angel-tax-guide

Taxation Of Startups – Angel Tax: Complete Guide

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This is a guide to the levy of “angel tax” on start-ups. It summarizes the legislative amendments made to the Income-tax Act 1961 and also the various circulars and instructions issued by the CBDT. Section 56(2)(viib) (Section) of the Indian Tax Laws (ITL) (popularly known as the “angel tax” provisions) is an anti-abuse provision which applies when a CHC issues shares (including preference shares) to a resident at a premium and receives consideration which is in excess of the FMV of the shares. The excess amount so received is deemed as income from other sources in the hands of the CHC in the year of issue of the shares Read More …

Ministry of Finance: Clarification on applicability of Tax Deduction at Source on cash withdrawals

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The CBDT, having considered the concerns of the people, hereby clarifies that section 194N inserted in the Act, is to come into effect from 1st September, 2019. Hence, any cash withdrawal prior to 1st September, 2019 will not be subjected to the TDS under section 194N of the Act Read More …

Continuity of Erstwhile Incentives under GST Regime: Bombay High Court (Nagpur Bench) Judgement

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The judgement in K. M. Refineries & Infraspace Pvt Ltd directs the state authorities to implement the incentive scheme as amended up-to-date with a discretion to modify the scheme to bring it in line with the new tax structure under the General Sales Tax scheme, but without reducing or restricting the benefits as conferred Read More …

Penalty under section 271(1)(c) is invalid if charge is vague

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A Bench of The Income Tax Appellate Tribunal Pune Bench “B”, Pune, comprising of Ms. Sushma Chowla, JM And Shri Anil Chaturvedi, AM had to decide appeals relating to different assessment years against penalty levied under section 271(1)(c) of the Income Tax Act, 1961. The lead case was Uttam Bhagwanrao Patil & Ors ITA Nos.1718 Read More …

cbdt-circular-on-low-tax-effect-appeals

CBDT Circular: Withdrawal of Pending cases after Enhancement of Monetary Limits

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The CBDT has stated that it is clear that the revised monetary limits so mentioned in circular 17/2019 is applicable, to all pending SLPs/ appeals/ cross objections/references. All such pending appeals within the revised limits shall be withdrawn on or before 31.10.2019 and a fortnightly report as to progress on withdrawals should be submitted to Board, by 15th & 31st of every month Read More …

Supreme Court Judgement On CBDT’s Transfer Pricing Instruction No.3/2003 dated 20.05.2003

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In THE PRINCIPAL COMMISSIONER OF INCOME TAX-4, MUMBAI Versus M/s. S.G. ASIA HOLDINGS (INDIA)PVT. LTD the Supreme Court has considered the law on transfer pricing and whether by not making reference to the TPO, the Assessing Officer had breached the mandatory instructions issued by the CBDT in Instruction No.3/2003 Read More …

Supreme Court Judgement: Non Issue Of S. 143(2) Notice Renders Assessment Order Void

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The law on the point as regards applicability of the requirement of notice under Section 143(2) of the Act is quite clear from the decision in Blue Moon’s case2. The issue that however needs to be considered is the impact of Section 292BB of the Act Read More …