Tax audit is a process. There are systematic steps and discipline involved. Tax audits can potentially affect anyone, including self-employed individuals and corporate entities. Though many business owners worry about potential audits, the audit procedure is most often not as stressful as popular culture makes it out to be. Not all returns selected for audit contain… Read More »
Applicability of Income Computation and Disclosure Standards notified u/s 145(2) of the Income-tax Act, 1961 from Assessment Year 2017-18. (adsbygoogle = window.adsbygoogle || []).push({}); The Central Board of Direct Taxes has vide Press Release dated 6.07.2016 clarified that the Income Computation & Disclosure Standards shall be applicable from 1.4.2016 i.e. previous year 2016-17 (Assessment Year 2017-18).… Read More »
As per Income Tax Act, 1961– (A) Basic conditions (Complete Any of One condition) (i)He stays 182 Days in India in the previous year. OR (ii)He stays 60 or more days in India in the previous year AND has been in India for 365 days or more in the 4 previous years immediately preceding the… Read More »
Transfer as per S. 2(47), of Income tax Act, 1961- Capital Gain arises on transfer of capital asset. The word transfer occupy a very important place in capital gain, because if the transaction involving movement of capital asset from one person to another person is not covered under the definition of transfer there will be no… Read More »
Computation of Capital Gains under Proviso to S. 48 Statutory provisions According to proviso to S. 48, in the case of an assessee, who is a nonresident, capital gains arising from the transfer of a capital asset being shares in, or debentures of, an Indian company shall be computed by converting the cost of acquisition, expenditure incurred wholly and… Read More »
India being a developing economy always encouraged import of technical know-how and technical services to promote and facilitate growth in Indian industry. In line with the same, S. 115A provides for taxation of royalty and fees for technical services (FTS) at a reasonable rate of 10 per cent for a long time before it was amended… Read More »
As per S. 64(2) a gift by a member of a Hindu Undivided Family after 31-12-1969 would attract Clubbing of Income in the hands of the member and as such the income from the converted property shall be deemed to arise to the individual & not to the family. It means that when an asset is brought… Read More »
Rectification of mistake apparent on record under Income tax Act. 154. (1) With a view to rectifying any mistake apparent from the record an income-tax authority referred to in section 116 may,— (a) amend any order passed by it under the provisions of this Act ; (b) amend any intimation or deemed intimation under sub-section (1) of… Read More »
Limitation Act, section 5—Condonation of Delay—Circular of Central Board of Direct Taxes dated 27.3.2000—While dismissing the application as well as appeal, the Rajasthan High Court held that:—Simply because at a belated hour department has taken decision to file the appeal, it cannot be said that if furnishes any sufficient ground to the appellant to seek… Read More »
Statement “Returns filed electronically are more prone to scrutiny” is wrong. Every year income tax department randomly pulls out the list of people to scrutinize. Also CBDT has laid down the criteria for selection of Income Tax Return for Scrutiny. There are equal chances of getting scrutinized even if you paper file your return. So, there… Read More »