Articles

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Demo of Non-Functioning Functionalities of New E-Filing Portal!!

Friends, any new discovery, invention or technological development is usually accompanied by its practical demonstration so as to acclimatise the users with its new features and functionalities.

However, our eagerly awaited new e-Filing portal of the Income Tax Department, even after 10th day of its launch, has turned out to be a classical paradox.

It’s been a full 10 days since the much-hyped launch of the new e-filing portal incometax.gov.in on 7th June at 8:45 p.m., but still the new portal is battling out with several technical glitches, with many functionalities still not working.  

Replying to the concerned tweet of our honorabl.

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New e-Filing Portal May Not be Working but Pay Your 1st Installment of Advance Tax for FY 2021-22 in Time!!

It’s been a full one week since the much-hyped launch of the new e-filing portal incometax.gov.in on 7th June at 8:45 p.m., but still the new portal is battling out with several technical glitches, with many functionalities still not working.   

Replying to the tweet of our honorable FM on 8th June, the vendor Infosys has assured that the new portal will stabilize within a week’s time, but that assurance has completely fallen in face with the users still struggling to even login to their registered e-filling accounts.

The ‘e-Proceedings’ utility contai.

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“हमारी नई इंकम टैक्स वेबसाईट" - मयंक मोहनका की कलम से ....

“हमारी नई इंकम टैक्स वेबसाईट की बहुचर्चित हैं खूबियाँ महान।

तो चलो आज कर ही लेते है अपने संग हुई आपबीती का हम भी बखान॥

सात जून को ये सोचकर पूरे दिन किया हमने इसका बेसब्री से इंतजार।

कि अब तो आएगी ‘.

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Quick Reality Check of New Website (e-Filing Portal) of Income Tax Department 

Let us do a quick Reality Check of the New Website of Income Tax Department and See if the Experiment was Worth Doing!!

1. Promise: Immediate Processing of ITRs.

Reality: Site crashed on first day. Past Filed ITRs are not getting reflected on Dashboard. Those reflected in e-Filing Tab are not downloadable.

In Earlier Site, all the ITRs were readily accessible and downloadable in ‘My Account Tab’

2. Promise: All Pending Actions on Single Dashboard

Reality: Dashboard does not show Past filed Returns or Forms or Any Tax N.

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Convoluted Tax Planning Anatomy of Google, Apple, Amazon & the Global Minimum Tax Rate!!

Epilogue

05.06.2021, London

The Finance Ministers of the world’s most powerful economies i.e., the G-7 countries, comprising US, UK, Germany, France, Canada, Italy and Japan, reached a historical consensus on taxing multinational companies at a ‘Minimum Global Tax Rate’ of at least 15 per cent.

In a statement issued on 5.6.2021, OECD Secretary-General Mathias Cormann said the consensus among the G7 Finance Ministers, including on a minimum level of global taxation, is a landmark step toward the global consensus necess.

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Delhi HC Directs Revenue to Redo Faceless Assessment after Granting Personal Hearing through VC to Assessees in 2 Back to Back Judgements!!

The Hon'ble Delhi High Court in its two recent back to back judgements dated 27.5.2021, in the cases of 'YCD Industries vs. National Faceless Assessment Centre' (W.P (C) No. 5552 of 2021 and MS Lokesh Constructions Pvt Ltd vs. ACIT (W.P.(C) No. 5491/2021), has set aside the impugned faceless assessment orders on the ground that the said orders had been passed without issuing the mandatory Show Cause Notice (SCN) to the petitioners, and as such are in breach of the principle of natural justice.

These two judgements are first of their kinds of the recent .

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Critical Compliance Alerts in the Wake of Non-availability of e-filing services from 01.06.2021 to 06.06.2021

The Income Tax Department is going to launch its new e-filing portal www.incometax.gov.in on 7th June, 2021. The new e-filing portal (www.incometax.gov.in) is aimed at providing taxpayer convenience and a modern, seamless experience to taxpayers:

  • New taxpayer friendly portal integrated with immediate processing of Income Tax Returns(ITRs) to issue quick refunds to taxpayers;
  • All interactions and uploads or pending actions will be displayed on a single dashboard for follow-up action by taxpayer;<.

