In the recent case of Brinda Rama Krishna v. ITO, the Bangalore Income Tax Appellate Tribunal (ITAT) allowed the assessee’s appeal and held that the requirement to furnish Form No. 67 was directory and that Rule 128 did not provide for the disallowance of foreign tax credit (FTC) on the non-furnishing of Form No. 67 …
Continue reading “Filing Form 67 is Not Mandatory for Claiming Foreign Tax Credit in ITR”
The use of tax havens has been a controversial topic for many years, with both supporters and critics of the practice having valid arguments. Tax havens are defined as countries or territories that offer low or no taxes on certain types of income or transactions, as well as strict financial privacy laws. These features make …
Continue reading “The Pros and Cons of Using a Tax Haven Countries”
Transfer pricing refers to the practice of setting prices for goods and services exchanged between related parties, such as subsidiaries of multinational companies. The purpose of transfer pricing is to ensure that the prices of these transactions are similar to those that would be charged by unrelated parties in comparable transactions, in order to prevent …
Continue reading “What is Transfer Pricing: Its Purpose and Various Methods”
The Bangalore Special Court for Economic Offenses has acquitted an individual from prosecution under Section 276CC for failure to file a return of income. The court accepted the individual’s claim that they had a bonafide belief that since tax on their salary was deducted by their employer and they had received a Form 16, they …
As per the Income Tax Act, salary, bonus, remuneration, or commission are collectively referred to as “remuneration” for the purpose of Section 40(b)(v) of the Act. This means that the Assessing Officer is not required to make any disallowance when the ‘remuneration’ (aggregate of salary, bonus, commission, and remuneration) paid to working partners during the …
In the case of Tapas Kumar Basak v. Assistant Director of Income Tax, International Taxation-II & Ors., the petitioner, Tapas Kumar Basak, challenged an order by the Director of Income Tax (International Taxation) in Kolkata that treated him as a “Resident” for having stayed in India for 182 days during the relevant previous year under …
Permanent Establishment (PE) in India is defined in Section 9 of the Income Tax Act, 1961. Under Indian tax laws, a PE is defined as a fixed place of business through which a foreign company carries on its activities in India. A PE can be a place of management, branch, office, factory, workshop or any …
Continue reading “What is Permanent Establishment in India and Why it Matters: A Complete Overview”
DTAA full form is Double Taxation Avoidance Agreement (DTAA). A Double Taxation Avoidance Agreement (DTAA) is a tax treaty signed between two or more countries to prevent taxpayers from being taxed twice on the same income. The primary purpose of these agreements is to provide relief from double taxation, which occurs when the same income …
Continue reading “Double Taxation Avoidance Agreement (DTAA)”
Deciding whether to rent or buy a house is a crucial decision with long-term financial and lifestyle implications. It is important to carefully consider the pros and cons of both options before making a decision. Renting provides flexibility and lower upfront costs, but homeownership offers long-term financial benefits, security, and the ability to build equity. …
Salary refers to the amount of money that an employee is paid for their work, usually on a regular basis such as weekly, bi-weekly, or monthly. Salaries can vary widely depending on a number of factors, including the employee’s level of experience, education, and the type of industry or job they are in. Some jobs …
