Courts have held that for assets that were not capital assets at the time of acquisition (e.g., rural agricultural land), the period of holding for capital gains purposes begins from the date they become capital assets (e.g., upon conversion). Examples include CIT v. Rama Rani Kalia (2013) 358 ITR 499 and CBDT Circular No. 4/2007.… (read more)

If a trust is not registered under Section 12A at the time of receiving donations, its income (including donations) is not exempt under Sections 11 and 12. Such income could be taxed as income from other sources under Section 56. Though the trust spent ₹7,13,960 (98.5% of ₹7,24,600) on charitable purposes, leaving ₹10,640 unspent, the… (read more)

The Rs. 1 crore cash gift to the grandson is exempt from tax in the hands of the grandson under Section 56(2)(x), as it is received from a relative (grandparent). As regards Section 68, the assessee will have to provide documentary evidence to prove the source of the balance Rs 50 Lakh to avoid it… (read more)

As regards the consultation income of Rs. 50 lakhs, healthcare services, including consultation by a doctor, are exempt from GST under Notification No. 9/2017-Integrated Tax (Rate), dated 28.06.2017. However, this exempt income is still included in the aggregate turnover calculation. As regards the medicine sales of Rs. 80 lakhs, the sale of medicines by a… (read more)

You are liable for GST registration because your aggregate turnover (Rs. 48 lakh) exceeds the threshold of Rs. 40 lakh, even though the taxable value under Rule 32(5) is only Rs. 8 lakh. Rule 32(5) reduces the taxable value to the margin (Rs. 8 lakh) for GST payment, but it does not redefine "aggregate turnover"… (read more)

The doctor is not liable for GST on the consultation fee as it’s healthcare service & exempt. The intermediary is liable to charge and pay GST on its commission. If the annual turnover exceeds Rs. 20 lakh or involves inter-state supplies, the intermediary will have to apply for GST registration. (read more)

1. GST registration is not applicable because the aggregate turnover does not exceed Rs. 40 lakh, and the rental income alone (Rs. 24,000) is below the Rs. 20 lakh threshold for services. 2. ST registration is not applicable. The trader deals exclusively in exempt goods, and the taxable rental income (Rs. 24,000) is below the… (read more)

Under Section 44AD(4), if a taxpayer opts for presumptive taxation in any of the previous five years and then opts out in a subsequent year (by filing ITR-3 with books of accounts), a tax audit is required if: The income exceeds the basic exemption limit (Rs. 3 lakh for FY 24-25 under the new tax… (read more)

Yes, the evidence attached with Form 35 will be treated as additional evidence since it was not submitted during the assessment. Yes, an application under Rule 46A is required for the CIT(A) to consider this additional evidence. The assessee should substantiate why they could not participate earlier and why the evidence should now be admitted.… (read more)

Madam, The article has been published in our articles section at this link https://itatonline.org/digest/articles/transactional-net-margin-method-bridging-theory-and-practice-in-transfer-pricing/ It has also been pushed to our Twitter and telegram channel. With best regards, Editor (read more)