The citation appears to be wrong. In principle, the question whether the accumulation is shown as appropriation in the I&E Account or not appears to be irrelevant. What is relevant is whether the substantive and procedural requirements such as filing Form No. 10, specifying a purpose, and investing in specified modes is complied with or… (read more)

Yes. Article 13(6) of the DTAA states that gains from the alienation of any property (other than shares) shall be taxable only in the country of residence of the seller. Since mutual fund units in India are issued by trusts and not classified as "shares" under Indian law or the DTAA, they are eligible for… (read more)

Power u/s 131 has to be used "before he takes action under clauses (i) to (v) of Section 132(1)". So, it ought not be used during the continuance of a search. It follows that a statement recorded u/s 131 during s. 132 proceedings cannot be relied upon by the AO. (read more)

Since both A & B are "searched persons", the assessment will have to be made u/s 153A. Though the diaries are owned up by A, the rebuttable presumption u/s 132(4A) will apply that the diary belongs to B and its contents are true. (read more)

NRIs have to use ITR form ITR-2 (with business income) or ITR-3 (without business income). The Long-Term Capital Loss from the sale of listed shares of Indian companies have to be reported under Schedule CG, Item 7 (via Table E, B4 for Section 112A), and carry forward the unabsorbed loss in Item 9. (read more)

There is no requirement for Notarization though it is desirable for proving authenticity. Stamp Duty on the Deed of Partition is mandatory. It is payable based on the value of the assets. There is a fixed ceiling of stamp duty depending on the State. Registration is not required if there are no immovable assets being… (read more)

As the payment is in INR and to a NRE/NRO account, there is no "foreign remittance". However, Banks do insist upon the Forms 15CA and 15CB as there is potential for future repatriation. As a practical measure, you can specify INR as the currency in both forms and indicate "0" or "Not Applicable" in the… (read more)

If the rural agricultural land is developed into plots, it is no longer agricultural land. No agriculture activity is carried out. The gains will be assessable either as capital gain or as business gains. (read more)

I suppose the house will be registered in the name of one family member and the contributions by the other family members will be an interest-free loan. If so, no asset is transferred without consideration and the clubbing provisions under Section 64(1)(iv) or (vi) will not apply. (read more)

1) In Maharashtra and Gujarat, there is a time limit of six months for use of the stamp paper. The stamp paper is invalid after that period. 2) There is no time limit for stamping the deed after execution. However, if the deed requires registration, there is a time limit of 4 months after execution… (read more)