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Recent Stay Orders on Faceless Assessments: Elephant in the Room Syndrome!!

This Article authored by our Founder Director Sh. Mayank Mohanka, FCA, has also been published in taxmann.com with the citation (2021) 127 taxmann.com 428 (Article). Knowledge multiplies manifold by sharing, so this Article is shared here also below, for the benefit of our Readers.

One morning, Lindi found an Elephant in her room.

“Look!”, she called. “There is an Elephant in my room!”

“No there isn’t,”, her mother called back.

“Elephants don’t live in houses. Everybody knows that.”

The Elephant yawned.

Well Friends, we all have heard about this ‘Elephant in t.

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CBDT Extends Deadlines for ITR Filing, Tax Audit, TDS, TCS & SFT Returns for AY 2021-22

CBDT vide its Circular No. 9/2021 dated 20.5.2021 has extended the various compliance due dates of ITR Filing, Tax Audit, Transfer Pricing, TDS, TCS and SFT Returns for the AY 2021-22, in view of the severe pandemic. For ready reference of our Readers, the said CBDT Circular No. 9/2021 dated 20.5.2021 is enclosed as per PDF File below. 

.

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CBDT Instruction on Parameters for Selection of Scrutiny Cases under CASS for AY 2019-20

The Apex Body CBDT has issued an Instruction bearing F. No. DGIT(S)/ADG(S)-2/CASS 2020 Execution/420/2020-21, dated 17.5.2021 finalising the Computer Assisted Scrutiny Selection (CASS) 2020 Cycle for ITRs of A.Y. 2019-20. For ready reference of our Readers, the said CBDT Instruction is reproduced below:

CASS 2020 – Instruction No. 1

DIRECTORATE OF INCOME TAX (SYSTEMS)
ARA Centre, Ground Floor, E-2, Jhandewalan Extension, New Delhi-110055

F. No. DGIT(S)/ADG(S)-2/CASS 2020 Execution/420/2020-21

Dated: 17.05.2021

To,

.

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Ready Referencer on All Apprehensions on Corona

Note: The undermentioned GUIDELINES & RECOMMENDED COVID PROTOCOLS are for General Information Purpose only. Although, the undermentioned GUIDELINES & RECOMMENDED COVID PROTOCOLS are based on an Informative & Authentic General Consensus of Qualified Medical Practitioners and ICMR on Corona, and are intended to provide accurate and useful information, but nonetheless, the Readers are strictly instructed to consult their respective Doctors/ Medical Help, before relying upon these guidelines.

Q. What are the common symptoms of COVID-19 infection?

A. Common symptoms include:

  • Fever, tiredness/fatigue, difficulty in breathing, headache, body ache, th.

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First Season of Faceless Assessments: A Mixed Basket of Sweet & Sour Offerings!!

This Article authored by our Founder Director Sh. Mayank Mohanka, FCA, has been published in taxmann.com with the citation (2021) 127 taxmann.com 40 (Article). Since knowledge multiplies manifold by sharing, therefore, this Article is shared here for the benefit of our Readers.

Epilogue

The Hon’ble Delhi High Court in a Writ Petition W.P.(C)4774/2021, filed to it in the case of M/s KL Trading Corporation vs. National e-Assessment Centre’, by its Order dated 16.4.2021, has stayed the operation of the assessment order dated 31.3..

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When is the New Personal Tax Regime u/s 115BAC Beneficial? An In-depth Break-Even Point Analysis!!

A lot has already been written about the new personal tax regime u/s 115BAC of the Income Tax Act, 1961, but the silver-lining of this article is its “Break-Even Point Analysis”, between the New Personal Tax Regime of Reduced Tax Rates with No Deductions and the Old Personal Tax Regime with Higher Tax Rates with Deductions, in terms of Specified Deductions, at all levels of incomes of Individuals & HUFs, which has been very comprehensively discussed in para nos. 1.5 onwards of this piece of writing.

However, before that, some basic and fundamental insights concerning this new section 115BAC are also .

