Contents
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Part XIV--Losses [Sections 70 to 80] |
132 |
General |
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Mode of set off and carry forward |
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Provisions applicable to both residents/non-residents |
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Provisions of sections 71 to 74 at a glance |
133 |
Inter-Source Adjustment of Losses [Section 70] |
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General rule |
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Exception to the provision in section 70(1) |
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Loss to be first set-off |
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Loss from exempt source--Set-off against income from a taxable source |
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Incomes eligible for deduction and set-off of losses |
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Set-off of short-term capital loss |
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Set-off of long-term capital loss |
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Losses of illegal business |
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Losses of business discontinued during the year |
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Set-off from income from profession of loss from business activity |
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Setting off of long-term capital loss against short-term capital gains where assessee was also having income from long-term capital gains |
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Rule regarding set-off of capital losses |
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Set-off of indexed capital loss against non-indexed capital gains |
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Capital loss relating to STT paid transactions set off against capital gains relating to non-STT paid transactions |
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AO set-off long-term capital loss arising on sale of shares, not subject to STT against long-term capital gain arising from sale of shares subjected to STT |
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AO denied set off on the ground of transactions of sale of quoted equity shares being exempt from tax under section 10(38) |
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Set-off of short-term capital loss against short-term capital gains--Two sets of transations liable for different rate of tax |
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Denial on the ground of assessee income allowed as deduction under section 80P for earlier years |
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Interest on capital borrowed towards investment in firm--No interest income accrued from firm |
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Allowability against income to be taxed under section 115BBE--No bar existing as on relevant date of assessment as regards allowability of set-off |
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Interest on capital borrowed towards investment in firm--No interest income accrued from firm |
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Transactions in commodity derivatives--Assessee got accounts audited--AO was of the view no audit was required |
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Loss on share-trading on business, whether entitled to be set-off against income from profession |
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Bogus off market transactions of purchase and sale of shares carried out by assessee |
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Manner of set off in intra head gains and losses |
134 |
Inter-Head Adjustment of Losses [Section 71] |
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Losses from any head to be adjusted against another head except capital loss |
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Loss under the head capital gains cannot be set off against income under any other head |
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Business/profession loss not allowed to be set off against salary income |
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Set-off of unabsorbed depreciation against salary income--Not permissible |
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Restriction on set off of loss from house property [Section 71(3A)] |
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Exceptions to provisions of section 71 |
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Other points to be considered |
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Loss to be first set-off under section 70 |
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Current year's losses have precedence over carried forward losses |
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Set-off of part of loss and carry forward of balance--Not permissible under section 71 |
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Set-off during the year in which loss incurred |
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Losses under the head capital gains |
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Set-off of loss, whether optional |
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Losses under taxable source of income can be set-off against income under another taxable source |
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Set-off of income or loss clubbed under section 64 permissible |
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Share of loss earned by member of association of persons |
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Set of off business loss against addition under section 68 |
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Loss suffered by firm cannot be set-off against profits of partner's proprietary business |
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Loss under the head of an exempt source--Possibility of set-off against income from a taxable source |
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Whether it was mandatory to set off business loss against income from capital gain |
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Set-off during the year in which loss incurred |
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Business loss shown as loss under the head income from house property |
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Losses arose due to additions made as a result of appellate order |
135 |
Carry Forward of Loss from House Property [Section 71B] |
136 |
Business Loss Other Than Speculation Loss [Section 72] |
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Origin of business loss |
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Rules as to set-off of losses |
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Manner of carry forward and set-off of business loss |
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Loss attributable to business entitled to rehabilitation allowance |
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Conditions precedent for set-off of business loss |
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No need to carry on the business in which loss incurred |
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Priority in matter of set-off |
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Setting up versus commencement of business |
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Time limit for carrying forward business loss |
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Exception to time limit of eight years |
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Section 72 to be given precedence over Chapter VI-A |
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Set-off of loss against undisclosed income justified |
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Carry forward possible only if losses enter assessment of every subsequent year |
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Husband eligible to set-off loss from business carried on by wife where clubbing made |
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Carry forward of losses of illegal business |
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Set-off of business loss against dividend income where shares held as trading assets |
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Brought forward business loss to have precedence over unabsorbed depreciation |
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Carrying on of business necessary for claiming set-off of business loss |
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Brought forward business loss not to be set-off against other income |
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Setting off of loss against profit chargeable to tax under section 41(1) |
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Gain arising from transfer of depreciable asset--Possibility of set-off of brought forward business loss against the gains |
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Set off of brought forward business loss against short-term capital gain under section 50 |
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Set-off of brought forward business losses against short-term capital gains |
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Loss of merging company |
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Transactions in commodity derivatives--Assessee got accounts audited--AO was of the view no audit was required |
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Set off of brought forward business loss against STCG arising out of the sale of depreciable business assets |
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Set-off of carried forward business loss against short term capital gain arising from sale of depreciable assets |
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Assessee sought carry forward of long-term capital loss on off market sale of shares of eleven listed companies--Assessee transferred shares held as long-term capital assets through off market transactions resulting into genuine loss and thus escaping the rigor of the exemption under section 10(38) |
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AO disallowed set-off of long-term capital loss on sale of shares (STT paid) |
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Set-off of brought forward business losses against interest income |
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Assessee-club claimed set-off of loss incurred from activities coming under the purview of principle of mutuality against income not coming under the purview of mutuality |
137 |
Losses in Speculation Business [Section 73] |
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Treatment of speculation business |
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Meaning of 'speculative transaction' |
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Scheme of section 73 as to carry forward and set-off of speculative losses |
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Nature of section 73 |
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Whether carrying on of the same business necessary for set-off |
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Carry over of speculative loss |
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Precedence to speculative losses over unabsorbed depreciation and unabsorbed scientific research expenditure |
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Speculation losses can be set-off and carry forward against speculative gains only |
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Losses of illegal speculative business |
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Company deemed to be carrying on speculation business in certain cases |
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Effect of Explanation 2 section 28 and Explanation to section 73 |
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Nature of Explanation to section 73 |
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For application of Explanation to section 73, not necessary that purchase and sale of shares take place in the same year |
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Assessee engaged in sale and purchase of shares of other companies, whether can be said to be induldged in speculative business |
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Only composition of gross total income to be checked for applicability of Explanation to section 73 |
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Assessee having no business income |
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Speculation loss be set off only against speculative gain |
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Speculative profit of current year be first adjusted against the brought forward speculation loss |
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Business loss be set-off against speculative gains |
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Explanation to section 73 attracted even where a part of the business of the company comprises purchase and sale of shares |
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Where the entire business consists of purchasing/selling shares |
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Only composition of the gross total income to be checked for applicability of Explanation to section 73 |
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Explanation to section 73 applicable where assessee's principal business consisted of granting loans and advances |
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Application of Explanation to section 73 |
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Meaning of "gross total income" for the purpose of Explanation to section 73 |
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Determination of gross total income be for the purposes of Explanation to section 73 |
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Loss on share trading transactions of NBFC |
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Setting off against normal buisness income |
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Applicability of section 43(5) as amended by Finance Act, 2005 |
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Loss from trading in derivatives on stock exchanges--Assessing officer held the same as speculative loss |
138 |
Loss from Business Specified under Section 35AD [Section 73A] |
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Loss of specified business to be set-off only against profits and gains of specified business |
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Carry over of losses under section 73A(2) |
139 |
Losses under Head "Capital Gain" [Section 74] |
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Rules regarding set-off and carry forward of capital loss |
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Provisions in brief |
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Capital losses cannot be set-off against income under any other head |
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Carry forward and set-off of capital loss |
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Time limit for carrying over of capital loss |
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Capital gains under Income Tax Act |
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Capital loss--What is |
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Capital loss shall arise from the transfer of capital asset |
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For set-off, long-term capital gains need not arise from asset of same nature |
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Set-off of short-term capital loss arising from STT paid transaction against short-term capital gain from non-STT paid transaction |
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Set-off of capital loss, whether before computation of exemption under section 54EC or thereafter |
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Shares transferred under off-market transactions--Gain arising on transfer not exempt under section 10(38) |
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Loss arising on account of sale of depreciable asset |
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Set off of long-term capital loss against short term capital gain under section 50 |
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Allowability of set-off of non-STT paid long-term capital gain on sale of shares with STT paid long-term capital loss on sale of shares |
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Flat sold registered jointly in the name of assessee and her daughter--Treatment of loss |
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Set off of brought forward loss against share premium |
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Deemed short-term capital gain and set off against loss under section 72 |
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Loss from share trading can be set off against professional income |
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Short-term capital loss arising out of subscribed shares at a premium and reselling the same at a negligible value--Tax evasion or otherwise |
140 |
Losses from Activity of Owning and Maintaining Race Horses [Section 74A] |
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Scheme of the section 74A(3) |
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Conditions precedent for carry forward and set-off of losses from horse races |
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Terminologies defined [Explanation to section 74A(3) |
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'Horse maintained by him' does not mean that assessee should personally look after horses |
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Loss due to expenditure on maintenance of race horses |
141 |
Carry Forward and Set-off of Loss, Etc., in Case of Business Reorganisation [Section 72A] |
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Applicability of section 72A |
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Relevance of section 72A |
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Carry forward and set-off of losses and unabsorbed depreciation of amalgamating company [Section 72A(1)] |
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Conditions to be fulfilled for availing of benefit under section 72A [Section 72A(2)] |
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Conditions notified by the Central Government |
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Consequences of failure to satisfy conditions specified under section 72A(2) [Section 72A(3)] |
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Allowability of losses of amalgamating company on irrelevant grounds |
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Carry forward and set-off of the losses and unabsorbed depreciation in case of demerger [Section 72A(4)] |
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Amalgamation or demerger must be for genuine purpose [Section 72A(5)] |
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Scheme of demerger only to avail of the benefit of set-off of brought forward business losses and business of demerged undertaking not carried over |
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Applicability of section 72A, where there was merger of partnership firm with company |
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Carry forward and set-off losses, etc., in case of corporatisation of firm/proprietary concern [Section 72A(6)] |
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Accumulated loss or unabsorbed depreciation belonging to private company or unlisted public company can be carried forward by limited liability partnership succeeding such company |
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Accumulated loss |
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Unabsorbed depreciation |
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Industrial undertaking--Meaning of |
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Specified bank--Meaning of |
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Control--Meaning of [For the purpose of section 72A(1)(d)] |
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"Erstwhile public sector company" |
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Strategic disinvestment [From assessment year 2021-22 to 2022-23] |
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Strategic disinvestment [From assessment year 2023-24] |
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Assessing officer to specify which conditions assessee failed to fulfilled |
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Accumulated loss and unabsorbed depreciation relating to amalgamating company--Condition of minimum level of production |
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Position of capital losses |
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Unabsorbed depreciation of demerged company |
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Brought forward losses, whether benefit can be available to the amalgamated company |
142 |
Carry Forward and Set-Off of Losses in Case of Amalgamation of Banking Company with Banking Institution [Section 72AA] |
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Conditions to be fulfilled for applicability of section 72AA |
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Nature of section 72AA |
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Consequences if above conditions are satisfied |
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Accumulated loss--Meaning of |
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Unabsorbed depreciation |
143 |
Carry Forward and Set-Off of Loss, Etc. in Case of Business Reorganisation of Co-operative Banks [Section 72AB] |
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Applicability of section 72AB |
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Amount allowed to be set-off and carried forward in case of amalgamation of co-operative banks |
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Time limit of 8 years in section 72--Whether to be counted afresh on amalgamation |
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Carry forward and set-off of the accumulated loss and unabsorbed depreciation allowable to resulting co-operative bank |
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Conditions to be satisfied for applicability of section 72AB |
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Further conditions specified by Central Government to be fulfilled |
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Two different previous years |
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Withdrawal of set-off of loss/allowance of unabsorbed depreciation |
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Terminologies defined |
144 |
Losses of Firms [Section 78] |
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Scheme of the related provisions |
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Change in constitution of firm |
145 |
Succession and Carry Over and Set-Off Losses [Section 78] |
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Carry forward of losses in the case of succession |
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Conditions precedent for applicability of section 78(2) |
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Inheritance--Meaning of |
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Loss incurred by proprietary business taken over by a partnership firm and proprietor becoming partner |
146 |
Carry Forward and Set-Off of Accumulated Losses of Closely Held Companies [Section 79] [From Assessment Year 2020-21] |
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Rules regarding carrying over and set off of loss by companies other than start-up |
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Non-satisfaction above conditions in case of eligible start-up |
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Exception to provisions of section 79(1) |
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Terminologies defined |
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Applicability of provisions of section 79--On basis of shareholding or beneficial ownership |
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Denial on the ground of change in pattern of shareholding having more than 51% voting power |
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When section 79 to be applied |
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Current year losses and change in share-holding |
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Change in share holding pattern--Change in ultimate holding company |
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Change in shareholding due to merger vis-a-vis no change in management and control |
147 |
No Set off of Losses Consequent to Search, Requisition and Survey [Section 79A] |
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The insertion |
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No set off of loss shall be allowed against undisclosed income |
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Undisclosed income--Meaning of |
148 |
Requirement of Return for Carry Over of Losses [Section 80] |
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Return of loss to be filed within time allowed under section 139(1) |
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Losses which shall be determined in pursuance of return of loss |
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To claim set-off of losses, assessee has to furnish return of losses |
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Scope/applicability of section 80 |
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Return to be furnished within specified time limit of the year in which loss incurred |
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Loss must be determined by assessing officer |
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Loss can be carried forward even if return filed under section 139(4) |
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Limitation as to applicability of section 80--Loss to be business loss as distinguished from depreciation loss |
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Section 80 not applicable to unabsorbed depreciation |
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Originally return filed under section 139(1) showing positive income--Later revised return filed under section 139(5) declaring loss |
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Original return filed within due date--Revised return filed later on |
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Disallowance of business loss comprising unabsorbed depreciation--Assessee filed the return belatedly |
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Short-term capital loss--Claimed in return filed pursuant to notice under section 153A |
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Cases in which return to be filed by due date or otherwise |
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Intimation of loss in certain cases [Section 157] |
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Assessee claimed loss to be carried forward by way of revised return filed under section 139(5) in spite of filing of return under section 139(3) |
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Part XV--Deduction Under Chapter VI-A [Sections 80A to 80U] |
149 |
General Provisions Governing Applicability of Chapter VI-A |
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Deductions allowable out of the gross total income [Sections 80A(1), 80A(2) and 80B(5)] |
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Members of AOP/BOI cannot claim deduction in respect of the amount, for which deduction had already been claimed by AOP [Section 80A(3)] |
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Profits once allowed to be deducted under section 10A, 10AA, 10B and 10BA and under any section of Chapter VI-A contained under the heading "C |
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Deductions allowable out of the gross total income |
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Aggregate deduction under Chapter VI-A cannot exceed the gross total income |
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Determination of profits for purposes of section 80-IA |
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No deduction to be allowed under section 10A, 10AA, 10B, 10BA and under any section of Chapter VI-A contained under the heading "C |
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Transfer of goods or services to be valued at market value while computing certain deductions |
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Deduction in respect of profit of business referred to in section 35AD, not to be allowed under that section, if claimed and allowed under any section contained in Chapter VI-A heading "C |
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Deduction to be made with reference to income included in the gross total income [Section 80AB] |
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Claim made in the revised return only--AO invoked section 80AC |
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Chapter VI-A deduction to be allowed on profits enhanced due to disallowances |
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Gross total income defined [Section 80B] |
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No deduction to be allowed under any provision of Chapter VI-A under the heading "C |
150 |
Payment Based Deductions [Sections 80C, 80CCC, 80CCD, 80CCG, 8CCH, 80D, 80E, 80EE, 80G, 80GG, 80GGA, 80GGC] |
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A. Deduction From Total Income Concerning Payments-I DEDUCTION IN RESPECT OF LIFE INSURANCE PREMIA, DEFERRED ANNUITY, CONTRIBUTION TO PF, PPF, SUBSCRIPTION TO CERTAIN EQUITY SHARES OR DEBENTURES, ETC. [SECTION 80C] |
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To whom deduction allowable |
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Amount of deduction |
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Payment need not to be made out of income chargeable to tax |
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Specified investment and deposit for the purposes of new section 80C |
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Deduction under section 80C in respect of life insurance premium to be restricted to the extent of 20 per cent of the actual capital sum assured [Section 80C(3)] |
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Deduction under section 80C not to be allowed in respect of premium paid on life insurance policy in excess of specified percentage of actual capital sum assured [Section 80C(3A)] |
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Persons in whose name investment can be made |
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Consequences of termination of contract of insurance/participation in ULIP/transfer of residential house |
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Consequences of transfer of equity shares or debentures |
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Consequence of withdrawal from Senior Citizens Savings Scheme and Post Office Time deposits [Section 80C(6A)] |
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Tax deduction under section 80C not available against long-term capital gains |
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No deduction under section 80C against short-term capital gains referred to in section 111A |
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Deductibility of accrued interest on NSC |
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Maximum deductible amount under section 80C, 80CCC and 80CCD [Section 80CCE] |
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B. Contribution to Pension Funds, Etc. [Sections 80CCC and 80CCD] |
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Deduction in respect of contribution to certain pension funds [Section 80CCC] |
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Section 80CCC--When applies |
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Deduction in respect of contribution to new pension scheme [Section 80CCD] |
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C. Total Deduction Under Sections 80C, 80CCC and 80CCD(1) not to Exceed Rs. 1,50,000 [Section 80CCE] |
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Upper limit on deduction under section 80C, 80CCC and 80CCD(1) |
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D. Deduction in Respect of Investment Made Under an equity Savings Scheme [Section 80CCG] |
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Who is entitled to deduction |
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Deduction when allowable |
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Amount and period of deduction |
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Withdrawal of deduction |
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E. Deduction in respect of contribution to agniveer scheme [section 80CCH] |
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F. Deduction in Respect of Medical Insurance Premia and Medical Expenditure [Section 80D] |
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To whom deduction allowable |
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Deduction towards medical expenditure and health as insurance premia in case of individual |
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Maximum permissible deduction in case of individuals |
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Deduction towards payment on account of preventive health check-up |
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Deduction towards health insurance premium and medical expenditure in case of HUF |
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Fractional deduction to be allowed in case of single insurance premium policies [From assessment year 2019-20] |
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Special provisions for senior citizen and very senior citizen |
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Important conditions for claiming deduction towards health insurance premium |
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Insurance policy which can taken |
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Deduction in Respect of Health Insurance Premia--Notified schemes |
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Senior citizen and very senior citizen--Meaning of |
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Provisions illustrated [From assessment year 2019-20] |
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G. Deduction in Respect of Interest on Loan Taken for High Education [Section 80E] |
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Conditions precedent for deduction |
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Benefit of deduction under section 80E extended in respect of interest on education loan taken for education of specified relatives |
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Position as to loan taken for education of relative prior to 1-4-2007 |
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Amount of deduction |
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Period of deduction |
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Payment must be out of income chargeable to tax |
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Important terminologies |
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Provisions illustrated |
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H. Deduction Towards Interest on Loan Taken for Acquisition of Residential House [Section 80EE] [Applicable for assessment years 2014-15 and 2015-16] |
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I. Deduction in respect of interest on loan taken for acquisition of residential house property [Section 80EEA] |
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To whom deduction under section 80EEA allowable |
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Deduction not restricted to resident individuals only |
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Deduction not restricted to interest actually paid |
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Amount of deduction and period over which same is allowable |
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Conditions precedent for deduction |
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No double deduction towards interest payable |
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Terminologies defined |
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Cumulative impact of sections 24(b), 80C and 80EEA |
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Finer points |
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What if assessee's spouse holds a residential property on date of sanction of loan |
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Interest--Meaning of [Section 2(28A)] |
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Pre-payment charges for closure of loan account |
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Processing fees--Whether interest |
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Deduction for interest on interest |
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Illustration where time gap between sanction of loan and acquisition of property |
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Different situations identified and illustrated |
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J. Deduction in respect of interest payable on loan taken for purchase of an electric vehicle [Section 80EEB] |
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To whom deduction under section 80EEB allowable |
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Deduction not restricted to resident individuals only |
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Payment of interest not necessary, deduction allowable on accrual basis |
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Amount of deduction and period over which same is allowable |
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Conditions precedent for deduction |
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No double deduction towards interest payable |
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Terminologies defined |
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Case of assessee carrying on business or profession |
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Finer points |
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Provisions illustrated |
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K. Deduction, in Respect of Donations to Certain Funds, Charitable Institutions, Etc. [Section 80G] |
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Donation to be in cash but not in kind |
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Donations eligible for deduction |
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Donation to PM CARES Fund eligible for 100 percent deduction--Effective from 1-4-2020 |
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Upper limit for deduction under section 80G |
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Deduction for donation under section 80G should be allowed first restricting it to 10 per cent of the gross total income and then allowing deduction of 50 per cent of the same |
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AO restricted claim to 50% of gross qualifying amount after arriving at the cap of 10% of adjusted gross total income |
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Conditions to be fulfilled for allowability of deduction in respect of donations to any other institution or fund to which section 80G applies |
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Refusal of registration application on the ground that no charitable activity carried out |
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Approval for purposes of section 80G(2) (a)(iv) |
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Application rejected for sole reason that no activities being started by assessee |
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Assessee continued to enjoy registration under section 12A |
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Teaching of Vedas treated as religious activity |
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Trust or institution approved for purposes of section 80G to provide statement of donations |
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Statement of donations--Issues regarding |
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Deduction in respect of donation to institution or fund to which section 80G(5) not to be denied in certain cases |
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Donation to religious trust not eligible for deduction under section 80G |
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No deduction under any other section |
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No deduction in respect of cash donations if amount of donation exceed Rs. 2,000 |
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Condition regarding deduction towards donation to institution or fund referred to in section 80G(5) |
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Charitable purpose--Meaning of |
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Deemed institutions relating to notified games and sports to be deemed for charitable purposes [Explanation 4 to section 80G] |
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Year of allowability |
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Deductibility under section 80G, the donation to need not be paid out of the income chargeable to tax |
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Relevant date for computing the amount of deduction under section 80G in case of donation by cheque |
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Computation of gross total income for the purpose of section 80G |
