The terms of cancellation of ESOPS would have to be understood. Extinguishment of rights or buyback of shares would be a transfer as per the scheme of the Income-tax Act, 1961. Waiver of right to receive would be a transfer and the same would attract Capital Gains tax. The period of holding would be from… (read more)

As per clause (c) of the third proviso to section 139(8A) of the Income-tax Act, 1961, no updated return shall be furnished by any person for the relevant assessment year, where, the Assessing Officer has information in respect of such person for the relevant assessment year in his possession under the Black Money (Undisclosed Foreign… (read more)

The Hon’ble Delhi High Court in the case of Kamal Kumar Kalia v. UOI [2019] 111 taxmann.com 409 (Delhi) held that employees of PSUs and nationalised bank cannot be treated as Government employees and thus, they are not entitled to get full tax exemption on leave encashment after retirement/superannuation under section 10(10AA) of the Income-tax… (read more)

It is a well settled position in law that a taxpayer claiming for an exception/deduction or any beneficial provision to reduce any tax obligation must prove that the said provision covers him. Hence the stricter rule of interpretation is adopted for interpreting beneficial provisions in the said cases. Further, the Kolkata Bench of the Income… (read more)

From facts in query it transpires that there is no element of export of services etc. Though the allowance is made for local expenses, it is not falling in category of pure agency as balance money remains with cricketer. However, such receipt by cricketer will be as player. In other words, it is part of… (read more)

Claiming of expenses incurred on purchase of watches and clothes is precarious and not advisable. Further, as a professional cricket player, premium paid on insurance against injury has a direct nexus with the profession of the assessee. Therefore, the same should be allowable as an expense. The Hon’ble Income-tax Appellate Tribunal – Ahmedabad Bench in… (read more)

The Order of the Ld. AO cannot be said to be not erroneous or prejudicial to the interest of the revenue as the Ld. AO did not have all the facts regarding the acceptance of the capitation fee. Therefore, the action of the PCIT in holding that the order is erroneous or prejudicial to the… (read more)

Agricultural land is not a capital asset. However, section 56 (2)(x) of the Income-tax Act, 1961 refers to any immovable property. Therefore, purchase of agricultural land below stamp duty may attract section 56(2)(x) of the Act in the hands of the buyer but will not attract section 50C of the Act in the hands of… (read more)

It will be necessary to peruse through the Memorandum of Association/Trust deed to understand the nature & structure of the entity. (read more)

As per section 44AB(a) of the Income-tax Act, 1961. The criterion for tax audit is that the assessee should have a turnover, gross receipts or total sales exceeding Rs. 1 crore. Since, in this case the assessee’s turnover is Rs. 2.5 lakh, he need not get his books audited. (read more)