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Sashank Dundu

Four eminent tax experts, being S. E. Dastur, Bansi S. Mehta, Saurabh Soparkar and Dr. Girish Ahuja, have conducted an in-depth analysis of the Finance Bill 2018 and explained all of its important amendments. Advocate Sashank Dundu has meticulously summarized the views of the four experts and highlighted the important aspects. The summary will prove invaluable to all taxpayers and professionals

The Finance Bill, [2018] 401 ITR (St.) 36,  has been analysed by various Senior Advocates and Chartered Accountants. Some of the important amendments, points, and the views of the speakers have been summarised for the benefit of tax professionals and readers, as under:

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CA Mayank Mohanka has argued that it not fair for the income-tax authorities to launch prosection u/s 276B for failure to deposit TDS within time even in cases where the delay is for short periods and there are bona fide reasons for the delay. He pleads that the authorities should focus on wilful and habitual defaulters and spare innocent defaulters

The present framework of law in the context of section 276B of the Income Tax Act, treats every assessee who has defaulted in payment of TDS, on equal footing, irrespective of the severity of default. This is totally unwarranted and uncalled for.

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CA Mayank Mohanka has lightheartedly referred to the applying for stay of demand as “going for a valentine’s date” owing to the high potential for rejection. He has referred to all the important CBDT circulars and judgements on the point and explained how the stay application should be drafted so as to minimize chances of rejection by the AO

The month of February is usually associated with love, aspirations and valentine dates. For assessees and their tax consultants also, it do culminates into dates with assessing authorities, (i leave it up to you to think them to be valentine dates or not), as it is that part of the year, when the regular assessments get concluded and the statutory time-limit of 30 days in the demand notices also gets over and the assessing authorities start putting pressure for recovery of income tax demands…..

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Advocate Deepa Khare

The Benami Transactions (Prohibition) Amendment Act 2016 imposes draconian consequences on persons seeking to evade the law by holding property by illegitimate means. However, the hammer of the law, if literally interpreted, also adversely affects innocent persons who enter into genuine transactions. Advocate Deepa Khare has analyzed the statutory provisions in detail and explained how they should be interpreted so that the objective of the legislature is met while avoiding hardship to genuine transactions

1. Introduction:

1.1 Benami Transactions Prohibition (Amendment) Act 2016 has finally taken its shape and is no more a ‘Paper Tiger’. The subject has been a matter of much debate and deliberation before its insertion. Much has been said for and against the enactment which indicates the intricacy and vexed character. Inspite of diverse views, the enactment comes with a strong conviction about the evil of “Benami”, legislature has outspoken about time and again. The zeal expressed by the legislature to go out of the way to eradicate the evil, raises concerns for those who have been victimized in these transactions and likely be face the serious consequences as well as for those who acted out of long perpetuated habit or psychology. It is essential that the legislation is taken in its correct perspective and achieves the very objective for which it is conceived. The peculiarity in operation of the Act is seen with an interplay between larger public interest (eradication of illegal means and resources) v. equity and justice (exclusion of genuine transactions).

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CA Paras Dawar has systematically set out all the amendments proposed to be made to the Direct Tax Laws by the Finance Bill 2018 in a tabular format. He has then compared the amendments with the existing law and explained the precise impact of the proposed amendments. He has also systematically bifurcated the amendments based on whether they have financial implications or make changes in compliance procedures or affect the departmental procedure. The format prepared by the author makes it easy to come to grips with all the changes in one glance

Direct Tax changes proposed in the Union Budget, 2018

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Advocate Aditya R. Ajgaonkar has pointed out that the aggressive approach of the CBDT with regard to launching prosecution for offenses under the Direct Tax Laws means that all taxpayers and professionals have to be abreast with the provisions in the Code of Criminal Procedure relating to Anticipatory Bail, Bail, Discharge and Quashing of Proceedings, etc. He has explained the entire law on the subject with admirable clarity

Introduction

1. The Wanchoo Committee Report was unequivocal when it opined that the fear of civil liabilities and penalties have proven ineffective in as much as they do not adequately deter the assessees that decide to tread upon the fine line that differentiates between the grey area of adventurous tax planning and the dark area of tax evasion. The report stressed upon the need to dole out exemplary punishment in the form of prosecutions to instill fear in the mind of the assessees seeking to traverse that grey area. “… The provisions for imposition of penalty fail to instil adequate fear in the minds of tax evaders. Prospect of landing in jail on the other hand, is a far more dreaded consequence – to operate in terorem upon the erring taxpayers. Besides, a conviction in court of law is attended with several legal and social disqualifications as well. In order, therefore to make enforcement of tax laws really effective, we consider it necessary for the Department to evolve a vigorous prosecution policy and to pursue it unsparingly.”

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CA Dev Kumar Kothari has explained the nuances of the law relating to taxability of unexplained cash credits under section 68 of the Income-tax Act, 1961 in the context of the Negotiable Instruments Act, 1881. He has made copious reference to the statutory provisions and judicial pronouncements on the issue

Summary:

A cheque held by the holder of cheque in due course, is the source of money, which he receives on presentation of cheque to the drawee bank. – Provisions of S.68 of Income-tax Act, must be read with the Negotiable Instruments Act, 1881

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CA Dev Kumar Kothari has argued that there is a drafting mistake in the Finance Bill 2018 relating to the grant of standard deduction. He has explained what that mistake is and offered suggestions on how it can be rectified

There appears a drafting mistake in proposed clauses and notes vis a vis speech of FM and explanatory notes on clause no. 7 and 8 of the FB. Higher deduction linked with salary amount is desirable.

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Pathak

The proposal in the Finance Bill 2018 to reintroduce tax on long-term capital gains on shares has created confusion amongst taxpayers and investors. CA Vyomesh Pathak has analyzed the proposed amendments and explained their implications with reference to practical examples

1. Over the past few weeks, even before the Budget session for the year 2018-19 started, there were already rounds of speculations going around that the Government is keen on bringing back the tax regime on the Long Term Capital Gains on sale of shares.
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vidhan_surana_sunil_maloo

CA Vidhan Surana & CA Sunil Maloo have conducted a succinct analysis of the provisions of the Finance Bill 2018 and explained the important amendments that it seeks to incorporate in the Direct Tax law. The authors have also given practical examples to explain the impact of the amendments

1. Governments Attempt to Reduce Cash Economy – Impact

Budget-2018

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