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Deductibility under section 80G for donation paid out of the exempt income |
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Claim first time made in assessment--Neither false nor bogus |
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Donation forming part of CSR expenses |
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Donation paid by assessee treated as forming part of CSR expenses--Assessee pleading double disallowance |
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Assessee did not submit any proof in respect of activities carried out--Assessee did not incur any expenditure on objects of trust |
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Registration under section 80G(5)--Denial on allegation that assessee-trust was a private religious trust |
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Aims and objectives of assessee as religious in nature--Assessee was granted registration under section 12AA only after considering the object of assessee |
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Same CIT(E) granted registration under section 12AA |
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New conditions cannot be imposed while granting re-approval to a trust |
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Where expenses for religious purposes was only a small part of income but substantial work done by trust was charitable in nature |
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Application rejected for sole reason that no activities being started by assessee |
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Expenses on religious activities were less than 5% |
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Where assessee spent more than 5% on religious activities |
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Trust spending more than 5% of its income for religious purposes--Not eligible for approval under section 80G |
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Approval under section 80G(5)(vi)--Rejection of application |
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The institution must maintain accounts of its receipts and expenditure which is essential condition for getting approval under section 80G(5) |
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L. Deduction, in Respect of Rent Paid [Section 80GG] |
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Who can take deduction under section 80GG |
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Conditions precedent |
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Amount of deduction |
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M. Donation Under Section 80GGA for Contribution to Scientific Research or Rural Development [Section 80GGA] |
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Eligibility for deduction under section 80GGA towards contribution for scientific research or rural development |
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Meaning of production of certificate from association, etc., claiming deduction under section 80GGA |
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Position vis-a-vis deduction under section 80GGA where cash donation exceeds certain amount |
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Deduction under section 80GGA available to assessees other than those carrying on business or profession only |
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Possibility of double deduction one under section 80GGA and second, under any provision of the Act |
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Assessee can claim higher benefit than deduction under section 80GGA |
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Deduction under section 80GGA to be allowed only on basis of statement filed by donee institution |
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Donation being made through cheque against valid receipt--Discharge of onus by assessee |
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N. Deduction in Respect of Contribution to Political Parties [Section 80GGB and 80GGC] |
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Deduction in respect of contributions to political parties by companies [Section 80GGB] |
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Deduction in respect of contributions to political parties by non-corporate assessees [Section 80GGC] |
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Contribution made to political party--Receipt being not available--Assessee pleaded that amount was verifiable from bank account of assessee |
151 |
Deduction Towards Medical Treatment, Disability, Etc. [Sections 80DD, 80DDB, 80U] |
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A. Deduction in Respect of Maintenance Including Medical Treatment of a Dependant Who is a Person with Disability [Section 80DD] |
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Eligible assessees |
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Amount eligible for deduction |
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Conditions precedent in respect of amount paid or deposited under any scheme of LIC or UTI or any other insurer |
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Providing for annuity during lifetime of dependant |
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Consequences if handicapped dependant predeceases individual or member of HUF |
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Certificate to be furnished |
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Dependant--Meaning of |
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Disability defined |
|
Person with severe disability defined |
|
Person with disability |
|
B. Deduction in Respect of Medical Treatment, Etc. [Section 80DDB] |
|
Eligible assesses |
|
Amount of deduction |
|
Conditions precedent for allowability of deduction |
|
Dependant defined |
|
Senior citizen--Meaning of |
|
Very senior citizen--Meaning of [Upto assessment year 2018-19] |
|
Specified diseases for the purpose of section 80DDB [Rule 11DD] |
|
Prescription issuing authority |
|
C. Deduction in in Case of a Person With Disability (Including Blindness) [Section 80U] |
|
Eligible assessees |
|
Pre-conditions |
|
Certificate to be furnished |
|
Quantum of deduction |
|
Disability defined1 |
|
Person with severe disability defined |
|
Medical authority |
|
Person with disability |
152 |
Co-operative Societies, Co-operative Banks and Farmer Producer Company [Sections 80P and 80PA] |
|
A. eligibility for Deduction Under Section 80P |
|
Definition of "Co-operative Society" |
|
Co-operative society--A taxable entity |
|
Determination of residential status of co-operative society |
|
Computation of income |
|
Income of co-operative society specifically included in the definition of income |
|
Deductions under Chapter VI-A |
|
Applicability of Alternate Minimum Tax (AMT) in case of co-operative societies |
|
Computation of deduction under section 80P |
|
Independent heads of exemption |
|
Burden of proof on co-operative society |
|
Special provision prevails over general provision |
|
Applicability of section 14A in respect of exempt income of co-operative society |
|
Exemption on basis of mutuality |
|
General deduction to co-operative societies |
|
Amount of deduction available under section 80P |
|
Conditions precedent for allowability of deduction |
|
Deduction available only in respect of profits attributable to exempted activities |
|
Deduction allowable on net income |
|
Deduction not to be denied merely on ground of non-production of book |
|
Allocation of expenses in case of trans-action with non-members |
|
Deduction to be allowed after setting off of losses of earlier years |
|
Society not registered under Co-operative Societies Act, 1959 but registered under Karnataka Co-operative Societies Act, 1959 |
|
AO did not accept the status of assessee as 'Co-operative Society' rather AO held that assessee was an 'Association of Persons' '(AOP)' |
|
Assessee did not make a claim for deduction under section 80P in its return of income--Deduction claimed by assessee after issuance of show-cause notice |
|
Disallowance made under section 40(a)(ia) of payment made to pigmy agents on account of non-deduction of tax at source--Effect of |
|
Deduction denied on account of non-filing of return within due date specified under section 139(1)--Delay occurred due to delay in completion of audit of books of account by Co-operative Audit Department |
|
Claiming of deduction in return filed pusuant to notice under section 148 |
|
Where return has been filed after completion of assessment |
|
Section 80AC prior to substitution by Finance Act, 2018 did not apply to section 80P |
|
A few month delay not to affect eligibility for deduction |
|
Belated ITR and deduction under section 80P |
|
Claim of deduction not made in the original or in the revised return of income |
|
Unexplained income taxed under section 68 |
|
Interest income derived from fixed deposits in nationalized banks |
|
Computation of deduction in case of business re-organisation of co-operative banks [S. 44DB] |
|
B. Deduction under section 80P other than section 80P(2)(a)(i) |
|
Cottage industry [Section 80P(2)(a)(ii)] |
|
Marketing of agricultural produce grown by members [Section 80P(2)(a)(iii)] |
|
Purchase of agricultural implements, seeds, etc., for supply to its members [Sec. 80P(2)(a)(iv)] |
|
Processing of agricultural produce of members without aid of power [Section 80P(2)(a)(v)] |
|
Collective disposal of labour [Section 80P(2)(a)(vi)] |
|
Fishing or allied activities [Section 80P(2)(a)(vii)] |
|
Primary society engaged in supplying milk, oil seeds, fruits, vegetables, etc. [Section 80P(2)(b)] |
|
Procurement of milk from non-members--Allowability of deduction under section 80P(2)(b) |
|
Societies engaged in other activities [Section 80P(2)(c)] |
|
Profit from PDS and deduction under section 80(P)(2)(c) |
|
Income from investments with other co-operative society [Section 80P(2)(d)] |
|
Allowability of deduction as regards interest income earned from deposits kept with a co-operative bank |
|
Interest earned from co-operative bank/societies--Source of funds not being clear, i.e., as to whether out of own funds or out of liability |
|
Income earned by way of interest from the co-operative societies |
|
Dividend income received by a co-operative society on shares of a co-operative bank |
|
No banking business or provision of credit facilities to members--Eligible for deduction |
|
Income from letting of godowns or ware-houses [Section 80P(2)(e)] |
|
Assessee storing goods in own godowns as its stock and earning commission on sale--Not entitled to deduction under section 80P(2)(e) |
|
Warehouse need not be a permanent structure |
|
Income from interest on securities and house property [Section 80P(2)(f)] |
|
C. Co-operative Banks [Section 80P(2)(a)(i) read with Section 80P(4)] |
|
Co-operative banks not eligible to claim deduction under section 80P |
|
Primary agricultural credit society and "primary co-operative agricultural and rural development bank" |
|
No deduction under section 80P to co-operative banks from the assessment year 2007-08 |
|
Deduction available to co-operative banks under section 36(1)(viii) |
|
Significance of credit facility |
|
Co-operative societies carrying business of banking and import of section 80P(4) |
|
Co-operative society taking deposits from non-members and earning interest income--Whether eligible for deduction under section 80P(2)(a)(i) |
|
Assessee, a primary agricultural credit society--Eligibility for deduction under section 80P |
|
Assessee, a credit co-operative society--Not ineligible for deduction under section 80P in view section 80P(4) |
|
Society not having any license from RBI to carry on any banking business |
|
Banking has never been assessees core activity |
|
Deduction under section 80P(2)(a)(i)--Whether available in respect of interest on deposit of funds with banks other than co-operative banks |
|
Where FDR placed with scheduled bank as a regulatory requirement |
|
Interest on investment with banks and sub-treassuries |
|
Interest income earned from deposits kept with banks, investments, savings banks, etc |
|
Whether TDS provisions would be applicable on interest on deposits given to non-regular members |
|
Income from other sources and deduction under section 80P(2)(a)(i) |
|
Land development bank not a co-operative bank |
|
Interest earned from funds invested in co-operative bank by another co-operative bank |
|
Regional rural banks are not hit by section 80P(4) |
|
Interest income not qualified for deduction--Whether expenditure to be allowed in respect of such interest income |
|
Assessee having permitted admission of other society as member |
|
Scope of expression members |
|
Co-operative society providing credit facilities to its members alone |
|
Assessee extended credit facilities to nominal members--Assessee received deposits and lent loan to general public |
|
Scheme of conducting chit fund |
|
Underwritting commission etc |
|
Interest from members for supplying materials on credit |
|
Loans given to nominal members by society deriving income from the activity of providing credit facilities to the members/nominal members |
|
Interest, where not eligible for deduction |
|
Denial of deduction on ground that assessee was earning income not only from members but majority of the income from Nominal/Associate Members |
|
AO denied deduction in view of section 80P(4) holding that assessee was engaged in banking activities |
|
Denial of deduction on the ground that assessee was granted banking license by the Reserve Bank of India |
|
Allowability as regards interest and dividend earned by assessee society from the investments made in District Central Co-operative Bank |
|
Where assessee was an agricultural credit co-operative society, registered under the Karnataka Co-operative Societies Act, 1959 |
|
Assessee's activities whether in compliance with activities of primary agricultural credit society functioning under Kerala Co-operative Societies Act, 1969 |
|
Assessee allegedly engaged essentially in banking business having miniscule disbursement of agricultural loans |
|
Gold loans whether disbursed for purpose of agricultural purposes or not by assessee-co-operative societies |
|
Denial on the ground of acceptance of deposits from nominal members |
|
Denial of deduction in the hands of primary agricultural credit societies on the ground of negligible agricultural credits given by assessee |
|
Income by way of interest or dividends derived by the co-operative soceity from its investments with any other co-operative society |
|
Activities confined to accepting deposits, advancing loans from members only--Not a co-operative bank |
|
Assessee withdrew some amount from a bank overdraft account and deposit such amount with another bank--Whether interest earned on such amount would be considered as being attributable to carrying on business of banking |
|
Whether 'Associate Member' under the TNCS Act could not be considered as 'member' |
|
Deduction that was given without any reference to any restriction or limitation cannot be restricted or limited by implication |
|
D. Co-operative Housing Societies |
|
Concept of co-operative housing society |
|
Deemed ownership |
|
Transfer of immovable property through agreement--Transaction to become a member |
|
Date of acquisition for computing capital gains on transfer |
|
Principle of mutuality vis-a-vis co-operative housing society |
|
Transfer fees received by Co-operative Society--Whether exempt on principle of mutuality |
|
E. Farmer Producer Company [Section 80PA] |
|
Deduction under section 80PA |
|
Meaning of "eligible business" |
|
Impact of availability of deduction under other provision of Chapter VI-A |
|
Meaning of 'member' and 'producer company' |
153 |
Income Based Deductions--Profits and Gains from Industrial Undertaking Engaged in Infrastructure Development, Etc. [Section 80-IA] |
|
A. Section 80-IA : General |
|
Businesses eligible for deduction under section 80-IA |
|
Tabular representation of provisions of section 80-IA |
|
How to compute deduction under section 80-IA |
|
Eligibility of industrial parks |
|
Amount and period of deduction under section 80-IA |
|
Period of ten assessment years for purposes of section 80-IA--When begins |
|
Option to assessees engaged in certain businesses to choose when to claim deduction under section 80-IA |
|
Assessees developing, operating or maintaining certain infrastructure facility |
|
Businesses falling in section 80-IA(2) have no option in choosing the initial year |
|
Amount and period of deduction in case of assessees engaged in providing telecommunication services |
|
Conditions prescribed under section 80-IA for deduction in case of telecommunication services, power business, gas distribution business |
|
B. Section 80-IA(4)(i) : Deduction in respect of profits from developing or operating and maintaining or developing, operating and maintaining infrastructure facility |
|
Enterprises eligible for deduction under section 80-IA(4)(i) |
|
Conditions precedent for deduction under section 80-IA(4)(i) |
|
Effect of transfer of infrastructure facility on deduction under section 80-IA |
|
Time limit for start of operation in case of business of infrastructure facility |
|
Meaning of infrastructure facility for purposes of section 80-IA(4)(i) |
|
Amount of deduction under section 80-IA (4)(i) |
|
Choice in claiming the deduction under section 80-IA |
|
Infrastructure facility notified by CBDT prior to 31-3-2001, eligible for benefit |
|
Effluent treatment and conveyance system, whether infrastructure facility |
|
C. Section 80-IA(4)(ii) : Deduction in respect of profits from telecommunication business |
|
Undertakings eligible for deduction under section 80-IA(4)(ii) |
|
Meaning of domestic satellite |
|
Conditions to be fulfilled |
|
Amount and period of deduction |
|
D. Section 80-IA(4)(iv) : Deduction in respect of profits of undertaking generating or transmitting or distributing power or renovating network of transmission or distribution lines |
|
Undertakings eligible undertaking for the benefit of deduction under section 80-IA(4) (iv) |
|
Meaning of substantial renovation and modernisation in the context of section 80-IA(4)(iv) |
|
Amount and period of deduction under section 80-IA(4)(iv) |
|
Conditions specified in section 80-IA(3) to be fulfilled |
|
E. Section 80-IA(4)(v) : Deduction in respect of profits of undertaking formed for reconstruction, etc., of a power generating plant |
|
Undertaking eligible for benefit of section 80-IA(4)(v) |
|
Amount of deduction under section 80-IA(4)(v) |
|
F. Section 80-IA(6) : Special exemption to housing projects |
|
Profits from housing projects being integral part of highway project eligible for deduction |
|
Profits from certain activities forming integral part of a highway project be computed for the purpose of section 80-IA |
|
G. Section 80-IA : Miscellaneous Issues |
|
Mode of computation of deduction under section 80-IA(1) |
|
Section 80-IA(5) overrides the other provisions of the Act |
|
Initial assessment year not defined |
|
AO treated the date of commencement of the windmill as the initial assessment year |
|
Set off brought forward losses of unit first against profits of eligible business |
|
Setting-off loss of infrastructure facilities from profits of other infrastructure facilities |
|
H. Audit Requirements |
|
Auditing by Chartered Accountant |
|
Whose accounts need be audited? |
|
Maintenance of accounts |
|
Year for which audit is required |
|
When audit report is to be filed? |
|
Separate audit report for each undertaking |
|
Special provision in case of infrastructure facility |
|
Audit report accompaniments in other cases |
|
Form of audit report |
|
I. Other Issues Relevant to section 80-IA |
|
Effect of transfer of goods/services from/to other business to/from eligible business |
|
Deduction under any other section cannot be claimed in respect of profits of the undertaking eligible for deduction under section 80-IA |
|
Assessing officer empowered to compute profits of an eligible business |
|
Central Government empowered to disallow deduction to any class of industrial undertaking |
|
Amalgamation/demerger consequences |
|
No deduction to special economic zones notified after 1-4-2005 under section 80-IA [Section 80-IA(13)] |
|
Deduction under section 80-IA cannot be allowed to a person who executes a works contract |
|
Return to be furnished or on before due date prescribed under section 139(1) |
|
Non-filing of return of income on or before due date prescribed under section 139(1)--Whether assessee would be entitled to claim deduction |
|
Profits and Gains Derived by an Undertaking or Enterprise Engaged in Developing, Operating and Maintaining any Infrastructure Facility, Industrial Park, etc |
|
Business disallowance made under section 40(a)(ia) and section 43B, etc |
|
Assessee's business being in nature of works contract |
|
Development of infrastructure projects--Assessee, whether developer or contractor |
154 |
Profits and Gains by an Undertaking Engaged in Development of Special Economic Zone [Section 80-IAB] |
|
When deduction under section 80-IAB allowable to |
|
Amount of deduction under section 80-IAB |
|
Any option to assessee in claiming the deduction under section 80-IAB |
|
Position of assessee not availing of deduction due to operation of section 80-IA(13) |
|
Effect of transfer of operation and maintenance of Special Economic Zone |
|
Applicability of provisions of section 80-IA applicable in case of section 80-IAB [Sub-section (3) of section 80-IAB] |
|
Interest income on fixed deposits made out of surplus funds to reduce interest cost |
|
Interest received on advances made to various contractors engaged in infrastructure work |
|
Lease premium |
|
Profit on transfer of bare shell to co-developer |
|
Assessee's main business being commercial exploitation of properties |
155 |
Tax Incentives to Start-Ups [Section 80-IAC] |
|
To whom deduction under section 80-IAC allowable |
|
When deduction allowable |
|
Deduction how allowable |
|
Amount of deduction |
|
Option to claim deduction in seven years |
|
Conditions precedent |
|
Eligible business |
|
Eligible start-up |
|
Limited liability partnership--Meaning of |
|
Applicability of provisions of section 80-IA(5) and 80-IA(7) to (11) |
156 |
Profits and Gains from Certain IndustrialUndertakings Other than Infrastructure Development Undertakings [Section 80-IB] |
|
A. General |
|
Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings [Section 80-IB] |
|
Provision of section 80-IB in tabular form [Only those activities, which still bring deduction are discussed here] |
|
Amalgamation consequences |
|
Further conditions specified in section 80-IA required to be fulfilled |
|
Form of audit report |
|
Form of audit report in case of hospital specified in section 80-IB(11B) |
|
Form of audit report in case of hospital specified in section 80-IB(11C) |
|
Condition regarding furnishing of audit report |
|
Deduction under section 80-IB to be given from gross total income |
|
Conditions prescribed by sub-section (2) to be necessarily fulfilled |
|
Industrial undertaking not to be formed by transfer to a new business of machinery or plant previously used for any purpose |
|
Industrial undertaking to employ 10 or 20 workers for the purpose of section 80-IB |
|
B. Deduction in Respect of Profits from Commercial Production, Refining of Mineral Oil and Commercial Production of Natural Gas [Section 80-IB(9)] |
|
Undertakings eligible for deduction under section 80-IB? |
|
What is meaning of undertaking |
|
Significance of North-Eastern Region |
|
Condition that commercial production of mineral oil shall start on or after 1-4-1997 for the purposes of deduction under section 80-IB(9) not to apply in certain cases |
|
C. Deduction in respect of profits derived from agro based industries [Section 80-IB(11A)] |
|
Undertakings that are eligible for deduction under section 80-IB(11) |
|
Amount of deduction under section 80-IB(11A) |
|
Period for which deduction is allowable under section 80-IB(11A) |
|
Condition as to beginning of operation for the purpose of deduction under section 80-IB(11A) |
|
Provisions of section 80-IB(11A), when do not apply to dairy business, etc |
|
Assessee engaged in the business of purchase and sale of sweet corn besides preparation and sale of frozen food items like sweet corn samosa, spring rolls, etc |
|
D. Deduction in respect of profits derived from operating and maintaining hospital anywhere in India other than excluded area [Section 80-IB(11C)] |
|
Effect of not mentioning of sub-section (11C) in section 80-IB(1) |
|
Undertakings that are eligible for deduction under section 80-IB(11C) |
|
Conditions precedent for availing of deduction under section 80-IB(11C) |
|
Amount and the period of deduction under section 80-IB(11C) |
|
Date that would be deemed to be the date of construction of hospital when |
|
Meaning of excluded area? |
|
Deduction under section 80-IB(11C) allowable to assessee running hospital as sole proprietorship or partnership firm |
|
Ownership of hospital not a necessary condition |
|
Relevant of starting date of construction |
|
Form of audit report for the purposes of section 80-IB(11C) |
|
E. Section 80-IB : Further Issues [Sections 80-IA(5)/(7)/(9)/(12)] |
|
Amalgamation/demerger consequences vis-a-vis under section 80-IB |
|
Applicability of provisions of section 80-IA? |
|
Audit requirements under section 80-IB? |
|
Whether activity of making poultry feed constituted manufacture or mere mixing as alleged by revenue |
|
Disallowing due to incomplete filing of Form 10CCB along with return of income |
157 |
Profits and Gains from Housing Projects [Section 80-IBA] |
|
Deduction in respect of profits from housing projects [Section 80-IBA] |
|
Tax incentives to rental housing projects [Section 80-IBA(1A)] |
|
Eligibility for deduction |
|
Any assessee be an individual, firm, company eligible for deduction |
|
Need of approval |
|
Date of approval in case of multiple approvals |
|
Commencement and completion of project |
|
Date of completion--Regarding of |
|
Commencement of housing projects--How would be verified |
|
Amount of deduction |
|
Amendment of certain conditions for eligibility to get deduction under section 80-IBA |
|
Residential unit--Meaning of |
|
Carpet area of shops |
|
Restrictions on allotment of more than one unit to an individual |
|
Works contractor not to get benefit of deduction under section 80-IBA |
|
No benefit under any other section |
|
Necessity of assessee being developer and builder |
|
Project completed but all residential units not sold out |
|
Developing housing projects on different plots whose total size exceeds specified size |
|
Deduction whether to be allowed on year to year basis where assessee discloses profit on partial completion basis |
|
Whether developer need necessarily be owner of land in order to be eligible for deduction |
|
Project jointly undertaken by assessee with builder--Assessee being an integral part of development and construction activities |
|
Non-availability of completion certificate--Default on part of assessee-builder to construct and handover housing project to city municipal corporation as per stipulated conditions |
|
Composite housing project consisting eligible and ineligible units--Proportionate deduction in respect of eligible units |
|
Proportionate deductions under section 80-IB(10)--Area of certain units exceeded prescribed limits |
|
Income from developing and building housing project--One out of sixty residential units of housing project did not comply with condition prescribed in section 80-IB(10)(f) |
|
Deviations in sanctioned housing project--Approval by local authority received after payment of compounding fee by assessee |
|
Assessee applied for completion certificate within stipulated period but the same was not issued by local authority |
|
Car parking space--Inclusion thereof in built-up area |
|
Some of the residential units comprised in housing project having built-up area of more than 1500 sq.ft. |
|
Area of plot |
|
No completion certificate obtained from concerned authority within stipulated time |
|
Forfeiture of advances received from buyers on booking of flats due to cancellation |
|
Assessee obtained partial competition certificate |
|
No evidence on record evidencing that income disclosed during the survey proceedings was not arising from construction activity |
|
Some residential flats of housing project having built-up area of more than 1,500 square feet |
|
AO alleged violation conditions mandated under section 80-IB(10)(f)--On account of sale of flats to company, i.e., non-individual |
|
Assessee-company took possession of land in question in pursuance of an agreement executed between it and its sister concern and paid consideration |
|
Assessee and his mother were the co-owners of land--Return of income was not filed by Association of Person (AOP) |
|
Assessee being an integral part of development and construction activities |
|
Eligibility of deduction in respect of income offered in pursuance to notice issued under section 153C representing on-money received |
|
Completion certificate was not obtained from the local authority |
|
AO alleged trading activity on assessee's part |
158 |
Profits and Gains from Undertaking in Certain Specified Category States [Section 80-IC] |
|
Eligible for deduction under section 80-IC |
|
Amount and period of deduction under section 80-IC |
|
Conditions precedent for deduction under section 80-IC |
|
Possibility of simultaneous deduction be claimed under any other section, apart from deduction under section 80-IC |
|
Meaning the different terms used in section 80-IC |
|
Areas which have been specified for certain States for the purposes of section 80-IC |
|
Condition precedent under section 80-IC (2)(a) satisfied--Whether deduction allowable? |
|
Conversion of proprietorship concern into partnership-firm--Eligibility of partnership-firm to get deduction under section 80-IC for the unexpired period |
|
Partnership firm gets converted into proprietorship--Availability of deduction thereafter |
|
Transfer of stock and allowability of deduction under section 80-IC |
|
Apportionment of common expenses to eligible unit and computation of deduction under section 80-IC |
|
Loss of units located in other than specified States--Deductibility while arriving at profit eligible for deduction under section 80-IC |
|
Interest income received from government department for delay in payment--Deductibility under section 80-IC |
|
Deduction under section 80-IC was allowable where procurement of raw-material was made from a State other than specified State |
|
Interest income from fixed deposits is not income from business entitled to deduction under section 80-IC |
|
Profit from sale of scrap is eligible for deduction under section 80-IC |
|
Belated filing of audit report and return of income |
|
New unit formed by partners of an existing firm amount to splitting up or reconstruction of an already existing business, for the purposes of section 80-IC? |
|
'Splitting up' or 'reconstruction' of already existing unit--Transfer of 'FFS' machinery to eligible undertaking (unit) |
|
As regards expenses disallowed under section 14A |
|
Assessee engaged in manufacture of mobile battery, etc |
|
Ayurvedic medicine not manufactured by assessee which were purchased by its sister concern |
|
Deduction claimed through revised return filed under section 139(5) |
|
Interest subsidy, insurance subsidy and similar other income(s) |
|
Transport, power and interest subsidies received by an Industrial Undertaking--Eligibility for deduction under sections 80-IB, 80-IC etc |
|
Allocation of interest expenditure |
|
Allocation of R&D expenses |
|
AO doubting higher profit margin earned by eligible unit--Availability of various incentives and raw materials at cheaper rates |
|
No correlation of R&D expenditure with eligible unit |
|
Scope for netting off of profits and losses of all eligible undertakings |
|
Assessee had not filed the return of income within the stipulated period as provided under section 139(1)--Allowability of deduction |
|
Substantial expansion during within period--Eligibility for 100% deduction for another terms of five years |
|
Income from sale of scraps whether eligible for deduction |
|
Non-filing of audited accounts in Form 10CCB along with return of income--Allowability |
|
Transport subsidy, power subsidy and interest subsidy--Nexus between the profits and gains of industrial undertaking or business and subsidies received |
|
Return filed by assessee beyond the date of filing of return |
|
Deduction vis-a-vis Units II and III, whether Unit III is an independent unit or not a new unit formed by reconstruction of an existing Unit II |
|
Profit attributable to anti-virus software developed by Pune R&D Centre, the cost of which incurred, were allocated between Pune and Parwanoo units |
|
Disallowance of deduction on the ground that new unit was set up in leased premises |
159 |
Profits and Gains from Business of Hotels and Convention Centres in Specified Area [Section 80-ID] |
160 |
Profits and Gains from Certain Undertakings in North-Eastern States [Section 80-IE] |
|
Amount and period of deduction |
|
Undertaking eligible for deduction under section 80-IE |
|
Conditions to be satisfied |
|
No deduction under any other section |
|
No deduction under section 80-IE in certain cases |
|
Applicability of provisions of section 80-IA |
|
Terminologies defined |
|
No deduction allowable if the assessee does not furnish return of income by due date [Section 80AC] |
|
Substantial expansion/modernization of existing industrial unit--AO denied deduction on the ground of assessee having availed of exemption under section 80-IB and 10C in earlier periods |
161 |
Deduction in Respect of Profits and Gains From Business of Collecting and Processing of Bio-Degradable Waste [Section 80JJA] |
|
Eligible business |
|
Amount of deduction |
|
Profits and gains from business of collecting and processing of bio-degradable waste--Whether product manufactured by assessee qualify for deduction |
162 |
Deduction in Respect of Employment of New Workmen [Section 80JJAA] |
|
To whom deduction allowable |
|
Amount of deduction |
|
Period of deduction |
|
When deduction not allowable |
|
Audit requirements |
|
Additional employee cost--Meaning of |
|
Additional employee |
|
Tax incentives where employee employed for less than specified limit during the year |
|
Emoluments--Meaning of |
|
Employees employed during preceding year--Completion of 300 days during current year |
|
Deduction not allowed in first year of employment |
|
Workman, a software engineer in a software industry |
|
Denial on the ground of non-fulfilment of condition of employment for 300 days or more in the first year of employment |
|
Software industry |
|
Industrial undertaking--Computation of period of 300 days |
|
Denial on the ground that assessee had not considered exclusion of 100 workmen as per clause (i) of the Explanation to section 80JJAA |
|
AO denied deduction on the ground that Form 10DA was prepared on 21-2-2014, i.e., subsequent to the filing of return of income |
|
During the course of assessment proceedings, assessee revised the claim under section 80JJAA--AO denied deduction on the ground that assessee did not file a revised return |
|
Denial on the ground that assessee had included the workmen recruited in the previous financial year, i.e., 2010-11, but completed 300 working days during the previous year |
|
Denial on the ground that assessee had not considered exclusion of 100 workmen as per clause (i) of the Explanation to section 80JJAA |
163 |
Deduction in Respect of Certain Incomes of Offshore Banking Units and Units of International Financial Services Centre [Section 80LA] |
|
Assessee eligible for deduction |
|
Incomes eligible for deduction |
|
Amount of deduction |
|
Enhanced deduction to banks, etc., having offshore banking unit |
|
Conditions precedent for deduction |
164 |
Deduction in Respect of Certain Inter-corporate Dividends [Section 80M] |
|
Case of domestic company receiving dividends |
165 |
Royalty Income of Authors [Section 80QQB] |
|
Eligible assessees |
|
Income eligible for deduction and amount of deduction |
|
Scope of deduction |
|
Certificate to be furnished for income from sources within India |
|
Income from sources outside India to be received in India within the specified time |
|
How to compute deduction--Different situations identified |
166 |
Deduction in Respect of Income From Patent [Section 80RRB] |
|
Person eligible for deduction |
|
Amount of deduction--Income earned from sources within India |
|
Deduction in case of income earned from sources outside India |
|
Certificate to be furnished |
|
Royalty defined |
|
Deduction to be withdrawn in case of revocation of patent |
167 |
Deduction in Respect of Interest on Deposits in a Saving Account of Bank, Post Office, Etc. [Section 80TTA] |
|
Deduction to whom |
|
Income subject to deduction |
|
Amount of deduction |
|
Time deposits--Meaning of |
|
Deduction not allowable in certain cases |
|
Exemption to post office saving bank interest under section 10(15)(i) |
|
Cumulative impact of section 10(15)(i) and section 80TTA |
|
Provisions illustrated |
168 |
Higher Deduction for Interest on Deposits to Senior Citizens [Section 80TTB] |
|
Deduction to whom |
|
Income subject to deduction |
|
Amount of deduction |
|
Deduction not allowable in certain cases |
|
Senior citizen--Meaning of |
|
Exemption to post office saving bank interest under section 10(15)(i) |
|
Cumulative impact of section 10(15)(i) and section 80TTB |
|
Provisions illustrated |
|
Part XVI--Relief and Rebates [Sections 87A, 89, 89A, 90, 90A and 91] |
169 |
Rebate to Resident Individual [Section 87A] |
|
Rebate under section 87A to resident individuals |
|
Availability of marginal relief under section 87A |
170 |
Relief When Salary, Etc., is Paid in Arrears or in Advance [Section 89] |
171 |
Relief from Taxation on Income from Retirement Benefit Account Maintained in a Notified Country [Section 89A] |
|
Relief from taxation on income from retirement benefit account maintained in a notified country |
|
Rules regarding taxation of income from retirement benefit account maintained in a notified country |
|
Relief from taxation in income from retirement benefit account maintained in a notified country--Notified country |
172 |
Double Taxation Avoidance Agreement [Section 90] |
|
Purpose of Central Government may entering into DTAA |
|
Applicability of provisions of the Act to the extent more beneficial to the assessee |
|
Term not defined in the DTAA but defined in notification |
|
Notification issued in pursuance of power given under sub-section (3) |
|
May be taxed--Scope of |
|
Requirement of tax residency certificate |
|
Obtaining certificate of residency |
|
Other documents or information required to be submitted by assessees referred to in section 90(4) |
|
Provision of section 90 when be not treated as less favourable |
|
Meaning of the specified territory for the purpose of section 90 |
|
Effect of agreement entered into under section 90 |
|
Methods for providing relief from double taxation |
|
Tax sparing |
|
Levy of education cess in addition to the tax rates prescribed in DTAA |
|
Concept of Permanent Establishment in context of DTAA |
|
Types of agreements are generally entered into by India |
|
Tax haven and means of utilising tax havens |
|
Clarification regarding the Most-Favoured-Nation (MFN) clause in the Protocol to India's DTAAs with certain countries |
|
Residence in India become irrelevant where person is deemed to be resident of contracting state in case his personal and economic relations are closer |
|
Any expression is not defined in the agreement, the expression defined in the Income Tax Act would be attracted |
|
Method of interpreting covenants of tax treaties |
|
No transfer of FTS |
|
Applicability of article 15 in case of partnership-firm |
|
Income received towards providing legal services--Assessee pleading to have no PE in India |
|
Remuneration for legal services treated as fees for technical services under section 9(1) (vii)--No taxability under DTAA |
|
AO restricted relief to the extent of tax paid in foreign country instead of tax charged on foreign income included in total income |
|
Estimation of income from business connection |
|
Leviability of surcharge and education cess--Tax rate applied as per DTAA |
|
DAPE existed and paid remuneration at arm's length |
|
Existence of permanent establishment--Period of 120 days as per article 5(2)(k), whether should fall in any 12 months period or in 'A' in question--Installation PE |
|
Assessee received salary income and the foreign allowance for services rendered in Austria due to his foreign assignment |
|
Fixed PE as per article 5(1) |
|
Consideration received by non-resident assessee towards intermediary services |
|
Consideration received towards licensing software to Indian customers--Applicability of Explanation 4 to section 9(1)(vi) |
|
Levy of tax on royalties or fees for technical services--Rate of tax under the Double Taxation Avoidance Agreement (DTAA) |
|
Fixed place of business which is of a preparatory or auxiliary characterWhether constitution PE |
|
Royalty under article 12(3) |
|
Amendment in definition of royalty under domestic law |
|
Payment received against operation support, analytical and accounting support services, legal advice, and personal training |
|
Income from providing cloud hosting services and data warehousing services |
|
Service PE as per article 5(2)(k)--Mere stay of an employee |
|
Subscription fee received towards providing access to proprietary database to Indian clients |
|
Profit derived by enterprise of a Contracting State from operation by that enterprise of ships in international traffic--Assessee was wholly managed and controlled in UAE |
|
Consideration received for data center and mailbox hosting services |
|
Taxability of receipt, being reimbursement of cost, not containing any profit element |
|
Existence of DAPE/PE or not |
|
Leadership training fee |
|
Receipts on account of provision of support services, receipts on account of sale of hardware |
|
Agreement between India and Mauritius--Beneficial ownership |
|
Assessee paid charges towards technical assistance to Federal Aviation Administration |
|
Agreement between India and Sweden--Applicability of MFN clouse |
|
