Territorial Nexus – Concept The concept of Sovereignty outlines a nation’s exclusive right to govern itself without interference from other Nations. As a general principle laws made by one State have no operation in any other state. The advancement in science and technology have led to a substantial increase in trade, commerce, services. There is […]
TAXABILITY OF FORFEITURE OF ADVANCE RECEIVED TOWARDS TRANSFER OF CAPITAL ASSET
Tags : Finance (No. 2) Act, 2014 inserted Section 56(2)(ix) w.e.f. 01.04.2015. Section 56(2)(ix) provides for taxation of advance received towards sale of capital asset, which is subsequently forfeited. The section reads as follows: “In particular, and without prejudice to the generality of the provisions of sub-section (1), the following incomes, shall be chargeable to […]
SECTION 23(1)(c) – ANNUAL VALUE OF VACANT PROPERTY
Section 23(1) of IT Act provides for computation of annual value of property. Section 23(1)(a) provides that annual value shall be the sum for which the property might reasonably be expected to let from year to year. However, Section 23(1)(b) provides that where the property or any part of the property is let and the […]
SECTION 254(2) – MA AGAINST MA
As per section 254(1), the Tribunal may, after giving both the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit. Section 254(2) provides that the Tribunal may, at any time within six months from the end of the month in which the order was passed, with a […]
SUBVENTION FEE – REVENUE OR CAPITAL RECEIPT
The term “Income” is defined in section 2(24). The said definition is an inclusive one. Therefore, the term “income” not only includes those receipts which are stated in section 2(24) but also includes such things / receipts which the term embraces according to its natural and general meaning. Income is embedded in receipts which a […]
TAXATION OF ALIMONY IN INDIA
The term “Income” is defined in section 2(24). The said definition is an inclusive one. Therefore, the term “income” not only includes those receipts which are stated in section 2(24) but also includes such things / receipts which the term embraces according to its natural and general meaning. Income is embedded in receipts which a […]
40(a)(ia) DISALLOWANCE IN CASE OF REIMBURSEMENT OF EXPENSES
Section 40(a)(ia) of the Income-tax Act, 1961 provides for disallowance of 30% of any sum payable to a resident on which tax is deductible at source under Chapter XVII-B, where such tax has not been deducted or, after deduction, has not been paid on or before the due date specified in section 139(1). Till assessment […]
Section 54/54F exemption – Date of starting of construction or payment of instalments not relevant
section 54, section 54F, construction prior to transfer, instalments prior to transfer, completion of construction, Section 54 provides for exemption from tax for capital gain arising from the transfer of long-term capital asset (being a residential house), if the assessee has, within a period of one year before or two years after the date on […]
Section 254(2) – MA against Order by Third Member
As per section 254(1) of the IT Act, the Tribunal may, after giving both the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit. Section 254(2) provides that the Tribunal may, at any time within six months from the end of the month in which the order […]
PROPORTIONATE DISALLOWANCE UNDER SECTION 40(a)(ia) FOR SHORT DEDUCTION/PAYMENT OF TDS
Section 40(a)(ia) of the Income-tax Act, 1961 provides for disallowance of 30% of any sum payable to a resident on which tax is deductible at source under Chapter XVII-B, where such tax has not been deducted or, after deduction, has not been paid on or before the due date specified in section 139(1). Till assessment […]