adv. Deepesh Jain and Mrs. Meenal Goyal, CA’s for the Appellant. Vijay Varma for the… Read More »

Assessing officer can make preliminary inquiries before issuing notice of reassessment : GUJARAT HC

By | July 19, 2018

We see no fetters on an Assessing Officer carrying out preliminary inquiries even before issuance of notice of reopening in order to collect information on the basis of which, he may either form a belief that income chargeable to tax had escaped assessment or abandon any further inquiry, upon being satisfied that no such belief… Read More »

Penalty justified if no reasonable cause for cash loan taken in contravention of Sec. 269SS : ITAT

By | July 18, 2018

The goods were not shipped either on 01-10-2007 or on 05-10-2007, i.e., on the dates on which the impugned loans were taken. The question of payment of customs duty etc., would arise only upon shipment or receipt of goods. In fact, the assessee admits that the goods were expected to be shipped on the second… Read More »

Rebate allowable under Section 87A of Income Tax w.e.f AY 2018-19

By | July 18, 2018

Rebate allowable under Section 87A of Income Tax Rebate allowable under Section 87A of Income Tax w.e.f AY 2018-19 ( Financial Year 2017-18 onwards) CBDT CIRCULAR NO.2/2018 [F.NO.370142/15/2017-TPL], DATED 15-2-2018 42. Rationalization of rebate allowable under Section 87A. 42.1 Before amendment by the Act, the provisions of section 87A of the Income-tax Act provided for a rebate… Read More »

Password to open Income Tax Refund Payment Advice

By | July 18, 2018

Password to open Income Tax Refund Payment Advice The Income Tax Refund Payment Advicee is password protected. Please use your PAN number in capital letters to open the attachment. For more details please contact CPC Bengaluru at 1800-425-2229 (Toll Free) or 080-22546500 if the Return was filed online. If other cases,you need to visit local… Read More »

Not necessary to submit Evidence at the time of seizure , can be submitted in Assessment : Bomaby HC

By | July 18, 2018

The entire basis of the Revenue’s case is the statement made on the date of the seizure. The voluminous evidence filed by the respondent during the course of the assessment proceedings has been completely ignored on the ground that the same was not produced when the seizure was made. There is no requirement in law… Read More »

CBDT Notification No 31/2018 ask unique number for identification of non-resident, amends advance ruling forms

By | July 17, 2018

Notification No 31/2018 Summary of Notification No 31/2018 The Central Board of Direct Taxes (CBDT) has released final notification amending Rule 44E of the Income-tax Rules, 1962 and Form 34C, 34D, 34DA as per Base Erosion and Profit Shifting (BEPS) Action 5. The new Forms 34C & 34D seek unique number used for identification of non-resident.… Read More »

No reassessment without considering assessee’s explanation about cash deposit :GUJARAT HC

By | July 17, 2018

The Assessing Officer formed a belief that income chargeable to tax has escaped assessment, on the ground that noticing a big mismatch between the returned income and cash transactions in the assessee’s bank accounts, queries were raised, which remained un-replied. This is contrary to the facts on record. The assessee had also furnished a copy… Read More »

Trust Registration deemed to be granted if CIT failed to dispose off sec. 12AA Application within 6 months : BANGALORE ITAT

By | July 17, 2018

Undisputedly, the trust was created on 01-04-1998 and application was moved on 25-05-1999. There was delay of 1 month 25 days for which assessee has moved an application requesting therein that the delay may be condoned and registration may be granted from the date of its inception. Though the Revenue was required to dispose off… Read More »

Taxability of Interest on Income Tax Refund

By | July 17, 2018

Taxability of Interest on Income Tax Refund Question:Whether the Interest on Income Tax Refund is chargeable to tax? if yes under which head ?  The amount received towards statutory interest i.e Interest on Income tax refund  has to be subject to tax under the head ‘Income from Other Sources’. Question :Whether interest on Income tax… Read More »

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

By | July 17, 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 »

Sale of land taxable as capital gains even if depreciation claimed on quarters built on it : ITAT Mumbai

