Assuming all the conditions under the Companies Act, 2013 are fulfilled. Section 115QA of the Income-tax Act, 1961 (Act) shall be applicable on buy back of shares by an unlisted company. The tax liability will be on the Company. The difference between the Market value of the share and the issue price will be the… (read more)

Yes, the assessee can claim the benefit of indexation while computing long-term capital loss. Long-term capital loss can only be set off against long-term capital gain. If there is any surplus Long-term capital loss the same can be carried forward for 8 years. (read more)

As we understand, ABC has purchased equity shares of XYZ. The Books of ABC will demonstrate investment in equity shares of XYZ. Equity shares are not subjected to depreciation. Therefore, ABC cannot claim depreciation on the amount paid to acquire equity shares. (read more)

CBDT Circular No. 2 of 2021 dated March 03, 2021 has been issued in furtherance to the press release dated May 09, 2020. Provided the other conditions therein are satisfied, assuming the assessee is a person of Indian Origin may become resident in India only in one of the following situations: (i) if his total… (read more)

The assessee can challenge the notice issued and assessment made u/s 153C of the Act . Merely on the basis of documents seized from third party premises or on the basis of statement of third party notice u/s 153C of the cannot be issued . The assesssee should request for the copies of documents seized… (read more)

The stand taken by the Company is justified . The Company has to justify the action of not deducting the tax at source on monthly basis . The company may have to file a detailed reply on facts and has to demonstrate that there was no failure on the part of the assessee to deduct… (read more)

It is pertinent to understand that the books of accounts are not conclusive for determining the tax liability of a taxpayer. Reliance is placed on the decision of the Hon’ble Supreme Court in the case of viz, Kedarnath Jute Mfg. Co. Ltd. vs CIT [1971] 82 ITR 363 (SC), CIT vs India Discount Co. Ltd… (read more)

The asseessee can write to the Designated Authority to adjust the cash seized . The assessee has to follow the procedure prescribed under section 132B of the Act. If there is no existing liability the Designated Authority can adjust the cash seized against the liability (read more)

: As regards interest u/s,244A the Act is silent on this issue; it can be assumed that the interest does not have to be refunded. As the collection only refers to disputed tax amount and waives interest. If the interest is wrongly granted the revenue may pass an order for refund of interest . In… (read more)

Your son is your relative as per the term “relative” defined under explanation (e) to section 56(2)(vii) of the Income-tax Act, 1961 (Act). Therefore, the same is exempted income under section 56(2)(x) of the Act. It is advisable to show the gift in the Income-tax return under the head “Income from other sources”. (read more)