Income Tax on Rental Income from Immovable Property of Non-Resident (NRI)

Property is a well-liked investment option in India due to its ability to produce a steady stream of income through rental payments. NRIs who own property in India can lease it out and receive rental income, which is considered taxable in India. The tax is classified under the “Income from House Property” category and is …

NRE Account: Meaning, Types, Who Can Open, Permissibility, Repeatability: All You Need to Know

The Non-Residential External (NRE) account is a type of savings or current account specifically designed for Non-Resident Indians (NRIs). It allows NRIs to maintain their savings in India while they are living abroad. The funds held in an NRE account are held in Indian Rupees and are fully repatriable, meaning that the NRI can transfer …

What Is ESOP | ESOP Taxability | When Employee to Exercise his ESOP and Relevant Important Case Law on ESOP

Employee Stock Option Plan (ESOP) is a form of compensation provided to employees in the form of stock options. It gives employees the right to purchase a certain number of shares of the company’s stock at a fixed price (also known as the “exercise or strike price”) within a specified period of time. The purpose …

Income Tax on HUF (Hindu Undivided Family)

What is Hindu Undivided Family (HUF)? The Hindu Undivided Family (HUF) is defined as a separate entity for tax assessment under the Income-tax Act, 1961. As per section 2(31) of the Act, HUF is considered a “person”. In accordance with Hindu Law, an HUF consists of individuals descended from a common ancestor, including wife and …

How Taxable Income is Calculated For Salaried Employees

Taxable income for salaried employees is calculated by subtracting tax-deductible allowances and expenses from their total taxable salary. This taxable salary is calculated by adding basic salary, any dearness allowances, house rent allowances, and any other taxable allowances, and subtracting any exemptions available under section 10 of the Income Tax Act, 1961. The final taxable …

Tax Nomads

A tax nomad is an individual who chooses to live a location-independent lifestyle, earning an income while travelling and living in different countries. This type of lifestyle allows individuals to take advantage of different tax laws and regulations in different countries, allowing them to minimize their tax liability. Tax nomads often work in industries that …

Tie Breaker Rule in International Taxation

The tiebreaker rule for residential status refers to the criteria used to determine an individual’s primary place of residence, usually for tax purposes. The primary place of residence is important for tax purposes as it is used to determine where an individual must pay income tax. For individuals who live in multiple jurisdictions, it is …

TRC is sufficient evidence for claiming eligibility for DTAA benefits and that the capital gains earned by the company were not liable for tax in India.

The Delhi High Court has overturned reassessment proceedings against a Singaporean company owned by Blackstone Group holding a Tax Residency Certificate (TRC). The proceedings were initiated due to the claim that the company was not the beneficial owner of the share transactions, as the source of funds and its management was in the US. However, …

Nature of Loss Supported By Evidence and Books of Accounts Could Not Be Changed

The case of Amarnath Aggarwal Builders (P) Ltd. v. DCIT deals with the issue of whether a business loss claimed by the assessee, a real estate developer, could be treated as a bad and doubtful debt by the tax authorities. The assessee had invested Rs. 1,10,00,000/- in the purchase of land and payment of fees …

Foreign Tax Credit is allowed even if Form 67 is not Filed: Hertz Software India Private Limited vs Asst(CIT)

The assessee has filed an appeal against the order dated 18/03/2020 passed by the Ld. CIT(A)-3, Bangalore for the assessment year 2017-18. The grounds for appeal are as follows: Grounds of Appeal: Brief facts of the case are as under: The company in question is a private limited company operating in the software publishing, consultancy …

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