By | July 16, 2018

Issue  Property sold by the assessee comprises of staff quarters on which assessee had claimed depreciation. As per Assessing officer , it has to be treated as short term capital gain as per Section 50(1) of the Act It is the claim of the assessee that the property sold is land, hence it has to… Read More »

TAX AUDIT and e-FILING 2018 Book by CA. Kamal Garg

By | July 16, 2018

TAX AUDIT and e-FILING 2018 Book by CA. Kamal Garg Price Rs 1369 Click to buy online About TAX AUDIT and e-FILING Chapter 1        Tax Audit under section 44AB of the Income Tax Act, 1961 Chapter 2        Clauses 1 to 8 Chapter 3        Clause 9: Details of Firms, LLPs, AOPs Chapter 4        Clause 10: Nature of business or profession Chapter 5        Clause… Read More »

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

By | July 16, 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]   Price Rs 962 Buy online Click here  View contents of Insolvency & Bankruptcy Practice Manual July 2018 Edition Taxmann View Price and Buy online : Click… Read More »

know your jurisdictional AO ( (Income Tax Assessing Officer )

By | July 15, 2018

know your jurisdictional AO know your jurisdictional AO (Income Tax Assessing Officer ) by entering PAN and Mobile Number know your jurisdictional AO Click here know your jurisdictional AO (Income Tax Assessing Officer ) ,know your PAN Jurisdiction,know your jurisdictions AO

Recent Income Tax Judgments – Part 2

By | July 14, 2018

Recent Income Tax Judgments – Part 2 Recent Income Tax Judgments Exemption to be allowed even if not claimed in Income Tax return : HYDERABAD ITAT Hon’ble Madras High Court, in the case of CIT v. Indian Express (Madurai) (P.) Ltd. [1983]140 ITR 705 at page 722, observed that unlike a law suit in civil appeals, in tax litigation, it… Read More »

New Income Tax News 14.07.2018

By | July 14, 2018

New Income Tax News 14.07.2018 New Income Tax News New Income Tax News e-TDS/TCS Return Preparation Utility Ver. 2.3 : Download Tax Audit Manual : CA Guide to Tax Audit under Income Tax : July 2018 Book Taxmann No Penalty for Cash Loan Taken from Wife by Husband : ITAT Delhi Son was legal representative… Read More »

Significant Economic Presence of non-resident in India : CBDT asks suggestions

By | July 13, 2018

Significant Economic Presence The CBDT has asked for the suggestions from the stakeholders and general public on the threshold limit which will establish the Significant Economic Presence (SEP) of foreign entities in India. The suggestions have been sought on three threshold limits – for transaction in physical goods, for transaction in digital goods, for soliciting… Read More »

Exemption to be allowed even if not claimed in Income Tax return : HYDERABAD ITAT

By | July 13, 2018

Hon’ble Madras High Court, in the case of CIT v. Indian Express (Madurai) (P.) Ltd. [1983]140 ITR 705 at page 722, observed that unlike a law suit in civil appeals, in tax litigation, it cannot be treated as a “lis” between two rival parties but the job of the Assessing Officer is to arrive at the correct taxable income. Therefore,… Read More »

CBDT Circular No 3/2018 threshold limit for filing of appeal before ITAT, High Courts & Supreme Court : Download/ Print

By | July 12, 2018

CBDT raises threshold limit for filing of appeal before ITAT, High Courts and Supreme Court CBDT Circular No 3/2018 Summary of CBDT Circular No 3/2018 With a motive to reduce the litigation on Income-tax matters the CBDT Circular No 3/2018 has sharply increased the threshold limit for filing of appeal before judicial authorities. The revised limit… Read More »

 e-TDS/TCS Return Preparation Utility Ver. 2.3 : Download

By | July 11, 2018

 e-TDS/TCS Return Preparation Utility NSDL e-Gov e-TDS/TCS Return Preparation Utility (RPU) TDS/TCS statements are furnished on quarterly basis, Now, quarterly statements pertaining to Financial Year 2007-08 onwards are accepted as per the guidelines of Income Tax Department. ITD has notified revised file formats for preparation of TDS (i.e. Tax Deducted at source) and TCS (i.e. Tax… Read More »