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Bandwidth Charges- Royalty or Not? Need Another SC Judgement to Resolve this Impasse

This article penned down by our Founder Director Sh. Mayank Mohanka, FCA has been published in taxmann.com with the citation (2021) 125 taxmann.com 377 (Article). Knowledge multiplies manifold by sharing so this Article is shared here for the benefit of our Readers.

On 2.3.2021, hearing almost 80 civil appeals simultaneously, the Hon’ble Supreme Court in its landmark judgement in the case of “Engineering Analysis Centre of Excellence Private Ltd. vs. CIT” in Civil Appeal Nos. 8733-8734 of 2018, has put to rest the ages old litigation and conundrum concerning the taxability or otherwise of software as royalty, by holding t.

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Rationale for Unearthing of Incriminating Evidence even in Abated Assessments

This article penned down by our Founder Director Sh. Mayank Mohanka, FCA has been published in taxmann.com with the citation (2021) 125 taxmann.com 248 (Article). Knowledge multiplies manifold by sharing so this article is shared here for the benefit of our Readers.

The legal jurisprudence in respect of the scope of unabated/concluded assessments under s.153A/153C of the Act, being confined to the incriminating evidence found during the search, is well-settled and established now. The Hon’ble High Courts and even the Hon’ble Supreme Court in a plethora of judgements have held that the additions/disallowances u/s 153A/153C of the Act towards unabated a.

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CBDT Instruction Directs AOs to Form ‘Reason to Believe’

This Article penned down by our Founder Director Sh. Mayank Mohanka, FCA has been published in taxmann.com with the citation (2021) 125 taxmann.com 148 (Article). Knowledge multiplies manifold by sharing, so for the benefit of our Readers, this Article is being shared here also.

The Apex Regulatory Body for Direct Taxes in India i.e. CBDT has brought in an Instruction dated 4.3.2021 bearing F.No. 225/40/2021/ITA-II, regarding Selection of Cases for Issue of Notice u/s 148 of the Income Tax Act.

The said CBDT Instruction directs that the undermentioned categories of cases are to be considered as ‘potential cases’ for taking action u/s 148 of t.

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"The Taxing Enigma of Resident becoming Non-Resident and Non- Resident becoming Resident Indian

This Article penned down by our Founder Director Sh. Mayank Mohanka, FCA has been published in the renowned website taxmann.com with the citation (2021) 125 taxmann.com 120 (Article). Knowledge multiplies manifold by sharing, so for the benefit of our Readers, this Article is shared here.

Date: 3.3.2021; Time: 8:30 pm Indian Time

“Trin Trin Trin….”. My mobile phone’s screen flashed “Shukla Sir”. After 2 bells, I hur.

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Foreign Software No More a Hard Tax for Indian Residents!!

This Article penned down by our Founder Director Sh. Mayank Mohanka, FCA, has been published in taxmann.com with the citation (2021) 125 taxmann.com 114 (Article). Knowledge multiplies manifold by sharing, so for the benefit of our Readers, the same Article is shared here:

The date 2.3.2021 will be remembered as a landmark date in the history of legislative jurisprudence on which the ages old conundrum and litigation concerning the taxability of foreign software as royalty has finally been put to rest by the Apex Court of India in its landmark judgement in the case of “Engineering Analysis Centre of Excellence Private Ltd. vs. CIT” in C.

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CBDT Extends Vivad se Vishwas Dates Yet Again!!

Well Yes Friends, its about 5 months since the PAN India rolling out of the Faceless Appeal Scheme, 2020 implemented w.e.f. 25.9.2020, but till date not even one single Faceless Appeal Order has churned out of the new regime of faceless appeal.

The primary reason for this delay in disposing of the appeals by the CIT(Appeals) even in the Faceless Appeal Regime is perceived to be this Vivad se Vishwas (VsV) Settlement Window. It is being said that the appeals of assessees are not being disposed of till the time this VsV Settlement window remains open, so as to mobilise as much revenue as possible out of this VsV settlement window..

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बजट प्राव्धानो पर सीधी और पते की बात। Straight and honest talk on Budget amendments.

