Category Archives: Income Tax Articles

Tax Audit Process by IRS: Analysis of Rules & Guidelines to Audit

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 »

Section 145(2): Applicability of Income Computation and Disclosure Standards

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 »

Rule 115A: Rates of Tax on Income of Non-Residents

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 »

Section 115A: Tax on royalty and technical service fees in the case of foreign companies

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 »

Income Tax Returns filed Electronically are more Prone to Scrutiny: CBDT Criteria for Selection of Returns for Scrutiny

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 »