AO Jurisdiction couldn’t be questioned after expiry of 1 month from date of service of reassessment notice : Delhi HC

By | July 10, 2018

HIGH COURT OF DELHI Abhishek Jain v. Income-tax officer, Ward-55(1), New Delhi SANJIV KHANNA AND CHANDER SHEKHAR, JJ. WRIT PETITION (CIVIL) NO. 11844 OF 2016 JUNE  1, 2018 Arvind Kumar and Harsh Vardhan Sharma, Advs. for the Petitioner. Ashok K. Manchandani, Sr. Standing Counsel for the Respondent. JUDGMENT Sanjiv Khanna, J. – Abhishek Jain, as an individual, has filed the present writ petition… Read More »

No reassessment because capital gain shown by another co-owner is different : GUJARAT HC

By | July 10, 2018

The Assessing Officer examined the petitioner’s declaration of sale of immovable property and resultant loss, which she claimed. The Assessing Officer called for the purchase and sale deeds as also supporting evidence for computation of the capital gain. The assessee produced such documents and the approved valuer’s report assessing the value of property as on… Read More »

No Penalty for Cash Loan Taken from Wife by Husband : ITAT Delhi

By | July 9, 2018

Whether Cash Loan can be taken from Wife by Husband for the purchase of house ? Video Explanation by CA Satbir Singh in Hindi Facts of the case : The assessee has taken cash loan of Rs. 1 lakh and 3 lakhs on 01.04.2006 and 30.09.2006 respectively from Meena Sood for which penalty proceedings u/s… Read More »

Recent Income Tax Judgments – Part 1

By | July 8, 2018

Income Tax Judgments No ‘ Anticipatory Bail ‘ against Income tax recovery notice because assessee was ‘ defaulter ’ & not an ‘ offender ’: HC The petitioner in the instant case is not an ‘offender’ but a ‘defaulter’ as defined in the Second Schedule of the Income Tax Act . Rule 73 specifically provides… Read More »

No ‘ Anticipatory Bail ‘ against Income tax recovery notice because assessee was ‘ defaulter ’ & not an ‘ offender ’: HC

By | July 7, 2018

The petitioner in the instant case is not an ‘offender’ but a ‘defaulter’ as defined in the Second Schedule of the Income Tax Act . Rule 73 specifically provides that no order for the arrest and detention in a civil prison of a defaulter could be made unless the Tax Recovery Officer has issued and… Read More »

Tax Audit Manual : CA Guide to Tax Audit under Income Tax : July 2018 Book Taxmann

By | July 7, 2018

Tax Audit Manual-A Chartered Accountants’s Guide to Tax Audits Prescribed under Income Tax Act Price Rs 1293 Buy online Click here Description TAX AUDIT PRACTICE MANUAL [A PROFESSIONAL GUIDE TO TAX AUDIT PROCEDURES AND PRACTICES AS PREVALENT IN INDIA] (AS AMENDED BY THE FINANCE ACT, 2018) Amidst the plethora of opportunities available for Chartered Accountants… Read More »

Son was legal representative of deceased father : Tax Recovery can be done

By | July 7, 2018

HIGH COURT OF CALCUTTA Arvind Kayan v. Union of India DEBANGSU BASAK, J. WP NO. 504 OF 2017 AUGUST  30, 2017 Koushik Chowdhury, Adv. and Ms. Sumita Shaw, Adv. for the Petitioner. Kaushik Chandra, ld. ASG, Md. Nizumuddin, Adv. and Ms. Smita Das De, Adv. for the Respondent. ORDER 1. The Court : The petitioner assails an order dated May 18, 2016 passed by… Read More »

