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Make Income Tax Return filing by Non-residents owning a property or asset in India Mandatory: ICAI
Most Income tax return forms contain a Schedule FA where the resident assessee has to provide details of any asset located outside India (including financial asset) or signing authority in any bank ac...
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Make PAN card chip enabled for certain transactions required to be reported in TDS/TCS returns
The misuse of PAN details of assesees is prevalent since long. There is a need to provide new age chip enabled PAN cards so as to prove the identity of the concerned person rather than using the photo...
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Provide Challan rectification mechanism for all types of challans : ICAI
Considering the fact that several mistakes were being reported which occurred on account of wrong punching of data in the OLTAS by the banks, the CBDT introduced a new challan correction mechanism for...
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Provide for Reconciliation of Foreign Currency Remittances with Form No. 15CA: ICAI
All the foreign currency remittances/payments are required to be reconciled with details provided in Form No. 15CA. RBI report 2012-13 provides that the foreign currency remittances for imports (all t...
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Rule 26- Replace Telegraphic transfer buying rate of SBI with Rate on RBI website
Rule 26 of the Income-tax Rules, 1962 which states that “For the purpose of deduction of tax at source on any income payable in foreign currency, the rate of exchange for the calculation of the value...
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Exclude pooling vehicles like Mutual funds, AIFs from the purrview of section 115BBDA
Section 115BBDA – Scope of section 115BBDA, initially restricted to individuals, HuFs and Firms, expanded – Certain pooling vehicles like Mutual funds, AIFs etc. to be exemptedThe Finance Act, 2016 ha...
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Define Profit level indicators to avoid adoption of different approaches
The three most important aspects of application of TNMM are1) selection of the tested party – usually the simpler of the two related parties involved with the intercompany transactions;2) selection of...
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Clarify on carry forward of MAT credit expiring on or before AY 2016-17
Section 115JAA – Extension of period of carry forward of MAT credit from 10 years to 15 years – Clarity regarding carry forward and set off of MAT credit in cases where the ten year period has expired...
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Section 115JB Amend & clarify on taxability of waiver of Principal amount by banks/ NBFC
Section 115JB – Amendment required and clarification sought in respect of taxability of waiver of Principal amount by banks/ NBFCBACKGROUNDPresently, there is increased focus on resolution of large NP...
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Sections 115TD to 115TF – Special provisions relating to tax on accreted income of certain trusts and institutions – Issues to be addressed
The Finance Act, 2016 inserted a new Chapter XII-EB to provide for levy of additional income tax in case of conversion into, or merger with, any non-charitable form/entity or on transfer of assets of...
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Tax on ESOPs should be only at the point of sale of shares by employees
The current Income Tax Law, provides for the inclusion of ESOPs under section 17(2) to be taxed as a “perquisite”, consequent to the abolition of FBT.The section states that ESOPs issued free of cost...
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Section 115UB– Taxation of income of Investment funds- Clarity required on taxation of Category III AIF
Several Category I and II Alternative Investment Funds (AIFs) are registered with SEBI. With effect from Financial Year (FY) 2015-16, the tax ability of the income earned by AIFs is governed by a spec...
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Clarify on Taxation of ESOPs in case of migrating employees: ICAI
Taxation of specified security or sweat equity shares allotted to employees under Employee Stock Option Plans (ESOPs) in case of migrating employeesTaxation of ESOPs creates an issue in the case of mi...
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Increase limit for maintenance of books by professionals to Rs. 5 Lakh and Rs. 1000 for Maintenance of Bills
Rule 6F – Upward revision of limit of Rs.1,50,000Rule 6F of the Income-tax Rules, 1962 provides for books of accounts and other documents to be kept and maintained by persons carrying on certain profe...
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Depreciation on books used by professionals be restored to its original rate of 100%
Books are very important tools used by professionals to carry on their profession. Though expenditure on purchase of books is no doubt capital in nature, the books purchased by professionals’ have a v...
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Extend Due date of furnishing statement in Form No. 64 to 30th November
Section 115U(2) read with Rule 12C requires that the person responsible for crediting or making payment of the income on behalf of a Venture Capital Company (VCC) or a Venture Capital Fund (VCF) and t...
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Deputation of employees- Taxability as fees for technical services/ PE issues
Deputation of employees- [Tax ability as fees for technical services/ Permanent Establishment issues]An issue is under debate as to whether payments made by the Indian company to foreign company towar...
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AO should accept rectification application related to difference in Form No. 26AS and Amount claimed in ITR
Section 154- Mistake apparent from recordEven after due efforts taken by the Government to ensure compliance relating to filing of TDS returns by the deductors, the defaults on behalf of deductors con...
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Auto fill of TDS data in Income Tax Returns (ITR)
Currently an assessee filing his income tax return needs to fill all the data manually wrt the taxes paid by him/ on his behalf (TDS) in excel utility. Since TDS returns are e-filed now days, an assee...
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Section 139- Enlarge scope of filing return of income: ICAI
The scope of filing return of income should be widened.SuggestionThe scope of filing return of income should be widened so as to include in its ambit the persons entering into the following transactio...