The Finance Act (No. 2) 2019 inserted S. 80EEA to allow deduction of interest on loan taken for acquiring a residential house property. Section inter alia requires that the stamp duty value does not exceed Rs. 45 lakhs. Whether a person would be entitled to claim S. 80EEA benefit if he has acquired the residential house for Rs. 50 lakhs, if the Ready Reckoner value of the flat Rs. 42 lakhs?
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ABC Private Limited has annual turnover of more than Rs. 60 Lakhs in last 3 preceding financial years and wants to convert into LLP. The assets and liabilities of the company will be recorded at book value in the books of LLP. The Board of Directors (BOD) of ABC Private Limited seek following clarifications: (a) Examine the tax implications in the hands of the company. (b) Applicability of section 50C and Section 50CA if assets of ABC Private Limited includes immovable property and securities held as capital asset, (c) Whether there will be any tax implication in the hands of…
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The founders of a Start-up company sold 51% of their equity stake in a company to a strategic buyer in FY 2023-24. The total consideration for transfer of shares was agreed at Rs. 25 crores As per the terms of the deal, the founders are required to stay with the company for next 5 years after which their balance stake would be purchased. The founders are eligible for an additional consideration of Rs 5 crores at the end of the third year provided the revenue projections as per business plan are met. While filing the tax return for 2024-25, and…
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As per the terms of employment agreement, an employee is eligible to receive a bonus linked to the profits of the company at the end of the financial year (April-March). The employee’s salary income (other than bonus) is Rs. 10 crores. The company determined the bonus payable based on the audited accounts during the Board meeting held on July 10,2023. The bonus was be paid to the employee on July 15, 2023. The employer company deducted tax u/s, 192 by applying a personal tax rate. Can the employee offer a bonus in his personal income tax return for Financial year…
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Company A has transferred a depreciable capital asset to its wholly owned subsidiary company B during the year 2018. The WDV value in the hands of the company A as on date of transfer is Rs. 10 crs. As per the independent valuer report the value of the said asset is Rs. 8 crs. The company B has been claiming depreciation on WDV value of 10 crs. During the year (June 2020), company A ceased to hold 100% shareholding in company B. a) How to give effect to provisions of S. 47A and S. 49(3). Alternatively, would the situation be…
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An individual purchased a second house property in December 2018 for a total consideration of Rs. 1.15 crores The individual borrowed a home loan from a nationalized bank to the extent of Rs. 1.20 crores. The individual received the possession of the house in April 2020 and he started occupying the house from June, 2020 In December 2020, the individual sold the shares of a private limited company for a total consideration of Rs. 2 crores. (cost of acquiring the shares was negligible and shares were held since 2014). Out of the money received from sale of shares, the individual…
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A company’s one of the unit is set up in a “Special Economic Zone”. The company has claiming tax holiday for last 5 years out of 15 years with respect to SEZ profits and has created the “SEZ Reinvestment Reserve” as per section 10AA(ii) of the Act. Now the management of the company would like to utilize, without losing the tax holiday, the said SEZ Reinvestment Reserve for the following a) Acquiring assets for their other businesses unit. b) Acquire motor cars for SEZ units.
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ABC P. Ltd is engaged in business of rendering IT related services. ABC Ltd has formed wholly owned subsidiaries in USA (PQR Inc) and Dubai (STU FEZ Ltd) to bill transactions to its foreign customers. Promoter and majority of directors in foreign subsidiaries resides in India. However KMP’s of the said companies are based out of India and are on the Board of those companies. Management of ABC Ltd seek your opinion in regards to applicability of POEM of two foreign subsidiaries.
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A Limited has adopted IND AS for the first time in assessment year 2021/22. During the assessment year, company found that there were certain mistakes in the earlier years. Therefore, it rectified the error by recording prior period expenses and as well as income. The said prior period adjustments have been routed through “Other equity and not through Other comprehensive income” as per IND AS – requirements. Whether, can AO make the adjustments while making the assessment under MAT?
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What should be the situs of an intangible asset in case of transfer of an intangible asset?
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Interest on loan taken for acquiring a residential house , S.80EEA ?