Urban Agricultural Land is a Capital Asset within the definition of Capital Asset as per section 2(14) of the Income-tax Act, 1961. Therefore, section 45(5A) of the Act is applicable subject to fulfillment of other conditions. (read more)

Section 45(5A) of the Income-tax Act, 1961 is a deeming provision and hence has to be interpreted strictly. The said provision does not invoke section 50C of the Act, therefore, section 50C of the Act will not come into play. (read more)

The Law on Partnerships is governed by the Law of Contracts. Therefore, the partnership is valid in the eyes of the law. There will be no implications under the Income-tax Act or Stamp Duty Act on the firm or the partners for drafting such an agreement. (read more)

As per the decision of the Hon'ble High Court in the case of Sai Cylinders Private Limited v. ACIT WP No. 3555 of 2021 dated May 05, 2022 while giving effect to the decision of the Hon’ble Supreme Court’s order in the case of Ashish Agarwal held that wherever assessment order has been passed those… (read more)

Rule 37BB of the Income-tax Rules, 1962 (Rules), requires The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum chargeable under the provisions of the Act, to fill Form 15CA. Payment of dividend by a company to an NRI shareholder, falls within the ambit of this… (read more)

There is a formula provided under section 45(4) of the Income-tax Act, 1961 (Act) for computation of capital gains. It is as under: A = B + C – D Where, A = income chargeable to income-tax under this sub¬section as income of the specified entity under the head "Capital gains"; B = value of… (read more)

Merely because books of accounts have been rejected by the Ld. AO, it does not allow the Ld. AO to calculate profits on adhoc basis, the same has to be reasonable. The Assesse will have to demonstrate the correctness of their net profits before the higher authorities. Proceedings with ICAI are separate from assessment proceedings.… (read more)

Section 45(5A) of the Income-tax Act, 1961 was introduced via Finance Act, 2017 for determining Capital Gain tax in cases where individual land holders enter into an agreement with the developers. It is a separate mechanism for computation of Capital Gains. "share in the project" would mean interest in the project. The proviso would be… (read more)

There is no specific provision under section 47 of the Income-tax Act, 1961 (Act) dealing with a conversion of a charitable trust into a company under section 8 of the Companies Act, 2013. However, assuming the transaction is considered as a transfer under the scheme of the Act, as per the computation mechanism provided under… (read more)

Section 2(15) of the Income-tax Act, 1961 (Act) has defined “charitable purpose”. It would be pertinent to understand which charitable purpose is undertaken by the assessee [As per its Memorandum] If the assessee’s objects/purpose is, relief of the poor, education, yoga, medical relief, preservation of environment (including watersheds, forests and wildlife) and preservation of monuments… (read more)