Income Tax

10 Pointers to Understand Capital Gain Tax on Reconstitution of Partnership Firm

1. Transfer of capital asset or stock on dissolution/reconstitution will be consider as transfer for firm and not partner who receive it 2. Reconstitution includes admission, retirement or change in profit sharing ratio 3. 9B will tax firm on difference of FMV and indexed cost of assets 4. 45(4) will tax partner on Profit =…

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No Penalty for non-disclosure of foreign Asset in Indian Return

  No penalty u/s 43 of BM Act can be imposed for non-disclosure of foreign asset (foreign bank account) in ITR, where- The amount was not assessee’s unexplained investment as, though held in her name, they represented her deceased mother’s tax paid monies held by assessee in fiduciary capacity and hence it was not ‘undisclosed…

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9 Pointers to Know About New Reassessment Regime Under Income Tax

1. Under the new regime reopening is based on Information flagged by risk management strategy & not reasons to believe 2. 148A – mandates AO to enquire about information before issuing of notice u/s 148 3. The word used u/s 148A if required (at the end) suggests that where the information is factually not correct,…

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Taxability Due to Significant Economic Presence (Sep) in India

SEP covers the below-mentioned transactions E-com transaction, E-books, music, video streaming, Online app/software purchase, Online Gaming Service Troubleshooting service Subscription service The Threshold limit recently provided by CBDT for SEP Tax is Aggregate payment for transactions with a person in India exceeds INR 2 crore in a year NR interacts with 3.00 lacs or more…

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TDS Saga on Purchase of Immovable Property

194A provides for TDS on any sum credited by way of consideration for transfer of any immovable property 194A is not applicable on security deposit given by developer to land owner (Prestige Estates Projects Ltd) TDS is on transferee paying to Co-transferor > 50 lacs individually. So no TDS on payment to a Co-owner receiving below 50 lakhs…

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10 Important Income Tax Changes Applicable in FY 2021-22

1. TDS/TCS to be deducted/collected at the original (higher) rate – with effect from 01/04/2021 2. High TDS/TCS rates for the Non-filers of Income-tax Return – wef 010/7/2021 3. TDS on purchase of goods – wef 01/07/2021 4. Penalty – if PAN and Aadhar not linked till 30 June 2021 5. No Interest on short…

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