Consideration received by assessee against Infrastructure and Hosting Data Centre (IDV) services to Indian entities |
|
Royalty under article 13(3)--Payment received towards management support services |
|
Agreement between India and Netherlands--Fees for technical services' under article 12(5)(a) of DTAA |
|
Income received by assessee from computer reservation systems |
|
Reimbursement of expenses on actual basis of constituents like travelling, food, boarding and lodging of consultants employed by Indian Counterpart |
|
Liaison office engaged in carrying out all the preparatory and auxiliary activities |
|
Consideration paid by ESPN India for purchase of advertisement space |
|
Agents engaged by assessee were independent agents and they did not have the necessary authority to conclude contracts of assessee |
|
Income from providing access of database |
|
Agreement between India and Mauritius--Dependent agent in terms of article 5(5) of DTAA |
|
Agreement between India and UAE--Availability of benefit under article 13--Assessee being 100% resident in India |
|
Income from property situated in foreign country and declared as income there |
|
Assessee can claim treaty benefits in one year and opt for normal taxation or another year |
|
Most favoured nation clause--Applicability without any specific notification from Government |
|
Providing information technology/administrative services--Whether subject to tax as per Article 12(4) of Indo-US DTAA as fee for included services |
|
Payment for equipment leasing--Whether taxable as royalty under Indo-Netherlands DTAA? |
|
Management fees--Whether "make available" technology for end use as per Indo-Singapore DTAA |
|
Offshore delivery of goods on CIF basis in a composite contract done as a consortium--Income attribution in India |
|
FTS payment for earning income from outside India--No clause in DTAA taxability explained |
|
Most favoured nation clause and CBDT Circular |
|
Payroll and other management services whether make available any technology to fall in the scope of Article 12(4) of Indo-US DTAA |
|
Google Adwords income whether taxable for Google Ireland in India by way of assessee becoming a Dependent PE (DAPE) |
173 |
Adoption by Central Government of Agreements Between Specified Associations for Double Taxation Relief [Section 90A] |
|
Purposes for which agreement shall be adopted and notified by the Central Government |
|
Provision of section 90A aligned with Multilateral Instrument (MLI) |
|
Provisions of the Act to the extent more beneficial to the assessee be applied |
|
Meaning of the term relevant to section 90A |
|
Requirement as regards tax residency certificate |
|
Provision of section 90A not regarded as less favourable |
|
Meaning of the terms "specified association" or "specified territory" for the purpose of sec. 90A |
174 |
Countries with Which No Agreement Exists [Section 91] |
|
Relief from double taxation where there is no agreement existing with foreign country |
|
Objectives behind section 91 |
|
Meaning of 'such doubly taxed income' |
|
Section 91 does not provide for avoidance of double taxation but only seeks relief against double taxation |
|
Relief available for federal as well as State tax |
|
Taxes paid by assessee in Hongkong--No DTAA between India and Hongkong |
|
Agreement not existing--Claim of credit for foreign TDS--Payment of taxes not made in subject year |
|
Relief in respect of income from Pakistan |
|
Claiming of relief be non-residents against double taxation |
|
Assessee claimed tax paid/deducted at Ghana as deduction under section 91--Effective rate of tax in Ghana vis-a-vis effective Indian rate of income tax |
|
Leviablity of education cessTax liability computed under the provisions of India-France DTAA |
|
Assessee claimed tax paid/deducted at Ghana as deduction under section 91--Effective rate of tax in Ghana vis-a-vis effective Indian rate of income tax |
|
Computation of relief under section 91 |
175 |
Foreign Tax Credit [Sections 90, 91 and Rule 128] |
|
Requirement of tax residency certificate |
|
Certificate for claiming relief under an agreement referred to in sections 90 and 90A by non-residents |
|
Obtaining certificate of residency by residents |
|
Methods for providing relief from double taxation |
|
Relief from double taxation where there is no agreement existing with foreign country |
|
Claiming of relief be non-residents against double taxation |
|
Foreign tax credit when available [Rule 128] |
|
Meaning of foreign tax |
|
FTC available against tax, surcharge and cess |
|
No credit against disputed tax |
|
Method to compute FTC |
|
Documents to be furnished for availing of FTC |
|
Time limit for furnishing requisite documents |
|
Filing Form No. 67 by due date is not mandatory |
|
Assessee did not file return of income and Form No. 67 within due date of filing the return of income under section 139(1) |
|
Form No. 67 available at the time of assessment |
|
Form No. 67 can be filed alongwith revised ITR |
|
Delay in filing foreign tax credit certificate due to non-receipt of tax deduction certificate from foreign deductor from Zambia |
|
Part XVII--Transfer Pricing [Sections 92 to 92F] |
176 |
International Transactions and Specified Domestic Transactions (SDT) |
|
Computation of income from international transaction and from SDT |
|
Exception to applicability of section 92(1), 92(2) or 92(2A) |
|
Meaning of international transaction |
|
Meaning of Specified Domestic Transaction (SDT) |
|
Meaning of "associated enterprises" |
|
Meaning and scope of term 'intangible property' |
|
Meaning of 'enterprise' and 'permanent establishment' |
|
Computation of Arms Length Price (ALP) |
|
Determination by assessing officer of ALP on basis of material or information or document in his possession |
|
Meaning of various terms relevant to computation of ALP |
|
Various methods for determining the arms length price |
|
Parameters of comparing international transaction or specified domestic transaction with an uncontrolled transaction |
|
Data to be used in analysing the comparability of an uncontrolled transaction with an international transaction or a specified domestic transaction |
|
Selection of most appropriate method |
|
Reference to Transfer Pricing Officer (TPO) for computation of ALP |
|
Meaning of Transfer Pricing Officer (TPO) |
|
Determination of ALP by TPO |
|
Role of assessing officer after receipt of "arms's length price" from TPO |
|
Powers available to TPO |
|
No reference in absence of any proceeding pending before the assessing officer |
|
Safe harbour Rules for determining ALP |
177 |
Advance Pricing Agreement [Sections 92CC and 92CD] |
|
"Advance pricing agreement" and its relevance in context of an international transaction |
|
Persons eligible to enter into an advance pricing agreement |
|
Mechanism for pre-filing consultation by person proposing to enter into an agreement |
|
Procedure for filing an application for advance pricing agreement |
|
Withdrawal of application for advance pricing agreement |
|
Processing of an application for APA |
|
Terms of an APA |
|
Roll back provisions in context of APA |
|
Amendments to an APA application |
|
Procedure for furnishing of an annual compliance report |
|
Method for compliance audit of the agreement |
|
Revision of APA |
|
Cancellation of an APA |
|
Procedure for giving effect to the rollback provision of an APA |
|
Renewal of an APA |
|
Effect of filing of an application for APA on determination of the arm's length price |
|
Role of DTAA between India and other concerned countries |
178 |
Secondary Adjustment [Section 92CE] |
|
Secondary adjustment |
|
Primary adjustment |
|
Secondary adjustment when to be made |
|
What is secondary adjustment |
|
Meaning of primary adjustment |
|
Secondary adjustment when to be made |
|
No secondary adjustment in certain cases |
|
No refund of taxes already paid under pre amended provision |
|
Excess money and secondary adjustment |
|
Scope of section 92CE(2) restricted to excess money or part thereof, which is not repatriated |
|
Option to assessee to pay additional income-tax on excess money not repatriated in time |
179 |
Requirement as to Maintenance of Information, Documents and Obtaining Audit Report [Sections 92D, 92E] |
|
Maintenance of information and documents [Section 92D] |
|
Information and documents to be kept and maintained by a person entered into agreement |
|
Requirement of keeping and maintaining information and document by constituent entity of an international group |
|
Information and documents to be kept and maintained by constitutent entity and to be furnished in terms of section 92D(4) |
|
Furnishing of report of the information |
|
Furnishing of information in case of more than one constituent entities resident in India |
|
Authority responsible for specifying procedure |
|
Time period for keeping and maintaining information and documents |
|
Rate of exchange for calculating value of transaction |
|
Meaning of certain terms relevant to rule 10DA |
|
Furnishing of report in respect of International Group |
|
Time limit upto which the information and documents required to be kept ready |
|
Time period for keeping information and documents |
|
Assessing officer or CIT(A) empowered to ask for furnishing any information or document from the person entering into international transaction or SDT |
|
Requirement of obtaining audit report [Section 92E] |
|
Part XVIII--Tax Avoidance [Sections 93 to 94A] |
180 |
Avoidance of Income Tax by Transactions Resulting in Transfer of Income to Non-residents [Section 93] |
|
Safeguards provided under the Act against avoidance of income-tax by transactions resulting in transfer of income to non-residents |
|
Circumstances where section 93(1) not applicable |
|
Person deemed to have power to enjoy the income of a non-resident |
|
Meaning of associated operations for the purpose of section 93 |
|
Meaning and scope of the terms assets, benefit and capital sum, referred to in section 93 |
181 |
Tax Avoidance Through Planned Transfer [Section 94] |
|
Bond washing transactions |
|
Provision to curb tax avoidance in case of non-receipt or less receipt of income |
|
Bona fide transactions spared |
|
Avoidance of tax by certain person dealing in securities |
|
Loss to be ignored to the extent of dividend or income [Section 94(7)] |
|
Provisions pertaining to bonus stripping and dividend stripping to be made applicable to securities and units [Section 94(8)] |
|
Important terms |
182 |
Transactions With Person Located in a Notified Jurisdictional Area [Section 94A] |
|
Introduction |
|
Central Govt. empowered to specify any country or territory as a notified jurisdictional area |
|
Applicability of provisions relating to transfer pricing |
|
No deduction i.r.o. payment to financial institution shall be allowed except in certain cases |
|
No deduction for any expenses except in certain cases |
|
Maintenance of documents |
|
No time-limit for maintenance of documents |
|
Credits from persons in notified jurisdictional area to be treated as income of assessee |
|
Deduction of tax at source |
|
Person located in a notified jurisdictional area |
|
Transaction--Meaning of |
|
'Cyprus' as notified jurisdictional area for purposes of section 94A |
|
Applicability of section 94A, where cyprus received from list of notified area |
|
Part XIX--General Anti Avoidance Rules (GAAR) |
183 |
General Anti Avoidance Rules [Sections 95 to 102 and Section 144BA] |
|
Introduction |
|
Non-application of GAAR provision |
|
Declaration of arrangement as impermissible avoidance agreement |
|
Applicability of Chapter X-A |
|
Impermissible avoidance arrangement--What is? |
|
Arrangement that lack commercial substance--What is? |
|
Consequence of impermissible avoidance arrangement |
|
Treatment of connected person and accommodating party |
|
Applicability of Chapter X-A and guidelines for applicability |
|
Terminologies defined |
|
How would GAAR provisions be invoked |
|
Notice, Forms for reference under section 144BA |
|
Reference to the Approving Panel |
|
Provisions of GAAR to apply to assessees covered by sections 90 and 90A |
|
AO denied assessee the benefit under article 13(4A) of India-Singapore DTAA on the ground that assessee had no economic substance or commercial substance and was a 'shell' or a 'conduit' company |
|
Where tax benefit does not exceed amount specified in rule 10U |
|
Part XX--Determination of Tax in Certain Special Cases |
184 |
Income from Investments in Bonds, Shares, Securities, Units, Global, Depository Receipts, Etc. [Sections 115A, 115AB, 115AC] |
|
I. Tax on Dividends, Interest, etc. [Section 115A] |
|
Income by way of dividends, interest, etc. and respective tax rates [Section 115A(1)(a)] |
|
Special rate of tax provided for interest received in certain cases [Section 115A(1)(a) (iia), (iiaa), (iiab) and (iiac)] |
|
Tax rate summarised |
|
Rate of tax on divided from unit of IFSC reduced to 10% and rate of royalty or fees for technical services raised to 20% |
|
Tax rate on income by way of royalty or fees for technical services [Section 115A(1) (b)] |
|
Royalty in respect of books or computer software [Section 115A(1A)] |
|
Non-applicability of section 115A(1) |
|
Non-allowability of deduction |
|
Non-allowability of deduction under Chapter VI-A |
|
No necessity of filing return of income [Section 115A(5)] |
|
Availability of benefit of set-off of losses under section 70 |
|
Interest paid/payable by Indian branches to their head office situated abroad would be liable to tax in India and would be governed by section 115A |
|
Rate of tax in case of interest income from investment in NRE & FCNR Accounts, etc |
|
Fee for technical services besides PE existence--Meaning of "effectively connected |
|
II. Tax on Income from Units Purchased in Foreign Currency or Capital Gains Arising from their Transfer [Section 115AB] |
|
Scheme of section 115AB |
|
Rates of tax |
|
Non-allowability of deductions |
|
Meaning of overseas financial organisations |
|
Meaning of 'units' |
|
Meaning of 'foreign currency' |
|
Meaning of 'public sector bank' |
|
Meaning of 'public financial institutions' |
|
Meaning of 'Unit Trust of India' |
|
III. Tax on Income from Bonds or Global Depository Receipts Purchased in Foreign Currency and Capital Gains Arising from Their Transfer for Non-Residents [Section 115AC] |
|
Income earned |
|
Tax rates |
|
No deduction under Chapter VI-A [Sub-section (2) of section 115AC] |
|
Non-applicability of proviso to section 48 [Sub-section (3) of section 115AC] |
|
No necessity of filing return [Sub-section (4) of section 115AC] |
|
Applicability of provisions to GDRs or bonds in amalgamated company [Sub-section (5) of section 115AC] |
|
Terminologies defined--Explanation to section 115AC |
185 |
Tax on Income from Global Depository Receipts Purchased by Resident in Foreign Currency or Capital Gains Arising from Their Transfer [Section 115ACA] |
|
Application of section 115ACA |
|
Income taxed under section 115ACA |
|
Rate of tax |
|
No deduction allowable |
|
Computation of income from capital gains |
|
Meaning of 'Global Depository Receipt' for the purpose of section 115ACA |
|
GDRs listed in International Financial Services Centre to be eligible for benefit under section 115ACA |
186 |
Tax on Income of Foreign Institutional Investors or Specified Fund from Securities or Capital Gains Arising from Their Transfer [Section 115AD] |
|
Income covered by section 115AD |
|
Rate of tax |
|
Surcharge on dividend income or capital gains from transfer of securities |
|
Rate of tax on long-term capital gain arising from equity shares/units of equity oriented fund/units of business trust in case of FIIs |
|
Applicability of section 115AD to specified fund |
|
Non-allowability of deductions [Section 115AD(2)] |
|
Non-applicability of proviso to section 48 |
|
Foreign institutional investors--Meaning of |
|
Securities--Meaning of |
|
Specified fund |
187 |
Tax on Winnings from Lotteries, Etc. [Section 115BB] |
|
Special rate of tax on winnings from lotteries, etc |
|
Section 115BB not to apply from the assessment year 2024-25 to winnings from any online game |
|
Terminologies defined |
|
Whether loss from one game can be adjusted against income from another game |
|
TDS in respect of winnings from lotteries, etc. [Section 194B] |
188 |
Tax on Non-resident Sportsmen or Sports Association [Section 115BBA] |
|
Income covered in the case of non-resident not citizen sportsman |
|
Income covered in case of non-resident non-citizen entertainer |
|
Income covered in the case of non-resident sports association or institution |
|
Rate of tax |
|
Non-allowability of deduction |
|
No necessity of filing return of income [Section 115BBA(2)] |
189 |
New Taxation Regime for Individual/HUF [Section 115BAC] |
|
Nature of section 115BAC |
|
Rate of tax on incomes specified under sections 110 to 115BBJ |
|
To whom provisions of section 115BAC apply |
|
Residential status irrelevant |
|
Rate of tax applicable |
|
Surcharge and marginal relief |
|
Availability of rebate under section 87A to resident individuals |
|
Income on which special tax rate applicable |
|
Conditions precedent for special tax rate |
|
No exemption in respect of free food or vouchers |
|
No set off of loss or depreciation arising from above deductions |
|
No loss from house property |
|
Method of computing depreciation |
|
No exemption under any other law |
|
Effect of failure to satisfy above conditions [Only upto assessment year 2023-24] |
|
When option as to applicability of section 115BAC be exercised |
|
Unabsorbed depreciation to be adjusted once option is exercised under section 115BAC |
|
Unabsorbed depreciation to be adjusted once new tax regime under section 115BAC is defaulted on assessee |
|
Non-applicability of section 115JC/115JD to assessees opting for section 115BAC/115BAD |
|
Steps to be taken while opting for section 115BAC by individual/HUF carrying on business |
|
Is opting for section 115BAC result in disallowance of all losses |
|
Illustrations illuminating which regime to be opted for [Assessment year 2023-24] |
|
Different situations identified [From assessment year 2024-25] |
190 |
New Taxation Regime for Resident Co-operative Societies [Section 115BAD] |
|
Nature of section 115BAD |
|
Rate of tax on incomes specified under sections 110 to 115BBJ |
|
To whom provisions of section 115BAD apply |
|
Rate of tax applicable |
|
Surcharge and marginal relief |
|
Income on which special tax rate applicable |
|
Conditions precedent for special tax rate |
|
Effect of failure to satisfy above conditions |
|
When option as to applicability of section 115BAD be exercised |
|
Unabsorbed depreciation to be adjusted once option is exercised under section 115BAD |
|
Co-operative societies eligible for deduction under section 80P |
191 |
New Tax Regime for Certain Co-Operative Societies Engaged in Manufacturing Activity [Section 115BAE] |
|
Nature of section 115BAE |
|
Rate of tax applicable on total income derived from manufacture or production of article or thing |
|
Rate of tax applicable on other income |
|
Rate of tax applicable on short-term capital gains derived from assets on which no depreciation claimed |
|
Rate of tax on abnormal profits |
|
Surcharge and marginal relief |
|
Income on which special tax rate applicable |
|
Assessee to give up certain benefits |
|
Additional conditions to be satisfied by resident co-operative society opting for section 115BAE |
|
Condition 1 : As to Formation of Society |
|
Condition 2 : Business Not to be Formed by Spliting Up or Reconstruction |
|
Condition 3 : Restriction Regarding Use of Old Machinery |
|
Condition 4 : Assessee Must be Engaged in Manufacturing or Production |
|
Manufacture |
|
Manufacture or production |
|
Co-operative society not to make more than normal profits |
|
Applicability of transfer pricing regulations |
|
Specified domestic transactions--Meaning of |
|
Effect of failure to satisfy above conditions |
|
Option to be exercised |
|
Consequential amendment of section 115BAD |
|
Consequential amendment of section 115JC and section 115JD |
192 |
Special Rate of Tax on Income from Patent and Carbon Credits [Sections 115BBF and 115BBG] |
|
Tax on income from patent [Section 115BBF] |
|
Tax on carbon credit [Section 115BBG] |
193 |
Income from Transfer of Virtual Digital Assets to be Taxed at Flat Rate of 30% [Sections 2(47A), 56(2)(x) and 115BBH] |
|
Definition of virtual digital assets [Section 2(47A)] |
|
Receipt of virtual digital asset without consideration or with consideration at below fair market value to be taxed |
|
Income from transfer of virtual digital assets to be taxed at flat rate of 30 per cent [Section 115BBH] |
194 |
Taxing Specified Income of Trusts or Exempt Institutions at a Flat Rate of 30% [Section 115BBI] |
195 |
Tax on Winnings from Online Games and TDS Thereon [Section 115BBJ] |
|
The insertion |
|
Nature of section 115BBJ |
|
Rate of tax on winnings from online games |
|
Meaning of certain terms for the purposes of section 115BBJ |
|
Only net winnings to be taxed |
|
Intra game loss can be set off |
|
Provisions illustrated |
|
Loss from online games--Whether can be carried over |
|
TDS in respect of winnings from online gaming [Section 194BA] |
196 |
Special Provisions as to Investment Incomes of NRIs [Sections 115C to 115-I] |
|
Introduction |
|
Meaning of certain terms [Section 115C] |
|
Computation of total income and tax on investment income and long-term capital gains [Section 115D] |
|
Rate of tax on investment income and long term capital gain arising to non-resident Indians [Section 115E] |
|
Capital gains on transfer of foreign exchange assets not to be charged in certain cases [Section 115F] |
|
No necessity of filing the return [Section 115G] |
|
Benefit available even after the assessee becomes resident [Section 115H] |
|
Special provisions not to apply if the assessee so chooses [Section 115-I] |
|
Chapter XII-A applicable even after death |
197 |
Alternate Minimum Tax (AMT) on Certain Assessees Other Than Company [Sections 115JC to 115JF] |
|
Levy of Alternate Minimum Tax (AMT) |
|
Non-applicability of provisions of Chapter XII-BA in certain cases |
|
Total income to be base for levy of AMT |
|
When AMT is levied and rate at which it is be levied |
|
Steps for computation of AMT |
|
Adjusted total income |
|
Report of Chartered Accountant to be obtained |
|
Tax credit for AMT |
|
Provisions of section 115JC and 115JD not to apply to certain assessees from the assessment year 2024-25 |
|
Applicability of provisions of section 115JC to 115JF |
|
Application of other provisions of the Act |
|
Provisions illustrated |
|
No alternate minimum tax on specified fund |
198 |
Tonnage Tax on Shipping Companies [Sections 115V to 115VZC] |
|
Scheme in brief |
|
Treatment of liquidated damages |
|
Applicability of TP provisions to Tonnage Tax Scheme |
|
Part XXI--Corporate Taxation |
199 |
Important Definitions Relevant to Corporate Taxation |
|
Meaning of company [Section 2(17)] |
|
Indian company [Section 2(26)] |
|
Domestic company [Section 2(22A)] |
|
Foreign company [Section 2(23A)] |
|
Company in which public are substantially interested [Section 2(18)] |
|
Demerger [Section 2(19AA)] |
|
Demerged company [Section 2(19AAA)] |
|
Resulting company [Section 2(41A)] |
|
Public sector company [Section 2(36A)] |
|
Principal officer [Section 2(35)] |
|
Person who has substantial interest in the company [Section 2(32)] |
|
Distinction between widely held company and closely held company |
200 |
Corporate Tax Rates--At a Glance |
|
Basic tax rates for companies for assessment years 2023-24 and 2024-25 |
|
Surcharge on income-tax |
|
Health and education cess |
|
Effective corporate tax rates |
201 |
Option under Section 115BA to Domestic Manufacturing Companies |
|
Tax on income of certain domestic manufacturing companies as per section 115BA |
|
Conditions required to be fulfilled when option under section 115BA is exercised |
|
No further deduction on account of loss |
|
Time limit for exercising the option |
|
Manner of exercising option |
|
Withdrawal of option once exercised |
202 |
Option under Section 115BAA to Certain Domestic Companies |
|
Tax on certain domestic companies |
|
Tax when option under section 115BAA is exercised |
|
Consequence of violation of conditions prescribed in sub-section (2) |
|
Levy of flat surcharge and cess when company opts for section 115BAA |
|
Conditions required to be fulfilled for exercising option under section 115BAA |
|
No further deduction for loss |
|
Modification in conditions for IFSC units exercising option under section 115BAA |
|
Time limit for exercising option under section 115BAA |
|
Exercise of option where option exercised under section 115BAB becomes invalid |
|
Option once exercised cannot be withdrawn |
|
Manner of exercising option |
|
Consequences of non-filing of Form 10-IC |
|
Applicability of MAT |
|
Allowability of brought forward MAT credit |
|
Choice between section 115BA and section 115BAA |
203 |
Option under Section 115BAB to New Domestic Manufacturing Companies |
|
Tax on income of certain new manufacturing companies |
|
Levy of surcharge and cess |
|
Tax when to be levied at the rate of 22 per cent |
|
Companies eligible to opt section 115BAB |
|
Consequence of violation of conditions contained in sub-section (2) after exercising option under section 115BAB |
|
Condition as regards formation of company |
|
Condition as regards use of plant and machinery |
|
Condition as regards use of building |
|
Condition as regards to nature of business |
|
Board empowered to issue guidelines for removing difficulties in fulfilment of certain conditions |
|
Computation of total income without providing for specified exemption, deduction or incentive |
|
Meaning of "unabsorbed depreciation" in the context |
|
No further deduction on account of loss |
|
Safeguards against misuse of reduced rate of taxation |
|
Time limit for exercising option |
|
Option once exercised cannot be withdrawn |
|
Non-applicability of MAT |
204 |
Minimum Alternate Tax [MAT] [Section 115JB] |
|
Levy of MAT |
|
Effective rate of MAT for assessment year 2024-25 |
|
For a unit located in an International Financial Services Center |
|
Applicability of MAT in certain cases |
|
Company getting deduction under section 80-IC |
|
Applicability of MAT where total income computed under normal provisions is either nil or a negative figure |
|
Computation of book profit |
|
Determination of book profits in case of Ind-AS companies |
|
Treatment of income-tax |
|
Determination of profit |
|
Adjustment to book profit due to advance pricing agreement |
|
Assessing officer not empowered to go behind profit shown in statement of profit & loss account |
|
Treatment of amounts carried to reserve and amounts withdrawn from reserve or provision |
|
CSR expenditure |
|
Provision for preference shares redemption reserve |
|
Provision written back |
|
Transfer of amount directly to capital reserve without debiting profit and loss account |
|
Gain arising on sale of investment directly taken to reserve account without crediting to profit and loss account |
|
Addition on account of amortisation of leasehold land |
|
Treatment for waiver of interest by IREDA |
|
Provision for Mark-to-Market losses |
|
Provision of tariff adjustment in respect of electricity bills |
|
Treatment of amount withdrawn from reserve or provision |
|
Provision made for unascertained liabilities and for diminution in value of any asset |
|
Treatment of provision for bad and doubtful debt |
|
Treatment of tax free income and expenditure related thereto |
|
Whether indexed cost can be claimed while working MAT under section 115JB |
|
Treatment of capital profits in computation of book profit under section 115JB |
|
Dealing with depreciation while computing book profit |
|
Applicability of clause (iic) in Explanation 1 to section 115JB |
|
Profit from sale of fixed assets |
|
Reserve created for unexpired risk out of current year's premium receipt |
|
Treatment of brought forward loss and unabsorbed depreciation |
|
Applicability of section 234B and 234C in MAT cases |
|
Availability of relief under section 54EC |
|
Treatment of capital receipt |
|
Adjustment of foreign exchange fluctuation due to restatement of term loan |
|
Treatment of consideration received on sale of agricultural land in rural area, not coming under section 2(14)(iii) and (b) |
|
Adjustment of depreciation and additional depreciation not debited in profit and loss account |
|
Certification of book profit |
|
Loss to be carried forward vis-a-vis MAT |
|
Addition of income surrendered to tax under normal provisions of the Act |
|
Treatment of TDS |
|
Adjustment of loss on reduction of equity capital |
|
Addition of share of loss from the partnership-firm |
205 |
Tax Credit for MAT Paid [Section 115JAA] |
|
Availability of tax credit in respect of MAT paid |
|
Foreign tax credit (FTC) against MAT paid |
|
Tax credit to be adjusted after rectification, revision and other proceedings |
|
Adjustment of MAT against tax payable |
|
Tax credit in respect of surcharge and cess |
|
Availability of tax credit where private or unlisted company converts into an LLP |
|
Allowability of interest under section 244A in respect of MAT credit |
|
No tax credit on exercise of option under section 115BAA |
|
Set-off of credit from the tax payable before setting off TDS and advance tax |
|
Pro rata adjustment of MAT credit in case of demerger |
206 |
Tax Treatment of Dividend |
207 |
Deemed Dividend [Section 2(22)] |
|
Meaning of dividend |
|
Meaning of accumulated profits |
|
Issue of bonus shares not hit by section 2(22)(a) |
|
Excess payment for redemption of preference shares not hit by section 2(22)(a) |
|
Payment of advance or loan when amounts to dividend |
|
Profits already capitalised not part of accumulated profits |
|
Accumulated profits for purpose of section 2(22)(e)--When to be ascertained |
|
Company having no accumulated profits |
|
Person when deemed to have substantial interest in a concern |
|
Meaning of 'concern' |
|
Items not includible while arriving at the accumulated profits |
|
Items Includible while arriving at accumulated profits |
|
Normal charge of depreciation as per Act--Whether required to be considered for calculating accumulated profits |
|
Payment of advance or loan when amounts to dividend |
|
Trade advances not dividend |
|
Business transactions of assessee, a NBFC |
|
Computation of deemed dividend |
|
Commercial profits to be taken into account for quantifying accumulated profits |
|
Applicability of exclusionary clause (ii) of section 2(22)(e) |
|
Amount advanced during the year is to be treated as deemed dividend |
|
Accumulated profits do not include current years profit |
|
When section 2(22)(e) comes into play |
|
No deemed dividend where assessee not shareholder in lending company |
|
Applicability of section 2(22)(e) where partnership firm taking advance from company in which partners held shares on behalf of firm |
|
Registered as well as beneficial share-holder--Whether both necessary for the purposes of section 2(22)(e) |
|
Loan granted by companies to assessee company where both lender and borrower company having common shareholder--Liable to be taxed as deemed dividend |
|
Common shareholder and chargeability of dividend |
|
HUF being a registered shareholder is not necessary for the purpose of section 2(22)(e) |
|
Assessee's wife received loan from a company, wherein the assessee was a director and majority shareholder |
|
Assessee received loan from company in which he was director and was holding equity shares--Assessee was paying interest on loan |
|
Shareholder of company had substantial interest in the Partnership--Money advanced to firm |
|
No deemed dividend in case of receipt of share application money |
|
Payment of share application money to associate concern |
|
No deemed dividend where assessee did not held controlling shares in the transferor company |
|
Addition of entire amount instead of proportion to shareholding |
|
Amount in nature of accommodation entries through current account |
|
Advances for mutual benefit of company as well as assessee |
|
No deemed dividend where assessee acted as an intermediary |
|
Transaction between group concerns |
|
Repayment of advance in subsequent financial year not to rescue assessee |
|
Receipt of advance where no accumulated profit in case of lending company |
|
Transaction whether business transaction outside ambit of section 2(22)(e)--Amount advanced and received back on same date |
|
Amount advanced to assessee for construction of building--Advance adjusted towards rent payable for building |
|
Payment towards share sale received from the company |
|
Shareholding of assessee was more than 10% in company imparting advances to assessee |
|
Loan received from company--Assessee pleading business purpose |
|
Transactions held to be business transactions as the non-business transactions were few and mostly were through journal entries and not receipts/payments |
|
Loan was not a gratuitous one and was given in return to an advantage conferred upon company by assessee in the form of interest |
|
Transaction between assessee and his company being not a gracious payment |
|
None of shareholder of lender company holding 10% or more of the voting power |
|
Regular/routine transactions between sister concerns |
|
Advance received by assessee from a company in which it had substantial interest |
|
Applicability of section 2(22)(e) to payments received from companies wherein assessee has substantial interest |
|
Percentage of shareholding to be checked at the time of availing of loan for purpose of section 2(22)(e) in case of transaction with company |
|
Loan from Share Premium Account--Whether deemed dividend |
|
Share application money shown under 'current liabilities' not to be treated as loan or advance for the purposes of section 2(22)(e) |
|
Assessee took loan from two companies having common shareholders--Money borrowed can be treated as deemed dividend as assessee was not a shareholder in the lending company |
|
Assessee transferred his shareholding to trust--Applicability of provision of section 2(22)(e) |
|
Cash amount and assets received on family settlement would not be to be taxed as deemed dividend |
|
Advance received from company having substantial accumulated profits was to be deemed as dividend |
|
Loan or advance to a concern--Assessee being trustee of trust to whom loan advanced |
|
Treatment of capital subsidy |
|
Loan and advance by company to shareholder--Assessee not being a shareholder but assessee's partner holding major share |
|
Meaning of the expression loans and advances used in section 2(22)(e) |
|
Mutual running or current account transactions between shareholder and lender company--Applicability of section 2(22)(e) |
|
Amount received from an entity, wherein assessee was having 25% shareholding--Amount received and taxed in immediately preceding year |
|
Assessee-company not holding share in the lender company |
|
Assessee being not a shareholder of company from which it has received advance |
|
Assessee failed to explain commercial expediency of transaction |
|
Advances being in the nature of commercial transactions |
|
Basic conditions of section 2(22)(e) being satisfied |
|
Assessee-director withdrawn money from company and kept them in fixed deposits |
|
No benefit accrued to assessee out of the loan transactions |
|
Assessee was not shareholder of payer group companies |
|
Assessee had not received any amount |
|
Only peak credit to be considered for deemed dividend |
208 |
Tax on Buy Back of Shares of Domestic Company [Sections 115QA to 115QC] |
|
Levy of tax on income distributed by companies by way of buy back of shares |
|
Rate of tax on income distributed by way of buy back of shares |
|
Non-applicability of provision in certain cases |
|
Meaning of buy back of shares |
|
Meaning of distributed income |
|
Manner of determining amount received by the company |
|
Tax under section 115QA payable irrespective of no income-tax being payable |
|
Time period for payment of tax under section 115QA |
|
Tax paid under section 115QA be treated as final payment of tax |
|
Consequences of non-payment of tax under section 115QA |
|
Exemption in respect of income arising to shareholder on buy back of share |
209 |
Incentive for Conversion of Indian Branch of a Foreign Bank into a Subsidiary Company which is an Indian Company [Section 115JG] |
210 |
Transition Mechanism for Foreign Companies Said to be Resident in India [S. 115JH] |
|
Central Government empowered to notify certain exceptions, modifications and adaptations in case of foreign company said to be resident in India |
|
Consequences of failure to comply with the conditions specified in the notification |
|
Every notification need to be laid before each House of Parliament |
|
Part XXII--Tax on Distributed Income, Etc. [Sections 115R to 115T, 115TCA, 115U to 115UB] |
211 |
Tax on Distributed Income by UTI or Mutual Fund [Sections 115R to 115T] |
|
Abolishment of income distribution tax (IDT) w.e.f. 1-4-2020 |
|
Tax to be deducted on income from mutual fund units under section 194K |
212 |
Tax on Income from Securitisation Trust [Section 115TCA] |
|
Meaning of securitisation trust |
|
Income received from securitisation trust chargeable to tax in the hands of investors |
|
Tax on income from securitisation trust |
|
Furnishing of breakup regarding nature and proportion of its income |
|
Time period for furnishing statement |
|
Form in which statement shall be submitted |
|
Authority responsible to specify procedure, etc |
|
Safeguards against double levy of taxation |
|
Meaning of certain terms |
213 |
Tax on Income Received from Venture Capital Companies and Venture Capital Funds [Section 115U] |
|
Tax on income received from venture capital companies (VCC) and venture capital funds (VCF) |
|
Furnishing statement containing details of income paid or credited by VCC or VCF |
|
Income when deemed to have been credited to the account of person concerned |
|
Safeguards against double taxation |
214 |
Tax on Income of Unit Holder Vis-a-Vis Business Trust [Section 115UA] |
|
Tax on income of a business trusts and its unit holder |
|
Furnishing of statement regarding income distributed by business trusts |
|
Furnishing of statement of income distributed by business trust to its unit holders |
|
Cost of acquisition of unit of a business trust |
|
Plugging tax avoidance through distribution by business trusts to its unit holders |
215 |
Tax on Income of Unit Holder Vis-a-Vis Investment Funds [Section 115UB] |
|
Scheme of taxation of income of investment funds and its unit holders |
|
Providing pass through of losses in cases of Category I and Category II Alternative Investment Fund (AIF) |
|
Furnishing of statement of income distributed by an investment fund |
|
Meaning of investment fund |
|
Part XXIII--Income Tax Authorities and Their Powers [Sections 116 to 133C] |
216 |
Income Tax Authorities |
|
A. Income Tax Authorities and Their Powers [Sections 116 to 119A] |
|
Authorities under Income Tax Act |
|
Powers of Principal Director General of Income-tax, Director General of Income-tax, Principal Directors of Income-tax or Directors of Income-tax |
|
Specific powers and functions of Principal Chief Commissioner, Chief Commissioner, Principal Commissioner and a Commissioner of Income-tax |
|
Powers and functions of Joint Commissioner (Appeals) Commissioner (Appeals) |
|
Powers and functions of Additional Commissioner or Joint Commissioner |
|
Powers and functions of DCIT, ACIT or ITO |
|
Appointment of income-tax authorities |
|
Power of CBDT as to control income-tax authorities |
|
Power of CBDT to issue instructions, directions, etc. to sub-ordinate authorities |
|
Orders to provide relaxation from certain provisions under section 119(2)(a) |
|
Order giving extension in prescribed time limit |
|
Orders providing relaxation for claiming deduction |
|
CBDT's circular binding on departmental authorities |
|
CBDT's circular not binding on Tribunal or courts |
|
Order, etc., issued under section 119 not override general provisions |
|
Benevolent circulars cannot be withdrawn retrospectively |
|
Circular not to be issued for imposing penalty |
|
Power to accept return beyond due date under section 139(4) |
|
Press release whether has statutory force |
|
Role of circulars issued by Company Law Board or any authority other than CBDT |
|
Opinion not to be regarded to be direction |
|
CBDT empowered to declare Taxpayer Charter |
|
B. Jurisdiction of Income Tax Authorities and Assessing Officers [Sections 120 & 124] |
|
Powers to be exercised by income-tax authorities |
|
Scope of jurisdiction of assessing officers |
|
Person when not entitled to question jurisdiction of assessing officer |
|
Impact of raising question of jurisdiction of assessing officer |
|
C. Power to Transfer Cases [Section 127] |
|
Power for transfering of case from one assessing officer to another |
|
Where the assessing officer from whom the case is to be transferred and the assessing officer to whom the case transferred are not subordinate to the same Principal Director General, etc |
|
Applicability of sub-section (1) or (2) where both of the assessing officers are situated in the same city, locality or place |
|
Requirement as to re-issuance of notice |
|
Validity of transfer of case where transfer order not challenged by assessee |
|
Application for transfer of case by assessee |
|
Assessing officer acting as a quasi-judicial authority |
|
D. Change of Incumbent of an Office [Section 129] |
|
Jurisdiction to be exercised by successor assessing officer when there is change of incumbent of an office |
|
E. Faceless Jurisdiction of Income Tax Authorities [Section 130, w.e.F. 1-11-2020] |
|
Central Government empowered to make scheme for faceless jurisdiction of income tax authorities |
|
Power to issue notification providing exception, modifications, etc |
|
Notification to be laid before each house of Parliament |
|
Faceless jurisdiction of Income Tax Authorities Scheme, 2022 |
217 |
Power to Issue Summons [Section 131] |
|
Authorities empowered under section 131 |
|
Powers under section 131 |
|
Power to impound books of accounts, etc |
|
Power as to best judgment assessment in case of non-compliance of summons issued under section 131 |
|
Ex-parte order not to be used without providing hearing opportunity |
218 |
Search and Seizure [Sections 132, 132A & 132B] |
|
A. Search Authorisation |
|
Objectives of search and seizure |
|
Authorities empowered to authorise a search |
|
Officers who may be authorised to carry out search operation |
|
Assessing officer and authorised officer may be the same person |
