Whether taxes paid outside India
As per Section 37(1) of the Income Tax Act, 1961. (“the act”) “Any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee), laid out or expended wholly and exclusively for the purposes of the business or profession […]
Transfer of Shares of an Indian Company From Non-Resident To Non-Resident
Prepared by Khusbu M Kinger Income Tax Act, 1961 compliances: As per Section 9(1)(i) of the Income Tax Act, 1961, any income which has been accrued or arising, whether directly or indirectly, through the transfer of a capital asset situated in India shall be deemed to accrue or arise in India. Hence, on the transfer of shares of […]
TDS on Benefit or Perquisites
Introduction: Section 194R, which relates to the deduction of tax on benefits or perquisites in relation of enterprises or professions, was added by the Finance Act of 2022. Businesses, companies, or entities frequently offer a variety of perks and incentives to its distributors, channel partners, agents, or dealers in order to encourage and incentivize them […]
Taxation on Virtual Digital Assets
Introduction: Simply explained, a virtual digital asset is a digital holding that has been encrypted on the blockchain so that anyone can verify its legitimacy and ascertain who owns it. Its non-fungibility, or the fact that it cannot be duplicated, reproduced, or hacked, turns it into a special asset that may be bought, sold, or […]
Tax harvesting
Tax harvesting, also known as tax-loss harvesting, is a strategy used by investors to minimize their tax liability by selling assets that have experienced a loss in value. In India, tax harvesting is commonly used at the end of the financial year, which runs from April 1st to March 31st. Identify Loss-Making Investments: The first […]
Slump Sale
Prepared by Sanjay Kumar Income Tax Act, 1961 Slump sale means transfer of one or more undertakings, by any means, for a lump sum consideration without values being assigned to the individual assets and liabilities except for the purpose of payment of stamp duty, registration fees or other similar taxes or fees. Undertaking includes any part […]
Reduction of Share Capital
Prepared by Baskar P Reduction of share capital means the reduction of issued, subscribed and paid-up capital of the Company. The reduction of capital is mainly done by companies for producing a more efficient capital structure. Reduction is an important event in the company’s history since the creditors of the company get impacted by such a […]
Recent changes in Withholding Tax Rate
Prepared by Baskar P & Sanjay Kumar S FTS & Royalty rates under Section115A have been increased from 10% to 20% with effect from 1st April 2023. Tax rates applicable on various Payment to Non-Residents (NR): Nature of payments On or before 31st March 2023 From 1st April 2023 Tax Treaty Rates Dividend 20% 20% 5% to 20% Royalty […]
Presumptive taxation provisions for non-residents and NRI taxation
Prepared by Baskar P Presumptive tax provisions framework Section Framework Section 44B Shipping business Section 44BB Business of exploration, etc., of mineral oil Section 44BBA Operation of aircraft Section 44BBB Civil construction business etc., in turnkey projects Section 44DA Royalty and fees for technical services Section 44B -For non-resident engaged in business of operation of ships. […]
Is reduction of Carry forward
Facts / Regulations Section 115JB (‘this section’) of the Income Tax Act, 1962 (‘the Act’) provides the conditions for computing book profits. “Book profit” means the profit as shown in the statement of profit and loss for the relevant previous year including additions and reductions as specified in this section. One of the following reduction […]