Daily Archives: March 1, 2017

Additional depreciation allowed even if acquisition & installation is not in same year

By | March 1, 2017

Issue Whether additional depreciation claim of Rs. 2,18,50,976/= @ 20% under Section 32 [1](iia) of the Income-tax Act 1961 , allowed on the machinery purchased before 31st March 2005, but installed after 31st March 2005 ?” Revenue Contention In the present case the twin conditions of installation and use in the year under consideration has… Read More »

Guidance for AO verifying cash transactions relating to demonetisation

By | March 1, 2017

Guidance for Assessing Officers verifying cash transactions relating to demonetisation: The Central Board of Direct Taxes (CBDT) issued standard operating procedures for Assessing Officers to follow as they verify cash transactions relating to demonetisation. Read a February 2017 report [PDF 354 KB] of KPMG Related Post Demonetization : SOP Issued for Assessing Officer for Verification of Cash… Read More »

Lower tax rate under tax treaty applies (even absent Permanent Account Number)

By | March 1, 2017

Lower tax rate under tax treaty applies (even absent a permanent account number): The Special Bench of the Hyderabad Income-tax Appellate Tribunal held that certain tax law provisions do not override provisions of an applicable income tax treaty, to the extent that the treaty provisions are beneficial to the taxpayer. The case is: Nagarjuna Fertilizers and Chemicals… Read More »

Relax conditions for Carry forward / set off of loss for Startups – Budget 2017-18 Suggestions

By | March 1, 2017

Suggestions on Clause 32 of Finance Bill / Budget 2017- Section 79- Carry forward and set off of loss in case of eligible start-ups – Condition to be further relaxed The Finance Bill 2017  proposes to amend section 79 to provide that where a change in shareholding has taken place in a previous year in… Read More »

Clear confusion of TCS on Sale of Jewellery w.e.f 01.04.2017 – Budget 2017-18 Suggestions

By | March 1, 2017

Suggestions on Clause 71 of Finance Bill 2017 – Section 206C(1D) – Exclusion of specific reference to sale of jewellery, cash consideration exceeding Rs.5 lakhs -Consequent implication Section 206C(1D) provides for TCS obligation on sale of jewellery, sale of bullion, and residuary limb being any other goods (other than bullion or jewellery) ,if the value of… Read More »

Transfer of carbon credits not treated as Income u/s 2(24)? Budget 2017-18 Suggestions

By | March 1, 2017

Suggestions on Clause 45 of Finance Bill / Budget 2017- Insertion of section 115BBG – Income from transfer of carbon credits to be taxed@10% – Inclusion in definition of income under section 2(24) and clarification regarding tax treatment for prior assessment years. The proposed introduction of section 115BBG providing for a 10 percent tax on… Read More »

Gift u/s 56(2)(x) not treated as Income u/s 2(24)? Budget 2017-18 Suggestions

By | March 1, 2017

Suggestions on Clause 29 of Finance Bill 2017 – Section 56- Insertion of new clause (x) in section 56(2) – Reference to be included in the definition of income under section 2(24) The Finance Bill 2017 proposes to insert a new clause (x) in sub-section (2) of section 56 so as to provide that receipt of… Read More »

Capital Gain – joint development agreement -Budget 2017-18 Suggestions

By | March 1, 2017

Suggestions on Clause 22 of Finance Bill 2017 – Section 45(5A) – Special provision for computation of capital gain in case of joint development agreement (JDA) -Certain concerns to be addressed and scope to be enlarged The Finance Bill 2017  proposes to insert sub-section (5A) in the existing section 45 to provide that the capital… Read More »