|
Circumstances when search can be authorised |
|
Issuance of common authorisation against number of persons |
|
Copy of search warrant not required to be handed over to the person searched |
|
Satisfaction note to be prepared by authorised officer |
|
Information in possession, for initiating search action |
|
Scope of reason to believe |
|
No need to disclose reason to believe while conducting search or making requisition |
|
Validity of search action where clean chit given earlier |
|
B. Power Of Seizure, Attachment, Etc. |
|
Power as to seizure and deemed seizure |
|
Power to get assistance of police, Central Government officers and certain other person or entity |
|
Issuances as to restraint order |
|
Time limit for issuance of restraint order |
|
Seizure of immovable property |
|
Power to seal the business premises |
|
Seizure of jewellery |
|
No seizure of stridhan of a lady |
|
Seizure of computer, laptops and other removable storage devices |
|
Release of seized assets on furnishing bank guarantee |
|
Seizure of passport |
|
No power to encash FD during its seizure |
|
Time limit for retention of seized assets |
|
Transfer of seized accounts, etc. to officer having jurisdiction |
|
Power to attach property provisionally during search proceedings |
|
Power to make reference to valuation officer or to certain other person or entity to correctly estimate and quantify the undisclosed income |
|
Entertainment of writ against seizure |
|
Last of authorisation when deemed to be executed |
|
C. Procedure for Conducting Search |
|
Powers to be exercised by the authorised officer during search |
|
Procedure for conducting search operation |
|
Recording of statement under section 132(4) |
|
Evidentiary value of statement recorded during search |
|
Retraction of statement recorded under section 132(4) |
|
Availability of presumption under section 132(4A) |
|
Preparation of Panchnama |
|
D. Rights & Duties of Person Searched |
|
Rights of person searched |
|
Right to inspect or take copies of extracts of seized books |
|
Remedy against invalid search |
|
Non-availability of IDS, 2016 |
|
E. Power of Requisition [Section 132A] |
|
Warrant of authorisation in respect of books of account, money, etc. lying in the custody of any other officer or authorities |
|
Procedure for requisition |
|
Reason to suspect not to be disclosed |
|
Applicability of sub-sections (4A) to (14) of section 132 in case of requisition |
|
No requisition possible where assets are in possession of different authorities under orders of court |
|
Power of requisition in respect of cash seized by police |
|
Retention of assets requisitioned |
|
Applicability of section 132A in respect of bank draft presented in bank for clearing |
|
F. Application of and Release of Seized Assets [Section 132B] |
|
Application of seized assets for recovering existing liability under direct tax law |
|
Other modes or recovery not affected |
|
Surplus if any, required to be returned to the person from whose custody assets were seized |
|
Adjustment of seized cash towards advance tax |
|
Release of retained assets |
|
Guidelines regarding treatment of cash deposited in Personal Deposit (PD) Account |
|
Payment of interest on money seized or requisitioned |
|
Interest in respect of seized silver bars |
219 |
Assessment in Search Cases |
|
Salient features of search assessment provided under sections 153A to 153D [As relevant for search initiated between 1-6-2003 to 31-3-2021] |
|
Provision governing search assessment on or after 1-4-2021 |
220 |
Survey [Sections 133A, 133B and 133C] |
|
A. Power of Survey [Section 133A] |
|
Places which can be surveyed |
|
Duties of persons available during survey |
|
Authorities eligible for conducting survey |
|
Requirement as to prior permission |
|
Timings for conducting surveys |
|
Powers of Inspector of Income Tax |
|
Powers regarding TDS TCS survey |
|
Powers to be exercised during survey, other than for TDS TCS purposes |
|
Powers to be exercised while conducting TDS, TCS survey |
|
Meaning of "proceeding" |
|
Powers regarding impounding and retaining of books of accounts and other documents |
|
No power as to remove cash, stock and other valuable articles |
|
Power regarding survey at the time of functions and ceremonies |
|
No survey on third parties premises |
|
Tax not to be recovered during survey proceedings |
|
Authorities not supposed to force the person being surveyed to confess undisclosed income |
|
Availability of presumption under section 292C |
|
Exercise of power given under section 131(1) by surveying authorities |
|
Conversion of survey into search |
|
Differences between survey and search |
|
Evidentiary value of statement recorded under section 133A(3)(i) |
|
Impact of retraction of statement |
|
Addition on the basis of loose papers impounded |
|
Addition on account of excess stock |
|
Applicability of section 68, 69A, etc. in case of survey |
|
Excess stock to be assessed as business income |
|
AO made addition on account of inflated purchases and excess stock found during survey |
|
B. Assessment Procedure in Case of Survey Conducted on or after 1-4-2021 |
|
Applicability of section 147 in case of survey |
|
C. Power to Collect Certain Information [Section 133B] |
|
Powers under section 133B |
|
Timings for entering into premises |
|
No power to remove books of accounts etc |
|
Income-tax authority for the purpose of section 133B |
|
Furnishing of information |
|
D. Power to Call for Information [Section 133C] |
|
Income-tax authorities empowered to issue notice calling for information for the purposes of verification of information in its possession |
|
Income-tax authorities for the purpose of section 133C |
|
Further processing of information obtained under section 133C(1) |
|
CBDT empowered to make scheme for centralised processing |
|
E. Faceless Collection of Information [Section 135A w.e.f. 1-11-2020] |
|
Central Government empowered to make scheme for faceless collection of information |
|
Powers to issue notification for providing exception, modification etc. in any provision |
|
Notification to be laid down before each house of parliament |
|
E-Verification Scheme, 2021 notified |
|
Part XXIV--Return, Permanent Account Number and Assessment [Sections 139 to 144C] |
221 |
Permanent Account Number [Sections 139A and 139AA] |
|
Obligation to obtain PAN |
|
Persons required to obtain PAN [Sections 139A(1), 139A(1B), 139A(2) and 139A(3)] |
|
When application for allotment of PAN be made |
|
Persons entering into following transactions required to obtain PAN |
|
Person not required to obtain PAN |
|
Quoting PAN [Section 139A(5)] |
|
Intimation of PAN by a person receiving income subject to tax deduction [Section 139A (5A)] |
|
Duty of tax deductor to quote PAN [Section 139A(5B)] |
|
Sections 139A(5A) and 139(5B) not to apply to certain persons |
|
Buyer, lessee or licensee referred to in section 206C to intimate PAN [Section 139A (5C)] |
|
Person collecting tax to quote PAN of every buyer, licensee or lessee [Section 139A (5D)] |
|
Aadhaar number may be quoted in lieu of PAN [Section 139A(5E)] |
|
Quoting of Adhaar number |
|
Quoting of Aadhaar Number--Provisions not to apply to certain individuals |
|
Fee payable for default in intimating Aadhaar number |
|
Ensuring compliance of section 139A [Sections 139A(6) and 139A(7)] |
|
Allotment of one PAN to two or more persons |
|
Duty of person entiring into certain transactions and person receiving documents relating to such transaction [Section 139A(6A) and section 139A(6B)] |
|
Rule 114BB prescribes transactions for the purposes of sub-section (6A) of section 139A and prescribed person for the purposes of clause (ab) of Explanation to section 139A |
|
Procedure for applying for Permanent Account Number |
|
Manner of making PAN inoperative |
|
Clarification with respect to relaxation of provisions of rule 114AAA of Income Tax Rules, 1962 prescribing the manner of making Permanent Account Number (PAN) inoperative |
|
Documents pertaining to transactions in respect of which PAN must be quoted |
|
Duty of certain persons to ensure that correct PAN is quoted [Rule 114C] |
|
Time and manner in which persons referred to in sub-rule (2) of rule 114C shall intimate details of transaction to department [Rule 114D] |
|
Procedure for submission of Form No. 60 by any person who does not have a Permanent Account Number and who enters into any transaction specified in Rule 114B of the Income Tax Rules, 1962 |
|
Procedure for registration and submission of Form No. 61 as per Rule 114D of Income Tax Rules, 1962 |
|
Class of persons who shall apply for allotment of Permanent Account Number |
|
Penalty for failure to comply with provisions of section 139A [Section 272B] |
222 |
Return of Income [Sections 139, 139AA & 140] |
|
When does obligation to file return arise |
|
Return of income to be filed compulsorily in cartain cases |
|
Return filing under different sub-sections of section 139 |
|
Return of income of another person |
|
Exemption from filing of return of income by coffee growers, being individuals covered by Rule 7B of the Income Tax Rules |
|
Filing of return under section 139(1) not necessary in certain cases |
|
Deceased assessees--Who is to file return and in whose hands income taxable |
|
How to become a legal heir steps to became legal heir |
|
Meaning of representative assessee |
|
Certain non-residents exempted from filing return |
|
CBDT empowered to dispense with furnishing documents, etc., with the return [Section 139C] |
|
CBDT empowered to provide for electronic furnishing of return by certain classes of persons |
|
Return in case of companies/firms |
|
Scope of the expression "person other than company or firm" used in section 139(1) |
|
Scope of the expression 'total income' used in section 139(1) |
|
Maximum amount that is not chargeable to tax |
|
Scope of the words "his income" must include every item of income in the context of section 139(1) |
|
Necessary to file return where cumulative income exceeds the taxable limit |
|
Obligation to file return even where the entire income is claimed to be exempt under section 10 |
|
Income under section 139(1) means income as per assessee's belief |
|
Return to be furnished compulsorily by resident person, not being a not ordinarily resident, having assets located outside India |
|
New criterion for compulsory filing of return of income by certain persons other than company or firm |
|
Verification of return of income [Section 140] |
|
Reduction of time limit for verification of Income Tax Return (ITR) from within 120 days to 30 days of transmitting the data of ITR electronically |
|
Return uploaded within due date but verification done belatedly--Does not render return invalid |
|
Consequences of not filing return of income by due date mentioned in section 139(1) |
|
Due date for filing the return of income |
|
Form in which return is to be filed. |
|
Fee for delay in delay in furnishing of return of income [Section 234F] |
|
Condonation of delay in filing refund claim and claim of carry forward losses under section 119(2)(b) |
|
Filing return though a tax return preparer |
|
Return prepared by authorised representative |
|
Consequences of not furnishing return in the prescribed form |
|
Filing of return by charitable trusts |
|
Obligation of political parties to file a return of income |
|
Exempt entities required to file a return |
|
Return to be filed by universities, etc. referred to in section 35(1)(ii)/35(1)(iii) |
|
Filing of return by a business trust |
|
Filing of return by investment trust referred to in section 115UB |
|
Return of loss to be filed by the due date |
|
Belated return [Section 139(4)] |
|
Revised return [Section 139(5)] |
|
Particulars prescribed to be furnished by assessee |
|
Defective return [Section 139(9)] |
|
Return defective in case it contains any of the errors mentioned in Explanation to section 139(9) |
|
Defects specified in section 139(9) illustrative and not exhaustive |
|
Returns that may be termed as non-est return |
223 |
Furnishing of Updated Return [Section 139(8A)] |
|
Furnishing of updated return |
|
Who can furnish an updated return |
|
Circumstances in which updated return cannot be filed |
|
Time limit upto which updated return may be filed |
|
Which type of updated return cannot be filed |
|
Persons not eligible to furnish updated return |
|
Return of loss filed within time can be updated |
|
Reduction of loss carried over or unabsorbed depreciation carried over |
|
Return shall be treated as defective if proof of tax payment is not attached |
|
Tax, interest, fee and additional tax on updated return, where no return filed earlier to be deposited before filing the return |
|
Tax on updated return, where return filed earlier to be deposited before filing the return |
|
Additional income tax payable--Determination |
|
Interest payable under section 234B |
|
Difficulty arising |
|
Computation of interest payable under sections 234A and 234C |
|
Different situations identified |
|
Interest payable on updated return under section 234A |
|
Tax on total income not to include additional tax payable under section 140B |
|
Updated return and notice under section 143(2) |
|
Updated return and reassessment |
|
Issues with regard to updated return |
|
Best judgment assessment can be made where assessee fails to file updated return |
|
Time limit for completion of assessment where updated return is filed |
|
No prosecution where updated return is filed |
|
Form and manner of furnishing updated return |
224 |
Self Assessment Tax [Sections 140A] |
|
Tax to be paid before furnishing return of income |
|
Tax to be paid electronically [Rule 125] |
|
When liability to pay self-assessment tax arises |
|
Consequences of non-payment of self-assessment tax |
|
Calculation of interest payable under section 234A [Section 140A(1A)] |
|
Computation of interest payable under section 234B [Section 140A(1B)] |
|
Tax paid under section 140A to deemed to have been paid towards regular assessment [Section 140A(2)] |
225 |
Tax on Updated Return [Section 140B] |
226 |
Inquiry Before Assessment [Section 142] |
|
When can assessing officer make inquiry before assessment |
|
Assessing officer can issue a notice under section 142(1) to assessee asking him to furnish return of income even after the end of relevant assessment year |
|
Validity of notice under section 142(1) served even after the end of the assessment year |
|
Allowing prescribed authority to issue notice under clause (i) of sub-section (1) of section 142 |
|
Prescribed income-tax authority under second proviso to clause (i) of sub-section (1) of section 142 |
|
Notice issued and served on assessee beyond one year |
|
Restrictions on powers of assessing officer under section 142 |
|
Whom has the notice under section 142 to be served |
|
Requirements of a section 142(1) notice |
|
Contents of a section 142(1) notice |
|
Requirement of approval of Joint Commissioner |
|
Power to issue notice under section 142(1) available to assessing officer only |
|
Notice under section 142(1)--For the year of search and mention of section 153A in the notice |
|
Effect of non-compliance with section 142(1) notice |
|
Assessee to be given opportunity of being heard before using any material gathered in inquiry under section 143(2) |
|
Faceless inquiry |
|
Assessee was given less than 24 hours to respond to notice--Violation of principles of natural justice |
227 |
Direction for Special Audit/Inventory Valuation [Sections 142(2A) to 142(2D)] |
|
Point of time of direction for special audit being given |
|
Inventory valuation in a special audit |
|
CBDT guidelines for selection of cases for special audit under section 142(2A) |
|
Duty of assessee post direction for special audit |
|
Place where special audit has to be conducted |
|
Form prescribed for audit report |
|
Who can conduct a special audit? |
|
Special audit report to be filed |
|
Special audit fees and expenses |
|
Mode of furnishing of special audit report |
|
Guidelines for the purposes of determining expenses for audit |
|
Panel of accountants to be maintained by Chief Commissioner for the purposes of section 142A |
|
Special auditor's responsibilities |
|
Granting of hearing opportunity before issuing a direction for special audit |
|
Consequences of non-compliance with the direction under section 142(2A) |
|
Circumstances under which an audit under section 142(2A) may be directed |
|
Audit on the ground of multiplicity of transactions or specialized nature of business--Examination of books by AO first |
|
Direction for special audit may be given even if the assessee's accounts already stood audited |
|
Audit under section 142(2A) is independent of audit under section 44AB |
|
Time limit for furnishing report of special audit |
|
Auditor appointed at fagend of expiry of limitation period for assessment |
|
Complexity in accounts of assessee |
|
Mechanical approval granted by CIT just to extend limitation under section 153(1) |
|
Faceless direction for audit |
228 |
Reference to Valuation Officer [Section 142A] |
|
Point of time of making reference by assessing officer to a valuation officer |
|
Faceless valuation |
|
Faceless Inquiry or Valuation Scheme, 2022 |
|
Addition towards cost of construction |
|
Provisions of section 142A does not apply to case of purchase of ready built property |
229 |
Summary Assessment [Sections 143(1), 143(1A), 143(1B), 143(1)(C) & 143(1D)] |
|
Processing of summary return |
|
Meaning of expression "an incorrect claim apparent from any information in the return" |
|
Acknowledgment of return to be deemed as intimation |
|
CBDT empowered to make scheme for Centralised processing of returns |
|
Specified provisions of the Act which shall apply or shall not apply to Centralised Processing of Returns |
|
Centralised Processing of Returns Scheme, 2011 |
|
Processing of return not necessary where notice under section 143(2) is issued |
|
Denial of credit for tax deduction at source--Absence of original certificate of tax deducted at source |
|
Prima facie adjustment--Disallowance of employees' contribution to PF and ESI |
|
Dividend income being exempt--Not mentioned in schedule EI but shown as exempt under the schedule BP |
|
AO denied assessee's claim for deduction under section 80P on the ground that return was not filed within due date |
|
AO processed the return under section 143(1)--Disallowed claim of depreciation |
|
Disallowance of expenditure while processing return under section 143(1) by CPC--No apportunity was granted |
|
Disallowance of exemption under section 11 whilee processing return under section 143(1) |
|
Non-consideration of audit report available at time of processing of ITR |
|
Change of status in intimation under section 143(1) |
|
Revised return filed after intimation under section 143(1) |
|
Deduction under section 54 instead of section 54F claimed |
230 |
Scrutiny Assessment--General [Section 143(3)] |
|
Notice under section 143(2) when can be issued |
|
Duty of assessing officer to make assessment |
|
Restricting scope of first proviso to section 143(3) to certain associations and inserting new second proviso to take on trusts etc |
|
Assessing officer empowered to make recommendation for withdrawal of approval granted under section 35(1)(ii)/35(1)(iii) |
|
New scheme for assessment |
|
Ingredients of scrutiny assessment |
|
Consequences of Scrutiny Assessment |
|
Proceedings started in status of individual but assessment order passed in status of HUF |
|
Guidelines for compulsory selection of returns for complete scrutiny during the Financial Year 2022-23/2023-24 |
231 |
Notice for Scrutiny Assessment [Sections 143(2) & 292BB] |
|
Notice under section 143(2) when can be issued |
|
Prescribed Income Tax Authority--Asstt. CIT Dy. CIT (International Taxation), Circle-1 (1)(1), Delhi |
|
Prescribed authority under sub-section (2) of section 143 |
|
Circumstances which a notice under section 143(2) be issued |
|
Assessing officer need not give reasons for issue of notice |
|
Scope of notice under section 143(2) |
|
Requisites of notice under section 143(2) |
|
Notice under section 143(2) be issued only when any return furnished |
|
Notice under section 142(1) need not precede notice under section 143(2) |
|
Time limit for issuance of notice |
|
Service of notice after prescribed period of limitation |
|
Effect of section 292BB on notice under section 143(2) |
|
Non-issuance of section 143(2) notice--Applicability of section 292BB |
|
Consequence of notice served after period of limitation |
|
Date of service or date of issue of notice to be taken as base for deciding the limitation |
|
Effect of participation in proceedings by assessee |
|
Effect of non-service of notice under section 143(2) |
|
Absence of notice under section 143(2) invalidates assessment |
|
No notice under section 143(2) issued--Whether non-service can be cured by section 292BB |
|
Service of notice on minor child |
|
Notice issued in the name of deceased person--AO never informed about death of assessee before issuance of notice |
|
Notice issued under section 143(2) on the basis of original return of income instead of revised return filed by assessee |
|
Time limit for notice under section 143(2) where revised return filed |
|
Notice under section 143(2) not issued/served within limitation period |
|
Passing of assessment order by AO not having issued section 143(2) notice |
|
Belated service of notice under section 143(2)--Validity of assessment order |
|
Notice not issued on new address |
|
No valid service of section 143(2) notice |
|
Assessee pleading non-issuance of notice pursuant to second revised return--Original return not treated as non est |
|
Failure to issue notice under section 143(2) while framing the assessment on the basis of revised return, filed within stipulated time |
|
Issuance of section 143(2) notice by non-jurisdictional assessing officer |
|
Section 143(2) notice initially issued by AO not having jurisdiction over assessee--Issuance by correct jurisdiction AO beyond limitation period |
|
No service of notice under section 143(2)--Assessee did not dispute service of notice issued under section 143(2) before lower authorities |
|
Notice issued under section 143(2) beyond period of limitation |
|
Issuance of section 143(2) on the spot at the time of filing of return without examining return filed by assessee |
|
Show cause notice was not served to assessee via e-mail and was only uploaded on revenue's website |
|
Non-issuance of notice under section 143(2) |
|
Assessment under section 143(3) read with section 115BBE--Addition on account of unaccounted investment inland recorded in the seized document |
|
Non-issuance of section 143(2) notice--Year under consideration being search year but assessment framed under section 143(3), and not under section 153A |
|
Assessee alleging that notice under section 143(2) dt. 18-11-2016 turned out to be beyond the statutory period of six months from the end of the financial year in view of the revised return filed on 16-11-2015 |
|
Notice issued and served beyond specified time limit--Validity |
232 |
Scrutiny Assessment Proceedings [Sections 143 and 144A] |
|
Nature of assessment proceeding |
|
Assessment order shall indicate the basis or material |
|
Assessment when bad in law |
|
Power of Joint Commissioner to issue instructions to the assessing officer |
|
Addition on the basis of entry in Form No. 26AS |
|
Addition on the basis of AIR information |
|
Where there was difference between AIR and the books of account |
|
Addition on basis of inflated stock statement submitted to bank |
|
Only peak amount should be added |
|
Addition towards low household expenses on ad hoc basis--Effect of |
|
Low household withdrawals--Assessee's mother having sufficient income |
|
Alleged low household expenses |
|
Ad hoc disallowance on account of household withdrawals |
|
Additions towards suppressed sales and closing stock--Return filed under section 44AD |
|
Ad hoc rate of commission applied by AO on purchase of goods without rejecting books of account |
|
Ad hoc disallowance not justified where genuineness of expenditure not doubted |
|
Annual letting value computed by AO without deducting rental refunded back to tenant and excluding service tax portion from gross rental charged |
|
Assessee working on lower gross profit ratio due to competition--Justifiability of addition |
|
Difference between incomes disclosed in TDS certificate and declared in return arising due to cash system of accounting followed by assessee |
|
Disallowance made without pointing out any defect |
|
Assessment in name of non-existent company--Whether valid |
|
Case of assessee was selected for limited scrutiny on issue of cash deposits in bank accounts being more than turnover--AO made addition on account of profit allegedly earned by assessee on undisclosed turnover |
|
AO cannot go beyond the points of scrutiny without converting it into a complete scrutiny |
|
Conversion of case from limited scrutiny to complete scrutiny on basis of suspicion |
|
Limited scrutiny notice issued under section 143(2) converted into normal (complete) scrutiny without approval from competent authority |
|
AO made addition on an issue which was not the subject matter of limited scrutiny without making addition on two counts for which case was selected for limited scrutiny--No approval taken by AO from Pr. CIT/CIT for converting limited scrutiny to full scrutiny |
|
No addition made for issue in notice in limited scrutiny |
|
Conversion of limited scrutiny into complete scrutiny--Order made on next day |
|
Conversion of limited scrutiny to complete not communicated to assessee--Effect on assessment |
|
Conversion of limited scrutiny to complete--Procedure not followed |
|
New claim at the time of assessment though not made in ITR |
|
Assessee inadvertently offered exempt income to tax--AO/CPC taxed the same |
|
Examination of receipt of interest on enhanced compensation under section 28 of Land Acquisition Act, 1894 in a limited scrutiny on issue of large value FDRs |
|
Reliance on statement of third party--Where assessee not allowed to cross-examine the third party |
|
Notional interest on partner's debit balance |
|
Validity of report of departmental Valuation Officer (DVO) furnished beyond limitation |
|
AO doubted transaction of purchase of land from spouse based on difference between purchase price declared by assessee vis-a-vis Jantri Value |
|
AO disallowed commission expenses without pointing out any defect |
|
Addition towards sale proceeds of the agricultural produce--Assessee produced all the documentary evidences towards ownership of land and towards carrying on agricultural activities |
|
Inadvertent mention of section 153A in assessment order |
|
AO did not reject books of account of assessee but made lump sum disallowance of contract expenses |
|
Revised computation of income not considered by AO due to non-filing of revised return of income |
|
Disallowance of prior period expenses |
|
Expenditure claimed in respect of bills received during concerned assessment year though work/services was received in earlier year |
|
Part of cash deposits in bank account accepted as turnover from business on presumptive basis under section 44AD and remaining amount treated as unexplained investments under section 69 |
|
Proprietorship business of assessee got converted to limited company--Confirmation towards repayment of earlier advances not filed by assessee |
|
Assessee claimed to receive cash deposits and filed indemnity bonds from farmers--Cash deposits, whether unexplained income of assessee |
|
Amount credited by AO as 'Income from financial transactions receivable' was in respect of income already credited by assessee under the head' income from financial transactions' |
|
AO made estimated addition on account of payment made to brokers |
|
Assumption of territorial jurisdiction in case of transfer of assessee's case |
|
Addition towards gross profit |
|
Difference between gross amount of income shown in the books of account vis-a-vis in Form 26AS issued by revenue--Reconciliation statement furnished by assessee but not considered by AO |
|
Difference in revenue offered to tax and in Form No. 26AS--Exchange differences |
|
Difference in receipts as per 26AS Statement and as shown by assessee--Ex parte order |
|
Addition to income--Mismatch in ITS/26AS |
|
Treatment of security deposit against rented premises |
|
Addition made on basis of information available with Department--Information not furnished to assessee |
|
Lump sum disallowance out of the expenses claimed by assessee--No specific defect or bogus vouchers observed by AO |
|
Alleged claim of bogus loss from transaction in future and options (F&Os)--Reliability of statements obtained by AO during survey of a third party |
|
Forfeiture of earnest money on non-completion of work by contractors |
|
AO based on loose papers impounded during survey proceedings under section 133A at business premises made addition in assessee's hands |
|
Disallowance of expenses supported by self-made voucher |
|
Estimation of income on bank deposits |
|
Disallowance of part of the expenses alleging personal use |
|
Taxability of on-money |
|
AO made addition towards unaccounted sales--On the basis of statements recorded behind the back of assessee and without giving any proper opportunity to the assessee to rebut the same by cross examination |
|
Only profit element out of unrecorded receipts can be taxed |
|
Disallowance under section 40A(3) and unrecorded incomes |
|
Only 8% of receipts to be taxed |
|
Where assessee wrongly reported income |
|
Addition on basis of tax audit report |
|
Non-issuance of notice under section 142(1) not to invalidate assessment |
|
Pick and choose manner to fasten high tax liability upon assessee |
|
Cash deposits into bank accounts--Assessee was acting as money transfer agent on behalf of the parties engaged in ceramic manufacturers |
|
Assessee was engaged in the business of giving Hawala loans--AO made addition of entire amount of accommodation entries |
|
Disallowance of prior period expenses--Assessee also having shown prior period income |
|
Past saving treated as unexplained income on arbitrary basis |
233 |
Addition Towards Bogus Purchases |
|
Prologue |
|
Genuineness of purchases could not be doubted where supplier provided all details |
|
Bogus purchases not proved by revenue--Addition on that count deleted |
|
Addition on the ground of bogus purchases cannot be made where gross profit rate had already been applied |
|
Bogus purchases--Only profit element to be added |
|
Non-appearance of supplier but assessee producing supporting documents |
|
Notices issued for correctness of purchases made--Response not received |
|
Where identity of suppliers established |
|
Where quantitative tally of sales was furnished |
|
Purchases properly recorded in books |
|
Addition only on basis of information from sales tax department/excise department |
|
Where assessee proved genuineness of purchases |
|
Where sales made by assessee not doubted |
|
Where sales made by suppliers not doubted |
|
No addition merely because seller declared as hawala dealer |
|
No proof that amount returned back to assessee |
|
Addition on account of allegedly unverifiable purchases |
|
Purchases proved to be genuine |
|
Where assessee produced all details |
|
Net result of bogus purchase and sales need be taxed only |
|
Purchase and sale both need be declared bogus |
|
Assessee failed to prove sales |
234 |
Faceless Assessment |
|
Nature of section 144B(1) |
|
Which assessments will be made in faceless manner |
|
Faceless assessment--What is? |
|
Assessment not made as per the section 144B shall not be non-est |
|
Omission of sub-section (10) of section 144B |
|
Authentication of electronic record |
|
Service of notice or order |
|
Filing of response |
|
Issue of notice and filing of response thereto |
|
Time and place of dispatch of electronic record |
|
E-mail address to be used for communication |
|
Personal appearance and video conferencing |
|
Important terminologies |
|
Prescribed manner of authentication of an electronic record under electronic verification code under sub-clause (b) of clause (i) of sub-section (7) of section 144B |
|
Non-grant of personal hearing vitiates assessment |
|
Where order passed before due date for reeply to SCN |
|
Validity of assessment order passed not in accordance with section 144B |
|
Non-serving of show cause notice and draft assessment order on assessee |
|
Non-issuance of draft assessment order doing with show-cause notice to give explanation for proposed addition before NFAC |
|
No draft assessment order served |
|
Assessee provided with less than 30 hours to respond to no notice |
|
Assessee provided with only one day to respond to draft assessment order |
|
AO without issuing any further notice or specific show-cause notice or draft assessment order, proceeded to frame assessment |
235 |
Best Judgment Assessment [Section 144] |
|
Point of time when section 144 gets attracted? |
|
Procedure for making best judgment assessment |
|
Necessity of opportunity of hearing granted |
|
Determination of income or loss be determined |
|
Consequence of failure to furnish return so as to authorise making of best judgment assessment |
|
Best judgment assessment, how to be made |
|
Best judgment assessment to be in accordance with fair play and natural justice |
|
When best judgment assessment be made at the discretion of assessing officer |
|
Scope of limited scrutiny--Alleged lower income from other sources as compared to large value fixed deposits--Examination of receipt of interest on enhanced compensation under section 28 of Land Acquisition Act, 1894 |
|
Estimation of income--Assessee engaged in providing accommodation entries--Only commission to be added |
|
Where ample opportunities arise given |
|
Section 143(2) notice issued by AO not having jurisdiction over assessee |
|
Opportunity of being heard not given to assessee |
|
Addition while passing ex-parte assessment order under section 144--Estimation of income of assessee |
|
Assessee neither furnished necessary materials nor books of account during enquiry by AO--Arbitrary adoption of percentage |
|
Notice issued was not disputed by assessee |
|
Issue never adjudicated upon |
|
Rejection of books not necessary before invoking section 144 |
|
Where assessee did not file return |
236 |
Dispute Resolution Mechanism [Section 144C] |
|
Introduction |
|
Salient features of dispute resolution mechanism |
|
Faceless direction by DRP |
|
Passing of final assessment order without issuing draft assessment order |
|
Rejection of assessee's objections by DRP on account of non-appearance of assessee on the hearing date |
|
Passing of order titled as draft assessment order along with notice of demand and penalty notice |
|
When section 144C does not apply to assesse |
|
Part XXV--Method of Accounting, Valuation of Stock and ICDS [Sections 145, 145A & 145B] |
237 |
Accounting Method [Section 145] |
|
Computation of income from business and income from other sources |
|
Accounting method adopted to be followed consistently |
|
Power of Central Government to notify income computation and disclosure standards |
|
Power of assessing officer to reject books of accounts |
|
Addition without rejecting books of accounts |
|
Principles applicable regarding choice of method of accounting |
|
Choice of method of accounting lie with the assessee |
|
Assessee can change his method of accounting |
|
Change in the method of accounting be bona fide |
|
Books of account cannot be rejected without pointing out defect |
|
AO rejected cash system without pointing out specific defects |
|
Method of accounting where assessee selling ready flats to buyers |
|
Advance subscription received by assessee |
|
Instances where rejection of accounts held to be justified |
|
Instances where rejection of accounts held not to be justified |
|
Incoherent action under section 145 without even examination of books of assessee |
|
Rejection of account reason, non-maintenance of stock register and adoption of incorrect method of stock valuation |
|
Rejection of books only because stock register not maintained |
|
Rejection of books--Whether possible at the instance of assessee |
|
Difference in stock arising due to confusion--No addition of permissible only because of admission in survey |
|
Bogus purchases--Only profit element to be added |
|
AO made simultaneous addition on account of bogus purchase and GP addition for same default |
|
Special audit and consequent additions--Whether amounts to rejection of books |
|
Cash to mercantile system consistently followed |
|
Hire purchase agreement--Adoption of EMI vis-a-vis SOD method |
|
Income recognition where invoices not raised |
|
Trading addition, specifically GP rate |
|
Method of accounting if no accounts have been maintained |
|
Applicability of AS-7 and AS-9 to seperately identifiable components of single contract |
|
Determination of contract revenue--Service tax and VAT |
|
Estimation of net profit--Consideration of past history |
|
Addition made to Low gross profit--There was no contrary evidence brought on record by AO to establish that books of account maintained by assessee are unreliable |
|
Whether rejection of the books of account would automatically justify the addition made by AO |
|
Estimation of higher profit rate on account of rejection of books for technical reasons, i.e., discrepancy in seized material--No defect found in books of account |
|
Assessee consistently adopted ESM method for taxability of interest income but adopted IRR method in its Book of Accounts on the basis of Guidelines issued by ICAI |
|
Change in accounting policy--Assessee classified capital spares under the head fixed assets and claimed depreciation as against amortization as per straight line method adopted in preceding years |
|
Reason, non-maintenance of stock register and adoption of incorrect method of stock valuation |
|
Estimation of profit at higher rate merely on basis of suspicion and conjectures, however, without rejection of books |
|
Estimation of GP rate--Discrepancies pointed out by AO were mere typographical errors |
|
Allegation of reducing profit by obtaining non-genuine bogus purchase bills |
|
AO made addition on account of non-recognizing the revenue on the basis of Percentage of Completion Method ('POCM') |
|
Estimation of income--Application of NP rate |
|
Increase in margin accompanied by losses--AO alleged unaccounted turnover |
|
Addition alleging understatement of profits in respect of the projects accounted under percentage completion method--Reason, progress billing was more than stage of completion |
|
Project Completion Method' or 'Percentage Completion Method' |
|
Application of percentage completion method--How to be made |
|
AO made addition on account of non-recognizing the revenue on the basis of Percentage of Completion Method ('POCM') |
|
AO rejected assessee's books based on statement recorded during survey retracted later on |
|
Assessee followed Percentage Completion Method (PoCM)--Estimation of income |
|
Addition made on estimate basis in respect of residential as well as commercial projects--Books not rejected |
|
Rejection of books of account--No books available at time of survey |
|
Non-production of the VAT return of the creditors |
|
Rejection of books of account--No specific defects in the books pointed out--Rejection uncalled for |
|
Alleged non-production of books of account and relevant documents |
|
Application of NP rate--Assessee indulged in providing bogus accommodation entries |
|
Additions based on deposits made in bank account of assessee |
|
Addition on account of difference in revenue recognized as per books of account and as per Form 26AS--Assessee submitted that difference occurred due to different accounting policies being followed by it and its payers/customers |
|
Estimation of net profit--Validity of |
|
AO rejected completed contract method of accounts |
|
Estimation of profit--Books of account were audited and the same were not rejected on proper ground |
|
AO adopted profits of business @ 10% on gross receipts of Rs. 13,91,80,000 which included all expenses, depreciation, deductions, etc |
|
Estimation of profit--Assessee pleaded books of account were audited |
|
Rejection of books on Low gross profit rate compared to preceding year--No specific defect in books of account pointed out by AO |
|
Where assessee following one of the recognised methods |
|
Transfer price of stock cannot be decided by AO |
|
Assessee had not followed matching principle while apportioning the income over the period of 21 years by not apportioning the expenditure over a period of 21 years |
|
Assessee not having availed of benefit of presumptive taxation scheme under section 44AD requested for assessing income in terms of section 44AD |
|
Contract Revenue Recognition--Real income |
|
Taxability of retention money--Consequential to ICDS amendments |
|
Income computation and disclosure standards notified by government |
238 |
Valuation of Stock [Section 145A] |
|
A. Provisions Applicable from Assessment Year 2017-18 |
|
Method of accounting in certain cases |
|
B. Principles Regarding Stock Valuation |
|
Valuation of stock is to be made on the last day of the accounting year |
|
Method to be in accordance with well accepted accounting principles |
|
Year for the purposes of valuation of stock should be a period of 365 days |
|
Adjustment made in value of closing stock and effect on value of opening stock |
|
Closing stock to be taken as opening stock of the next year |
|
Two different methods cannot be used for valuing closing stock |
|
Valuation accepted by sales tax authorities--Effect of |
|
Method of valuation of closing stock regularly employed--Resulting in having notional profits to be rejected |
|
Adjustment to effect both opening and closing stock |
|
Addition towards interest attributable to bringing inventory to its present location |
|
Valuation of the closing stock--LIFO or FIFO method |
|
C. Valuation Under Particular Circumstances |
|
Valuation of stock inherited |
|
Treatment of foreign exchange fluctuation |
|
Goods where saleable in foreign market only |
|
Subsidy yet to be received from the government |
|
Treatment of bonus paid to employees |
|
Closing stock lying at quarry |
|
Goods where of inferior quality |
|
Valuation of goods meant for export |
|
Valuation of stock of uncleared goods |
|
Treatment of cess in the value of closing stock |
|
Inclusion of warranty amount |
|
Case of fall in gross profit rate |
|
Valuation using average prices |
|
