Income Tax

Clarification regarding TDS on Commission to a partner under section 194H read with section 40(b)In case of partnership firms, Section 40(b)(i) provides that “remuneration” shall mean any payment of s...

As per the provisions of section 194-I, the tax is to be deducted at source @10% in respect of income by the way of rent for any use of land or building or furniture or fixture etc. The proviso to sec...

One of the tax consequences of a country or area being notified as NJA is that payments to persons located in that NJA would be subject to a higher withholding @ 30%. The relevant provision which prov...

The amendment to section 194J by the Finance Act, 2012 requires deduction of tax at source @ 10% on any remuneration or fees or commission, by whatever name called, to a director of a company, other t...

The Finance (No.2) Act, 2014 had substituted Section 115BBC(1)(ii) w.e.f 1-4-2015 to provide income tax payable shall include the amount of income tax with which the assessee would have been chargeabl...

At present, long term capital gain is taxed @ 20% in pursuance of the provisions of section 112. Whereas, in case of individual assessee having normal income, the rate of tax upto Rs. 5,00,000 is only...

Valuation under Customs and Transfer PricingBoth Customs and TP require taxpayer to establish arm’s length principle with respect to transactions between related parties. Objective under respective la...

a) Scope and applicabilityFinance Act, 2012 extended the obligation to withhold taxes to non- residents irrespective of whether the non-resident has –(i) a residence or place of business or business c...

a) Present scheme of administration of Search and Assessment of search cases needs to be made effective to reduce technical complexities Desirability to bring back block assessment systemPresent schem...

Credit of Tax Collected at Source relating to earlier years (for which Assessments are already over & time period mentioned in Section 155(14) has elapsed) demanded by the Government authorities at a...

Section 167B- Indeterminate/ unknown equivalent to nil share Section 167B provides that in case shares of members in Association of Persons (AOP) or Body of Individuals (BOI) is unknown or indetermina...

Different Methods of accounting followed by deductor and deducteeOne of the important reasons for mismatch of TDS claimed and TDS as per Form 26AS is adoption of different method of accounting (i. e....

Consequences of failure to deduct or pay withholding tax Section 201– Extension of benefit in respect of payments made to non-residentsWhere in case any person fails to deduct or pay the whole or any...

a) Section 206AA- Exemption from requirement of furnishing PAN under section 206AA to certain non-residents– Request to treat the amendment as clarificatoryThe Honorable Finance Minister has, in para...

The Finance Act (No. 2), 2009 raised the limit to pay advance tax under section 208 to Rs. 10,000. Considering the inflationary conditions prevailing in the country, it is felt that the said limit nee...

Draft notification for introduction of proposed Rule 39A dealing with the reporting of estimated income and advance tax liabilityWith a view to create a mechanism for self-reporting of estimates of cu...

TDS threshold limits u/s 194J were last revised in 2010. The deduction of tax at source on such small amounts involves deployment of relatively large amount of resources in terms of manpower, systems...

The amendment to Section 35AD(3) of the Act introduced by the Finance Act, 2010, seeks to prevent a taxpayer from claiming dual deduction in respect of the same business.It appears that if a taxpayer...

At present, Tax Saving FDR is allowed as deduction u/s 80C but its interest is taxable.It is pertinent to note that the deduction u/s 80C on reinvestment of interest on NSC is available.SuggestionIt i...

The DSIR guidelines provide that eligible capital expenditure on R&D will include expenditure on plant, equipment or any other tangible item only. It also provide that capital expenditure of intangibl...