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Income Tax

This category contains 60 posts

Overview of restrictions on Cash Transactions under Income Tax law

[By Jyotish M. Shah (Partner), VNCA] Section Nature of restriction Consequence of Contravention 40A(3)/(3A) Expenditure in Cash exceeding Rs.10,000/- Expenditure will not be allowed. 43 Payment for Asset exceeding Rs.10,000/- in Cash This payment will not be considered as part of Actual cost of an Asset. 35AD Payment for Capital expenditure exceeding Rs.10,000/- in Cash [...]

Equalisation Levy is going to create a huge problem for startups

[Source: www.forbesindia.com] Tax lawyer Nishith Desai believes the Equalisation Levy, also known as ‘Google Tax’, will have important repercussions for the Indian startup ecosystem As part of the continuing opposition from industry bodies to the ‘Equalisation Levy’ that came into effect earlier this year, the Internet and Mobile Association of India (IAMAI) and law firm [...]

How does the income tax department track high value cash transactions?

[By Shaleen Shah (Partner), VNCA] The Income Tax department has over the years put in place several reporting and compliance mechanisms to track high value financial transactions including cash transactions. Measures to track cash transactions are listed hereunder. Filing a Report of specified high value transactions (Form 61A) Business / Professional entities have to report [...]

India may make the Calendar Year, instead of April-March, as its new Financial Year from as early as 2018

India may make the Calendar Year, instead of April-March, as its new Financial Year from as early as 2018

Equalisation Levy of 6% on e-commerce transactions applicable from 1-Jun-2016

[By Shaleen Shah (Partner), VNCA] We had informed you earlier that based on the recommendations a CBDT committee on taxation of e-commerce, Finance Minister Arun Jaitley had in his Budget proposed an Equalisation Levy of 6% to tap tax on income accruing to foreign e-commerce companies from India.  Budget-2016 has been enacted on 14-May and [...]

CBDT suggests "Equalisation Levy" of 6-8% on B2B deals

A CBDT committee on taxation of e-commerce has suggested a "Equalisation Levy" of 6-8% for business-to-business deals with a view to tax digital transactions. Based on the recommendations of the committee, which had submitted its report to the government in February, Finance Minister Arun Jaitley in his Budget proposed an Equalisation Levy of 6% to [...]

Taxman gets new tech tool to identify, kill duplicate PAN

After years of labour, the I-T department has finally got a new technology tool to check duplicate PAN cards, allowing them to ‘kill’ it. An ambitious electronic platform called the Income Tax Business Application-Permanent Account Number (ITBA-PAN) has been operationalised. It will help the taxman and PAN issuing intermediaries identify such duplicate numbers every time [...]

Amendment of Rules regarding quoting of PAN for specified transactions w.e.f. 1-Jan-2016

It is mandatory under Rule 114B of the Income Tax Rules to quote PAN where the transactions exceed a specified limit. To bring a balance between burden of compliance on legitimate transactions and the need to capture information relating to transactions of higher value, the Government has amended Rule 114B to enhance the monetary limits [...]

CBDT Circular On TDS From Salaries During FY 2015-16

The CBDT has issued Circular No. 20/2015 dated 02-Dec-2015 in which it has explained the entire law relating to the obligation of employers to deduct income tax from the payment of “Salaries” during the Financial Year 2015-16. Download: CBDT Circular

Government says US return IT professionals need to declare 401k account

Originally Published in www.economictimes.com Anyone who’s worked in the US and opened a 401k account may need to inform the Indian tax authorities or face harsh penalties under the black money law that came into force on July 1. Thousands of India’s IT professionals and others who’ve worked overseas will potentially have to declare such [...]