whether Compensation received by prospective employee on termination of employment contract is taxable ? An amount received by a prospective employee ‘as compensation for denial of employment’ was not in nature of profits in lieu of salary. It was a capital receipt that could not be taxed as income under any other head HIGH COURT OF… Read More »
MAT inapplicable on foreign Cos having no PE in India w.e.f. April 1, 2001; Govt. to amend IT Act Press Information Bureau Government of India Ministry of Finance 24-September-2015 16:05 IST Government Decides to Amend… Read More »
Whether taking of the loan in cash, which was more than Rs.20,000/- was in gross violation of of section 269SS and, consequently, by operation of law, the penalty is to be imposed ? Where even though assessee had taken a loan in cash, since loan was routed through bank account of assessee for payment to Government… Read More »
whether the assessee could take recourse to the “guidance note” issued by the Institute of Chartered Accountants of India qua accounting for lease in determination of its income, and whether the deduction as claimed by the assessee ought to be allowed ? Where assessee had maintained accounts as per guidance note on accounting for leases… Read More »
whether VRS compensation paid,to be treated as under Extraordinary items or as under Exceptional items ? The nature of VRS compensation needs to be assessed on company to company basis before it is categorized either as Extraordinary item or as Exceptional item. Extraordinary items AS 5 ‘Net Profit or Loss for the Period,… Read More »
Indian Accounting Standard (Ind AS 107) Financial Instruments: Disclosures (This Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority. Paragraphs in bold type indicate the main principles.) Objective of Standard on Financial Instruments: Disclosures 1. The objective of this Indian Accounting Standard (Ind AS) is to require entities to… Read More »
E PAYMENT OF INCOME TAX, TDS, ADVANCE TAX ,WEALTH TAX (DIRECT TAXES) There are two modes of payment of direct taxes (i) physical mode i.e. payment by furnishing the hard copy of the challan at the designated bank; and (ii) e payment mode i.e. making payment by using the electronic mode i.e using internet banking facility of… Read More »
Financial transaction or Reportable account Under Income tax Act 1961 [previously called as ‘Annual Information Return (AIR) ] What is statement of financial transaction or reportable account (previously called as ‘Annual Information Return (AIR)’? As per section 285BA of the Income-tax Act, 1961 (as substituted by Finance Act, 2014 w.e.f. 01-04-2015), specified entities (Filers) are… Read More »
Residential status under Income Tax Act 1961 Is the residential status of a person relevant for determining the taxability of the income in his hands? Yes, the residential status of a person earning income is very much relevant for determining the taxability of such income in his hands. Taxability of any income in the hands… Read More »
Assessment under Income Tax Act 1961 What is the meaning of assessment? Every taxpayer has to furnish the details of his income to the Income-tax Department. These details are to be furnished by filing his return of income. Once the return of income is filed by the taxpayer, the next step is the processing of… Read More »