Section 68 of Income tax act attract when Investor invest in your company. This section describes that when company issues its share then it has to prove Credit-worthiness of Investors and genuineness of transactions. In a recent case a company issued its shares for Rs.17.60 crore to the investors companies. Income tax official questioned the …
The economies that rank highest in the ease of doing business are those that have consistently well designed business regulation and Singapore is amongst the top 3 countries as per the report of Worldbank. Several Indian startups, although operating in India, have registered holding companies in Singapore to benefit from increased funding opportunities, business and …
Continue reading “Why Singapore is a Hub for Indian Startups?”
On Monday a committee of 5 members has been set up by the government to look into the Angel Tax issue come up with guidelines in one week. Department of Industrial Policy and Promotion (DIPP) on 16th January 2019 issued a notification, which exempt the Startups from Angel tax. Few conditions were laid down in …
Every business has Loans and Liabilities and everyone wants to pay it on time. Sometime situation arises where we are not able to repay it. So non-payment of loans and liabilities brings liability of Income Tax because Income Tax act treated it as your income. Let’s take a brief look, how income tax is levy …
Continue reading “Why income tax levy when Loans are waived and Payables are ceased”
Yesterday interim budget was presented. It was the budget for salaried employees. Till now the major source of collection of direct tax is salaried employees. Salaried employees used say they are paying more tax than business class person. So Budget 2019 gifted them few tax benefits. Let’s understand the benefits and how we can exempt …
Continue reading “Post budget your salary would be exempted upto Rs.7.85 Lakh”
In spite of efforts made, few debtors refuse to pay either intentionally of unintentionally. Bad debts are common in each and every business and there is a separate treatment of Bad Debts under the income tax act. Few years back when we used to written off the bad debts in books of accounts, onus was …
Continue reading “How Bad debts are treated in Income tax act?”
Section 6(3) of the Income-tax Act, 1961 (the Act), prior to its amendment by the Finance Act, 2015, provided that a company is said to be resident in India in any previous year, if it is an Indian company or if during that year, the control and management of its affairs is situated wholly in …
The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum, whether or not chargeable under the provisions of this Act, shall furnish the information relating to payment of such sum, in such form and manner, as may be prescribed Rule 37BB defines the manner to furnish …
Who can claim benefit of Section 54? Benefit is available to an Individual or a Hindu undivided family (HUF), Firms, LLP’s and companies cannot claim benefits of this section. What are the conditions to avail the benefit of exemption under Section 54? The asset sold, means Buildings or Lands appurtenant thereto, and a residential house, …
Continue reading “Exemption from capital gain on sale of property used for residence”
1. Applicability of Section 54EC: Long-term capital gain arises from the transfer of a capital asset [, being land or building or both,] is exempt under section 54EC if assessee has, at any time within a period of 6 months after the date of such transfer, invested the whole or any part of capital gains in …
Continue reading “Capital gain not to be charged on investment in NHAI and REC bonds.”