New Income Tax News 05.07.2018

By | July 5, 2018

New Income Tax News 05.07.2018 New Income Tax News New Income Tax News Instant e PAN allotment : New Facility on Income Tax Website Aadhar PAN Link : Date Extended till 31.03.2019 : CBDT Notification Cost of inflation index (CII) for FY 2018-19 Notified Country by Country (CbC) Reports : CBDT issued Instruction No 2/2018 Leave… Read More »

Leave Encashment Income Tax Treatment

By | July 5, 2018

Leave Encashment Income Tax Treatment Leave Encashment Income Tax Treatment / Taxation of Leave Encashment Why Leave Encashment is taxable : As per Section 17(1) of Income Tax Act  : (1) “salary” includes— …… —- (va) any payment received by an employee in respect of any period of leave not availed of by him; When Leave Encashment is not taxable   Section… Read More »

NOIDA is not local authority , No Income Tax Exemption : Supreme Court

By | July 5, 2018

The submission of the appellant is that the appellant is covered by Clause (ii) of the Explanation i.e. “Municipality as referred to in clause (e) of Article 243P of the Constitution”. We, while discussing above provisions, have already held that the appellant is not covered by the word/expression of “Municipality” in clause (e) of Article… Read More »

Income Tax refunds of Rs.70,000 crore issued with special drive : CBDT

By | July 4, 2018

Ministry of Finance Special drive for expeditious clearance of pending appeal effect and rectification matters and issue of refunds Posted On: 04 JUL 2018 3:36PM by PIB Delhi The Income Tax Department observed a dedicated fortnight from 1st to 15th June, 2018 to expeditiously clear pending matters of appeal effect and rectification. More than 20,000 such matters… Read More »

How to e-verify Income Tax Return : Steps

By | July 4, 2018

e-verify your Income Tax Return File your Income Tax Return on or before 31st July, 2018 due date for persons whose accounts are not liable to audit. For e-filing return of income log on to  https://www.incometaxindiaefiling.gov.in/home  different ways to e-verify your Income Tax Return 1. e-verify your Income Tax Return Using Net Banking Log in… Read More »

Income Tax Notice served on security guard is Valid if Director appeared before AO : Delhi High Court

By | July 4, 2018

Held  Notices were sent by registered post as well as through Inspector. Service was affected at the factory office of the respondent-assessee. The case of the respondent-assessee is that notice was served on the security guard and not on the director or authorised person. Director of the respondent-assessee had thereafter appeared before the Assessing Officer… Read More »

Advance Ruling under Income Tax Act : Analysis

By | July 3, 2018

APPLICATION FOR ADVANCE RULINGS [As amended by Finance Act, 2018]  A resident taxpayer may have some taxation issues in respect of a transaction which has been undertaken or proposed to be undertaken with a non-resident. Similarly, a nonresident may have some taxation issues in respect of transaction which has been undertaken or proposed to be… Read More »

Prosecutions and Punishments under Income Tax Law of India

By | July 2, 2018

PROSECUTIONS AND PUNISHMENT UNDER THE INCOME-TAX LAW [As amended by Finance Act, 2018]  Apart from penalty for various defaults, the Income-tax Act also contains provisions for launching prosecution proceedings against the taxpayers for various offences. In this part you can gain knowledge about the various provisions relating to prosecution which can be launched under the… Read More »

Rectification of Mistake in order under Section 154 of Income Tax

By | July 2, 2018

RECTIFICATION OF MISTAKE UNDER SECTION 154 OF INCOME TAX [As amended by Finance Act, 2018] Introduction Sometimes there may be a mistake in any order passed by the Assessing Officer. In such a situation, mistake which is apparent from the record can be rectified under section 154. The provisions relating to rectification of mistake under… Read More »

Prosecution under Income Tax Act : Free Study Material

By | July 2, 2018

Prosecution under Income Tax Act : Free Study Material Prosecutions and Punishments under Income Tax Law of India [FA 2018] File Prosecution Complaints and disposal of Compounding Application ; CBDT Dy. Director of Income Tax has no power to lodge complaint for prosecution against taxpayer Now Assesee can claim Immunity from penalty and prosecution u/s… Read More »