As you all must be aware of the New Taxation Regime introduced by the Finance Act, 2020 by insertion of section 115BAC in the Income Tax Ac, 1961. Now, there is a lot of confusion going around regarding this and number of questions mentioned below remained unanswered as of now-
(a) How to deduct withholding tax from the salaries of employees?
(b) What procedure need to be followed by the employers to go about it?
(c) What will happen if …
Everyone knows that Income from salary, rental income and business income is taxable under their respective heads. But what about income from sale or purchase of securities? Many stakeholders which includes homemakers, retired people, youth, working professionals spend their time gainfully buying and selling securities but are unsure of how this income is taxed. The first question that comes in mind is whether to treat gains or losses from the sale of securities as ‘Income from Business’, or as ‘Capital …
With this article, we would like to explicate the concept of Foreign Companies and PE in light of Indian Income Tax Act provisions.
Foreign Companies
♠ Foreign company means a company which is not a domestic company, i.e. a company registered outside India in any other foreign country. [Section 2(23A)]
♠ The Foreign Company may be treated as Domestic Company if such company makes prescribed arrangement in India as per Rule 27.
♠ Prescribed arrangement means an arrangement …
In her budget speech, the Hon’ble Finance Minister, Smt. Nirmala Sitharaman had announced launching of a scheme in 2019 that would provide e-Assessment of Income-tax in electronic mode, in a phased manner, with no human interface.
-On 7th of October 2019, the Revenue Secretary has launched the faceless assessment in the Income Tax Department by inaugurating the NeAC (NeAC) in Delhi.
-Under e-Assessment scheme 2019: –
(i) There would be a setup of Digital Technology for Risk Management …
Startups have asked the government to provide clarity on key tax issues, including ‘significant economic presence’, equalisation levy and tax on employee stock ownership plans (esops).
The companies raised these issues during a recent meeting with finance minister Nirmala Sitharaman and senior tax officials, according to a member who took part in the meeting. Startups that deal with global technology companies registered outside India claim they pay more taxes on their revenues. Startups are required to pay 18% Goods and …
India has sought changes in the Organisation for Economic Cooperation and Development (OECD) proposal on digital taxation, saying it would deny the country its proper share of taxes from multinationals such as Google, Facebook, Uber and Netflix, which generate substantial revenues locally.
The government has proposed a more balanced principle for the taxation of such companies based on place of revenue generation.
“We want a fair share in revenues that accrue to the company from the country,” said a government …
“This initiative will prove to be an economy booster..”
The government has promulgated the Taxation Laws (Amendment) Ordinance 2019 to make amendments in the Income-tax Act and the Finance (No. 2) Act 2019. With a $20 billion stimulus to reboot India, Finance Minister Nirmala Sitharaman addressing her fourth press conference held on Friday (20th Sep, 2019) announced a slew of fresh measures to prop up slowing economic growth and boost consumption.
It will give a great stimulus to “Make In …
During an event held on June 8-9, 2019 at Fukuoka, Japan, the Finance Ministers of the G20 member nations called for the creation of common Digital Tax Rules for multinational technology companies.
Big Tech Giants such as Facebook, Google, Amazon, etc., face criticism for cutting their tax bills by booking profits in low-tax countries regardless of the location of the end customer. G20 members have agreed to implement common rules to plug in the loopholes that multinationals use to book …
The government has provided angel tax exemption to 541 start-ups so far, industry secretary Ramesh Abhishek tweeted. He said only 36 applications for the exemption were turned down and that too for incomplete documentation.
The angel tax is levied on start-ups that have received equity infusion in excess of their fair valuation, with the premium being paid by investors as their income. It was introduced in the 2012-13 Budget by the then finance minister Pranab Mukherjee to curb money laundering.…
With a view to facilitate fund raising by startups, the Department for Promotion of Industry and Internal Trade (DPIIT) has proposed relaxation in the income tax laws.
These suggestions are part of ´Start up India Vision 2024´.
It has recommended amendments in Section 54GB (capital gain on transfer of residential property not to be charged in certain cases) and Section 79 (carry forward and set off of losses in case of certain companies) of the Income Tax Act.
It has …