{"id":1854,"date":"2016-02-29T10:46:32","date_gmt":"2016-02-29T10:46:32","guid":{"rendered":"http:\/\/caindelhiindia.com\/blog\/?p=1854"},"modified":"2020-10-13T10:38:11","modified_gmt":"2020-10-13T10:38:11","slug":"corporate-and-professional-update-february-29-2016","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-february-29-2016\/","title":{"rendered":"CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 29, 2016"},"content":{"rendered":"<h2><span style=\"color: #000080;\">CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 29, 2016<\/span><\/h2>\n<figure id=\"attachment_2993\" aria-describedby=\"caption-attachment-2993\" style=\"width: 542px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/02\/21.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-2993\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2016\/02\/21.jpg\" alt=\"www.caindelhiindia.com; CORPORATE UPDATES\" width=\"542\" height=\"273\" \/><\/a><figcaption id=\"caption-attachment-2993\" class=\"wp-caption-text\">www.caindelhiindia.com; CORPORATE UPDATES<\/figcaption><\/figure>\n<h4 style=\"text-align: justify;\"><span style=\"color: #000080;\"><span style=\"color: #0000ff;\"><strong>THE UNENDING SAGA OF ERRONEOUS APPLICABILITY OF DIVIDEND DISTRIBUTION TAX FINALLY ENDS:<\/strong><\/span><strong><span style=\"color: #0000ff;\">\u00a0\u00a0<\/span> \u00a0\u00a0<\/strong><\/span><\/h4>\n<p style=\"text-align: justify;\">During the past quarters, the provisions of law regarding buy-back of shares since introduction of dividend distribution tax (\u2018DDT\u2019) under section 115Q of the Act w.e.f. 01.04.2003 till 31.05.2013 are being interpreted in a conflicting manner by the tax authorities and taxpayers, thereby giving rise to disputes on this issue. It has been contended that subsequent to introduction of section 115QA in the Act , the income-tax authorities, in some cases have sought to re-characterize the purchase consideration received on account of buy-back of shares, undertaken prior to 01.06.2013, as dividend and accordingly, subjecting the amounts so distributed by the companies to DDT. This has lead to un-ended litigation and undue harassment to the tax payers.<\/p>\n<p style=\"text-align: justify;\">In a welcome move, the CBDT has come up with a clarification so far as income arising to the shareholder on but back of shares between the period 01.04.2000 till 31.05.2013 would be taxed as capital gains in the hands of the recipient in accordance with section 46A of the Act and no such amount shall be treated as dividend in view of provisions of section 2(22)(iv).<\/p>\n<p style=\"text-align: justify;\">A brief write up on the matter , the ongoing controversy is enclosed herewith along with the latest CBDT Circular\u00a0No. 03\/2016 dt. 26th Feb 2016.<\/p>\n<p style=\"text-align: justify;\">The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances;Hope the information will assist you in your Professional \u00a0 endeavors. For query or help, contact: \u00a0info@caindelhiindia.com\u00a0or call at \u00a0011-233-43-333<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CORPORATE AND PROFESSIONAL UPDATE FEBRUARY 29, 2016 THE UNENDING SAGA OF ERRONEOUS APPLICABILITY OF DIVIDEND DISTRIBUTION TAX FINALLY ENDS:\u00a0\u00a0 \u00a0\u00a0 During the past quarters, the provisions of law regarding buy-back of shares since introduction of dividend distribution tax (\u2018DDT\u2019) under section 115Q of the Act w.e.f. 01.04.2003 till 31.05.2013 are being interpreted in a conflicting &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[173,142],"tags":[566,502,501,569,179,546,180,214,181,194,541,537,562,560,550,538],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1854"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=1854"}],"version-history":[{"count":3,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1854\/revisions"}],"predecessor-version":[{"id":2995,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/1854\/revisions\/2995"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=1854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=1854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=1854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}