Any expenditure that is incurred solely and necessarily in relation to the transfer of a capital asset can be deducted from the full value of consideration. This means that only expenses that are directly connected to the transfer of the asset can be claimed as a deduction. It is important to note that the expenditure …
Under the Income Tax Act, a non-resident Indian can be assessed directly or through an agent. Section 160(1)(i) defines a “representative assessee” as an agent of the non-resident Indian, including a person who is treated as an agent under Section 163. An agent of a non-resident Indian, as per the provisions of Section 163, includes …
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The Income Tax Appellate Tribunal (ITAT) in Chennai has allowed an appeal by an individual Assessee engaged in the film distribution business and also Managing Director of Kural TV Creations (P) Ltd, deleting the addition made by the Revenue under Section 40A(3). The ITAT held that Section 40A(3) is not applicable in cases where the …
The Mumbai Income Tax Appellate Tribunal (ITAT) recently issued a judgement in the case of Ajay Parasmal Kothari v. ITO concerning the taxability of receipts received by an individual from a builder for alternate accommodation and hardship during redevelopment. The ITAT allowed the Assessee’s appeal and held that the receipt from the builder is compensation …
The Income Tax Department has issued a notification on July 29th stating that the time limit for e-verification or hard copy submission of ITR-V has been reduced to 30 days from August 1st. This means that taxpayers need to verify their returns within 30 days from the date of filing to complete the process. The …
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Filing an income tax return is a legal obligation for every taxpayer in India. It is a way to report your income and taxes paid during the financial year to the Income Tax Department. Filing ITRs has several benefits, including facilitating tax compliance and helping individuals claim tax refunds, if eligible. Additionally, it helps individuals …
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India is a land of opportunities and offers an attractive market for entrepreneurs looking to start a business. With a growing middle class and a large population, India offers a vast market for businesses across various sectors. Setting up a business in India can be a complex process, but with the right guidance and support, …
Taxation is an essential part of any business or individual’s financial planning. The tax laws and regulations in India are complex, and it requires specialized knowledge and expertise to navigate them. This is where tax consultants come in. They are professionals who specialize in providing tax-related advice to businesses and individuals. In this article, we …
Books of accounts refer to the systematic and comprehensive record-keeping of financial transactions of a business. They are a critical part of maintaining accurate financial records and complying with tax laws and regulations. Essentially, they serve as a company’s financial diary, documenting every financial transaction that the business engages in. The term “books of accounts” …
Presumptive taxation is a tax system that uses indirect means to determine an individual’s tax liability instead of traditional rules based on their financial records. This method assumes that an individual’s income is at least equal to the amount resulting from applying the indirect method, hence the term “presumptive.” By implementing presumptive taxation, taxpayers can …
