Improper Service of SCN and Order Vitiates Adjudication and Recovery Facts The Parties: The petitioner is a private company engaged in construction and logistics with a principal place of business in Mumbai and an additional place in Pune. The Conflict: A Show Cause Notice (SCN) issued in December 2020 led to an Order-in-Original (OIO) dated… Read More »
Chargeability of Capital Gains Introduction Section 45 of the Income Tax Act, 1961, governs the taxation of profits or gains arising from the transfer of a capital asset. Such income is generally taxable in the year of transfer unless specified otherwise. Key Provisions General Rule (Section 45(1)):Profits or gains from the transfer of a capital asset… Read More »
Exhausting Alternate Remedies: Writ Jurisdiction Not Maintainable Against Rejection of Time-Barred Appeals Facts Adjudication: The petitioner received a Show Cause Notice (SCN), filed submissions, and subsequently faced an adverse Order-in-Original (OIO). Initial Challenge: A rectification plea was filed and disposed of. The petitioner initially filed a writ petition but withdrew it to pursue the statutory… Read More »
Capital Gains Introduction Capital gain head is one of the five heads of income under the Income-tax Act, 1961, with its computation governed by the provisions in Part E of Chapter IV. Chargeability As per Section 45(1), profits or gains from the transfer of a capital asset are taxable in the year of transfer. However, not… Read More »
Recovery of Deceased’s Dues from Legal Heir: Strict Compliance with Section 93 and Due Process Facts The Deceased’s Business: The petitioner’s father operated a proprietorship, M/s. Oriental Facility, with a specific GSTIN. This registration was cancelled prior to his death. The Petitioner’s Business: The petitioner operated an independent labour supply business using the same trade… Read More »
Interest on Housing Loan Interest paid or payable on borrowed capital for the purchase, construction, repair, or renovation of a house property is deductible under section 24(b) from the income taxable under the head “Income from House Property.” The quantum of deduction depends on the use of the property (let-out, self-occupied, or deemed let-out). Quantum of Deduction… Read More »
Computation of Income from House Property Income from house property is computed by determining the annual value of the property and allowing deductions such as municipal taxes, standard deduction, and housing loan interest. Properties are categorized as let-out, self-occupied, or deemed let-out. Computation Process Categories: Let-Out Property: Annual value is based on the higher of… Read More »
Deemed owner of House Property Circumstances of Deemed Ownership Transfer to Spouse/Minor Child Without Adequate Consideration: If a person transfers house property to his spouse or minor child (excluding a married minor daughter) without adequate consideration, he is deemed the owner. However, if transferred to a spouse under a separation agreement, the recipient is considered… Read More »
SBI For re- KYC of non-compliant NRE / NRO / FCNR (B) accounts SBI For re- KYC of non-compliant NRE / NRO / FCNR (B) accounts The document NRI-18.5 is an official State Bank of India (SBI) form designed for “Re-KYC diligence” and for the operationalization of “In-operative” NRI accounts. 1. Account Operationalization If an… Read More »
Income from House Property Introduction Income arising from any property, being building or land appurtenant thereto, is taxable under the head “Income from House Property.” Properties are categorised as let-out, self-occupied, or deemed let-out, and their income is computed based on annual value, considering factors such as municipal valuation, fair rent, and actual rent. The… Read More »