Valuation of stock of garments which allegedly became out of fashion |
|
Assessee engaged in trading and manufacture of gold oranments |
|
Method to be in accordance with well accepted accounting principles |
|
Treatment of outright freight on manufactured goods |
|
Method of valuation of the marble blocks--Defective stock |
|
D. Treatment of GST |
|
Exclusive versus inclusive method |
|
Assessee following exclusive method of accounting for valuation of stock |
|
Exclusive method--Assessee claimed deduction only for those taxes for which credit was not availed |
|
E. Business Reorganisations |
|
Valuation of stock of a firm in liquidation |
|
Stock taken over from amalgamating company |
|
Opening stock of erstwhile firm |
|
Transfer of business as going concern |
|
Dissolved firm taken over by reconstituted firm |
|
Valuation of stock where business of firm did not cease on death of partner |
|
Closing stock to be valued at lower of cost or market value where surviving partner continues the business |
|
Conversion of firm into private limited company |
|
Where proprietary business converted into partnership business |
|
Dissolution where had taken place on death of one of the partners |
|
F. Service Contracts |
|
Applicability of provision of section 145A to service contract |
|
Service tax billed to service receivers--Whether includible as trading receipt |
239 |
Income Computation and Disclosure Standards (ICDS)--An Overview [Section 145(2)] |
|
Central Government notified new ICDSs effective from assessment year 2017-18 and onwards |
|
Applicability of ICDSs |
|
Assessees required to follow ICDSs |
|
Provisions of Act to prevail over ICDSs |
|
ICDS I : ACCOUNTING POLICIES |
|
Accounting policies |
|
Consideration in selection and change of accounting policies |
|
Change of accounting policy |
|
Disclosure of accounting policies |
|
ICDS II : VALUATION OF INVENTORIES |
|
Applicability/non-applicability of ICDS II |
|
Meaning of inventories |
|
Measurement of inventories |
|
Net realisable value |
|
Value of opening inventory |
|
Change in method of valuation of inventory |
|
Valuation of inventory in case of certain dissolutions |
|
Disclosure requirements |
|
ICDS III : CONSTRUCTION CONTRACTS |
|
Applicability of ICDS III |
|
Construction contract-defined |
|
Nature of a construction contract |
|
Types of construction contracts |
|
Contract covering number of assets |
|
Contract revenue |
|
Meaning of retentions and its taxability |
|
Contract costs |
|
Costs not attributed to any contract activity |
|
Allowability of future and anticipated losses |
|
Recognition of contract revenue and expenses |
|
Changes in estimates |
|
Disclosure requirements |
|
ICDS IV : REVENUE RECOGNITION |
|
Applicability/non-applicability of ICDS IV |
|
Meaning of revenue |
|
Recognition of revenue from sale of goods |
|
Recognition of revenue from rendering of services |
|
Use of resources by other yielding interest, royalties or dividends |
|
Disclosure |
|
Where loan portfolio sold to Special Purpose Vehicle (SPV) then money received against such loan portfolio is not interest : ICDS-IV not applicable |
|
ICDS V : TANGIBLE FIXED ASSETS |
|
Effective date of applicability of ICDS V |
|
Scope of ICDS V relating to tangible fixed assets |
|
Applicability/non-applicability of ICDS V |
|
Stand-by equipment/servicing equipment and machinery spares |
|
Determination of actual cost of tangible fixed assets |
|
Expenditure forming part of cost |
|
Expenses not forming part of cost |
|
Borrowing costs |
|
Self-constructed tangible fixed assets |
|
Treatment of non-monetary consideration |
|
Improvements and repairs |
|
Addition or extension to an existing tangible fixed asset |
|
Valuation of tangible fixed assets in special cases |
|
Allowability of depreciation |
|
Treatment of transfers |
|
Disclosure requirements |
|
ICDS VI : THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES |
|
Applicability of ICDS VI |
|
Effective date of applicability of ICDS VI |
|
Initial recognition of a foreign currency transaction |
|
Conversion at last date of previous year |
|
Recognition of exchange differences |
|
Exceptions to principles contained in Paragraphs 3, 4, and 5 |
|
Financial Statements of Foreign Operations |
|
Forward exchange contracts |
|
ICDS VII : GOVRNMENT GRANTS |
|
Effective date of applicability of ICDS VII |
|
Applicability/non-applicability of ICDS VII |
|
Meaning of Government and Government grant |
|
Recognition of Government Grants |
|
No postponement of recognition beyond actual receipt |
|
Treatment of Government Grants |
|
Refund of Government Grants |
|
Refund of Government grant related to depreciable fixed assets or assets |
|
Disclosure requirements |
|
ICDS VIII : SECURITIES |
|
Applicability/non-applicability of ICDS VIII |
|
Securities--Defined |
|
Recognition of securities |
|
Subsequent measurement of securities |
|
Securities not listed on a recognised stock exchange |
|
Measurement of cost on First-in-First-out method |
|
Classification, recognition and measurement of securities held by a scheduled bank or public financial institutions |
|
|
|
Applicability of ICDS IX |
|
Effective date of ICDS IX |
|
Meaning of borrowing costs |
|
Recognition of borrowing costs |
|
Determination of borrowing costs eligible for capitalisation |
|
Borrowing costs eligible for capitalisation |
|
Commencement of capitalisation |
|
Cessation of capitalisation |
|
Construction of qualifying asset having completed in part--Capitalisation of borrowing costs |
|
Disclosure requirements |
|
ICDS X : PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS |
|
Applicability/non-applicability of ICDS X |
|
Executory contracts--Defined |
|
Provision--Defined |
|
Recognition of provisions |
|
Measurement of provisions |
|
Reimbursement not to exceed amount of provision |
|
No liability for payment of cost towards third party |
|
Review of provisions |
|
Use of provisions |
|
Disclosure requirements vis-a-vis provision |
|
Meaning of contingent assets |
|
Recognition of contingent assets |
|
Measurement of amount recognised as asset |
|
Review of an asset and related income |
|
Disclosure required vis-a-vis assets and related income |
|
Meaning of contingent liabilities |
|
Contingent liabilities are not to be recognised |
|
When is an obligation regarded as contingent liability |
|
Continuous assessment of contingent liability |
240 |
Taxability of Certain Incomes [Section 145B] |
|
Taxability of certain incomes |
|
Part XXVI--Reassessment [Sections 147 to 152] |
241 |
Reassessment [Sections 147 to 152] |
|
I. new procedure for reassessment [Section 147 to 149, 151] |
|
Power to reassess [Section 147] |
|
Power extended to assess any other income also |
|
Procedure before issuing notice for reassessment [Section 148A] |
|
Issuance and service of notice [Section 148] |
|
Time to file return in response to notice under section 148 enhanced and also failure to file return in response to section 148 notice have to have serious consequences |
|
Conditions precedent for issuance of notice |
|
Guidelines for issuance of notice under section 148 of the Income Tax Act, 1961 |
|
When information can be said to suggestive of escapement |
|
Deemed information in possession |
|
No order of reassessment to be passed by officer below rank of Joint Commissioner without prior approval in certain cases [Section 148B] |
|
Time limits for reopening the assessment [Section 149] |
|
How monetary limit of Rs. 50 lakhs to be determined |
|
Extension of time to issue notice under section 148 in search cases |
|
Where time for issue of notice is not exceeding 7 days then period shall be extended to 7 days |
|
Sanction for issue of notice |
|
Sanction for issuance of notice under section 148 |
|
Faceless reassessment |
|
Effect of Supreme Court judgment in UOI v. Ashish Agarwal, 2022 TaxPub(DT) 3105 (SC) : (2022) 444 ITR 1 (SC) |
|
Validity of notices issued between the period 1-4-2021 to 30-6-2021 later re-issued post Supreme Court judgment |
|
Notice directly issued under section 148 on 30-6-2021--Assessee took plea of section 148A |
|
Which notices can be issued during the year 2023-24 |
|
Notices which can be issued in search cases |
|
Section 148A and survey cases |
|
Implementation of the Judgment of the Hon'ble Supreme Court dated 4-5-2022 (Union of India v. Ashish Agarwal, 2022 SCC Online SC 543) |
|
New scheme of reassessment explained |
|
Important observations of Delhi High Court |
|
Maintainability of writ |
|
Information received by AO to be verified before notice under section 148A |
|
Writ against order under section 148A |
|
Where partnership stood dissolved |
|
Issuance of notice after 31-3-2021 |
|
Where statutory period of seven days not given |
|
Notice under section 148A(b)--Assessee had not been given adequate time to respond |
|
Change in allegation in notice under section 148A(b) and order under section 148A(d) |
|
Undue haste in passing the order under section 148A(d) and cost also imposed on AO |
|
Reply to be considered |
|
Adequate time to be provided to furnish reply |
|
Adequate time to be provided to furnish reply |
|
Change in stand |
|
Where details not provided |
|
Notice under section 148 issued without having prior mandatory approval required under section 151(2) |
|
Issuance of notice under section 143(2), whether mandatory |
|
Time of issuance of notice--When AO digitally signed notice or when received by assessee on its regd. e-mail id |
|
Order under section 148A(d)--Submissions by assessee under section 148A(c) to be given due weightage |
|
Order under section 148A(d) passed on conjectures and surmises |
|
Assessee took plea of proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC) |
|
Signing of notice v. Service of notice |
|
Assessee pleaded that AO without application of mind, without considering the material placed on record and reply, mechanically passed the order under section 148A |
|
Order under section 148A(d)--Violation of principles of natural justice |
|
Notices issued under section 148A(b) were notices of initial enquiry under section 148A(a) |
|
Order under section 148A(d) passed without verification of the information which was available with the AO at the time of issuance of notice under section 148A(b) |
|
Order under section 148A(d) quashed for not reaching proper conclusion |
|
Order passed under section 148A(d)--As argued non-compliance of the request to provide the complete information about the insight portal report based on which the notice under section 148A(b) |
|
No monetary requirement for notice upto 3 years |
|
Where monetary limit as per section 149(1)(b) is not met, no action under section 148 can be taken |
|
Validity of notice under section 148A post Supreme Court judgment--Where earlier notice was issued upto 31-3-2021 |
|
Where alleged escapement is below Rs. 50,00,000 and period is more than 3 years |
|
Notice generated on ITBA portal on 31-3-2021 but not dispatched--When can be said to have been issued |
|
Where assessee submitted to jurisdiction of AO |
|
Notice under section 148A(b) on one property and order under section 148A(d) on another property |
|
Notice issued to the deceased assessee during her lifetime |
|
Notice to dead person where revenue was intimated by LRs |
|
Service of notice on e-mail id of erstwhile auditor |
|
Notice served on e-mail where assessee was not computer literate |
|
Objections to notice under section 148 filed by assessee was rejected by AO in a very mechanical manner |
|
Order passed by AO under section 148A(d) violating statutory time period as well as principles of natural justice |
|
Notice also issued under section 148A(b) as well as under section 148A(d) by non-jurisdictional AO |
|
Proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC) cannot be pressed into service to dilute the rights of the IT Department under the IT Act, 1961 to re-open assessment under section 148 |
|
Assessee claimed to have been dissolved but both PAN and bank account was operational--Validity of notice under section 148A(b) |
|
Cash deposits and reassessment |
|
Issuance of notice only on basis of cash deposits |
|
Unsigned notice cannot confer jurisdiction to reassess |
|
Notice served on wrong e-mail id |
|
Notice served on secondary e-mail id |
|
Effect of return filed in response to notice under section 148 |
|
Signing of notice v. Service of notice |
|
Where assessee explained all transactions |
|
What constitute information for the purposes of section 148A |
|
AO did not consider assessee's submissions--Matter set aside for reconsideration by the AO vis-a-vis assessee's submissions |
|
Reopening notice to non-existent company |
|
Bogus LTCG |
|
Order passed on basis of illegal and invalid order of TPO without following due procedure of section 144C |
|
Non-speaking, unreasoned and laconic order |
|
Assessee pleaded name of the company having been struck off from register of companies--Assessee did not inform AO about striking off name of the company from the Register of companies |
|
During subsistence of a reassessment proceedings, whether another reassessment notice can be issued for same assessment year |
|
Notice issued in the name of assessee who passed away |
|
Where information relied upon not provided to assessee |
|
II. Other Reassessment Specific Issues [Sections 150 and 152] |
|
Reassessment at any time in pursuance of court order |
|
Circumstances where under section 150(1) shall not apply |
|
Charge of tax in reassessment |
|
Right of assessee in reassessment |
|
Part XXVII--Period of Limitation [Section 153] |
242 |
Limitation as to Assessment and Reassessment [Section 153] |
|
Time limits for completion of assessment |
|
Exclusions |
|
Time limit for completion of assessment and reassessment in case of order passed in consequence of or to give effect to any finding or direction contained in an order under sections 250, 254, 260, 262, 263 or section 264 or in an order of any court in a proceeding otherwise than by way of appeal or reference under the Act |
|
Order framed within time-limit served beyond that date |
|
Assessment order not passed within time limit |
|
Validity of assessment order without DIN |
|
Part XXVIII--Rectification of Mistake and Rectification in Certain Specified Cases [Sections 154, 155, 156, 156A and 157A] |
243 |
Rectification of Mistake [Section 154] |
|
A. General |
|
Mistakes that can be rectified under section 154 |
|
Orders that can be rectified |
|
Rectification of TDS/TCS intimations |
|
Who can seek rectification of mistake apparent from the record |
|
Competent authorities to rectify a mistake apparent from records |
|
Rectification of order passed by the Tribunal |
|
Nature of rectification proceeding |
|
Faceless rectification |
|
B. Record and Mistake Apparent from Record |
|
Meaning and scope of the term 'record' for the purpose of section 154 |
|
Meaning and scope of 'mistake apparent from record' |
|
Instances of mistake apparent from record |
|
Addition of prior period income reduced from total income in the computation furnished by assessee |
|
Assessment of HUF as working partner in firm |
|
Assessee making new claim in rectification application in terms of decision of Jurisdictional High Court or Supreme Court |
|
Share premium treated as unexplained credit added by AO while computing book profit under section 115JB |
|
Mistake in intimation issued under section 143(1) in as much as long-term capital losses carried forward from earlier years were not set off against long-term capital gain for year under consideration |
|
Section 143(1) intimation was received by assessee at the time when time for filing revised return had expired |
|
Withdrawal of depreciation on plea that assessed income became less than the returned income |
|
Disallowance under section 40A(3) |
|
Non-granting of interest under section 244A on self-assessment tax paid |
|
C. Time Limit for Passing Rectification Order |
|
Time limit for rectifying or amending an assessment order |
|
Condition of delay in making application for rectification |
|
Time limit for making a second rectification |
|
Time limit for passing rectification order by the income-tax authority |
|
Allowability of rectification where there is difference of opinion among two judges of jurisdictional High Court |
|
AO counted limitation of 4 years from the date of intimation under section 143(1)--Assessee sought for counting of limitation from the date of passing of assessment order under section 143(3) |
|
Cut off time limit for 154(7) how reckoned |
|
D. Miscellaneous Issues Relating to Section 154 |
|
Rectification can be sought where only one interpretation is possible |
|
Rectification of order where appeal is preferred against such order or a revision of such order |
|
Serve of notice on the assessee/deductor/collector before passing a rectification order |
|
Necessity of rectification order under section 154 in writing |
|
Duty of the assessing officer where amendment has the effect of reducing or enhancement of assessment |
|
Rectification of order passed by High Court |
|
Possibility of rectification of order passed by an assessing officer by any other authority |
|
Rectification of order passed by an appellate authority by the assessing officer |
|
Review of order in the garb of rectification |
|
Interest on interest on refund cannot be allowed by invoking rectification jurisdiction |
|
Rectification where more than one view is possible on an issue |
|
Remedy against rectification order passed under section 154 |
|
Rectifiable order can be said to be final order |
|
Rectification order can which is contrary to the retrospective amendment of law |
|
Difference between rectification proceeding under section 154 and reassessment proceeding under section 147 |
|
Rectification of notice of demand issued under section 156 |
|
Alteration of status of assessee in rectification proceeding |
|
Difference between rectification proceedings and appellate proceedings |
|
Rectification of penalty order |
|
Rectification of order passed under section 273A for waiver of interest |
|
Relief under proviso to section 112(1) can be claimed via rectification application |
|
Interest under sections 234A, 234B and 234C can be charged in rectification proceeding |
|
Settlement Commission empowered to reopen concluded proceedings by taking recourse to section 154 |
|
Rectification of an order on the basis of decisions of High Court and Supreme Court |
|
How many times an order may be rectified |
|
Rectification order can be further rectified |
|
Where demands have been paid or have been reduced to Nil in the appeal or rectification, however, the assessing officer has wrongly uploaded the same on CPC portal, can the assessing officer deny rectification thereof on the ground that limitation period of four years under section 154(7) had expired |
|
Maintainance of writ against a notice for rectification of mistake |
|
Maintainance of writ petition against non-passing of order under section 154 |
|
Use of records of a particular assessment year in another assessment years for rectification |
|
Rectification of an intimation issued under section 143(1) |
|
Rectification of assessment at the instructions of a superior officer |
|
Relief to be allowed by assessing officer in proceeding under section 154, which was not unclaimed in the original assessment proceeding |
|
Decision for a later assessment year forms a basis for rectification for an earlier assessment year |
|
Assessing officer cannot go beyond the records and look into the fresh evidence or materials |
|
Enhancement of income in rectification proceedings--Without allowing opportunity to assessee |
|
Assessee whether manufacturer or not |
|
Disallowance made by AO under rule 8D |
|
Rectification made on the basis of outcome of enquiry received subsequent to conclusion of assessment proceedings |
|
Rectification application rejected in sketchy and mechanical manner without affording any other opportunity of hearing |
|
Non-grant of the credit of TDS and DDT |
|
Unabsorbed depreciation--As per AO, no brought forward loss available for set off against current year's income |
|
Denial of deduction under section 80P due to late filing of return--Rectification application dismissed on incorrect assumption that merits of deduction was contended by assessee |
|
Profit on sale of show-room remained to be reduced while computing profits under section 115JB |
|
Assumption of jurisdiction on reassessment order quashed by CIT(A) as void ab initio |
|
Debatable issue cannot be rectified |
|
Salary earned outside India erroneously offered in return of income |
|
Rectification proceeding initiated consequent to an audit objection--The objection was debatable |
|
Disallowances under section 43B highlighted in Tax Audit Report--AO failed to take it into consideration |
|
Disallowance under section 40A(3) cannot be treated as mistake apparent from record |
|
Setting up of a new claim of exemption under section 10(23C)(iiiad) for the first time through a rectification application--Validity |
|
Assessee sought rectification of order passed under section 143(3) |
|
No deduction under section 80P claimed in return of income |
|
Non-granting of interest under section 244A on self-assessment tax paid--Mistake apperent |
|
During the pendency of the proceedings under section 154 of the Act, it was not permissible for the Revenue to initiate reassessment proceedings under section 147/148 |
|
Claim for the first time by filing rectification application under section 154--Admissibility |
|
AO sought to charge specific tax under section 115BBE as regards addition for which no specific section was invoked while framing assessment |
244 |
Rectification in Certain Specified Cases [Section 155] |
|
Faceless rectification |
|
Modification of assessment under sub-section (1) of sectoin 155 |
|
Rectification where during any rectification, revision, or appellate proceeding in respect of any completed assessment of a firm it is found that any remuneration to any partner is not deductible under section 40(b) |
|
Proceedings under section 155(1A) different from rectification proceeding under section 154 of the Act |
|
Modification of assessment of a member of an AOP/BOI when it is found that the share of the member in the income of the association or body, has not been included in the assessment of the member or, if included, is not done correctly |
|
Modification of assessment consequence to recomputation of loss or depreciation |
|
Withdrawal of excess deduction in respect of expenditure on scientific research |
|
Where section 47A becomes applicable |
|
Where capital gains becomes chargeable under section 54E |
|
Modification of an assessment consequent to receipt of enhanced compensation for compulsory acquisition of an asset |
|
Modification of assessment by allowing deduction under section 10A or section 10AA or section 10B or section 10BA upon receipt of convertible foreign exchange in India after the specified date |
|
Time limit for amending an assessment order where deduction under sections 80HHC, 80HHD, 80-O, 80R, 80RR, 10A, 10B and 10BA was not allowed owing to not bringing of the foreign exchange amount |
|
Claim of credit of TDS/TCS upon production of TDS/TCS certificates, which could not be produced at the time of filing return |
|
Reason of computation where capital gain is computed by taking full value of consideration to be the value adopted or assessed for the purposes of payment of stamp duty |
|
Recomputation of capital gain arising consequent to transfer by way of compulsory acquisition under any law, where compensation or consideration is reduced by any court |
|
When deduction under section 80RRB in respect of royalty on any patent, be deemed to have been wrongly allowed |
|
Rectification of assessment where deduction for surcharge and cess claimed in violation of section 40(a)(ii) |
|
Relief to sugar co-operatives from past demand |
|
Facilitating TDS credit for income already disclosed in the return of income of past year |
|
Revision of an order under section 263 in respect of a mistake which is rectifiable under section 155 |
245 |
Notice of Demand [Section 156] |
246 |
Modification or Reduction of Demand in Cases Covered by Insolvency Code [Section 156A] |
|
The insertion |
|
Effect of insertion |
247 |
Intimation of Loss [Sections 157 and 157A] |
|
Part XXIX--Liability in Special Cases [Sections 159 to 179] |
248 |
Legal Representatives [Section 159] |
|
Legal representative liable to pay tax or any other sum payable by a person who dies |
|
Meaning of legal representative |
|
Assessment where a person dies in the middle of a financial year |
|
Procedure for making an assessment of income of deceased |
|
Legal representative deemed to be an assessee |
|
On the basis of what document, the legal representative becomes entitled to act as such |
|
Where an individual dies after filing of his return of income but before completion of assessment |
|
Legal representative rendered personally liable |
|
Extent of liability of a legal representative |
|
How long can the proceedings be continued in the hands of the legal representative |
|
A person dies executing a will appointing one or more executors or dies intestate leaving behind him more than one heir |
|
Where during the course of the assessment assessee died |
|
Validity of assessment order passed without bringing legal representative on record |
|
Continuation of proceedings against dead person in name of legal representative |
|
Consequences if the assessment proceedings were not in the name of legal representative |
|
Validity of assessment order passed in the name of deceased |
|
Assessment order passed in the name of one of the legal representatives, without notice to all other legal representatives |
|
Retraction of admission made by an assessee by his legal representative |
|
Capital loss pertaining to deceased be set off against the capital gains assessable in the hands of the legal representative |
|
Set off of refund due to legal representative in his individual capacity, against tax dues of his deceased father |
|
Leviability of penalty on legal representative under section 271(1)(c) |
|
Prosecution of legal representative for offence committed by deceased |
|
Abatement of appeal where assessee dies during pendency of appeal |
|
Declaration of deceased assessee's all properties to be devolved in Trust |
|
Validity of reassessment where notice for reassessment is in name of deceased |
249 |
Liability of Representative Assessee [Sections 160, 161, 162, 163, 164, 165, 166 & 167] |
|
Meaning of representative assessee |
|
Liabilities, obligations or rights of representative assessee under the Act |
|
Where representative assessees are more than one assessment cannot be of an AOP |
|
Representative assessee entitled to recover tax paid or payable by him in the capacity of a representative assessee |
|
Assessment the hands of representative assessee where right to receive income by the beneficiary is postponed and income is accumulated for distribution in future |
|
Rate of tax on whole income of representative assessee |
|
Assessment made directly in the hands of the beneficiary instead of trustees |
|
Assessment already made on a return filed by trustees, can assessing officer make assessment on another return filed by beneficiary |
|
Chargeability to tax where only a part of trust income is chargeable |
|
Remedies would be available to assessing officer against property in case of a representative assessee |
|
Settlor of assessee was sole beneficiary--Income on behalf of beneficiary, (EL) was received by assessee |
250 |
Private Trusts, Oral Trusts & Wakfs [Sections 161(1), 161(1A), 164(1), 164A, 165, 166, 167] |
|
Private trust, what is |
|
Taxation of private trusts |
|
Advantages of creation of private trust |
|
Provisions dealing with Private Trusts |
|
Chargeability of profits and gains of business of private trust |
|
Taxability of private trusts where beneficiaries' shares are determinate |
|
Taxation of private trusts where beneficiaries' shares are indeterminate or unknown |
|
Scheme of taxation of oral trust |
|
Deemed declared trust |
|
Private discretionary trust and its taxation |
|
Difference between discretionary trust from specific trust |
|
Taxation of private trusts |
|
Shares of beneficiaries mentioned in trust deed, i.e., in proportion to the investment made |
|
Charge of tax where share of beneficiaries unknown--Beneficiaries not claimed their share of income |
|
Family trust, which was only such trust declared by settlor |
251 |
Agent of Non-Resident Assessees [Section 163] |
|
Agent in relation to a non-resident |
|
Meaning of "business connection" for the purpose of section 163(1) |
|
Broker in India dealing with or through a non-resident broker, cannot be deemed to be an agent |
|
Necessity of providing opportunity of being heard |
|
Addition made without a finding that assessee was agent of non-resident |
252 |
Executors [Sections 168 & 169] |
|
Meaning of executor |
|
Assessment in the hands of executor under section 168 |
|
Chargeability of income of estate of deceased person |
|
Residential status of an executor |
|
Assessment of executor |
|
Assessment of executor mandatory |
|
Treatment of income of the estate which is distributed or applied to the benefit of any specific legatee |
|
Executor entitled to recover tax paid or payable by him in the capacity of an executor |
|
Appeal by executors of deceased assessee |
|
Executor claiming deduction towards probate duty or other expenses made by him under the will of deceased |
|
Difference between section 168 and section 176(4) |
|
Persons appointing different executors |
253 |
Succession to Business Otherwise Than on Death [Section 170] |
|
Meaning of "succession to business" |
|
Assessment of income in case of succession to business, otherwise than on death |
|
Assessment of income where predecessor is not found |
|
Effect of section 170 |
|
Assessment or reassessment or any proceeding made or initiated on predecessor to be deemed to have been made on successor |
|
Tax liability of predecessor be recovered from successor |
|
Taxation of income of any business or profession carried on by a Hindu Undivided Family |
254 |
Effect of Order of Tribunal or Court in Respect of Business Reorganisation [Section 170A] |
|
Successor to file updated return |
|
Insertion of section 170A by the Finance Act, 2022 |
|
Procedural aspects |
|
Extension of time to file |
|
Substitution of section 170A by the Finance Act, 2023 from 1-4-2013 |
255 |
Shipping Business of Non-Residents [Section 172] |
|
Amount of profits of shipping business of non-residents |
|
Amount of income deemed to be accruing in India to the owner or charter of a ship |
|
Responsibility on the master of ship which is about to depart from any port in India |
|
Time limit for passing order assessing the income in respect of a ship |
|
Port clearance even if tax payable under section 172 is not paid |
|
Owner or charterer or a ship claim for making assessment of his total income and for determining the tax payable on the basis thereof |
|
Assessee filed return of income under section 139(1) for entire year willing to be assessed in terms of section 172(7)--Validity of summary assessment under section 172(4) on each voyage undertaken earning freight from India |
|
Applicability of DTAA provisions at time of passing of order under section 172 |
256 |
Recovery of Tax in Respect of Non-Resident from his Assets [Section 173] |
|
Recovery of tax chargeable in the name of a non-resident or in the name of his agent |
257 |
Assessment of Persons Leaving India [Section 174] |
|
Income of any individual, who may leave India during the current assessment year or shortly after its expiry |
|
Application tax rates |
|
Assessing officer may estimate income of any person who is likely to leave India |
|
Procedure to be adopted by the assessing officer for assessing income of an individual who is likely to leave India |
258 |
Assessment of Association of Persons [Sections 40(ba), 67A, 86, 167B and 174A] |
|
No assessment as AOP in case of a partnership firm |
|
Remuneration, interest, etc., paid to members not deductible in the hands of AOP/BOI [Section 40(ba)] |
|
Deduction under Chapter VI-A |
|
Charging of tax on AOP/BOI [Section 167B] |
|
Maximum marginal rates [Section 2(29C)] |
|
Assessment of AOP/BOI formed for a particular purposes [Section 174A] |
|
Computation of share income of member in income of AOP [Section 67A] |
259 |
Assessment of Persons Likely to Transfer Property to Avoid Tax [Section 175] |
|
Assessment on persons who are likely to transfer property to avoid tax |
|
Validity of assessment order passed under section 175, in the absence of any notice under section 174(4) |
260 |
Assessment in Case of Discontinued Business [Section 176] |
|
Meaning of discontinuance of business or profession |
|
Difference between discontinuance and succession of business |
|
Caution : Responsibility of a person who discontinues his business or profession |
|
Manner of assessment in case of a business which is discontinued |
|
Accelerated assessment mandatory or discretionary on the part of the assessing officer |
|
Assessment of different periods covered by the accelerated assessment |
|
Treatment of income received after discontinuance of a business or profession |
|
Scope of assessment under section 176(1) |
|
Procedure for making assessment in the case of a discontinued business |
|
Regular assessment be done on the assessee even after the completion of accelerated assessment |
|
Time limits for filing the return by the representative assessee |
261 |
Association Dissolved or Business Discontinued [Section 177] |
|
Assessment, where any business or profession carried by an AOP is discontinued or where an AOP is dissolved |
|
Leviability of penalty on AOP which has been dissolved or any business or profession carried on by it is discontinued |
|
Service of notice to only one of the members of the AOP sufficient |
|
Liability of a member of an AOP which is dissolved or any business or profession carried on by such AOP has been discontinued |
|
Applicability of provisions of section 177 societies registered under Societies Registration Act or to HUF |
262 |
Company in Liquidation [Section 178] |
|
Requirement as regards notice of appointment by a liquidator of a company being would up |
|
Time limit for notice by assessing officer |
|
Liquidator has no right to part with any assets of the company in liquidation |
|
Liquidator can be held personally liable for tax payable by the company |
|
Section 178 has overriding effect |
|
Company in liquidation--Liquidation proceedings in progress--Insolvency petition filed against assessee company |
263 |
Liability of Directors of Private Company [Section 179] |
|
Liability of a director of a private company in liquidation |
|
Directors liability under section 179 towards tax dues of private company to include fees also and change in marginal heading of section 179 |
|
When section 179 can be invoked |
|
No steps taken against the company |
|
Pre-conditions of section 179 not satisfied |
|
Conditions for invoking section 179 |
|
No neglect on part of assessee |
|
Recovery of tax from directors without initiating proccedings against the company |
|
Recovery of tax from directors where the assessing officer does not state about any gross negligence, misfeasance or breach of duty on the part of the assessee |
|
Revenue to take steps against erring company |
|
Revenue has to prove that efforts were made to recover tax dues from defaulting company |
|
Part XXX--HUF and Taxation Thereof [Section 171] |
264 |
Taxation of Hindu Undivided Family |
|
A. General aspects of Hindu Law |
|
Who can constitute HUF |
|
Peculiar characteristics of HUF |
|
Who can be an HUF coparcener |
|
Principles with regard to throwing of property in common hotchpot of HUF |
|
Daughters of the family |
|
Date from which amended section 6 of Hindu Succession Act applies |
|
Methods for creation of an HUF |
|
B. Taxation of HUF |
|
HUF is a separate taxable entity |
|
Scheme of section 171 |
|
Provisions of section 171 mandatory |
|
Effect of the legal fiction created by section 171(1) |
|
HUF never assessed as such |
|
Applicability of section 171--When HUF was never assessed as such |
|
Section 171 is a machinery provision |
|
Incomes in respect of which HUF is liable to pay tax |
|
Determination of gross total income of HUF |
|
Deduction under chapter VI-A |
|
Alternate Minimum Tax (AMT) on HUFs from the assessment year 2013-14 |
|
Part XXXI--Taxation of Partnerships and LLPs [Sections 40(b), 184 to 189A] |
265 |
Limited Liability Partnerships |
|
LLP to be treated as firm |
|
Residential status of LLP [Section 6(2)] |
|
LLP cannot take advantage of presumptive tax scheme under section 44AD |
|
No bar on LLP for availing of benefit under section 44AE |
|
LLP cannot take advantage of presumptive tax scheme under section 44ADA |
|
Basic requirements to be fulfilled so as to be taxed in status of LLP |
|
Need for LLP being evidenced by an instrument |
|
Certified copy to be furnished by LLP |
|
Signature of partners on LLP agreement |
|
Remuneration to partners |
|
Need for LLP having working partners |
|
Tax effect of conversion of company to LLP |
|
Interest to partners |
|
Basic rules for computation of income of LLP |
|
Basic ingredients of the scheme of taxation of LLP |
|
PAN of LLP |
|
Change in constitution of LLP |
|
Assessment to be made on predecessor and successor LLP separately |
|
Dissolution of LLP or discontinuance of business |
|
Assessment of partners of LLP |
|
Liability of partners towards tax dues of the LLP |
|
Liability of partners of LLP in liquidation [Section 167C] |
|
Alternate minimum tax on LLP |
266 |
Remuneration to Partners |
|
A. General |
|
Taxation of partnership firms--The basic scheme |
|
Conditions precedent for deductibility of interest and remuneration to partners |
|
Conditions precedent for availing of the status of partnership firm assessable as such [S. 184] |
|
Assessment when section 184 is not complied with [Section 185] |
|
B. Remuneration to Partners--Basic Provisions |
|
Allowability of remuneration to partners |
|
Conditions to be complied with in terms of section 40(b) |
|
Meaning of a working partner |
|
Reasonability of the remuneration paid to a particular working partner |
|
Specified of remuneration |
|
Individuals to become working partners |
|
Further deductions of the sum mentioned in section 40(b) |
|
Remuneration to be allowed to partners before deduction of the tax liability |
|
Allowability of remuneration, higher than that debited to profit and loss account |
|
Lesser amount as remuneration than the higher amount as arrived at remuneration as per the deed |
|
Only the remuneration actually paid would be deductible |
|
Computation of maximum allowable remuneration to partners based on certain percentage of book profit where partnership deed is executed in the middle of the year |
|
Where partners were not described as working partners in the deed |
|
Remuneration payable to partners allowable even where the assessing officer rejects books of account |
|
Firm can choose not to claim interest and remuneration payable to partners |
|
Income declared during survey available for arriving at permissible section 40(b) limit |
|
Undisclosed book profit is available for arriving at the section 40(b) remuneration limit |
|
Amount surrendered during survey--Whether form part of book profits to determine partners remuneration |
|
Disallowance cannot be made under section 40A(2) in respect of remuneration to partners |
|
Remuneration to partner as per partnership deed |
|
Remuneration should be authorized by the partnership deed |
|
Amendment to partnership deed not registered with Registrar |
|
Working partner also working partner in another firm |
|
Effect of provisions of section 40(b)(v)--Profit sharing ratio vis-a-vis availability of profit as per CBDT Circular |
|
Increase in remuneration supported by addendum partnership deed--No rebuttal of clause in partnership deed for increase or decrease from time-to-time |
|
Partner being Karta of HUF acting as representative capacity in firm |
|
Enhanced remuneration post amendment of section 40(b)--Delay in execution of supplementary deed |
|
Assessee being partner in five firms and borrowed money to make investment in firms |
|
Period upto which remuneration be paid to retiring partner |
|
Cash payments exceeding prescribed limit--Remuneration paid to partners is no expenditure --Section 40A(3) not applicable |
|
Illustration for computation of allowable remuneration |
|
C. Remuneration to Partners--Computation of Book Profits |
|
Meaning of book profit as per Explanation 3 to section 40(b) |
|
Meaning of book profits as computed by applying the provisions of the Act in Chapter IV-D |
|
Steps to be taken for computing book profits for the purposes of section 40(b) |
|
Maintenance of account books, a condition precedent for computation of book profits |
|
Meaning of "computation in the manner laid down in Chapter IV-D" occurring in the Explanation 3 to section 40(b) |
|
Treatment of various incomes credited to profit and loss account in computing book profit |
|
Inclusion of interest on FDR while computing book profit for purpose of remuneration |
|
Method as to computation of book profit vis-a-vis partner's remuneration |
267 |
Interest to Partners |
|
Specific conditions that are to be satisfied under section 40(b) for deductibility of interest paid to partners |
|
Legal position of the interest payable to partner in his representative capacity |
|
Interest payment to partner, where not in a representative capacity |
|
Quantum of interest payable to an individual being partner in representative capacity |
|
Nature of payment of interest |
|
Permissible rate of interest to partners |
|
Interest paid on capital getting enhanced due to credit of certain sums to partners' capital account on revaluation of assets, allowable |
|
Interest paid to partners not allowable |
|
Manner of calculation of interest |
|
Payment of interest to be made partners out of profit arrived at without deducting depreciation |
|
Allowability of interest to partners where partnership deed not showing any interest to partners |
268 |
Assessment of Firms [Sections 184 to 189A] |
|
Procedure for assessment of firm |
|
Who can enter in the firm as a partner |
|
Need for having instrument of partnership and specification of shares therein |
|
Certification of copy of deed necessary |
|
Effect of assessment as firm in any year |
|
Duty of partners consequent upon change in constitution of firm |
|
When failure is committed under section 144 |
