Property sale by Non-Resident Indians (NRIs) and Overseas Citizen of India (OCIs) in India is a common transaction. In this regard, NRIs often seek various tax and legal services related to the sale of their property. One of the first services NRIs look for is obtaining a Lower TDS Certificate or Nil TDS deduction Certificate …
Tax planning, tax avoidance, and tax evasion are all related to the payment of taxes, but they represent different approaches and have distinct legal implications. Tax planning refers to the process of legally reducing the amount of tax that a person or company is required to pay. Tax avoidance refers to the legal use of …
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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 …
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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 …
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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 …
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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 …
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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 …
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