Mr. A , who lives in Gurgaon ,is a director in the company located at Gurgaon. A part from receiving Director remuneration he also receives sales commission. from the same company in which he is a director. Further, he also has GST registration in other state , where he files NIL return. Is Sales Commission received from the company will attract GST from the single amount he gets , as he is having GSTIN in the other state ?

read more

A private Specific Trust wants to convert itself into Discretionary Trust. What will be the tax impact and whether it will be assumed that on conversion private specific trust is first dissolved and thereafter discretionary trust is formed?  Further, the specific trust presently has huge investments in shares of various private companies and are shown at cost price the question is whether on conversion the shares will have to be revalued and brought to tax in the hands of beneficiaries at the time of conversion and further shares are held for more than 24 months, the question is whether on the conversion of trust into discretionary trust the holding period for the working of the capital gain will change.

read more

Notice under the above referred section was issued on 11/03/2022 for reply on or before 17/03/2022 Whether the aforesaid notice which allows less that 7 days time is valid? Whether the plea of invalid notice can be taken after issue of notice u/s 148 ? Whether the plea of invalid notice can be taken in appeal ? Whether on this  plea the  proceedings of re- assessment  can be held invalid ? Thanks & Regards

read more

Is any notice or assessment order digitally signed using an expired digital signature of assessing officer valid in law ? Is there any specific provision under the Information Technology Act, 2000 or any other law with respect to use of digital signature on any document / notice / order? Whether the provisions of section 282A of the Income Tax Act, 1961 would come to rescue of the assessing officer who has signed the notice / order with expired digital signature ? Kindly guide.

read more

Assessee is private family trust created by the setlor for the benefits of 4 minor sons of family. In the said trust father and mother of 4 sons were trustees. After few years one of the trustee was expired. The trust is later on run by the sole trustee. The sole trustee also expired after 2 years. Since 4 sons who were beneficiaries of the trust become major  have decided to continue the trust by appointing two brothers out of 4 as trustees of the trust. Whether action taken by trustee is legally correct ? If not what action has to be taken, since family trust has not few immovable properties as asset ? Pl guide.

read more

WE HAVE RECEIVED FORM 5 UNDER DIRECT TAX VIVAD SE VISHWAS SHOWING TOTAL REFUND OF Rs.64,753/- ONLY BEARING ACKNOWLEDGEMENT NO. 806265520111220 FOR CERTIFICATE NO. 740533270231120 DATED 23-11-2020. BUT TILL NOW WE HAVE NOT RECEIVED THE REFUND AMOUNT. NOW WHAT SHOULD I DO TO GET THE REFUND AMOUNT.

read more

Sir, Last date for payment of tax under VSV was 31/10/2021 ?? or is it extended ?? can we make payment now & file Form 4 now ???

read more

An NRI has never filed any return in india as he was not having any taxable income in india.  In the year Nov 2011, he has paid a sum of Rs. 5 Lacks as Premium on ULIP policy being Single premium policy on sum assured of Rs. 6.25 lacks but as he has not filed any income tax return, no 80C was claimed.  In year 2017-18, said NRI has received Rs. 9.75 being maturity proceeds to said ULIP policy and Insurer has also deducted tds of 1% on maturity proceeds. The question is Whether the sale proceeds received by NRI on Single premium ULIP policy taxable in india or exempt.  If it is taxable, how to calculate capital gain and what % tax will be applicable, whether indexation benefits available etc.

