Section 179 deals with the vicarious liability of the Directors of private company. It states as under:- “179(1) – Notwithstanding anything contained in the Companies Act 1956 where any tax due from a private company in respect of any income of any previous year or from any other company in respect of any income of… (read more)

It is to be stated that no adjustment of demand of earlier years is permissible against the refund of current year in the absence of mandatory intimation required to be given u/s 245 of the Income Tax Act. In Bharat Petrolium Corporation Ltd. v. Asstt DIT (2021) 133 Taxmann.com 320 (Bom) Bombay High Court have… (read more)

As per the query, it appears that ITAT has remanded the matter back to the Assessing Officer to decide afresh. Section 153 of the Income Tax Act prescribes time limit for completion of assessment and re-assessment. It is amended by the Finance Act 2017 with retrospective effect from 01.06.2016 and the provision regarding limitation for… (read more)

To answer the above question, we have to understand the relation between the firm and partner as also the relevant provisions of the income tax act. Those are applicable for the assessment of firm and partner i.e. section 2(24)(ve), section 28 (v), 40(b) and 155(1A). The business carried out by the firm is also a… (read more)

No, bonus becomes due to employee only on July 10, 2023. Therefore the same will be taxable in the hands of employee in the assessment year 2024/25. Employee can claim TDS in the assessment year 2024/25. S.16 contemplates a tax on salaries which are due, whether paid or not. Even it covers salaries which are… (read more)

In case, where a capital asset is transferred by a company to a wholly owned subsidiary company and the transferee company is an Indian company, the transferor company is exempted from capital gain tax. As per Explanation (6) to S, 43(1) and Explanation (2) to S. 43(6) the transferee company is entitled to depreciation only… (read more)

S. 54F grants relief from tax on capital gains in respect of any long term capital assets other than residential house. S. 54 and 54F are in Pari-materia. The common condition under both the provisions it that the assessee must purchase or construct a residential house before or after the transfer of the asset which… (read more)

The facts stated in the query are as under:- a) assessee had inherited the farmland (agriculture) on demise of his father/ forefathers. b) the said land was acquired by the government, c) on account of acquisition, assessee received approx. `1 Cr as compensation, d) assessee wants to buy a flat in the name of his… (read more)

The entries in the books of account shall be that excess amount payable to the specified person shall be credited to the account of specified person and it will be debited in the trading account towards the cost of purchase. In other words stock-in-trade value shall be increased by the like amount as per the… (read more)

The excess amount paid to the specified person shall be chargeable to income tax under section 45(4). It will be subjected to capital gains under section 45 in the hands of specified entity and shall be chargeable to income tax. Source : AIFTP Journal November 23 (read more)