|
No bills/vouchers and books of account or any other supporting vouchers produced by assessee--Estimation of profit |
|
Applicability of provision--Parallel business was carried out clandestinely by assessee-firm with active participation of four undisclosed partners |
|
Assessment of firm how to be made |
|
Remuneration to partners--Photocopy of partnership deed furnished instead of original copy --Allowability of remuneration to partners |
|
Assessment of the firm on change of Constitution |
|
When can a change in constitution of the firm be said to have taken place |
|
Retirement of some partners and induction of new partners--Revaluation of assets |
|
Effect of succession of one firm by another |
|
Liability of partners towards tax dues of the firm |
|
Consequences firm dissolved or business discontinued |
|
Interest income received by firm after dissolution is taxable |
|
Determination of total income of firm |
|
Deduction from gross total income under Chapter VI-A |
|
Alternate Minimum Tax (AMT) on firms from the assessment year 2013-14 |
|
Tax rates for firm and LLP [Assessment years 2023-24 and 2024-25] |
|
Rate of tax in case of firm [Section 167A] |
|
Assessment of partners |
|
'Assessment of firms'--Some of the important issues to be kept under consideration by the assessing officers while framing assessment |
|
Exemption to share of profits received by partner from firm--Clarification as to the amount exempt in the hands of the partners of a firm in cases where the firm has claimed deduction under Chapter III or VI-A of the Act |
|
Share in profit from firm exempt even if assessee's share in floating capital was lower |
|
Determination of total income of firm |
|
Deduction from gross total income under Chapter VI-A |
|
Procedure for assessment of firm |
|
Assessment of partners |
|
Part XXXII--TDS and TCS [Sections 190 to 206CCA] |
269 |
TDS from Salaries [Section 192] |
|
Statutory provision governing TDS from salary |
|
Liability for deduction of tax at source |
|
Person responsible for deducting tax at source |
|
Payees covered by section 192 |
|
Time for deduction of tax |
|
Tax deduction on salary paid to non-residents |
|
Broad scheme of tax deduction at source from "salaries" |
|
Procedure regarding computation of salary for TDS [Where assessee opts for old tax regime] |
|
TDS on salary for the financial year 2023-24 |
|
Computation of tax deductible where employee is working under more than one employer [Section 192(2)] |
|
Availability of section 89 relief |
|
Computation of tax deductible where employee is having income from sources other than salary income |
|
Person responsible for paying salaries required to file details of perquisites and profits in lieu of salary |
|
Tax deductors under section 192 to obtain certain particulars from tax deductees |
|
Adjustment of deficiency or excess of tax |
|
Tax deduction on payment of accumulated balance of recognised provident fund [Section 192(4)] |
|
Tax deduction on payment of employer's contribution to approved superannuation fund |
|
TDS on payment of accumulated balance under recognised provident fund and contri-bution from approved superannuation fund |
|
Rate of exchange for deduction of tax at source on income payable in foreign currency |
|
Tax deduction from salaries payable to non-resident for services rendered outside India |
|
Matters pertaining to the TDS made in case of non-resident |
|
Tax deduction on salaries payable to resi-dents for services rendered outside India |
|
Taxability of transport allowance--Commuting between place of residence and place of duty |
|
TDS from sailors, floating staff and other non-residents, etc |
|
TDS from salary received by members of Parliament |
|
No actual rent receipt to be demanded if rent payment does not exceed Rs. 3,000 per month |
|
Tax deduction in respect of pensioners |
|
TDS vis-a-vis New Pension Scheme |
|
Treatment of medical reimbursement |
|
Rate of TDS and effect of section 206AA |
|
Relevant statements, certificate, etc |
|
Important Case Law |
|
No TDS on unpaid salary |
|
No TDS on payment of per diem allowance |
|
TDS on payment of tip to hotel employees |
|
TDS vis-a-vis judgment debt |
|
Excess TDS to be refunded |
|
TDS on salaries payable to residents for services rendered outside India |
|
TDS on furlough pay received by expatriate officers of a foreign bank |
|
TDS in case of consultant doctors |
|
Expenditure on medical treatment of director |
|
Expenditure towards uniform |
|
Credit for the taxes deducted during deputation outside India |
270 |
Tax Deduction from Payment of Accumulated Balance Due to an Employee [Section 192A] |
|
TDS from premature withdrawal from EPFS |
|
Rule 8 of Part A of Fourth Schedule |
|
No TDS in certain cases |
|
TDS in case of failure in furnishing PAN |
|
Self-declaration in Form No. 15G/15H for non-deduction of tax |
271 |
TDS from Interest on Securities [Section 193] |
|
Person responsible for deduction of tax at source under section 193 |
|
Payments covered by section 193 |
|
Payments not covered by tax deduction provision under section 193 |
|
No exemption from TDS under section 193 in case of payment of interest on listed debentures to a resident and at the same time exemption from TDS provided in case of interest payable to business trust by a special purpose vehicle referred to in Explanation to section 10(23FC) |
|
Tax when to be deducted |
|
Cases where tax is not required to be deducted |
|
RBI clarification on TDS issues related to Savings (Taxable) Bonds, 2003 |
|
Income from deep discount bonds--Determination of component of interest therein |
|
Income from Deep Discount Bonds--Tax to be deducted only on redemption |
|
Rate at which tax be deducted |
|
Payment of interest on NCDs |
|
Interest on debentures of a company declared as a sick industrial company |
272 |
TDS from Dividends [Section 194] |
|
TDS from dividend |
|
Person responsible for deduction of tax at source |
|
Prescribed arrangements for declaration and payment of dividends within India |
|
Tax when to be deducted |
|
No deduction under certain circumstances |
|
Rate at which tax be deducted |
|
Credit to beneficial owner |
|
Shares, where registered in the name of banking company |
|
No TDS where payment is made to non-shareholders |
273 |
TDS on Interest Other than Interest on Securities [Sections 194A and 2(28A)] |
|
Scope and ambit of section 194A |
|
Meaning of 'interest' for the purpose of section 194A |
|
Person responsible for deduction of tax at source |
|
Tax when to be deducted |
|
Tax deduction when interest credited to suspense account |
|
Rate of tax deduction |
|
Adjustment of excess or deficiency under section 194A(4) |
|
No deduction of tax under section 194A |
|
Interest payments made under Land Acquisition Act |
|
Applicability of section 194A to member of co-operative bank |
|
TDS on interest from bank deposits |
|
Interest income on deposit in joint names |
|
TDS requirement from interest payable on fixed deposits in the name of minor |
|
Interest on cumulative deposits, debentures or bonds |
|
CBDT clarification in respect of TDS on interest given under the Senior Citizens Savings Scheme |
|
Tax Deduction at Source on payment of interest on time deposits by banks following Core-Branch Banking Solutions (CBS) software |
|
TDS on deposits in banks in the name of the Registrar/Prothonotary and Senior Master attached to the Supreme Court/High Court, etc., during the pendency of litigation of claim/compensation |
|
No TDS under section 194A on interest on fixed deposit made on direction of courts |
|
Interest to a charitable trust |
|
No deduction or deduction at lower rates |
|
Establishments claiming exemption under section 194A(iii)(f) |
|
Interest payment made under Land Acqui-sition Act |
|
Exemption to Primary Agricultural Credit Society registered as a co-operative society in respect of interest earned from the deposits made with the State Treasuries and the District Co-operative Banks |
|
Interest on term deposit with banking company |
|
TDS from loan processing fee |
|
Cheque discounting charges |
|
Factoring charges |
|
Interest paid for delayed payment |
|
Interest on account of hire purchase |
|
Interest paid by co-operative society to associate members |
|
Discount to subscribers of chit |
|
Reimbursement of bank guarantee |
|
Interest on loans allegedly by directors routed through assessee-company |
|
No need for tax deduction where assessee obtained Form No. 15G/15H from payees |
|
Interest not accounted for in books |
|
Payment for delayed possession |
|
Refund of money to purchaser alongwith interest |
|
Non-deduction of tax under section 194A from pre EMI interest paid to the lender on behalf of borrower |
274 |
TDS from Winnings from Lotteries or Crossword Puzzles [Section 194B] |
|
Tax by whom to be deducted |
|
Tax when not to be deducted |
|
Prize partly in cash, partly in kind |
|
Rate at which tax be deducted |
|
Tax when to be deducted |
|
Contest requiring skill or knowledge |
|
Winnings from chit fund scheme liable to TDS |
|
Prizes won in motor rally not income from lottery |
|
Prize money on unsold tickets reverting to the organisers |
|
Prize coupon given without any price under a gift linked saving scheme |
|
Applicability of section 194B in respect of Kuri business |
275 |
TDS from Online Games [Section 194BA] |
|
Introduction of section 194BA |
|
Liability as to deduct tax under section 194BA |
|
How to determine net winnings |
|
Rates of deduction of tax at source |
|
Meaning of "online game" |
|
TDS where winnings are not wholly in cash |
|
Government empowered to issue necessary guidelines |
|
Meaning of certain terms for purpose of section 194BA |
|
Applicability of provision in case of non-resident |
|
Guidelines issued by CBDT under section 194BA(3) |
276 |
TDS on Winnings from Horse Races [Section 194BB] |
|
Applicability of the section |
|
Person responsible for making deduction |
|
Time for deduction of tax at source |
|
Rate at which tax be deducted |
|
Applicability of threshold limit |
|
Section 194BB not applicable to income by way of stake money |
|
Meaning of certain important terms |
277 |
TDS on Payments to Contractors/Sub-Contractors [Section 194C] |
|
A. Provisions as to TDS under section 194C |
|
TDS under section 194C |
|
Person liable to deduct tax |
|
Contract also includes sub-contract |
|
Tax when to be deducted |
|
Meaning of the expression 'work' |
|
Mode of tax deduction where payment made for manufacturing or supplying a product as per customer specification |
|
No tax deductible by individual/HUF in certain cases |
|
No tax deduction by AOP/BOI |
|
No tax deduction by all assessees in certain cases |
|
TDS in case of transporters |
|
No TDS on service tax component |
|
B. CBDT's Clarifications Regarding Applicability of Section 194C |
|
Oral contracts are also covered under section 194C |
|
Advance payment during execution of a contract |
|
Contract on piece rate basis |
|
Advertising contracts |
|
Tickets sold by airlines and travel agents |
|
Payments made to couriers |
|
Payment to transporters |
|
Contract for catering |
|
Payment to recruitment agency |
|
Payment by company to share egistrar |
|
Hiring contracts |
|
Payment to banks |
|
Payment to port trust |
|
Payment to foreign shipping companies |
|
Payment by a State Transport Corporation to private bus owners for hiring their buses |
|
Payment to Munshis in case of bidi manu-facturing companies |
|
Applicability of TDS provisions of section 194C on contract for fabrication of article or thing as per specifications given by the assessee |
|
TDS on cooling charges in cold storage |
|
Other clarifications via Circular No. 715, dt. 8-8-1995 |
|
TDS on Payment of Gas Transportation Charges by the Purchaser of Natural Gas to the Seller of Gas |
|
Payments made by the Broadcaster or Television Channels to Production Houses for Production of Content or Programme for Telecasting |
|
C. Important Judicial Decisions |
|
No TDS on reimbursement of actual cost |
|
TDS not required on contract of sale |
|
No TDS where agreement was to conduct business and share profit |
|
Hiring of trucks |
|
Applicability of section 194C where there was no contract with truck operators either oral or written |
|
Transportation expenses--No contract between assessee and transporters |
|
Applicability of section 194C vis-a-vis of section 194-I |
|
Applicability of section 194C vis-a-vis section 194J |
|
Payment to NSE |
|
Payment of shipping expenses to shipping lines, customs agents, etc |
|
Payments to camera attendants hired on 'ad hoc' basis |
|
Payment towards face value of the meal vouchers to the affiliates |
|
TDS on by-product obtained by miller |
|
Year end provisions |
278 |
TDS on Insurance Commission [Section 194D] |
|
Scope of section 194D |
|
Person responsible for tax deduction |
|
Tax when to be deducted |
|
Deduction when not to be made |
|
Rates of tax deduction |
|
No TDS on service tax component of the insurance commission |
|
Commission paid to insurance companies for reinsurance |
|
Assessee where made arrangements for foreign trip of agent |
279 |
TDS on Payments Under Life Insurance Policy [Section 194DA] |
|
Tax by whom to be deducted |
|
Payment liable for deduction of tax at source |
|
Time for deduction of tax |
|
Tax when not to be deducted |
|
Rate of TDS |
280 |
TDS on Payments to Non-Resident Sportsmen or Sports Associations or Entertainer [Section 194E] |
|
Payments covered |
|
Amounts in respect of which tax is to be deducted |
|
Tax when to be deducted |
|
Rate of TDS |
|
Prize money paid to foreign cricket team and amount paid to foreign umpires and referees |
|
Payment to Association of Tennis Professional (ATP) |
|
Existence of DTAA vis-a-vis TDS under section 194E |
281 |
TDS on Payments in Respect of National Savings Scheme, Etc. [Section 194EE] |
|
Scope of section 194EE |
|
Rates of tax |
|
Time for deduction of tax at source |
282 |
TDS from Payments on Account of Repurchase of Units by UTI/Mutual Fund [Section 194F] |
|
Scope of section 194F |
|
Tax when to be deducted at source |
|
Rate of tax deduction |
283 |
TDS from Commission on Sale of Lottery Tickets [Section 194G] |
|
Person liable to deduct tax |
|
Tax when to be deducted |
|
Rate at which tax be deducted |
|
Payment of prize winning money to stockist |
|
Lottery tickets where purchased in bulk at discount from State Government |
284 |
TDS on Commission or Brokerage [Section 194H] |
|
TDS from payment of commission or brokerage |
|
Payment covered by section 194H |
|
Tax when to be deducted |
|
No tax deduction under certain cases |
|
Meaning of certain terms relevant to section 194H |
|
Turnover commission payable by RBI to agency banks |
|
Commission or brokerage, etc. received by travel agents from airlines |
|
Tax Deduction at Source (TDS) on payments by television channels and publishing houses to advertisement companies for procuring or canvassing for advertisements |
|
Rate of tax deduction |
|
Discount to stamp vendors not liable to TDS |
|
Target incentives to distributors/dealers |
|
Discount given to distributors on sale of drugs |
|
No TDS on cash discount |
|
Sale of milk through concessionaires or distributors |
|
Sponsoring foreign travel of dealers |
|
Payments made to consolidator as distinguished from broker |
|
Commission and brokerage paid to sub-brokers in relation to Mutual Fund or securities |
|
Expenditure towards "Authority to guarantee charges" |
|
Payment of guarantee commission to bank |
|
Discount to market associates on SIM cards and recharge coupon |
|
Bank charges retained out of credit card |
|
Directors' remuneration |
|
Finance charges |
|
Payment by Prasar Bharati to advertising agencies |
|
Amount retained by advertising agency from sale of air time space |
|
Sub-brokerage payments made to holding company of assessee |
|
Commission paid for receipt of re-insur-ance premium |
|
Expenses incurred on doctors conference, etc |
285 |
TDS on Rent Payments [Section 194-I] |
|
Tax when deductible under section 194-I |
|
Person responsible for making deduction |
|
Rate of TDS |
|
Tax when required to be deducted |
|
No tax deduction in certain cases |
|
Meaning of 'rent' |
|
Certain clarifications by CBDT |
|
Tax credit in case of advance payment of rent |
|
Important case law |
|
Common area maintenance charges does not amount to rent |
286 |
TDS on Property Transactions [Section 194-IA] |
|
Person responsible for TDS |
|
Rate of TDS |
|
No TDS under section 194-IA where consi-deration is less than Rs. 50 lakhs |
|
No requirement to obtain TAN |
|
TDS on stamp value or purchase consider-ation whichever exceeds Rs. 50,00,000--Issues regarding |
|
Agricultural land for purpose of section 194-IA |
|
Consideration for transfer of any immovable property |
|
'Immovable property' for section 194-IA |
|
Stamp duty value |
287 |
TDS on Rent by Individual and HUF Other Than Those Covered by Section 194-I [Section 194-IB] |
|
Person responsible to deduct tax |
|
Rate of TDS |
|
Time for tax deduction at source |
|
No need to obtain TAN |
|
Extent of tax deduction where deductee fails to furnish PAN |
|
Non-applicability of section 206AB |
|
"Rent" for purpose of section 194-IB |
|
Procedural requirements vis-a-vis section 194-IB |
|
Provisions illustrated |
288 |
TDS on Payment Under Joint Development Agreement [Section 194-IC] |
|
TDS under section 194-IC |
|
Rate of TDS |
|
Meaning of "specified agreement" under section 45(5A) |
289 |
TDS from Fees for Professional or Technical Services or Royalty or Non-Compete Fee [Section 194J] |
|
Payments covered by section 194J |
|
Rate of TDS |
|
Time for deduction of tax at source |
|
No deduction under certain circumstances |
|
Deduction to be made on the sum credited or paid and not on income comprised therein |
|
No TDS on payment in kind |
|
Clarifications issued by CBDT |
|
Important Case Law |
|
Payment to doctor by nursing home |
|
TDS on payment in the nature of reimbursement--Whether required |
|
Bandwidth and network services |
|
Transaction fee paid to stock exchange by a share broker |
|
Payment of roaming charges |
|
Payments to recruitment agencies |
|
Payment for VISA and Master Card |
|
Payment of wheeling charges/transport-ation charges/SLDC charges |
|
Sharing of fee not amounts to technical or professional services |
|
Payment towards training charges |
|
Payment of royalty |
|
Payment of annual licence fee for renewal of software licence |
|
Provision for audit fees |
|
Payment made for conduct of examination through affiliated centers |
290 |
TDS on Income in Respect of Units [Section 194K] |
|
Person responsible to deduct tax under section 194K |
|
Rate of tax |
|
Time for deduction of tax at source |
|
Threshold limit for deduction of tax at source |
|
No TDS on capital gains on transfer or redemption of units |
|
Meaning of certain terms used in section 194K |
|
Credit in suspense account |
291 |
TDS from Payment of Compensation on Acquisition of Certain Immovable Property [Section 194LA] |
|
TDS from payment of compensation on acquisition of certain immovable property |
|
Person responsible for deduction of tax |
|
Deduction when not required under section 194LA |
|
Rate of TDS |
|
"Agricultural land" |
|
"Immovable property" |
|
No TDS where land claimed to be agricultural |
|
No applicability in absence of compulsory acquisition |
292 |
TDS from Payment of Interest to Non-Residents on Infrastructure Debt Fund [Section 194LB] |
|
TDS from payment of interest to non-residents on infrastructure debt fund |
293 |
TDS on Certain Income from Units of a Business Trust [Section 194LBA] |
|
TDS on income from units of a business trust |
294 |
TDS in Respect of Income from Units of Investment Fund [Section 194LBB] |
|
TDS from income in respect of units of investment fund |
|
Rate of tax |
|
No TDS in case of income exempt in hands of non-residents |
|
Meaning of "unit" |
|
No TDS or TDS at lower rate |
295 |
TDS from Income in Respect of Investment in Securitisation Trust [Section 194LBC] |
|
TDS under section 194LBC where investor is resident |
|
TDS where investor is a non-resident |
296 |
TDS on Income by Way of Interest from Indian Company [Section 194LC] |
|
Tax to be deducted on interest paid by specified company being an Indian company to non-residents |
|
Rate of tax |
|
Income in respect of which tax deductible |
|
Exemption from requirement of furnishing PAN under section 206AA |
|
Approval of long-term bonds and rate of interest for the purpose of section 194LC |
|
Meaning of certain relevant terms |
297 |
TDS From Payment of Interest on Certain Bonds and Government Securities [Section 194LD] |
|
Person responsible to deduct tax |
|
Rate of tax deduction |
|
Time for deduction of tax |
|
Interest on which tax is required to be deducted under section 194LD |
|
Meaning of municipal debt securities |
298 |
TDS on Payment to Contractor, Commission Agent & Professionals not Covered by Sections 194C, 194H and 194J [Section 194M] |
|
Person responsible to deduct tax under section 194M |
|
Rate of deduction of tax |
|
Time for deduction of tax at source |
|
Threshold limit for TDS under section 194M |
|
No need to obtain TAN for tax deduction under section 194M |
|
Meaning of certain terms relevant to section 194M |
|
Lower or nil deduction where certificate obtained under section 197 |
299 |
TDS on Cash Withdrawal from Bank, Post Office, Etc. [Section 194N] |
|
Scheme of TDS under section 194N |
|
Scope of section 194N extended to persons who have not filed return for three years |
|
Tax when not deductible under section 194N |
|
No TDS in case of no income |
|
Exemption from TDS under section 194N |
|
TDS under section 194N not to be deemed to be income |
|
Credit for tax deducted at source for the purposes of section 199 |
|
CBDT clarification as to applicability of section 194N to cash withdrawals during 1-4-2019 to 31-8-2019 |
300 |
TDS on Payment by E-commerce Operator to E-commerce Participant [Section 194-O] |
|
TDS on payment of certain sums by e-comm-erce operator to e-commerce participant |
|
Tax when to be deducted under section 194-O |
|
Rate of TDS |
|
Tax when not required to be deducted under section 194-O |
|
Bar as to double deduction of tax |
|
Non-applicability of provision in certain cases |
|
Guidelines to remove any difficulty in giving effect of provision |
|
Meaning of certain terms relevant to section 194-O |
301 |
TDS in Case of Specified Senior Citizens [Section 194P] |
|
TDS under section 194P |
|
Method to deduct tax |
|
Computation of income and deduction of tax |
|
Non-applicability of provision contained in section 139 in case of specified senior citizen |
|
Meaning of specified bank |
302 |
Tax Deduction by Buyer of Goods in Certain Cases [Section 194Q] |
|
Who is liable to deduct tax under section 194Q |
|
Whether provisions of section 194Q of the Act shall apply to buyer in the year of incorporation? |
|
Meaning of buyer |
|
From whom tax is to be deducted |
|
Conditions for application of provisions |
|
No tax to be deducted under section 194Q in certain cases |
|
When tax is to be deducted |
|
Limit of Rs. 50 lakhs, how to apply |
|
Rate of tax deduction |
|
Higher rate of TDS--Interplay of section 206AA, 206AB and 194Q |
|
Provisions illustrated |
|
Liability of non-residents to deduct tax |
|
Are provisions applicable where payment is made to non-residents |
|
Determination of total sales, etc |
|
Whether turnover shall include non-business turnover |
|
Treatment of GST collected |
|
TDS, whether deductible on GST |
|
What is meaning of the term goods |
|
Applicability of provisions to goods, etc. |
|
Sale of immovable properties--Whether liable to TDS |
|
TDS on purchase of shares etc |
|
Applicability on transactions carried through various exchanges |
|
Personal assets being purchased |
|
Cancellation of transaction |
|
Purchase returns |
|
Netting transactions |
|
Advance against purchases |
|
TDS on GST component in case of advance payments |
|
Applicability of section 194Q to case of motor vehicle |
|
Exchange of goods |
|
Branch transfers |
|
Aggregation of transactions |
|
Whether tax is to be deducted when the seller is a person whose income is exempt |
|
Interplay of section 206C(1H) and 194Q |
|
Cross application of section 194-O, sub-section (1H) of section 206C and section 194Q of the Act |
|
Power to remove difficulties |
|
CBDT clarification on applicability of section 194-O, 194Q and 206C(1H) |
303 |
Deduction of Tax on Benefit or Perquisite in Respect of Business or Profession [Section 194R] |
|
Who is liable to deduct tax |
|
Case of individual or HUF not carrying on business |
|
Person responsible for providing |
|
When tax is to be deducted |
|
Duty of person responsible for paying |
|
When tax not to be deducted |
|
Rate of tax deduction |
|
What is benefit or perquisite |
|
Where recipient not carrying on business |
|
Camaflouging business receipts as gift and impact of section 28(iv) |
|
Type of recipient |
|
When tax to be deducted--Issues regarding |
|
Difficulty arising |
|
Provisions illustrated |
|
Guidelines for removal of difficulties under sub-section (2) of section 194R of the Income-tax Act, 1961 |
304 |
TDS on Transfer of Virtual Digital Asset [Section 194-S] |
|
Tax when to be deducted under section 194S |
|
Non-applicability of provision contained in section 203A and 206AB in case of specified person |
|
Exemption from TDS provision contained in section 194S |
|
Tax to be deducted under section 194S where tax deductible both under section 194S and under section 194-O |
|
Board empowered to issue necessary guide-lines |
305 |
TDS from Payments to Non-Residents [Section 195] |
|
Person responsible for deducting tax [Section 195(1)] |
|
No tax deductible under section 195(1) on interest referred to in sections 194LB or 194LC or 194LD |
|
Liability of non-resident to deduct tax under section 195 in certain cases |
|
Tax when to be deducted at source |
|
Rate of TDS |
|
Higher rate of TDS where recipient is a person located in notified jurisdictional area |
|
No deduction or deduction at lower rate |
|
Amount on which tax to be deducted where assessee failed to apply under section 197 |
|
Grossing up of amount payable to non-resident paid net of tax |
|
No tax deduction in case of payment to-wards software in certain cases |
|
Interest credited to Non-resident (External) Account |
|
Deduction of tax on proportionate amount under section 195(2) |
|
No deduction of tax at source at the application of recipient [Section 195(3) to 195(5)] |
|
Application for certificate authorising receipt of interest and other sums without deduction of tax |
|
Effective date of certificate under section 195(3) |
|
Person responsible to deduct tax under section 195 required to furnish relevant infor-mation in prescribed manner |
|
CBDT empowered to notify class of persons or cases where person responsible to make payment shall make application to assessing officer for determination of appropriate proportion of sum chargeable |
|
Person responsible to deduct tax under section 195 require to furnish relevant infor-mation in prescribed manner [Section 195(6)] |
|
Clarification as to remittance of consular receipts |
|
Certificate by Chartered Accountant vis-a-vis tax liability of non-resident recipient |
|
Payment made to foreign shipping companies |
|
Remittance to a country with which double taxation avoidance agreement exists |
|
Payment of interest by branch of a foreign company/concern in India to its head office |
|
Taxability of export commission payable to non-resident agents rendering services abroad |
|
Consequences of failure to deduct or pay tax, etc., under section 195 |
|
Rate of tax deduction where DTAA is in force |
|
Refund of tax to non-residents--Procedure regarding |
|
Application for refund under section 239A |
|
Important Case Law |
|
Export commission paid to non-resident agents rendering services outside India |
|
No TDS where income is not chargeable to tax in India |
|
Scope of section 195(2) |
|
No deduction where assessee is an agent or is treated as an agent |
|
Commission to overseas AE for services rendered outside India |
|
No TDS in case of reimbursement of expenses |
|
TDS on payment of royalty and FTS |
|
TDS on payment to expatriate employees |
|
Payment to non-resident where source of income situated in India |
|
Regular trading operations |
|
No TDS where transaction between two non-residents had taken place outside India |
|
Payment of computerised reservation system expenses to foreign company |
|
TDS on prepayment discount |
|
Payment to consultant abroad by Indian Company |
|
Payment of hire charges by way of adjust-ment of fish catch |
|
Remittance of fees collected by assessee to IIT Chicago |
|
Payments made were towards subscription to e-magazines |
|
Payment by assessee to a foreign company for utilization of transponder centered on a satellite |
|
Alleged failure to withhold tax under section 195 from capital gain accruing to non-resident--Assessee pleading no knowledge of residential status of long associated seller |
|
Payment towards bandwidth charges |
306 |
TDS Obligations Under Sections 196A, 196B, 196C and 196D |
|
TDS on income in respect of units of non-residents [Section 196A] |
|
TDS from payment to offshore fund |
|
TDS from Income from foreign currency bonds or GDR of Indian company to non-resident Indians |
|
TDS on income of Foreign Institutional Investor from Securities |
307 |
No Deduction or Deduction at Lower Rate [Sections 197 and 197B] |
|
Certificate of tax deduction at lower rate or no tax deduction |
|
Procedure to get certificate for purposes of section 197 [Rule 28 and 28AA] |
|
Certificate of no deduction of tax in case of certain entities |
|
Administrative instruction as to issue of certificate of non deduction or deduction at a lower rate |
|
Instructions for issue of certificate under section 197 mandatorily through ITD system |
|
Application for issue of certificate for deduction at lower rate--Not to be acted upon if submitted after credit/payment |
|
No income-tax deduction from disability pension |
|
Certificate of no deduction of tax or deduction at lower rates from dividends |
|
No requirement of TDS--Income exempt under section 10 and not required to file return |
|
Validity of one certificate issued for two separate units having two TANs |
|
Justification of denial of certificate under section 197(1) |
|
Writ not maintainable against order under section 197 |
|
Lower deduction in certain cases for a limited period |
308 |
Non-Deduction of Tax in Case of Self Declaration Under Section 197A(1A) |
|
Resident individual eligible to benefit under section 197A(1) |
|
Benefit of section 197A not available if income referred to in section 197A exceeds maximum amount not chargeable to tax |
|
Relief to senior citizens |
|
No deduction of tax in respect of interest paid to a non-resident or not ordinarily resident |
|
No tax to be deducted in respect of any payment made to any person for or on behalf of New Pension System Trust |
|
No tax to be deducted from payment to certain institutions, etc |
|
Duty of person paying the sums referred to above |
|
Declaration by person claiming receipt of certain incomes without deduction of tax |
|
Declaration in Form 15G/15H to be furnished to the deductor/payer for each financial year |
|
Due date for filing Form Nos.15G & 15H |
309 |
Credit for TDS [Section 199 read with Rule 37BA] |
|
Credit to be given to person from whose income deduction made |
|
Credit for tax deducted under section 192 (1A) |
|
CBDT empowered to make rules |
|
Credit for TDS to be given to deductee on the basis of information given by deductor |
|
Allowability of credit to person other than tax deductee |
|
Assessment year for which credit for TDS and TCS to be given |
|
Credit for TDS to be subject to certain verifications |
|
Important Case Law |
|
Year for allowability of TDS credit |
310 |
Deposit of TDS [Section 200(1), (2) and (2A) read with Rule 30] |
|
Deposit of tax with Central Government |
|
TDS on behalf of Government |
|
Furnishing of statement for reporting of payment of TDS through book entry |
|
Time for deposit of TDS in case of deductors other than Government authorities |
|
Time for deposit of TDS where tax is ded-ucted under section 194-IA/194-IB/194M/194S |
|
Facility of quarterly payment in specific cases |
|
Mode of payment of TDS in case of deductors being other than Government authorities |
|
Mode of payment where tax is deducted under sections 194-IA or 194-IB or 194M or 194S |
311 |
Submission of Quarterly Statement of TDS [Section 200(3) read with Rule 31A] |
|
Requirement regarding quarterly statement of TDS |
|
Filing of correction statement |
|
Form of statement of deduction of tax |
|
Manner of furnishing statement |
|
Deductors who are compulsorily required to furnish statement electronically |
|
Furnishing of statement electronically, optional in case of other deductors |
|
Duty of deductor while preparing statement of tax deducted |
|
Furnishing of evidence by specified bank responsible for deducting tax under section 194P |
|
Claiming of refund for excess TDS deposited |
|
Consequences of non-filing of TDS state-ment |
312 |
Processing of Statements of TDS [Section 200A] |
|
Processing of TDS statements |
|
Meaning of "an incorrect claim apparent from any information in the statement" |
|
CBDT empowered to make scheme for centralised processing of TDS statements |
|
Remedy against intimation after processing of TDS statement |
|
Processing of E-TDS Returns where tax is short deducted--Instruction No. 8/2010, dt. 8-12-2010 |
313 |
Assessee Deemed to be in Default [Section 201] |
|
Assessee when treated as assessee in default |
|
Tax deductor not to be deemed-in-default in certain cases |
|
Interest under section 201(1A) |
|
Computation of interest where payee discharged his tax liability |
|
Statutory charge upon assets |
|
Time limit for passing of orders under section 201(1) |
|
No interest under section 220(2) where interest is charged under section 201(1A) on the amount specified in the intimation under section 200A(1) |
|
Person, when not an assessee in default |
|
Levy of interest mandatory |
|
Order under section 201(1A) to be a speaking order |
|
Non-deduction of TDS on income from winning of lottery in kind |
|
No interest where tax could not be deducted due to non-identification of payee |
|
Validity of show-cause notice under section 201 |
|
Wrong submission of PAN |
|
Time limit for initiating proceedings in case of payment to non-residents |
|
Employer when not deemed to be in default |
|
Waiver of interest charged under section 201(1A)(i) |
|
Appeal against order under section 201 |
314 |
TDS Certificate [Section 203] |
|
Certificate of TDS to payee |
|
Form and periodicity of TDS certificate |
|
Contents of TDS certificate |
|
Issuance of TDS certificate where assessee employed by more than one employer |
|
Issuance of duplicate certificate where original got lost |
|
Form 16 may be authenticated by using digital signature |
|
Consequences of the default in the issue of TDS certificates |
|
Writ to compel issue of TDS certificate |
|
Penalty not to be levied for technical breach of provisions of section 203 |
315 |
Residuary Provisions Related to TDS and Procedural Aspects |
|
Tax payment by deduction or collection |
|
Direct payment by the assessee |
|
Person required to deduct tax and not doing so, shall be deemed to be in default in certain cases |
|
Income payable net of tax |
|
TDS is income received |
|
Deduction only one of the modes of recovery [Section 202] |
|
Issuance of statement of TDS by Department |
|
Prohibition on department against making direct demand from the assessee [Section 205] |
|
Tax on salary deducted--Whether assessee can be called upon to pay tax, where tax deductor fails to deposit TDS |
|
Person responsible for making TDS [Section 204] |
316 |
Furnishing of Quarterly Returns Regarding Details of Non‑Deduction of Tax by Banks, Co‑operative Societies and Public Sector Companies [Section 206A] |
|
Quarterly return by banking company, co-operative society or housing finance company |
|
Quarterly return by any other person |
|
Furnishing of correction statement |
|
Quarterly return in respect of interest on time deposits without TDS |
|
Quarterly return in respect of time deposit |
|
Penalty for non-furnishing of quarterly return |
317 |
Higher Rate of TDS on Non Furnishing of PAN [Section 206AA] |
|
Deductee required to furnish PAN to deductor |
|
No relief under section 197 or 197A in case of non-furnishing of PAN |
|
Quoting of PAN in all correspondence |
|
Impact of furnishing invalid PAN |
|
Provision of section 206AA not applicable in respect of certain payments to non-residents |
|
Payment in respect of which relaxation is provided |
|
Payment to non-residents vis-a-vis section 206AA |
318 |
Higher Rate of TDS in Case of Non-filers of Return of Income [Section 206AB] |
|
Higher rate of TDS under section 206AB |
|
Rate of TDS where higher rate applicable by virtue of section 206AA also |
|
Specified person for purpose of section 206AB |
|
Functionality compliance check for section 206AB |
319 |
Tax Collection at Source [Sections 206C, 206CC and 206CCA] |
|
A. Statutory Aspects |
|
Statutory provision governing collection of tax at source |
|
Specified goods for the purpose of section 206C(1) |
|
Tax when to be collected in respect of goods specified in section 206C(1) |
|
Tax to be collected in case of grant of lease, licence, etc |
|
Tax to be collected at source on sale of motor vehicle of the value exceeding Rs. 10 lakh, either in cash or otherwise |
|
TCS in case of foreign remittance and on sale of overseas tour programme package [Section 206C(1G)] |
|
TCS by seller of goods other than those covered by section 206C(1), 206C(1F) and 206C(1G) and other than goods exported out of India |
|
Lower deduction in certain cases for a limited period |
|
Rates of collection of tax at source |
|
Octroi vis-a-vis toll |
|
Excavation of minor minerals |
|
Meaning of "seller" |
|
Meaning of "buyer" |
|
Constitutional validity of amendment with regard to the definition of the term 'buyer' |
|
Meaning of 'scrap' |
|
Whether scrap to be generated out of manufacturing process only? |
|
Products obtained in the course of ship breaking activity |
|
Sale of maize husk |
|
Cotton waste sold though used by purchaser as raw-material |
|
Sale of scrap material purchased from Railways in auction |
|
Applicability of section 206C on basic licence fee |
|
Applicability of section 206C in case of assessee being State Government |
|
No tax required to be collected where scrap is utilised for manufacturing or processing of articles or things and not for trading purposes |
|
Copy of declaration to be submitted by seller to the prescribed authority |
|
Form no. 27C to be obtained within reasonable time |
|
Applicability of section 206C where timber imported from abroad |
|
Applicability of section 206C where peti-tioner's income is exempt |
|
Allotment of parking lot to contractors without any written contracts |
|
Other modes of recovery not affected |
|
Order under section 206C appealable |
|
B. Procedural Aspects |
|
Time and manner for depositing TCS |
|
Filing of TCS statement |
|
Processing of TCS statement |
|
Credit for TCS |
|
TCS certificate |
|
Miscellaneous TCS specific provisions |
|
Consequences of failure to collect or pay tax |
|
Higher rate of TCS on non-furnishing of PAN |
|
C. Higher Rate of TCS in Case of Non-Filers of Return of Income [Section 206CCA] |
|
Applicability of higher rate of TCS |
|
Rate of TCS where higher rate applicable by virtue of section 206CC |
|
Specified person for purpose of section 206CCA |
|
Functionality compliance check for section 206AB |
|
Part XXXIII--Advance Tax and Recovery [Sections 207 to 229, 231 and 232] |
320 |
Advance Tax Liability [Sections 207 to 210] |
|
Liability for payment of advance tax [Section 207] |
|
No advance tax payable by senior citizens in certain cases [Section 207(2)] |
|
Conditions for liability to pay advance tax [Section 208] |
|
Assessees required to pay advance tax |
|
Computation of advance tax where calcul-ation is made by assessee [Section 209(1)(a)] |
|
Calculation by assessing officer for making order under section 210(3) [Section 209(1)(b)] |
|
Calculation by assessing officer for making an order under section 210(4) [Section 209(1) (c)] |
|
Reduction of amount of advance tax by the amount of tax deductible/collectible at source [Section 209(1)(d)] |
|
Reckoning of net agricultural income for computing advance tax [Section 209(2)] |
|
Suo motu payment of advance tax by assessee [Section 210(1)] |
|
Revision of advance tax payable by assessee in instalments yet to be paid [Section 210(2)] |
|
Assessing officer empowered to raise demand for payment of advance tax against old assessee [Section 210(3)] |
|
Intimation for reducing demanded advance tax [Section 210(5)] |
|
Obligation to pay higher advance tax [Section 210(6)] |
|
Advance tax liability of different assessees for the assessment year 2024-25 |
321 |
Advance Tax Instalments [Sections 211, 218 and 219] |
|
Instalments of advance tax and due dates [Section 211] |
|
Payment where last day happens to be a holiday can be made on the next day immediately following working day |
|
When assessee is deemed to be in default [Section 218] |
|
Consequences of being treated as 'assessee in default' |
|
Credit for advance tax [Section 219] |
322 |
Recovery Proceedings [Sections 220 to 229 and 232] |
|
When tax payable and when assessee deemed in default [Section 220] |
|
Interest payable if amount not paid within time specified [Section 220(2)] |
|
Interest, under section 220(2) whether chargeable during the period of stay |
|
Period of levy where application for settlement of case before Settlement Commission is filed |
|
Demand on account of section 234E, itself been cancelled |
|
Calculation of interest |
|
Waiver or reduction of interest |
|
Extension of time for payment or payment in instalments [Section 220(3)] |
|
No need of extension of time in certain circumstances |
|
Validity of notice of demand where any appeal or other proceedings initiated |
|
Assessee, when deemed to be in default [Section 220(4)] |
|
Effect of default in any one of the instalments [Section 220(5)] |
|
Stay of recovery proceedings [Section 220(6)] |
|
Stay of demand, where non-speaking order passed by AO |
|
Procedure for grant of stay of demand |
|
Stay of tax liability in respect of foreign income |
|
Assessee has already paid more than 27% of outstanding amount |
|
Assessee was directed to pay 20% of disputed demand |
|
Assessee had prima faice case for grant of stay |
