The Finance Act, 2017 amended section 11 of the Income-tax Act, 1961 (Act) with effect from the A.Y. 2018-19 by adding explanation 2 to section 11(1) of the Act stating that any contribution by a charitable or religious trust or institution to any other trust or institution registered under section 12AA of the Act, with… (read more)

The General Circular No. 21/2014 of MCA dated June 18, 2014 clarifies that Contribution to Corpus of a Trust/ Society/ Section 8 companies etc. will qualify as CSR expenditure as long as : (a) the Trust/ Society/ Section 8 company etc. is created exclusively for undertaking CSR activities or (b) where the corpus is created… (read more)

The taxability of the wavier of loans in the case of a private limited company waiving a loan given to another private company with regards to Section 56(2)(x) would be based upon the commercial and other terms in the agreement for the loan given. Section 56(x)(a) is applicable when a person receives money without consideration.… (read more)

No , Section 269T cannot be applied . Note : In DIT(E) v. Young Men Christian Association (2014) 227 Taxman 31(Mag.)(Mad.)(HC) the Court held that , once an amount has been subjected to tax u/s. 68, the question of treating it as a transaction in violation of S.269SS or S.269T does not arise as it… (read more)

Inter corporate deposit (ICD) is not a loan or advance. Hence, S. 2(22)(e) is not applicable. Following decisions may be referred : i) IFB Agro Industries Ltd. vs. JCIT (2014) 63 SOT 207 (Kol.)(Trib.) ii) Bombay Oil Industries Ltd. V. Dy.CIT ( 2009) 28 SOT 383 (Bom.) (Trib.) iii) KIIC Investment Co. vs. DCIT (2019)… (read more)

From our limited understanding of the background. The Assessee is engaged in a whole sale trading activity. Any surplus generated will be treated as profits and the same will be charged to tax under the head Business Income. Further, with respect to the investments if the assessee is regularly buying and selling the income may… (read more)

As we understand, The assessee has filed the revised Form 1 as per the directions of the Designated Authority before March 31, 2021 and the Authority has dismissed the same with the remark that the Form filled is defective. In absence of alternative efficacious remedy under the Law, the Company is advised to seek recourse… (read more)

The answer to whether the installation PE and whether the period shall commence from the date of the kick-off meeting or not shall depend upon the facts and circumstances of each case and the specific DTAA governing the transaction between the residents of the tax jurisdictions in question. Also, whether the period during which the… (read more)

As per explanation 3 to section Section 2(1)(h) of FCRA, 2010, any amount received, by any person from any foreign source in India, by way of fee (including fees charged by an educational institution in India from foreign student) or towards cost in lieu of goods or services rendered by such person in the ordinary… (read more)

Yes! If the wife has earned long term capital gain on sale of shares and same is invested in purchase of property which is in the name of the Husband and purchase consideration for property is paid by the wife from the sale proceeds of shares, she is eligible to claim benefit u/s.54F, subject to… (read more)