The Chamber of Tax Consultants organized a seminar on 5th August 2016 which was addressed by senior officials of the Income-tax Department such as Ms. Nishi Singh, Member, CBDT, Mr. Saxsena and Mr. Patwari, both Principal Commissioners of Income-tax. The officials of the department explained important and hitherto unknown aspects of the Income Declaration Scheme. Dr. K. Shivram, Senior Advocate, also furnished his objective views on the Scheme. A power point presentation prepared by Mr. D. C. Patwari, Pr. CIT, which highlights all the important nuances of the Scheme is available for download.

Ms. Nishi Singh Member CBDT addressing on the subject stated that the tax consultants must play a proactive role advising the assessees to come clean and join the nation building process. She stated that IDS is not the revenue earning measure. If any doubt on the scheme, the associations can send their queries and the Board will try to clarify the issues. Some of the members asked the query stating whether there is any possibility of extending the scheme as the Chartered accountants and tax consultants are busy with filing of the return up to 30-09-2016. Honourable Member categorically stated that there will not be any extension of the Scheme and those who have to avail the scheme has to comply with the same before due date specified in the scheme. She made an appeal to the participants that the queries may be sent to her through the President of the Chamber of Consultants, Mr. Hitesh Shah, and she will try to get the clarification from the Board at the earliest. Honourable member also clarified the number of queries raised by the participants to their satisfaction.

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Shri Sunil Moti Lala, Advocate has prepared a compilation of 111 Important judgments on transfer pricing (45 cases), International Tax (12 cases) and Domestic Tax (54 cases) reported in August, 2016. The author has meticulously and systematically classified the judgments into various categories to enable ease of reference. A PDF copy of the digest is available for download. He has also given the appeal numbers in all cases so as to enable the judgements to be retrieved from the website of the respective Court or Tribunal. The digest will prove invaluable to all practitioners of taxation law.

The Digest comprises of 111 judgements of which 57 deal with transfer pricing and international taxes cases. There are 54 cases on various issues of domestic taxation laws. A brief head note is given for each case. The Digests for the earlier periods are available here

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CA Vinay Kawdia points out that the question as to whether penalty is leviable for additions made pursuant to a search depends on various factors such as the date of initiation of search, the statement given u/s 132(4), whether search was conducted before expiry of due date u/s 139(1) for furnishing the return etc. He adds that the newly inserted section 270A/270AA [Penalty for underreporting and misreporting of income] w.e.f. 01.04.17 is a game changer. He has meticulously analyzed the statutory provisions and the judicial precedents on the subject and explained the entire law in a succinct manner

INTRODUCTION:

The provisions relating to search and seizure were introduced in the Income Tax Act, 1961 (hereinafter referred to as "The Act") to unearth the undisclosed income of any person represented by any money, bullion, jewellery or other valuable article or thing or any entry in any documents etc.

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Shri. Sunil Moti Lala, Advocate, has prepared a compilation of 100 important judgements on transfer pricing (42 cases), international tax (8 cases) and domestic tax (50 cases) reported in July, 2016. The author has meticulously and systematically classified the judgements into various categories to enable ease of reference. A pdf copy of the digest is available for download. He has also given the appeal numbers in all cases so as to enable the judgements to be retrieved from the website of the respective Court or Tribunal. The digest will prove invaluable to all practitioners of taxation law

The Digest comprises of 100 judgements of which 50 deal with transfer pricing and international taxes cases. There are 50 cases on various issues of domestic taxation laws. A brief head note is given for each case. The Digests for the earlier periods are available here

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CA Paras Dawar has meticulously analyzed Rule 128 of the Income-tax Rules, 1962 which provides the procedure for grant of Foreign Tax Credit. He has explained all the important aspects of the said Rule in the simplest possible language and also provided practical examples to illustrate the working of the Rule

Computation of Foreign Tax Credit (‘FTC’) in case of assessee’s with cross border payments has been a major hassle for tax professionals. Absence of well-defined set of rules, coupled with few judicial precedents had resulted in diversified practices. The Central Board of Direct Taxes (‘CBDT’) by Income-tax (18th Amendment) Rules, 2016 have inserted Rule 128 to the Income-tax Rules, 1962 (‘Rules’) providing the rules for grant of Foreign Tax Credit. The said rules, applicable from April 1, 2017, will help provide much needed clarity in an area which was until now marked by diverse interpretations. This will help reduce the hassle in claiming credit on tax paid in foreign countries and help achieve the Government’s vision for non-adversarial tax regime.

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Shri. Sunil Moti Lala, Advocate, has prepared a compilation of important judgements on transfer pricing, international tax and domestic tax reported in the period from January to June 2016. The author has meticulously and systematically classified the judgements into various categories to enable ease of reference. A pdf copy of the digest is available for download. The digest will prove invaluable to all practitioners of taxation law

The Digest comprises of 700 judgements of which 320 deal with transfer pricing and international taxes cases. There are 380 cases on various issues of domestic taxation laws. A brief head note is given for each case. The Digests for the earlier periods are available here

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Dr. Raj K. Agarwal & Dr. Rakesh Gupta point out that the Income Declaration Scheme, 2016 has several ambiguous provisions which have remained unclear despite clarifications issued by the CBDT. The learned authors explain that the question whether the Scheme supersedes the law of limitation applicable to reopening of cases u/s 147 of the Act is one such ambiguity which requires urgent clarification by the CBDT

Government has introduced “Income Declaration Scheme, 2016” which has come into force from 1st June, 2016. The scheme provides an opportunity to persons who have not paid taxes in the past in respect of undisclosed income, to come forward and declare such undisclosed income and pay tax, surcharge and penalty totaling in all to 45% of such undisclosed income so declared.

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CA Prarthana Jalan has lightheartedly equated the Tribunal with a school. She says that the grim atmosphere of the Tribunal and the strict discipline in its functioning reminds her of the school days and revives nostalgic memories of a carefree life that has long gone past

School life is one of the most cherished stage of a person’s life. No matter how old we grow up, how much we accomplish in life but we all miss our school days. If given a chance, we all will happily give back our present status, success and all that we have accomplished just to re-live our school days again. A life which we all dream and crave for.

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CA Abhishek Jain has conducted a meticulous study into the entire law relating to Hindu Undivided Families (HUF). He has not only explained the Hindu Law aspects of HUFs but also their income-tax implications, with practical examples. The author has also provided specimen deeds for formation of a HUF. A pdf copy of the article is available for download

The fact remains that every individual is interested to save his tax. Tax saving can be possible either by legal tax planning or by illegally tax avoidance. Many tax payers resort to illegal activities to save income tax but frankly speaking, such illegal activities are not a part of tax planning process but are part of tax evasion process which I deprecate always. However one can go ahead with legal ways of saving Income Tax and this is possible only when we screen very carefully the provisions contained in the Income Tax Act, 1961 and find out the pointers which are of advantage looking to our facts & circumstances. A very effective and legal way advised by CA’s is creating a HUF. A Hindu Undivided Family offers specific advantages as far as taxation is concerned.  Income Tax Act & Wealth Tax Act recognise the HUF as an independent assessable or taxable entity. Therefore, HUF enjoy all deductions and exemptions as a separate assessee. Overall objective behind the formation of HUF is to save tax by having an extra benefit of slab rate, deductions & exemptions.

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