|
Demand raised denying exemption under section 11 on account of non-filing of return within usual period and extended period--Application for condonation of delay in filing return being pending |
|
Interim stay already granted by High Court still Tribunal ordered for recovery |
|
Appeal pending before CIT(A)--Assessee having prima facie case |
|
None of conditions enabling to seek waiver of interest complied with |
|
Penalty payable when tax is in default |
|
Penalty for default in payment of self-assessment tax |
|
Failure of self-assessment tax where no financial hardship |
|
Recovery certificate by Tax Recovery Officer |
|
General procedure for recovery of tax |
|
Tax Recovery Officer to whom certificate is to be issued |
|
Validity of certificate and cancellation or amendment thereof |
|
Stay of proceeding in pursuance of certifi-cate and amendment or cancellation thereof |
|
Power of assessing officer to resort to modes prescribed in section 226 |
|
Directions to employer of assessee to deduct arrears of tax |
|
Garnishee proceedings [Section 226(3)] |
|
Income Tax Department claiming preferential right to recover debts over secured creditors |
|
Debt may be denied by the garnishee |
|
Attachment of bank accounts |
|
Assessee-in-default under section 226 |
|
Garnishee proceedings against company in liquidation |
|
Procedure to act on a notice issued by assessing officer or Tax Recovery Officer in garnishee proceedings under section 226(3) |
|
Recovery of money belonging to assessee lying in court's custody |
|
Distraint and sale |
|
Entrustment of recovery to State Govern-ment |
|
Recovery of tax in pursuance of agree-ments with foreign countries [Section 228A] |
|
Assessee under liquidation under the Insolvency and Bankruptcy Code, 2016--All claim of IT Department shall be entertained by Official Liquidator appointed under section 53(1) of the Code |
|
Recovery of penalties, fine, interest and other sums [Section 229] |
|
Faceless recovery [Section 231] |
|
Recovery by suit or under other law not affected |
323 |
Tax Clearance Certificate [Section 230] |
|
Furnishing of an undertaking in the prescri-bed form in case of a person not domiciled in India |
|
Exemption if person not domiciled in India is not having any connection with business, profession or employment |
|
Furnishing of certain informations in case of a person domiciled in India |
|
Tax clearance certificate--When to be obtained under proviso to section 230(1A) |
|
Obtaining certificate showing no liabilities under the different statutes |
|
Reasons to be recorded and approval of Chief Commissioner should be obtained for enforcing a domiciled person to obtain no objection certificate |
|
Prescribed authority for purposes of section 230(1) and 230(1A) [Rule 42] |
|
Forms and certificates to be furnished under sections 230(1) and 230(1A) [Rule 43] |
|
Production of certificate [Rule 44] |
|
Duty of owner or charterer of ship or aircraft |
|
CBDT Clarifications |
|
Faceless issuance of Tax Clearance Certificate |
|
Part XXXIV--Interest and Fee [Sections 234A to 234H] |
324 |
Interest for Default in Furnishing Return of Income [Section 234A] |
|
Defaults attracting charge of interest under section 234A(1) |
|
Defaults attracting charge of interest under section 234A(3) |
|
Rate of interest under section 234A |
|
Period for which interest is to be charged |
|
Amount of tax on which interest is to be paid under section 234A |
|
Tax on total income not to include additional tax payable under section 140B |
|
Adjustment of tax paid under section 140A |
|
Meaning of a regular assessment for the purpose of section 234A |
|
Correlation of section 234A with section 140A |
|
Increase or decrease in tax payable and consequent effect on interest |
|
Meaning of 'due date' in the context of section 234A |
|
Nature of levy under section 234A |
|
Mere issue of notice under section 142(1) did not confer jurisdiction to levy interest under section 234A |
|
Quantum of tax on which interest is payable under section 234A |
|
Charge of interest by way of rectification under section 154 |
|
Interest under section 234A cannot be charged where no return was filed |
|
Chargeability of interest under section 234A on self-assessment tax paid before the due date of filing of return of income |
|
Effect on section 234A interest where books of assessee were seized |
|
Chargeability of interest under section 234A in case of a time barred and invalid return |
|
Chargeability of interest under section 234A where all due taxes had been paid before delayed filing of return |
|
Period for which interest be chargeable where assessment was made for the first time under section 147 |
|
Leviability of interest of the assessee was subject to tax deduction at source but the deductor did not deduct the tax or deducted lesser tax |
|
Assessee filed return before due date under section 139(1) |
|
Validity of revised return filed being valid, no interest leviable |
|
Charging of interest--Whether mandatory or discretionary |
|
Period of charging interest where notice issued under section 153A |
|
Relevant time period |
|
Illustrations for computation of interest under section 234A |
325 |
Interest for Default in Payment of Advance Tax [Section 234B] |
|
Defaults which attract levy of interest under section 234B |
|
Amounts on which interest is to be charged under section 234B(1) |
|
Interest payable under section 234B in case of updated return |
|
Period for which interest is payable under section 234B(1) |
|
Rate of interest chargeable under section 234B |
|
Adjustment of interest when tax is paid before regular assessment under section 140A |
|
Increase in interest in case of reassessment/recomputation under section 147/153A |
|
Period of default in case of an assessment made for the first time under section 147 or under section 153A |
|
Calculation of interest under section 234B where application for settlement is made |
|
Proportionate enhancement or reduction of interest where there is any increase or decrease in the tax payable |
|
Treatment of self-assessment tax paid under section 140A |
|
Computation of interest payable under section 234B(2) |
|
Interest whether to be charged on assessed tax or returned tax |
|
Applicability of sub-section (1) or (3) of section 234B |
|
Addition made on the basis of subsequent amendment--Leviability of interest |
|
Leviability of interest where the last date of payment of advance tax is holiday |
|
Requirement of show-cause notice for levy of interest under section 234B |
|
Leviability of interest even where assessee had suffered a loss |
|
Leviability of interest under section 234B where certain income becomes taxable only due to change of opinion |
|
When liability to interest under section 234B arise |
|
Period for levy of interest under section 234B |
|
Payment made during currency of previous year |
|
Leviability of interest where assessee was not obliged to pay advance tax under section 208 |
|
Where assessee had made short payment under section 140A |
|
Chargeability of interest under section 234B by invoking section 154 |
|
Position where return of income processed under section 143(1)(a) is subsequently reopened |
|
Default in payment of advance tax by reason of dispute as to taxability of certain income |
|
Chargeability of interest under section 234B, whether has to be from 1st day of assessment year or from the date of intimation under section 143(1) to the date of completion of assessment |
|
Requirement of specific order as to levy of interest under section 234B |
|
Period for which section 234B interest would be leviable, where return was pro-cessed under section 143(1) but reassessment was made later on |
|
Advance tax liability arisen due to enhance-ment of assessment under section 147 |
|
Assessee challenging levy of interest |
|
Period of levy where income assessed under section 153A |
|
Illustration for computation of interest under sections 234B and 234C |
326 |
Interest for Deferment of Advance Tax [Section 234C] |
|
Object behind section 234C |
|
Defaults attracting charge of interest under section 234C |
|
How would interest payable under section 234C |
|
Interest for deferment of advance tax in case of assessees covered by section 44AD(1) and section 44ADA(1) |
|
Meaning of the expression "tax due on returned income" in the contact of section 234C |
|
Where interest under section 234C not leviable |
|
Leviability of interest under section 234C where the higher instalment was paid later on |
|
Interest under section 234C be chargeable, subject to maximum of three months, irrespective of the period of default |
|
When interest under section 234C not leviable |
|
Chargeability of interest under section 234C in the absence of a specific direction in the assessment order |
|
Position vis-a-vis section 234C where there was TDS in excess of the tax payable on returned income |
|
Necessity of rejecting application for waiver of interest under section 234C to be a speaking order |
|
Where cheque issued by the assessee got cleared after the due date of payment of advance tax |
|
Where income arose after payment of the last instalment of advance tax |
|
Income offered in return filed in response to notice under section 148 |
|
Where return filed pursuant to reassess-ment notice |
|
Returned income vis-a-vis assessed income |
|
Considerable advance tax paid by assessee |
327 |
Issues Common to Sections 234A/234B/234C |
|
A. Waiver or Reduction of Interest |
|
Waiver of interest by Settlement Commission |
|
Powers of CBDT in regard to waiver or reduction of interest under sections 234A, 234B and 234C |
|
Powers delegated to Chief CIT or CIT vis-a-vis reduction or waiver of interest |
|
Waiver or reduction of interest permissible where return was filed after a search |
|
Duty of Chief CIT while dealing with an application for waiver of interest |
|
Possibility of waiver of interest in absence of seizure of any cash |
|
Where conditions laid down for waiver are not satisfied |
|
Reduction/waiver of interest be justified where interest was levied under section 234B on retrospective amendment of the Act |
|
Reducton or waiver of interest under section 234B, where assessee was under bona fide belief that he would get exemption under section 54EC |
|
Reassessed tax paid along with interest after reassessment order passed |
|
B. Other Issues |
|
Procedure to be followed for calculation of the interest amount |
|
Where the last day for payment of advance tax was a holiday and tax was deposited on the next following working day |
|
Levy of interest mandatory |
|
Levy of interest through a notice of demand |
|
No direction to charge interest in the assessment order but interest was charged in ITNS 150 |
|
Order not charging or incorrectly charging interest under sections 234A, 234B and 234C be rectifiable under section 154 |
|
Treatment of cash seized during search and interest liability be determined accordingly |
|
Treatment of gold ornaments and jewellery seized during search |
|
Liability company paying MAT to pay interest under sections 234B and 234C |
|
Assessing officer to pass a specific order charging interest under sections 234A, 234B or 234C |
|
Necessity of opportunity of being heard before charging interest under section 234A, 234B or 234C |
|
Where assessee offers additional income at the time of assessment |
|
Interest under sections 234A and 234B be chargeable on the assessed income |
|
Adjustment of credit of Minimum Alternate Tax (MAT) under section 115JAA and of tax paid outside India under sections 90 and 91 before charging interest under sections 234A, 234B or 234C |
|
Credit of Alternate Minimum Tax (AMT) allowable before charging of interest under sections 234A, 234B and 234C |
|
Chargeability of interest under sections 234A and 234B where the assessee was not in a position to estimate income |
|
Interest under sections 234B and 234C be charged upto which date in case of a settlement |
|
Interest under section 234A and extention of due date of filing of return by the CBDT |
|
Appeal lie against charge of interest under sections 234A, 234B or 234C |
|
Retrospective amendment of law |
|
Shortfall due to retrospective statutory amendment |
|
Estimation of accrual or receipt of windfall gain/unexpected income, whether possible |
328 |
Interest on Excess Refund [Section 234D] |
|
Chargeability of interest on the refund granted but later on found to be excessive on regular assessment |
|
Reduction of interest amount where the refunded amount was later on found to be correct |
|
Applicability of section 234D in assessment year commencing as before 1-6-2003 |
|
Chargeability of interest under section 234D at the time of reassessment under section 147 where assessment had already been completed under section 143(3) |
|
Chargeability of interest under section 234D where refund is granted pursuant to order of Commissioner (Appeals) |
|
Interest not restricted to demand |
|
Refund not arisen due to order under section 143(1) |
|
Whether assessment under section 143(3) or later assessment under section 147 is regular assessment |
329 |
Late Fee for Delayed Filing of TDS Return [Section 234E] |
|
Fee payable for delay/failure to file state-ment of tax deduction at source under section 200(3) or the statement of tax collection at source under section 206C(3) |
|
Quarterly period for which late fee under section 234E be chargeable |
|
Before furnishing quarterly TDS/TCS state-ments |
|
Necessity of passing separate order impos-ing late fee under section 234E |
|
Appeal lies against demand of late fee under section 234E |
|
Late fee leviable from date of deposit of tax, where tax deposited belatedly |
|
Assessee filed From No. 26QB instead of Form No. 27Q |
|
Default in filing quarterly returns--Order passed under section 200A, whether time barred |
|
Occurrence of technical error--No loss to revenue |
|
Section introduced w.e.f. 1-6-2015--Leviability of late fees for period prior to it |
|
Levy of section 234E prior to 1-6-2015 and inordinate delay in appealing against the same |
|
Mistake in filing TDS return--Assessee filed Form No. 26QB instead of Form No. 27Q |
330 |
Late Fee for Delayed Filing of Return of Income [Section 234F] |
331 |
Fee for Defaults Relating to Statement or Certificate [Section 234G] |
|
Fee for defaults relating to statement or certificate |
332 |
Fee for Default Relating to Intimation of Aadhaar Number [Insertion of Section 234H] |
|
Part XXXV--Refunds [Sections 237 to 245] |
333 |
Refunds to Assessee and Person Entitled to Claim Refund [Sections 237, 238 and 239] |
|
When does refund arise to an assessee |
|
Necessity of filing claim of refund |
|
Possibly of any person other than the assessee claiming refund of tax |
|
Rejection of refund claim merely because there is mismatch between the details uploaded by tax deductor and those furnished by the assessee |
334 |
Refund for Denying Liability to Deduct Tax in Certain Cases [Section 239A] |
|
Making of application for refund |
|
Conditions precedent |
|
Order by assessing officer |
|
Time limit for order |
|
Order under section 239A made appealable before CIT(A) |
|
Consequential amendments |
|
Interest on refund |
|
Issues in section 239A |
335 |
Refund in Appeal, Etc. [Sections 240 and 242] |
|
Granting of refund where the same becomes due as a result of any order passed in appeal or other proceedings |
|
Claim refund of the entire amount of tax paid by assessee where an assessment order is held to be void |
|
Assessee became entitled to refund of tax paid on an invalid revised return |
|
Assessee cannot question correctness of assessment while making claim for refund |
336 |
Interest on Refund [Section 244A] |
|
Refund due being of advance tax or tax deducted or collected at source |
|
Assessee entitled to interest on delayed refunds |
|
Refund being of tax other than advance tax or tax deducted at source or penalty |
|
Delay in granting refund arising as a result of an order under section 250 or section 254 or section 260 or section 262 or section 263 or section 264 to attract interest [Section 244A (1A)]--Effective from 1-6-2016 |
|
Interest on delayed payment of interest on refund |
|
Interest on self assessment tax being refunded |
|
Assessee entitled to interest in case of delayed refund of TDS |
|
Interest on interest |
|
Assessee entitled to interest on refund of penalty amount |
|
Assessee be entitled to receive interest on refund under section 244A on excess TDS deposited under section 195 |
|
Necessary to grant interest on refund simultaneously with the issue of refund. |
|
Entitlement of assessee to interest on delayed payment of refund even when the delay was attributable to assessee himself |
|
Interest on unpaid interest component |
|
Addition on account of interest income |
|
Allowability of interest on self-assessment tax paid |
|
Availability of interest under section 244A prior to amendment made by Finance Act, 2016 |
|
Delay in refund--Delay being not attribut-able to assessee |
|
Amount due from assessee and adjustment against interest on refund |
|
Payment of interest on interest on refund due to inordinate delay |
|
Interest on delayed refund--To include interest on principal amount |
|
Interest under section 244A whether also includes interest on delayed refund |
|
Period for which interest on refund payable --Date of refund voucher being relevant |
|
Period of interest--Tax paid on last day of month |
|
AO computed interest under section 244A adjusting amount of refund towards tax component |
|
Period for which allowable--Interest to be granted upto date of refund |
|
Interest on refund arising due to rectification under section 155(20) |
337 |
Set off of Refund Against Outstanding Demand [Section 245] |
|
Adjustment of refund payable to the assessee against tax demand of an earlier period |
|
Adjustment of refund against the demand due to the assessee without any prior information to the assessee |
|
Necessity of show cause notice before making adjustment of refund against an outstanding demand |
|
Refund due to the firm cannot be adjusted against the demand against the individual partners |
|
Refund due to the son cannot be adjusted against the outstanding tax demand of father |
|
Withholding of refund and other consequences [Position from 1-4-2023] |
|
Part XXXVI--Settlement of Cases and Advance Ruling [Sections 245A to 245L and Sections 245N to 245V] |
338 |
Settlement of Cases [Sections 245A to 245L] |
|
Abolishing settlement commission |
|
Amendments giving effect to abolishment of settlement commission |
|
Admissibility of pending applications |
|
Provisions relating to interim settlement board |
|
Exclusion of certain time limits |
|
Powers of Settlement Commission |
|
Furnishing of copies of reports given by income-tax authority |
|
Power of Settlement Commission to grant immunity from prosecution and penalty |
|
Option to withdraw application for settle-ment |
|
Impact of abolishment |
|
E-Settlement scheme |
339 |
Dispute Resolution Committee |
|
Constitution of Dispute Resolution Committee by Central Government |
|
Specified order |
|
Specified conditions |
|
Power of DRC to reduce or waive penalty or grant immunity from prosecution |
|
DRC and DRP cases |
|
Central Government empowered to make a scheme for purpose of Dispute Resolution |
|
Application for resolution of dispute before the Dispute Resolution Committee [Rule 44DAB] |
|
Power to reduce or waive penalty imposable or grant immunity from prosecution or both under the Act [Rule 44DAC] |
340 |
Advance Rulings [Sections 245N to 245V] |
|
What is advance ruling and which is applicant |
|
Constitution of authority for advance ruling |
|
Constitution of Board for Advance Rulings |
|
Authority for advance ruling cease to operate from specified date |
|
Vacancies, etc., not to invalidate proceed-ings |
|
Transfer of application for advance ruling to Board for Advance Ruling |
|
Procedure of advance ruling before Board of Advance rulings |
|
Proceedings before Board for Advance Rulings shall be faceless |
|
Advance ruling to be void in certain circum-stances |
|
Powers of the Authority |
|
Procedure of Authority |
|
Filing of return whether amounts to pendency of the question before any income tax authority |
|
Rejection of application on account of pendency of proceeding under the Companies Act |
|
No income-tax authority and Appellate Tribunal proceed to decide any issue raised in application for advance ruling |
|
Applicability of advance ruling |
|
Appealability of order of advance ruling |
|
e-Advance Rulings Scheme, 2022 |
|
Part XXXVII--Appeals |
341 |
Appeal Before Joint Commissioner (Appeals) and Commissioner (Appeals) [Sections 246 to 251] |
|
Appeal before Joint Commissioner (Appeals) |
|
Orders appealable before Commissioner (Appeals) |
|
Orders not appealable before any appellate authority |
|
Appeal against order of assessing officer giving effect to the appellate order |
|
Appeal under section 246A where revision under section 264 becomes unsuccessful |
|
Filing of objections before DRP vis-a-vis appeal before Commissioner (Appeals) |
|
Maintainability of appeal where addition is made by the AO on agreed basis |
|
Filing of appeal by person other than the aggrieved person |
|
Filing of single composite appeal on two or more issues arising out of same order |
|
Appeal against levy of interest under sections 220(2), 234D etc |
|
Appeal against liability to deduct tax at source |
|
Time limit for filing of appeal to the Joint Commissioner (Appeals) or Commissioner (Appeals) |
|
Condonation of delay in filing appeal |
|
Procedure for furnishing appeal before Joint Commissioner (Appeals) or Commissioner (Appeals) |
|
Fees payable for filing of appeal |
|
Requirement as to payment of tax |
|
Rejection of appeal due to non-payment of tax |
|
Procedure for hearing of appeal |
|
Time limit for disposal of appeal |
|
Introduction of e-appeal facility |
|
Communication of order passed by Joint Commissioner (Appeals) or Commissioner (Appeals) |
|
Power to recall exparte order |
|
Withdrawal of appeal |
|
Reference to DVO during appellate proceedings |
|
Direction to assessing officer for sub-mission of remand report not where properly adhered to |
|
Powers of Joint Commissioner (Appeals) or the Commissioner (Appeals) in disposing of appeal |
|
No power to set aside assessment for fresh assessment |
|
Power to consider issues not being subject matter of appeal |
|
Power to decide an issue pending before assessing officer for rectification under section 154 |
|
Power to rectify own order |
|
Power to give direction or finding in respect of years other than the year in appeal |
|
Powers as to enhancement of income |
|
Admission of fresh evidence |
|
Admission of additional ground |
|
Admission of additional claim towards any deduction or exemption not where made by assessee in the return |
|
Entertainment of legal issue raised first time before CIT (A) |
|
Admissibility of alternative plea |
|
Power to grant stay from recovery of demand |
|
Powers to declare TDS return non est |
|
Dismissal for non-prosecution |
|
Conversion of protective assessment in hands of individual into substantive assess-ment in HUF's hands |
|
Duty to pass speaking order |
|
Passing of ex-parte without providing proper opportunity of hearing to assessee |
342 |
Appeal Before Tribunal [Sections 252 to 255] |
|
Orders appealable before Tribunal by assessee |
|
Orders appealable before Tribunal by Revenue |
|
Appeal against order passed in consequence of direction in order under section 263 |
|
Time limit for filing appeal before Tribunal |
|
Condonation of delay in filing of appeal |
|
Fees for filing of appeal |
|
Fees when not payable |
|
Fee for filing of appeal against the order of penalty |
|
Fee where income assessed is loss |
|
Payment of fee on the basis of income adjusted after giving effect of the relief granted by the CIT(A) |
|
Filing of memorandum of appeal |
|
Filing of memorandum of cross objection |
|
Procedure for filing of appeal before Tribunal |
|
Procedure for filing of paper book before Tribunal |
|
Non-filing of revised Form 36 after death of assessee--Maintainability of appeal |
|
Powers conferred upon Tribunal while passing order |
|
Power confined to subject matter of appeal only |
|
Procedure for hearing and disposal of appeal by Tribunal |
|
Time limit for passing of order by Tribunal |
|
Admission of additional evidence |
|
Admissibility of additional ground |
|
Entertainment of new question of law raised for the first time |
|
Procedure of filing and disposal of stay petitions |
|
Admissibility of new ground involving investigation of new or fresh facts |
|
Entertainment of grounds which go to the root of the matter |
|
Power as to enhancement of the assess-ment |
|
Claim of deduction not made in original return |
|
Tribunal not empowered to grant relief more than that asked by assessee |
|
Tribunal bound to follow order of the jurisdictional High Court |
|
Dismissal of appeal on account of non-prosecution thereof |
|
Validity of exparte order |
|
Power to recall exparte order |
|
Central Government empowered to make scheme of faceless appeal |
|
Power to rectify its order |
|
Scope of power of rectification under section 254(2) |
|
No power to condone delay in filing of miscellaneous petition |
|
Procedure as to dealing with rectification application |
|
No power to review of its own order in garb of rectification |
|
Limitation period and power to pass order of stay |
|
Requirement as regards communication of orders by Tribunal to the parties |
|
Tribunal require to pass reasoned order |
|
Pronouncement of order by Tribunal |
|
Tribunal's jurisdiction to give finding in respect of the period not covered by the appeal |
|
Duty of Tribunal to consider the case cited by the assessee |
|
Non-consideration of the decision ren-dered by the Co-ordinate Bench on identical issue |
|
Non-adjudication of two issues specifically raised in the ground of appeal by assessee |
|
Monetary limits for filing departmental appeals as currently applicable |
|
Various benches of Tribunal and their functions |
|
Tribunal's power to regulate its own procedure and procedure of its Benches |
|
Tribunal, when bound to follow decision of Co-ordinate Bench |
|
Special Bench not to be constituted where there is already a Special Bench decision |
|
Special Bench decision binding upon the decision of Division Bench |
|
Restrictions on powers exercisable by the Third Member |
|
Appeal before ITAT to be faceless w.e.f. 1-4-2021 |
343 |
Appeal to High Court [Sections 260A and 260B] |
|
Appeal, when lies before High Court |
|
Persons entitled to file appeal before High Court |
|
Definition of High Court |
|
Substantial question of law is sine qua non for maintainability of appeal before High Court |
|
Meaning of substantial question of law |
|
Monetary limit for filing of appeal to High Court by Department |
|
Maintainability of appeal where tax effect is Nil |
|
Form, fee and time limit for filing appeal to the High Court |
|
Power as to condonation of delay in filing appeal |
|
Formulation of substantial question of law |
|
Respondent can argue that case does not involve substantial question of law so formulated |
|
Power to hear a substantial question of law not formulated by Tribunal |
|
Instances of no question of law |
|
Maintainability of appeal against an interim order of the Tribunal |
|
High Court's power to admit additional ground of appeal |
|
High Court's power to remand an issue not decided by the Tribunal |
|
Delivery of judgment by High Court |
|
Determination of an issue not determined by Tribunal |
|
Determination of issue not raised before Tribunal |
|
Appreciation of evidence does not fall within jurisdiction of High Court |
|
Scope of jurisdiction under section 260A |
|
Recalling of its own order by High Court |
|
Entertainment of a petition for review of order passed |
|
Applicability of provisions of Code of Civil Procedure, 1908 |
|
Appeal not maintainable where matter seized and pending for consideration before Supreme Court |
|
Hearing before High Court |
344 |
Appeal to Supreme Court [Sections 261 and 262] |
|
Orders appealable before Supreme Court |
|
Monetary limit of the tax effect for filing of appeal to the Supreme Court |
|
Points to be taken into consideration while granting certificate of fitness |
|
Condition precedent for filing of appeal |
|
Filing of Special Leave Petition (SLP) under article 136 of the Constitution of India |
|
Jurisdiction of the Supreme Court while hearing of an appeal against the order of the High Court |
|
Raising of contention not raised before the Tribunal |
|
Question of fact, when can be raised before Supreme Court |
|
Cost of appeal |
|
Effect of Supreme Court's decision to be given to the judgment of High Court |
|
Impact of dismissal of SLP |
|
Applicability of Code of Civil Procedure |
|
Condonation of delay |
345 |
Miscellaneous Provisions Relating to Appeals [Sections 158A, 158AB and 265 to 268A] |
|
Requirement as to payment of tax |
|
Execution of costs awarded by Supreme Court |
|
Amendment of assessment on appeal |
|
Exclusion of time taken for copy |
|
Board empowered to issue instruction fixing monetary limits to regulate filing of depart-mental appeal |
|
Monetary limits for filing departmental appeals as currently applicable |
|
Maintainability of appeal where tax effect is below monetary limit |
|
Procedure where assessee claims identical question of law is pending before High Court or Supreme Court |
|
Consequences of admission of claim |
|
Procedure where an identical question of law is pending before High Courts or Supreme Court |
|
Revision of exceptions to monetary limits for filing appeals deferred under provisions of Section 158AB |
|
Part XXXVIII--Revision [Sections 263 and 264] |
346 |
Revision of Erroneous Orders Being Prejudicial to Revenue [Section 263] |
|
A. General |
|
Revision of an order passed by the assessing officer |
|
Under what circumstances, order passed by assessing officer can be revised under section 263 |
|
Orders that can be revised under section 263 |
|
Revision proceeding not sustainable where initial notice for revision was signed by ITO (Technical) instead of CIT |
|
Pre-requisites for exercising power of revision under section 263 |
|
Commissioner to point out the exact error in the order to be revised, while providing opportunity to assessee |
|
Intimation under section 143(1)(a) cannot be revised under section 263 |
|
Invocation of jurisdiction on the basis of audit objection |
|
Faceless revision |
|
Faceless effect of orders |
|
B. Record--Meaning and Scope |
|
Meaning of 'record' for the purposes of section 263 |
|
Valuation report submitted by valuation officer after passing of assessment order, a part of record |
|
Records pertaining to other person cannot be taken into account for the purpose of section 263 |
|
Material made available after completion of assessment be taken into consideration by Commissioner |
|
Material collected during survey conducted under section 133A after completion of assessment can be said to be part of record |
|
ITNS 150 can be said to be an order for the purpose of section 263 |
|
Where statement recorded in search operation carried out in relation to another person |
|
CIT can make an enquiry for invoking section 263 on the basis of records of other persons |
|
C. Order Erroneous and Prejudicial to Interest of Revenue--Meaning and Scope |
|
Order passed by the assessing officer deemed to be erroneous in so far as it is prejudicial to the interest of the revenue |
|
Lack of enquiry v. inadequate enquiry |
|
Order passed by assessing officer which is not erroneous but is prejudicial to the assessee cannot be revised under section 263 |
|
Assessment order passed in accordance with the guidelines issued by the CBDT cannot be said to be erroneous |
|
Reasonn for order being erroneous and prejudicial to revenue being stated |
|
Failure to initiate penalty proceeding at the time of passing of assessment order does not render the order erroneous |
|
Order passed by AO cannot be said to be erroneous where he adopts one possible view out of two |
|
Order which is not prejudicial to interest of revenue cannot be revised under section 263 |
|
Action under section 263 cannot be taken where assessing officer made proper enquiries |
|
Order passed by the AO cannot be be said to erroneous where he passed an order after considering the relevant facts and provisions of law |
|
Where only one item in the assessment order is found prejudicial to the interest of revenue |
|
Order erroneous where the AO did not apply the correct law |
|
Revision proceeding initiated only on the basis of audit objection not sustainable |
|
Failure to take recourse to the provisions of section 14A |
|
Lack of proper enquiry render order passed by assessing officer erroneous |
|
Lack of enquiry as regards capital infusion by assessee firm in certain joint venture out of borrowed funds |
|
Lack of enquiry as regards deposit of cash in bank account of lender--Just before unsecured loan was given to assessee-firm |
|
AO granted deduction under section 80P without enquiry |
|
Lack of enquiry as regards increase in partner's capital account |
|
Lack of enquiry as regards to reflection of individual partner's bank account in the balance sheet of assessee firm |
|
Assessing officer's order passed after necessary enquiry--Whether erroneous and prejudicial order |
|
No lack of enquiry on AO's part |
|
AO failed to make any enquiry with regard to claim of assessee for deduction under section 80-IB(10) |
|
Due examination and enquiry conducted by AO |
|
Order passed by the assessing officer getting reopened, not erroneous |
|
Assessment under section 263 on the ground that the assessee did not file tax audit report |
|
Commissioner can revise assessment where certain deductions have been allowed in ignorance of provisions of law or without proper verification |
|
Non-examining loans and credit balances of partners |
|
Where assessing officer has followed order of higher appellate authorities |
|
Failure to make elaborate discussion in the assessment order would not render the order erroneous |
|
CIT asking AO for further enquiry and de novo assessment |
|
Income surrendered during survey of firm--Treated as business income for section 40(b) only after due satisfaction--Whether order erroneous |
|
No detailed discussion regarding certain issue in assessment order--AO taking a plausible view of the matter |
|
Where exercise under section 263 out-sourced by Commissioner to assessing officer |
|
No incriminating material found against assessee during search hence AO could not make any addition in view of law laid down under section 153A |
|
Computation of long-term capital gain--Assessee claimed deduction towards indexed cost of construction of compound wall and cost of improvements |
|
Deemed dividend under section 2(22)(e)--No material unearthed during search |
|
Where AO had taken a judicial view |
|
Rejection of book results vis-a-vis ad hoc addition without considering substantial increase in turnover and violation of section 40A(3) |
|
Non-application of section 115BBE to undisclosed amount in bank account treated as undisclosed business receipts/turnover |
|
Assessee wrongly showed this income under head of capital gains which was actually business income--View of AO, whether possible view precluding PCIT to invoke revisionary jurisdiction |
|
Where relevant facts not examined by AO |
|
AO examined entire case and than decided for non-invocation of section 14A |
|
Invocation of jurisdiction for expending the jurisdiction of AO to examine issues beyond the scope of limited scrutiny |
|
Set off of Interest on fixed deposits--Against interest paid on loans taken on security of those fixed deposits |
|
No examination as regards issue of eligibility of exemption under section 54/54F while framing assessment under section 153A |
|
Invocation of jurisdiction--No dispute as regards due verification carried out by AO as regards impugned issue |
|
Setting off of brought forward loss against dividend income held as business income |
|
AO having taken one of the possible views on taxability of incentive being refund of VAT |
|
Disallowance of provision for warranty--Provision made on scientific and reasonable basis |
|
Erroneous and prejudicial order--Professional fees paid to doctors |
|
Erroneous and prejudicial order--Non-invocation of section 50C |
|
AO's order being erroneous and prejudicial to interest of Revenue--Assessee had not offered notional rent on its unsold flats |
|
Difference between amount of service income on which tax was deducted by service provider and income which was shown in profit and loss account by assessee |
|
AO made addition on grounds, which were beyond purpose for taking limited scrutiny |
|
Alleged non-discussion on part of AO in relation to eligibility of exemption from capital gains from sale of shares |
|
Lack of enquiry on AO's part as regards eligibility for claim of deduction under section 54B |
|
Revision triggered only on basis of mere apprehension and doubts |
|
Assessment order only modified, not set aside |
|
No enquiry by CIT on his own |
|
AO having allowed assessee's claim of deduction under section 54F taking furniture and fixtures as part of cost |
|
Assessee pleading assessment order to have been passed after obtaining approval under section 153D |
|
AO ignored relevent provisions before allowing loss on 'OTS' |
|
Proceedings initiated in the name of non-existent entity |
|
AO made assessment without verification of assessee's claim of written off bad debts |
|
Due application of mind by AO on stated issue |
|
Order of AO, whether erroneous and prejudicial to the interest of revenue |
|
Assessment framed under section 153A read with sections 153C and 143 held void |
|
Enquiry made by AO was inadequate |
|
AO passed assessment order after verification of details |
|
Plausible view taken by AO |
|
Allowability of deduction under section 80P(2)(a)(i) as regards interest on fixed deposits with co-operative banks |
|
Debatable issue is beyond the purview of section 263 |
|
Disallowance of exemption granted under section 10(23C)(iiiae)--Assessee fulfilled all conditions prescribed under section 10(23C) (iiiae) |
|
Pr. CIT traversed beyond the jurisdiction that was vested with AO while framing assessment--Impugned issue not being subject-matter of limited scrutiny |
|
Assessment order under section 153C itself being invalid--No document belonging to assessee was found--Validity |
|
Denial of exemption under section 10(23C) (iiiab) |
|
Limited scrutiny on issue in notice--CIT examined the issue other than one considered by AO |
|
Failure of AO to levy tax as per section 115BBE--Order passed erroneous |
|
D. Passing of Order Under Section 263 |
|
Kind of orders that can be passed under section 263 |
|
Procedure required to be followed |
|
Necessity of granting opportunity of being heard |
|
Commissioner not providing opportunity of hearing to assessee--Validity of revision |
|
Necessary to record satisfaction before issuance of the show-cause notice |
|
CIT cannot give direction to the assessing officer to complete the assessment following a particular procedure |
|
Jurisdiction to revise an assessment order which was made subject matter of appeal before Commissioner (Appeals) |
|
Invocation of jurisdiction--Appeal pending before CIT(A) |
|
Invocation of jurisdiction in respect of issue decided in-appeal by CIT(A) |
|
Commissioner to record basis on which he deems that order passed AO is erroneous and prejudicial to the interest of the revenue |
|
Commissioner cannot initiate proceeding under section 263 merely on the ground that the enquiry conducted by the assessing officer was inadequate |
|
Revision on the basis of fresh facts or any subsequent event |
|
Powers under section 263 cannot be used for directing a re-verification |
|
While making fresh assessment in pursu-ance of revisional order under section 263, the assessing officer is not entitled to examine the items which did not form part of revisional proceedings |
|
Lack of natural justice on part of PCIT |
|
E. Time Limit for Passing of Revisional Order |
|
Time-limit for exercise of power of revision |
|
When time limit of two years for passing of revisional order would not apply |
|
Limitation where reassessment order is sought to be revised |
|
Limitation where original assessment order is rectified under section 154 |
|
Initial order passed under section 143(3)--Fresh order passed on directions of CIT(A)--Reckoning of limitation period |
|
Bar of limitation--Issue pertained to original assessment and not the reopened assessment |
|
Period of limitation for issuance of notice prescribed under section 263(2)--Where assessment under section 153A |
|
F. Miscellaneous Issues |
|
Remedy available to assessee against order passed by Principal Commissioner or Commissioner under section 263 |
|
Consequential validity of assessment order |
|
Invocation of second time revisional juris-diction |
|
Assessment order being void ab initio treated as erroneous by CIT |
|
Original assessment order was liable to be considered to reckon the limitation |
|
Issue sought to be revised covered by original assessment and not by reassessment order |
|
Where the assessing officer did not commit any error |
|
Share application money is also required to be considered in the net worth of the assessee |
|
Pr. CIT in his order passed under section 263 made reference to Expln. 2 of section 263--No mention of Expln. 2 to section 263 in show-cause notice |
|
PCIT cannot enlarge scope of reopening |
|
AO taken a particular cost of acquisition on the basis of valuer's report |
347 |
Revision of Orders to Which Section 263 Not Applicable [Section 264] |
|
Kinds of orders that can be revised under section 264 of the Act |
|
Faceless revision |
|
Kinds of orders that are not revisable under section 264 |
|
Intimation under section 143(1)--Whether revisionable under section 264 |
|
Order prejudicial to assessee cannot be passed under section 264 |
|
When would an order passed by Commi-ssioner under section 264 be said to be pre-judicial to the interest of assessee |
|
Order passed by the Commissioner declining to interfere |
|
Limitation period for invoking suo motu revisional powers |
|
Time limit for filing application for revision under section 264 by an assessee |
|
Admission of application for revision under section 264 after the expiry of one year |
|
Principles required to be observed by Assessing Authority while deciding application for condonation of delay |
|
Form in which application for revision under section 264 required to be made |
|
