CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 10,2016 INCOME TAX ACT SECTION 14A EXPENDITURE INCURRED IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME Rule 8D : Where in respect of tax free interest income earned on RBI bonds by assessee, Assessing Officer made disallowance under section 14A by invoking provisions of rule 8D(2) without recording his satisfaction …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 9,2016 Direct Tax IT: Interest paid to partners on capital contribution is not a statutory allowance u/s 40(b) but is an expenditure u/s 36(1)(iii) – If the income is exempt corresponding interest paid to partner will be disallowed u/s-14A – ACIT-19(3), Mumbai Vs. Pahilajrai Jaikishin & Vice Versa (ITAT Mumbai) IT: Expenditure …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 8,2016 Direct Tax IT : Where assessee claimed deduction in respect of commission paid to various agents, matter was to be remanded back to Assessing Officer for disposal afresh after finding out identity of agents and genuineness of payments by utilising his power under section 131 [2016] 66 36 (Madras) CIT …
CORPORATE AND PROFESSIONAL UPDATE FEBRUAY 7,2016 Direct Tax IT-HUF: Society is in Transition and so the Law – Woman can be Karta of a family (Delhi High Court). IT:TDS u/s 194J – Non deduction of TDS on payment towards Internet Band Width charges – Although the amendment was given retrospective effect legal maxim lex non …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 5,2016 Direct Tax Treatment of property lease income that is any income earned by the assessee by the operation of mall has to be taxed under the head of Profits and Gains of business OS Profession. [ Chennai Properties & Investments Ltd. Vs CIT 2015 (8) TMI 481 –SC] Penalty …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 4,2016 Direct Tax CBDT Officials directed to use new Performa to request info exchange from foreign tax authorities. Non-resident will not to be liable to deduct tax at source from payments made to persons resident in India, if the source of the aforesaid payments is located outside the Indian Territory. …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 3, 2016 INCOME TAX ACT SECTION 37(1) BUSINESS EXPENDITURE – ALLOWABILITY OF Deferred revenue expenditure : Where decision to abandon project was taken in relevant year, balance deferred revenue expenditure relating to said project would be deemed to arise in relevant year and would be allowed as such – [2016] 65 311 …
CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 1, 2016 DIRECT TAX Non deduction of tax at source in respect of interest on debenture u/s 193 – Mere because of Provision made in the books of account as per Accounting Standards where no income has accrued to or has been received by then debenture holders TDS not required …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 31,2016 KEY INCENTIVES FOR START-UP Key incentives proposed under this start-up scheme are as under: Self-Certification: For labour laws and environment laws so as to reduce the regulatory burden. Further in case of the labour laws, no inspections will be conducted for initial period of 3 years. Patent registration …
CORPORATE AND PROFESSIONAL UPDATE JANUARY 30,2016 DIRECT TAX Penalty for default in filing of TCS return waived-off as assessee was unaware of TCS provisions [2016] 65 taxmann.com 254 (Ahmedabad – Trib.) Jaihind Projects Ltd. v. Additional Commissioner of Income-tax Disputed liability not settled for long period couldn’t be said to be ceased as per sec. 41(1) …