Finance Act 2021 has introduced new provision of taxation on transfer of capital asset or stock in trade on dissolution or reconstitution of Partnership Firm and AOP vide new section 9B and amended section 45(4), A conversion of a Partnership firm under Chapter XXI of the Companies Act 2013 may not result into reconstitution of Firm or AOP. Hence above provisions may not attract ? This would mean that if self generated Gooldwill is bought into firms book by crediting partners capital acount and there after converting this firm into PVT LTD may not attract any tax ? Section 56(2)(10)…
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Assessee is individual and filling return regularly by offering income U/sec. 44AD . During the course of assessment proceedings assesee submitted the summary of cash account and bank account deposits in bank account is less than the Turnover also submitted statement of affairs .Assessing Officer has added entire turnover as unexplained receipts u/sec. 69A of the Act on the ground that assessee has not given the evidence of items traded and proof of sales . Is the action of AO is correct , he has not given any show cause Notice in this context. Pl guide
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Dear Sir, A portion of my land which is non agricultural was acquired by the Govt.of Kerela for construction of a bridge in 2017. During this time they had verbally mentioned that this was tax free. They gave me the compensation for the land acquired, but now I am being told that I have pay capital gain tax for this. Can i just ignore this and avoid paying tax for this compulsory acquisition of non agricultural land? This is really unfair that the govt. takes land forcefully from people and then we are forced to pay tax on compensation given…
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Dear Experts I have filed VSVS 2020 scheme for AY 2017-18 and paid all dues, form-4 issued to me, now department ask 25 % surcharge on unexplained money since while preparing the computation of income the surcharge @ 25% not levied and the agriculture income was not considered for rate purpose in computing the tax. A order under section 154/147/142(1) issued to me and demand under section 156 for tax with interest and penalty. I ask to experts that what remedy remain for me, can I challenge this order before Commissioner Appeal or since I have adopted VSVS 2020 then…
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Assessee is an Individual engaged in the retail business and disclosing his income u/SEc. 44AD of the Income tax. Assessee has made the booking of flat with builder. On the basis of some noting on the loose paper found during the course of search with the builder and on the basis of his statement U/Sec. 132(4) about acceptance of On Money from flat holders, Notice U/Sec. 153C was served. Assessee filed returns for 6 A.Y. and asked for the copies of seized papers, statement of builder and opportunity of cross examination. However the opportunity of cross examination the builder does…
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In case of Builders 100% deduction is allowable under section 80IBA. Is there any form to be uploded duly certified by CA like form 10CCB? To the best of my knowledge no such form is prescibed. However in the faceless scrutiny the department is asking for above form
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Assessee company is a private limited company and has issued its shares of Rs. 100/- each fully paid up at a premium of Rs. 80/- in the year 2010. As on today the value of the shares is Rs.500/-. the articles of association of the company has a clause for giving option in case of transfer of shares by any shareholder to the existing shareholders only. None of the existing shareholder are ready to buy the said shares from the shareholder who is interested in selling. In this situation can company being a private limited company buy back the shares…
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Assessee is a company, who has invested in a share of unlisted public company in the year 2006 having total cost Rs. 42,00,000/-. In the month of October 2020, the assessee company has received a letter informing them about capital reduction pursuant to resolution plan approved by Hon'ble NCLT and informed that entire existing, issue, subscribed and paid up share capital of said unlisted public company held by existing share holders stands cancelled and extinguished. Therefore, the value of shares of the said unlisted public company becomes Zero. Issues: Whether the assessee company can take the benefit of indexation of…
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Dear Sir, A company named ABC has bought 100% of the equity capital of a private limited company named XYZ. XYZ has no assets or liabilities other than a mining lease allotted by the Government. The mining lease is a valuable asset as it gives XYZ exclusive and monopoly rights. The agreement between ABC and the sellers of the shares of XYZ makes it clear that the only reason ABC has bought the shares is to acquire control over the mining lease. Can ABC claim that the amount paid for acquiring the shares should be treated as amount paid for…
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Respected sir, Due to Covid-19 measures in Country X and India including lack of flights, I have not been able to resume my job in Country X and have been in India during the PY 2020-2021 for the period April 2020 to October 2020. I came to India in March 2020 and was to re-join duty in Country X in April 2020. Due to the suspension of international flights from India (and into Country X), I was unable to join duty in Country X. CBDT vide Circular No 11/2020 had clarified that for the purpose of determining the residency under…
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section 9B and amended section 45(4)