Fee payable for filing an application for revision |
|
Time limit for passing an order under section 264 |
|
Where Principal Commissioner/Commiss-ioner does not pass revisional order under section 264 within prescribed time limit |
|
Assessee can withdraw appeal filed to CIT(A) and then file a revision petition under section 264 before the CIT |
|
Where limitation period for passing order of revision under section 264 would not apply |
|
Order in revision has to be a speaking order |
|
Where Commissioner (Appeals) has rejected the appeal against an order as time barred or unmaintainable |
|
Commissioner can consider both the points of law as well as points of facts while deciding an application under section 264 |
|
Commissioner can re-revise an order passed under section 264 on a fresh appli-cation by the assessee |
|
Opportunity of being heard is required to be given to assessee before disposing of application under section 264 by the Commi-ssioner |
|
Order passed under section 264 is not appealable before the Tribunal |
|
Principal Commissioner/Commissioner can entertain a new ground which was not urged before the lower authorities |
|
Where return furnished by assessee is accepted by the assessing officer |
|
Where Commissioner sets aside an assess-ment by exercising revisional powers under section 264 |
|
Necessity to serve a copy of AO's report on the assessee |
|
Section 54F benefit, whether could be granted in revision when not claimed during assessment proceedings |
|
Assessee failing to exercise appeal right in time--Justification for revision petition |
|
Writ petition against rejection of appli-cation for revision under section 264 |
|
Loss on account of derivative transactions accepted as speculative loss by assessee |
|
Pr. CIT passed an ex parte order--No opportunity was granted |
|
Excess tax collected from assessee |
|
Part XXXIX--Mode of Acceptance, Payment or Repayment in Certain Cases [Sections 269SS, 269ST, 269SU & 269T] |
348 |
Restriction on Acceptance of Loan, Deposit Etc., in Cash [Section 269SS] |
|
Restriction on accepting any loan, deposit or specified sum in cash of an amount Rs. 20,000 or more |
|
Restriction, when not applicable |
|
Terminologies defined |
|
Limit of section 269SS and 269T raised to Rs. 2,00,000 from Rs. 20,000 in certain cases of co-operative society |
|
What is loan or deposit |
|
Consequences of violation of section 269SS |
|
Interest also covered by section 269SS |
|
Section 40A(3) vis-a-vis section 269SS |
|
Transfer of money by mere book entries attracts section 269SS |
|
Cash received from MD for meeting of day-to-day emergency expenses |
|
Where each deposit did not exceed Rs. 20,000 |
|
Cash deposit from director towards share application money |
|
Transaction between firm and partner |
|
Transactions between company and director |
|
Capital contribution to proposed partner-ship in cash |
|
Assessee being a finance company |
|
Cash loan deposited in company account |
|
Acceptance and repayment of loan/deposits in cash by assessee non-banking financial company |
|
Amount received back from borrower in cash |
|
Agents acting as behalf of principal |
|
Cash accepted from agriculturists |
|
Amount paid by director to company |
|
Amount received from directors in the shape of share application money |
|
Applicability where assessee acted as agent |
|
Amount received with no obligation to return |
|
Section 269SS not applicable where related amount neither loan nor deposit |
|
Director of a company not covered by section 269SS |
|
Share application Money |
|
Payment made by sister concern on behalf of assessee--Alleged receipt of cash loan by assessee |
|
Contravention of provision of section 269SS--Bank deposit treated as business receipt and not loan |
|
Receipt of loan in cash from relatives |
|
Allegation that assessee received amounts in cash as loan from HUF--HUF deposited amounts with assessee company for redemption of jewellery purchased under gold savings scheme |
|
Loan accepted though bearer cheque--Loan accepted from father |
|
Both creditor and borrower being agriculturist |
|
Acceptance of cash exceeding the limit prescribed under section 269SS from assessee's own HUF |
|
Loan transactions made before incorpor-ation of assessee company |
|
Cash received by assessee from the commission agent against the crops |
|
Loan taken through director |
|
Assessee received unsecured loan in cash--Director of assessee-company received cash loan from his father |
|
Contravention of section 269SS to meet urgent requirements of business |
|
Alleged violation of section 269SS--Entries passed out of business constraints and exigencies |
|
Cash received from MD for meeting of day-to-day emergency expenses |
|
Acceptance repayment via Journal entries |
|
Where amounts adjusted by journal entries were receivable |
|
Deposits/loans received by assessee through journal entries |
|
Cash receipts against sale of immovable properties duly disclosed by assessee |
|
Acceptance of cash from spouse and father for acquisition of immovable property |
|
Loan/deposits taken paid by the assessee was more than Rs. 20,000--How limit of Rs. 20,000 be counted |
349 |
Restriction on Cash Receipts of Rs. 2 Lakh or More [Section 269ST] |
|
Restriction imposed on cash receipts of Rs. 2 lakh or more |
|
Circumstances when section 269ST not applicable |
|
Transaction specified in section 269SS out of purview of section 269ST |
|
Status of transactions not within the ambit of section 269SS |
|
Loan transaction with NBFC/HFC |
|
Clarification on cash sale of agricultural produce by cultivators/agriculturist |
|
Provisions of section 269ST shall not apply to receipt by any person from an entity referred to in sub-clause (b) of clause (i) of the proviso to section 269ST |
|
Central Government specifies entities to whom provisions of section 269ST shall not apply |
|
Clarification for the purposes of clause (c) of section 269ST of the Income Tax Act, 1961 in respect of dealership/distributorship contract in case of Co-operative Societies |
|
Penalty to be levied on violation of section 269ST |
|
Illustration showing applicability of section 269ST in varied situations |
350 |
Acceptance of Payment Through Prescribed Electronic Modes [Section 269SU] |
|
Mandating acceptance of payments through prescribed electronic modes |
|
Prescribed electronic modes for purposes of section 269SU |
|
Non-applicability of section 269SU |
|
Penalty for failure to comply with provisions of section 269SU |
351 |
Restriction on Repayment of Loan or Deposit or Specified Amount [Section 269T] |
|
Scheme of section 269T |
|
Loan or deposit |
|
Specified sum |
|
Repayment of any loan, deposit or other sum by way of making credit in the saving bank account or the current account |
|
Non-applicability of section 269T |
|
Limit of section 269SS and 269T raised to Rs. 2,00,000 from Rs. 20,000 in certain cases of co-operative society |
|
Terminologies defined |
|
Applicability of section 269T in case of repayment of credit facilities |
|
Institutions specified for purpose of section 269SS |
|
Scope of applicability to kacha arhatiyas |
|
Consequences of violation of section 269T |
|
Payment to a deceased person |
|
Payment made in pursuance of a court order |
|
Applicability in case of Kachcha Arhatiyas |
|
Aggregation of deposits with all branches of bank |
|
Applicability or otherwise of section 269T |
|
Journal entries passed for squaring up of transactions or adjustment of entries |
|
Refund of advance taken for share application money in cash |
|
Payment by HUF to its member or vice versa |
|
Current account transactions |
|
Repayment of deposit/loan in cash on a single day not exceeding Rs. 20,000 |
|
Payment to firms exceeding specified limits in cash |
|
Re-payment of capital balance in cash |
|
Capital contribution to proposed partner-ship |
|
Repayment of deposit/loan in cash on a single day not exceeding Rs. 20,000 |
|
Cash payment, out of closing balance in capital accounts of retired partners |
|
Loan squared off by assessee by way of conversion of the loan into equity |
|
Loan from directors |
|
Receipt of cash from HUF entity |
|
Repayment of loan in cash by assessee |
|
Journal entries passed for squaring up of transactions or adjustment of entries |
|
Part XL--Penalties and Offences & Prosecution [Sections 270A to 280D] |
352 |
Penalty for Underreporting and Misreporting of Income [Sections 270A and 270AA] |
|
Penalty for underreporting and misreporting of income |
|
Penalty, when can be levied under section 270A |
|
Instances of underreported income |
|
Circumstances when income would not be considered as underreported |
|
Computation of underreported income |
|
Determination of underreported income where source of receipt related to earlier years |
|
Manner of computing underreported income in case of intangible addition |
|
Quantum of penalty leviable under section 270A |
|
Misreporting of income |
|
Computation of tax payable in respect of underreported income |
|
Illustrations showing computation of tax payable on underreported income and penalty under section 270A |
|
No double penalty |
|
Order of penalty |
|
No penalty shall be levied under section 270A where penalty is levied under section 271AAC in respect of undisclosed income |
|
Illustrations |
|
Illustration showing different situations of underreporting of income |
|
Illustration showing determination of underreported income in loss cases and computation of tax payable and penalty leviable thereon |
|
Illustration clarifying determination of underreported income where section 115JB or 115JC applicable |
|
Illustration clarifying leviability of penalty under section 270A where underreported income is claimed to be covered by additions made in earlier years |
|
Where income got enhanced due to increase in the disallowance voluntarily estimated by the assessee |
|
Estimation of income and penalty |
|
Merely mentioning that the appellant has misreported income without bringing out how the additions has lead to misreporting of income--Whether penalty justified |
|
Possibility of immunity from penalty to be levied under section 270A and from pro-secution under section 276C or 276CC [Section 270AA] |
353 |
Penalties Other than Penalty for Underreporting of Income |
|
A. Penalties Under Sections 271A to 272BB--AT a Glance |
|
B. Penalty for Failure to Keep, Maintain or Retain Proper Books of Account, Documents, Etc. [Section 271A] |
|
Penalty not to be levied where assessing officer is able to compute income |
|
Validity of penalty levied before completion of assessment proceedings |
|
Penalty to be levied where no reasonable cause advanced or proved |
|
Non-maintenance of bank account is no ground for levying penalty |
|
C. Penalty for Failure to Keep and Maintain Information and Document in Respect of Certain Transactions [Section 271AA] |
|
No penalty to be levied in case of reason-able cause |
|
No penalty to be levied where no adverse finding recorded by TPO |
|
No penalty for non-maintenance of contem-porary documentation in respect of inter-national transactions where requisite infor-mation furnished and no upward adjustment required |
|
Penalty on non-disclosure of details of specified domestic transaction in ITR |
|
D. Penalty on Undisclosed Incomes Found in Search Cases [Section 271AAB] |
|
Penalty in search cases leviable under section 271AAB |
|
Quantum of penalty after amendment by Taxation Laws (Second Amendment) Act, 2016 |
|
Meaning of "undisclosed income" |
|
No penalty in case of survey |
|
E. Penalty in Respect of Incomes Referred to in Sections 68 to 69D [Section 271AAC] |
|
Penalty in respect of income referred to in sections 68 to 69D |
|
Cumulative impact of sections 115BBE, 271AAC and 271AAB(1A) |
|
Illustration |
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F. Penalty for False Entry, etc. in Book of Account [Section 271AAD] |
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Penalty under section 271AAD |
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Levy of penalty on any other person who causes to make false enter |
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Meaning of false entry |
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Power to attach |
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G. Penalty for Benefit to Related Persons [Section 271AAE] |
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H. Penalty for Failure to Get Accounts Audited [Section 271B] |
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No penalty where assessing officer not recorded his satisfaction |
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No penalty in case of inadvertent mistake in filing e-return |
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Penalty to be levied even where books of accounts not maintained |
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Penalty not leviable in case of there being reasonable cause |
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I. Penalty for Failure to Furnish Report Under Section 92E [Section 271BA] |
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J. Penalty for Failure to Deduct Tax at Source [Section 271C] |
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K. Penalty for Failure to Collect Tax at Source [Section 271CA] |
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L. Penalty for Failure to Comply with Section 269SS [Section 271D] |
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M. Penalty for Failure to Comply with Section 269ST [Section 271DA] |
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Levy of penalty under section 271DA |
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What section 269ST provides |
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No penalty to be levied where sufficient reasons exist for contravention |
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Authority empowered to impose penalty |
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N. Penalty for Failure to Comply with Section 269SU [Section 271DB] |
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Acceptance of payment through prescribed electronic modes |
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Penalty under section 271DB(1) |
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No penalty in case of good and sufficient reason |
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Authority empowered to levy penalty |
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O. Penalty for Failure to Comply with Provisions of Section 269T [Section 271E] |
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P. Penalty for Failure to Furnish Statement of Financial Transaction or Reportable Account or for Furnishing Inaccurate Statement of Financial Transaction or Reportable Account [Sections 271FA, 271FAA] |
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Penalty, when leviable under section 271FA |
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No penalty under section 271FA where breach of provision was technical and venial |
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Q. Penalty for Failure to Furnish Information or Document Under Section 92D [Section 271G] |
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R. Penalty for Failure to Furnish Statement etc. [Section 271K] |
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S. Penalty for Failure to Answer Questions, Sign Statements, Furnish Information, Returns or Statements, Allow Inspections, Etc. [Section 272A] |
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Certain acts liable to penalty under sub-section (2) of section 272A |
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Case law relevant to section 272A(2)(c)/272A(2)(k) |
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Failure to file return under section 139(4A) or section 139(4C) |
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Failure to furnish certificate under section 203 or 206C |
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Penalty to be levied where no plausible explanation for delay |
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No penalty in absence of deliberate defiance of law by assessee |
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T. Penalty for Failure to Comply with Provisions of Section 139A [Section 272B] |
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U. Common Issues Pertaining to Penalties |
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Power to grant immunity from penalty [Section 273AA] |
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Penalty not to be imposed in certain cases [Section 273B] |
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Procedure regarding imposition of penalty [Section 274] |
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Provision for e-penalty |
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Faceless Penalty Scheme |
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Limitation for imposition of penalty [Section 275] |
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Time limit for initiation of penalty under section 271C |
354 |
Offences and Prosecution [Sections 275A to 280D] |
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Prosecution provisions at a glance |
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Power of Principal Commissioner or Commi-ssioner to grant immunity from prosecution |
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Scheme for granting immunity |
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Presumption as to assets, books of accounts, etc., in certain cases |
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Presumption as to culpable mental state |
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Prosecution to be at instance of Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner |
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Compounding of offences |
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Central Government to make scheme for faceless sanction or compounding |
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Offence regarded as non-cognizable |
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Proof of entries in records and documents |
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Disclosure of particulars by public servants |
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Trial of offences by Special Court |
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Part XLI--Residuary Miscellaneous Provisions [Sections 281 to 294] |
355 |
Certain Transfers to be Void [Section 281] |
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Transfer of any asset by assessee when regarded as void |
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Transfer of any asset, when not be void |
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Application for seeking permission under section 281 |
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Validity of permission granted by the assessing officer |
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Guidelines to be observed by the assessing officer for granting permission under section 281 |
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Monetary limits for applicability of section 281 |
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Meaning of expression "assets" for the purpose of section 281 |
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Assessing officer empowered decide as to which of the assets or property of the assessee could be attached |
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No adjudicatory machinery is provided under the Act for declaring any charge of transfer void |
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Assessing officer cannot pass an order declaring a transaction void under section 281 independent of any judicial proceeding |
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Assessing officer cannot invoke section 281 in case of compulsory acquisition of an undertaking by State Government |
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Time limits for granting/refusing permission under section 281 |
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Power of Tax Recovery Officer to declare a transfer of property |
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Assessing officer cannot summarily reject an application for permission sought under section 281 |
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Provisional attachment of bank account of assessee |
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Right in property purchased of purchaser and landlord |
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Mortgage to property during recovery proceedup--Validity |
356 |
Provisional Attachment to Protect Revenue in Certain Cases [Section 281B] |
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Power of assessing officer to make provisional attachment |
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Validity of order of provisional attachment |
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Revocation of attachment |
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Determination of value of the property provisionally attached |
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Period during which order revoking the provisional attachment be made |
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Revoking of guarantee furnished by assessee |
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Release of guarantee by assessing officer |
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Provisional attachment in Fake Invoice cases [Amendment of sub-section (1) of section 281B]--Effective from 1-4-2021 |
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Attachment of land of partnership property--Rights of transferree of partner's interest |
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As per section 281B it is only property of assessee that can be attached |
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Scope of section 281B |
357 |
Service of Notice, Summons, Requisition, Order and Other Communication [Section 282] |
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Service of notice, summons, requisitions, etc |
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CBDT empowered to make rules for providing addresses |
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Addresses as provided by the Board |
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Addresses for communication in the manner provided in clause (a) or clause (b) of section 282(1) |
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Addresses for communication transmitted electronically |
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Authority competent to specify related procedure, etc |
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Service of notice to an agent |
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Where assessee refuses to accept a registered envelope |
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Validity of service of notice where notice was incorrectly addressed |
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Service of a notice under section 143(2) sent through speed post |
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Service of notice on a relative of the assessee |
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Burden of proof as to service of notice |
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Assessee be deemed to have waived irregularity in service of notice where he asked for adjournment in respect of such proceeding |
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Notice served on assessee's father |
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Notice issued in the name of a dead person |
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Service at old address where department already informed of the new address |
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Service at old address where new address was not intimated by assessee |
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Service at old address where department already informed of the new address |
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Service at old address where new address was not intimated by assessee |
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When notice or document communicated in electronic form shall be deemed to be authenticated |
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Authority who will specify the related procedures |
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Meaning of 'electronic mail' and 'electronical mail' message |
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Meaning of 'electronic record' |
358 |
Authentication of Notices and Other Documents [Section 282A] |
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Manner of authentication of notices and other documents under the Act |
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Signed--Meaning of for the purposes of section 282A |
359 |
Service of Notice When Family is Disrupted or Firm, Etc., is Dissloved [Section 283] |
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Service of notice where a Hindu Undivided Family is disrupted or a firm dissolved |
360 |
Service of Notice in Case of Discontinued Business [Section 284] |
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Service of notice in the case of a discontinued business |
361 |
Submission of Statement by a Non-Resident Liaison Office [Section 285] |
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Statement by a non-resident by liaison office |
362 |
Furnishing of Information or Documents by an Indian Concern in Certain Cases [Section 285A] |
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Information required to be furnished by an Indian entity, where its share derives its value substantially from the assets located in India |
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Information or documents to be furnished under section 285A |
363 |
Submission of Statements by Producers of Cinematograph Films [Section 285B] |
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Information required to be submitted by a person carrying on the business of production of a cinematograph film |
364 |
Annual Statement [Section 285BB] |
365 |
Statements of Financial Transaction or Reportable Account [Section 285BA] |
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Specified financial transactions--Meaning of |
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Who shall furnish statement and in respect which transaction it shall be furnished |
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Reporting of certain incomes by specified persons |
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Aggregation of transactions |
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Manner of furnishing return in Form No. 61A |
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Time limit for furnishing of statement of financial transaction |
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Verification statement |
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Penalty for failure to furnish statement of financial transaction or reportable account [Section 271FA] |
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Penalty for furnishing inaccurate statement of financial transaction or reportable account [Section 271FAA] |
366 |
Furnishing of Report in Respect of International Group [Section 286] |
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Furnishing of report in respect of an international group |
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Notice to prescribed income-tax authority |
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Inclusions in the report to be furnished in respect of an international group |
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Report by a constituent entity of an international group |
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No report to be furnished by a constituent entity of an international group |
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Prescribed authority may require an entity to produce specified information and document |
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When international group is not required to furnish report in respect of international group |
367 |
Publication of Information Respecting Assessees in Certain Cases [Section 287] |
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Publishing name of any assessee and any other particulars relating to any proceedings or prosecution taken against them |
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Central Government cannot publish the name of an assessee where the assessee first files an appeal and but the same is not yet disposed of |
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Case of company/firm/AOP |
368 |
Appearance by Registered Valuer in Certain Matters [Section 287A] |
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Representation on behalf of assessee |
369 |
Appearance by Authorised Representative [Section 288] |
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Assessee can be represented by an authorised representative |
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Who can be an authorised representative |
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Certain accountants not to give reports under the Act |
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Who cannot be appointed as accountant |
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What is the meaning of relative in relation to an individual for the purpose of section 288 |
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Certain persons not entitled to represent |
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Person found guilty of professional misconduct |
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Condition subject to which order under section 288(4)(b)/288(5)(b) be passed |
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Appearance by Authorised Representative in certain cases |
370 |
Rounding Off of Income [Section 288A] |
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Rounding off of income |
371 |
Rounding Off of Tax, Etc. [Section 288B] |
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Rounding off of tax payable by an assessee |
372 |
Receipt to be Given [Section 289] |
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Is it necessary to give a receipt in reference to any money paid or recovered |
373 |
Indemnity [Section 290] |
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When would a person be indemnified for deduction or retention of payment of tax |
374 |
Power to Tender Immunity from Prosecution [Section 291] |
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Central Government can tender immunity from prosecution for any offence under the Act or under the Indian Penal Code, or under any other Central Act |
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Limitations as to such tendering of immunity |
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Withdrawal of immunity granted to any person |
375 |
Cognizance of Offences [Section 292] |
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Who can authority try any offence under the Act |
376 |
Section 360 of the Code of Criminal Procedure, 1973, and the Probation of Offenders Act, 1958, Not to Apply [Section 292A] |
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Provisions of Code of Criminal Procedure, 1973 and the Probation of Offenders Act, 1958 not to apply to a person convicted of an offence under the Income Tax Act |
377 |
Return of Income, Etc., Not to be Invalid on Certain Grounds [Section 292B] |
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Return of income, assessment, notice, summons or other proceedings cannot be rendered invalid merely by reason of any mistake, defect or omission in such return of income |
378 |
Notice Deemed to be Valid in Certain Circumstances [Section 292BB] |
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Assessee in certain circumstances not to challenge notice |
379 |
Presumption as to Assets, Books of Account, Etc. [Section 292C] |
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Presumption to be taken in respect of any books of account, other documents, money, bullion, jewellery or other valuable article or things found in the possession or control of any person in the course of a search |
380 |
Authorisation of Assessment in Case of Search or Requisition [Section 292CC] |
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Necessity to issue authorisation under section 132 or make a requisition under section 132A separately in the name of each person |
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Mentioning of the name of more than one person in the authorisation |
381 |
Bar of Suits in Civil Courts [Section 293] |
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Protection provided to the officers of the income tax department under the Act |
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Validity of suit filed against the department where there was no allegation of fraud against the departement |
382 |
Power to Make Exemption, Etc., in Relation to Participation in the Business of Prospecting for, Extraction, Etc., of Mineral Oils [Section 293A] |
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Class of persons granted any exemption, reduction in rate or other modification in respect of income-tax |
383 |
Power of Central Government or Board to Condone Delays in Obtaining Approval [Section 293B] |
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Condonation of delay in obtaining any approval under the Act |
384 |
Power to Withdraw Approval [Section 293C] |
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Withdrawal of approval granted by income-tax authority |
385 |
Faceless Approval or Registration [Section 293D] |
386 |
Act to Have Effect Pending Legislative Provision for Charge of Tax [Section 294] |
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Affect of provisions of Income Tax Act where Finance Act for any assessment year, charging income-tax, is not enacted by 1st April of that year |
387 |
Power to Make Rules [Section 295] |
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Power to make rules |
388 |
Rules and Certain Notifications to be Placed before Parliament [Section 296] |
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Rules and certain notifications to be placed before Parliament |
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Part XLII--Other Laws |
389 |
Equalisation Levy [By Finance Act, 2016] |
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I. Equalisation Levy on Specified Services [From 1-6-2016] |
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Scope and date effective of equalization levy |
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Applicability of equalization levy |
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Specified service |
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Rate of levy on specified services |
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How equalization levy is levied |
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When equalisation levy shall not be charged |
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Who shall collect equalization levy on specified services |
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Equalisation levy |
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Online |
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Permanent establishment |
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II. Equalisation levy on non-resident "e-commerce operators" [From 1-4-2020] |
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Charge of equalisation levy on e-commerce supply or services |
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Terminologies defined |
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Enlargement of scope of "e-commerce supply or services" |
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Ownership of goods and provision of services by e-commerce operator not to be pre-requisite for equalisation levy |
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Impact of new equalisation levy |
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Parallel taxation under two laws |
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Treaty situations |
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Situation of company having PE and that not having PE |
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Double taxation |
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Credit of Equalisation levy where assessing officer concludes that assessee was having PE |
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Unresolved issues |
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Why equalisation levy provisions introduced |
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III. Procedural Aspects |
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Rounding off of consideration for specified services, equalisation levy, etc |
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Payment of Equalisation levy |
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Collection and recovery of equalisation levy on e-commerce supply or services |
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Furnishing of statement |
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Notice of demand |
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Interest on delayed payment of equalisation levy |
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Penalty for failure to deduct or pay equalisation levy |
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Penalty for failure to furnish statement |
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No penalty in certain cases |
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Punishment for false statement |
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No prosecution in certain cases |
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Appellate mechanism |
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Application of certain provisions of Income-tax Act |
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Exemption to income arising from any e-commerce supply or services made or provided in certain cases [Section 10(50)] |
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IV. No Equilisation Levy |
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Consideration liable to tax as royalty or fees for technical services under Income Tax Act not to be liable to Equalisation levy |
390 |
Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 |
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A. Brief Overview of Related Provisions |
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Who is assessee under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 |
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Participant |
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Unincorporated body |
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Charge of tax |
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What is undisclosed foreign income and asset |
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What is "undisclosed asset located outside India" |
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How to determine value of an undisclosed asset |
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Scope of total undisclosed foreign income and asset |
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Computation of total undisclosed foreign income and asset |
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Who will administer the Black Money Act |
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Penal consequences or punishment |
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Proof of entries in records or documents |
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B. Important Rulings |
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Beneficial owner--Who is |
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Mere mention of name of assessee on account opening form--Not to make the assessee, a beneficial owner |
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Applicability of Act to foreign accounts |
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Penalty under section 43 and disclosure of foreign account in return of income |
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Return filed in response to notice under section 153A and disclosure of foreign assets made therein |
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Mere non-disclosure in return--Not to invite penalty under section 43 |
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Foreign account disclosed in revised return--No penalty leviable under section 50 |
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Valuation of foreign assets--How to be determined |
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When section 4 of BMA applies |
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Once the foreign income and assets remain undisclosed no explanation need be called for |
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Scope of Schedule FA in ITR |
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Section 49 v. Section 50 of BMA |
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Application of section 2(11) |
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When section 50 applies |
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Decision in Rasheshmanhar Bhansali v. Addl. CIT 2021 TaxPub(DT) 6353 (Mum-Trib) : (2022) 193 ITD (Mum) 141 |
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When accounts could be charged |
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What constitutes undisclosed asset |
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Whether the appellant has discharged the onus placed upon him to satisfactorily explain the source of the investment in the assets, i.e., foreign bank accounts where he is listed as the sole beneficial owner? |
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Assets acquired before BMA coming into force |
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Interplay between black money Act and Income Tax Act |
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Double taxation not possible |