Category: Direct Taxation

/ Direct Taxation

More Online Services May Face Google Tax

The government is likely to expand the scope of the equalisation levy, the so-called “Google tax”, to bring more digital transactions into the tax net in the upcoming budget to curb tax avoidance by multinational chartered accountant firms in mumbai. Online sales of goods and services; downloading of software, songs, movies and books; and online consumption of news are among the services that the government may consider for the levy.
“Internationally the trend is to bring more digital transactions …

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/ Direct Taxation

Benami Property Transactions on I-T radar

With the validity date ended on Friday for normal exchange of old currency notes, the income tax (I-T) department is working on ‘property index cards’ featuring high value realty transactions in the past three years. They’ve also outlined stringent action against those reportedly having deposited unaccounted old currency in someone else’s bank account. Officials are believed to have directed property dealers and registration authorities to give lists of top property deals in descending order of valuation over three years in
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/ Direct Taxation

India, Singapore Revise Tax Treaty

The government signed a pact with its Singapore counterpart on 30th Dec, 2016, amending their decade-old tax treaty, gaining indirect taxation in India rights over capital gains. This is the third double taxation avoidance agreement (DTAA) amended so far this financial year with a zero or low tax jurisdiction. The other two were with Mauritius and Cyprus. According to tax consultants in India, Mauritius would be the most attractive source of investments into India for debt funds and Singapore …

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/ Direct Taxation

Royalty Paid to AE wasn’t Capital Exp, as It was Paid for Use of Trademark and Not For Its Acquistion

Where assessee-company made payment of royalty to its AE for mere use of trademark, that too by means of non-exclusive licence, it was to be allowed as revenue expenditure while determining ALP.
Assessee-company (GKN Driveline (India) Ltd.) was engaged in business of manufacture and sale of Constant Velocity Joints (CVJ) – During relevant year, assessee made payment of royalty to AE for use of its trademark in respect of manufactured products – In transfer pricing proceedings, TPO taking a view …

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/ Direct Taxation

Received Expensive Gift This Diwali ? You Should Know These Tax Rules

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Gifts can be in the form of cash, movable property (car , jewellery, art work, etc.) or immovable property (land /building). But the rule doesn’t apply in all cases; there are a few exceptions.

The festive season has begun and the marriage season will begin soon. Receiving and giving gifts is an integral part of the celebrations. But you ought to know that if you receive gifts worth Rs 50,000 or more in a financial …

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/ Direct Taxation

Rules for filing Tax Returns

New forms, additional information, completely paperless filing…. the Finance Ministry has introduced several changes in the way taxpayers will file their returns this year. As a taxpayer you need to be aware of these changes lest you file an incorrect return that gets rejected or results in a scrutiny notice.

This week’s cover story looks at the changes in the tax filling process and documentation and explains what taxpayers need to do. There is also a smart step-by-step guide to …

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