Deduction for National Pension System [Section 80CCD – Applicable from Financial Year 2017-18 ( Assessment Year 2018-19) ] Rationalisation of deduction under section 80CCD for self-employed individual The existing provisions of section 80CCD of Income tax act provides that employee or other individuals shall be allowed a deduction for amount deposited in National Pension System trusts… Read More »
Deduction for investment made under equity savings scheme is withdrawn [Section 80CCG of Income Tax Act – Applicable from Financial Year 2017-18 ( Assessment Year 2018-19 )] Under the existing provisions of section 80CCG of Income tax Act , deduction for three consecutive assessment years is allowed upto Rs. 25,000 to a resident individual for… Read More »
Extension of Capital Gain exemption to rupee denominated bonds [Sections 47 and 48 of Income tax Act – Applicable from Assessment Year 2018-19 ( Financial Year 2017-18) ] With a view to provide relief to non-resident investor, in the wake of permission to the Indian corporates by the Reserve Bank of India (the RBI) to… Read More »
Expanding the scope of long term bonds under 54EC [Section 54EC of Income Tax Act – Applicable from Assessment Year 2018-19] The existing provision of section 54EC of Income Tax Act provides that capital gain to the extent of Rs. 50 lakhs arising from the transfer of a long-term capital asset shall be exempt if… Read More »
No capital gains Tax on conversion of preference shares into equity [Section 47 of Income tax Act- Applicable from Assessment Year 2018-19 (Financial Year 2017-18) ] Under the existing provisions of the Act, conversion of security from one form to another is regarded as transfer for the purpose of levy of capital gains tax. However,… Read More »
Special provisions for computation of capital gains in case of joint development agreement [Section 45(5A) of Income tax Act- Applicable from Assessment Year 2018-19 (Financial Year 2016-17) ] Under the existing provisions of section 45 of Income tax Act, capital gain is chargeable to tax in the year in which transfer takes place except in certain… Read More »
Fair Market Value to be full value of consideration in certain cases Under the existing provisions of the Income tax Act, income chargeable under the head “Capital gains” is computed by taking into account the amount of full value of consideration received or accrued on transfer of a capital asset. In order to ensure that… Read More »
Shifting base year from 1981 to 2001 for computation of capital gains The existing provisions of section 55 of Income tax Act provide that for computation of capital gains, an assessee shall be allowed deduction for cost of acquisition of the asset and also cost of improvement, if any. However, for computing capital gains in… Read More »
Clarification with regard to interpretation of ‘terms’ used in an agreement entered into under section 90 and 90A. Under the existing provisions of Section 90 of the Act, power has been conferred upon the Central Government to enter into agreement with the Government of any country outside India for granting relief in respect of income… Read More »
Enabling claim of credit for foreign tax paid in cases of dispute The existing provisions of section 155 of the Act provide for procedure for amendment of assessment order in case of certain specified errors. In view of rule 128 of the Income-tax Rules, 1962, which provides a mechanism for claim of foreign tax credit,… Read More »