As tax season approaches, many individuals and businesses eagerly anticipate receiving a tax refund from the government. A tax refund is the amount of money that is returned to taxpayers when they have overpaid their taxes throughout the year. It can be a significant financial boost and can be used in various ways, such as …
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The Central Board of Direct Taxes (CBDT) has recently issued a notification that lists the various consequences that will be applicable to an individual if their PAN becomes inoperative due to non-linking with Aadhaar. In this regard, the CBDT has substituted Rule 114AAA of the Income-tax Rules, 1962 to specify the consequences that would follow. …
The Ahmedabad Income Tax Appellate Tribunal (ITAT) recently issued a ruling in a case involving an Indian company, Kalpataru Power Transmission Ltd., and a UAE-based service provider, Oilstone UAE. The case centered on whether payments made by the Indian company to the UAE service provider for design services were subject to Indian taxation. The ITAT …
The Delhi High Court recently allowed a writ petition filed by an individual, referred to as the Assessee, and quashed a demand notice raised against them by the Revenue for tax deducted at source (TDS) by their employer, Kingfisher Airlines, which was not duly deposited. The Court held that the Assessee cannot be called upon …
The Bangalore ITAT recently dismissed an appeal by Nitesh Estates Ltd., a real estate company, that was subject to Section 201 proceedings for non-deduction of tax at source under Section 195 on the sale of an apartment to non-resident (NRI) Mr. Mahesh Bhupathi. The ITAT found that once the conditions laid down in Section 195 …
During the year, an assessee paid Rs. 67,68,768/- to an Irish company for advertisement services without deducting tax at source. The Assessing Officer disallowed the payment under section 40(a)(i) for non-deduction of tax at source. However, the Commissioner (Appeals) observed that the Irish company had certified that it did not have a Permanent Establishment (PE) …
Acquiring property in India can be a complex process, particularly for those who reside outside the country. Indian citizens living abroad, known as Non-Resident Indians (NRI), are subject to specific regulations when it comes to purchasing or investing in Indian properties. The Foreign Exchange Management Act (FEMA) of 1999 and the notifications issued under it …
Shoppers Stop, a well-known retail chain, has won a legal battle against the Revenue authorities. The Mumbai Income Tax Appellate Tribunal (ITAT) has upheld the decision of the Commissioner of Income Tax (Appeals) (CIT(A)) in a case involving the applicability of Section 194C of the Income Tax Act. The ITAT held that the payments made …
A tax treaty, also known as a double tax treaty or a tax agreement, is a bilateral agreement between two countries that aims to prevent double taxation of income earned by residents of one country in the other country. It establishes the rules for taxing different types of income, such as wages, dividends, and capital …
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TDS on digital payment has always been a contentious issue. Taxpayers and income tax department have been fighting for taxability on digital payments for many years since the digitalization of business has taken place. The income tax department tries to make the digital payments taxable in India as a Fees for Technical Services (FTS), Royalty, …
Continue reading “TDS is not deductible on Web Hosting and Promotion Services”