read more

Whether show cause notice issued u/s 148A(b) on or after 28.04.2022 is valid or not.. is a question to ponder over, of late, as IT department is issuing the said notices rampantly. For this purpose let us first examine the third proviso to sec 149 which reads as under…. [i]Provided also that for the purposes of computing the period of limitation as per this section, the time or extended time allowed to the assessee, as per show-cause notice issued under clause (b) of section 148A or the period during which the proceeding under section 148A is stayed by an order or injunction of any court, shall be excluded:[/i] From a perusal of the above proviso, it is understood that the intention of legislature is to grant the time lost by the AO in allowing the time to submit the reply by the assessee to the show cause notice issued u/s 148A(b). one thing is to be kept in mind that the total time limit allowed for issuance of notice u/s 148  is 3 years or 10 years as the case may be.  Though 10 years time has been brought by the finance Act, 2021 as against the earlier time limit of 6 years but literally it will come into force only from the A.Y. 2022-23 onwards by virtue of first proviso to sec. 149 of the IT Act. Till that time the old time limits of 6 years holds good. Therefore, let us consider 3 years (1095 days ) and 6 years (2191 days) for our discussion. suppose show cause notice u/s 148A(b)  is issued on 26.03.2022 and the minimum time  to be allowed is 7 days and therefore, AO should give hearing date as 02.04.2022. Further, as per third proviso because the AO lost only 5 days out of 1095 days,  the time for issuing notice u/s 148 is deemed to have been extended till 05.04.2022. ( 5 days from 01.04.2022). It is pertinent to mention here that from the hearing date ie 02.04.2022 to 05.04.2022 is only 3 days, the time deemed to have been extended upto 09.04.2022 by virtue of 4th proviso to sec 149 of the Act. However, in this situation, department is considering that AO lost whole 7 days which was allowed in the show cause and accordingly calculating 7 days from 01.04.2022 which according to the department is expiring on 07.04.2022 but from 02.04.2022 to 07.04.2022 is less than 7 days ( only 5 days ), the deemed time extended is considered by the department as 09.04.2022. In the same way if notice is issued on  27.03.2022 and the minimum time to be allowed is 7 days and therefore, AO should give hearing date as 03.04.2022. Further, as per third proviso because the AO had  lost only 4 days out of 1095 days,  the time for issuing notice u/s 148 is deemed to have been extended till 04.04.2022. ( 4 days from 01.04.2022). It is pertinent to mention here that from the hearing date ie 03.04.2022 to 04.04.2022 is only 1 day, the time deemed to have been extended upto 10.04.2022 by virtue of 4th proviso to sec 149 of the Act. However, in this situation, department is considering that AO lost whole 7 days which was allowed in the show cause and accordingly calculating 7 days from 01.04.2022 which according to the department is expiring on 07.04.2022 but from 03.04.2022 to 07.04.2022 is less than 7 days ( only 4 days ), the deemed time extended is considered by the department as 10.04.2022. But if the notice is issued on 28.03.2022 then the minimum time to be allowed is 7 days and therefore, AO should give hearing date as 04.04.2022. Further, as per third proviso because the AO had  lost only 3 days out of 1095 days,  the time for issuing notice u/s 148 is deemed to have been extended till 03.04.2022. ( 3 days from 01.04.2022). It is pertinent to mention here that  the hearing date is  ie 04.04.2022  and AO s extended time to issue notice u/s 148 expires by  03.04.2022. This situation seems to be impossible. Therefore, the question of invoking 4th proviso does not arise in this situation. However, in this situation, department is considering that AO lost whole 7 days which was allowed in the show cause and accordingly calculating 7 days from 01.04.2022 which according to the department is expiring on 07.04.2022 but from 04.04.2022 to 07.04.2022 is less than 7 days ( only 3 days ), the deemed time extended is considered by the department as 11.04.2022. Accordingly, the show cause notices issued on or after 28.03.2022 are invalid in my opinion. But as per the market information, incometax department continued to issue show cause notices even after 28.03.2022 also. Therefore, there appears to be a great …

whether the show cause notice issued on or after 28.03.2022 is valid Read More »

read more

Facts : A Private Specific Family Trust is there having four major persons as its beneficiaries. Shares of all the beneficiaries are fixed and known as per the trust deed. Said Trust owns commercial building through which it receives rental income. Return of income of Trust is regularly filed and income from rent is allocated to beneficiaries according to their shares and said income is offered for tax by beneficiaries when they file their return of income (i.e of beneficiaries ) and returned income of Trust is always NIL and Trust does not pay any taxes on rental income. Now the Trust intends to sell the building which is long term capital assets On sale of building substantial Long term capital gain will be generated. The trustees wants to allocate this capital gain to individual beneficiaries and wants individual beneficiaries to show the same in their return of income and pay the tax accordingly individually and they want to file Return of income of Trust with NIL income Query 1 – Whether the trust can allocate this Long term capital gain in the hands of individual beneficiaries as per their shares and then the individual beneficiaries offer the said LTCG in their personal return of income and pay tax individually. Query 2 – If the trust can allocate this LTCG as mentioned in Query 1 above then whether each individual beneficiary can claim deductions un der section 54EC or 54F against the said sale? I.e. whether individual beneficiaries can claim 50 lakhs each (under section 54EC) in their hands against LTCG per beneficiary. Query 3 – If the trust cannot allocate this LTCG as mentioned in Query 1 then whether the trust can claim deductions like 54, 54F or 54EC in the hands of Trust itself?

read more