1.TDS at Double Rate in case of Non-Filers of ITRs (Section 206AB):

The Finance Bill 2021 has proposed to insert a new section 206AB in the Income Tax Act, w.e.f. 1.7.2021 which mandates that the deductor will be required to deduct TDS at twice the applicable rate or @ 5% whichever is higher, if the deductee has not filed his/her ITR for the immediately tw.

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Would Amitabh Bachchan, Aishwarya Rai, Katrina Kaif & Sunil Gavaskar have won their Appeals in the newly proposed Regime of Re-assessments subsuming Block Assessments?  

This Article penned down by our Founder Director Sh. Mayank Mohanka, FCA has been published in renowned website taxmann.com with the citation (2021) 124 taxmann.com 487 (Article). Knowledge is meant for sharing, so this Article is shared here for the benefit and enlightenment of our worthy readers.

“Honourable Speaker, presently an assessment can be re-opened up to 6 years and in serious tax fraud cases for up to 10 years. As a result, taxpayers have to remain under uncertainty for a long time.

I therefore propose to reduce this time-l.

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The Tale of ‘Sukhiram’, ‘Dukhiram’, ‘Sevakram’, ‘Gyaniram’ & the PF related Budget Amendment!!

This Article penned by our Founder Director Sh. Mayank Mohanka, FCA has been published in renowned website taxmann.com with the citation (2021) 124 taxmann.com 193 (Article). Knowledge is meant for sharing so this Article is being shared here for the benefit of our Readers.

1.2.2021

Yes, it was the Budget Day. Two close friends, ‘Sukhiram’ and ‘Dukhiram’ went out for a stroll in late evening.

Dukhiram – “Sukhi, why are you looking so ‘dukhi’ (upset)?”

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Googlies Bowled in Finance Bill 2021- No Balls or Not? Third Umpire Please Intervene!!

This article penned by our Founder Director Sh. Mayank Mohanka, FCA has been published in taxmann.com with the citation (2021) 124 taxmann.com 127 (Article). Knowledge is meant for sharing so this article is being shared here for the benefit of our Readers.

"Drawing an analogy from Indian Cricket Team’s spectacular comeback in the Test Series in Australia, our hon’ble FM Smt Nirmala Sitharaman in her budget presentation on 1.2.2021 before the Parliament has hoped for the same revival and comeback of our economy.

The fine print of the Finance Bill 2021, besides hitting some ‘Sixers’, has also bowled out some deadly &.

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Final Fact-Finding Appellate Authority Also Going Faceless w.e.f. 1.4.2021

This Article penned by our Founder Director Sh. Mayank Mohanka, FCA has been published in renowned website taxmann.com with the citation (2021) 124 taxmann.com 42 (Article). Knowledge is meant for sharing, so this Article is shared here also, for the benefit of our Readers.

Well Yes Friends, the Final Fact-Finding Appellate Authority i.e. Income Tax Appellate Tribunal (ITAT) is also going Faceless w.e.f. 1.4.2021.

Clause 78 of the Finance Bill 2021, presented digitally by our hon’ble FM Smt. Nirmala Sitharaman, before the Parliament, on 1.2.2021, reads as under:

“78. In section 255 of the Inc.

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A Few Hidden Googlies in that Made in India Tab containing the First Paperless Finance Bill 2021!!

This Article penned by our Founder Director has been published in taxmann.com with the citation (2021) 124 taxmann.com 11 (Article). Knowledge is meant for sharing, so for the benefit of our Readers, this Article is shared below, here also.

It is being said that, “Beauty lies in Details”, but so does the ‘Devil’. Some of the direct tax proposals & amendments as announced by our beloved FM in her Budget Speech have garnered the limelight of all news channels, like the relaxation to senior citizens aged 75 years and above having pension and interest income from filing ITRs, postponement of advance-tax liabi.

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Key Takeaways from Direct Tax Proposals in Indian Union Budget 2021-22

Direct Taxes

(i) No changes in existing Tax Slabs.

(ii)Senior Citizens aged 75 years or more having only interest income and pension income exempted from filing of income-tax returns. The paying bank will deduct the necessary tax (TDS) on their income.

(iii) Threshold limit of annual turnover for Tax Audits u/s 44AB raised from Rs 5 crores to Rs 10 crores if their cash receipts and cash payments don’t exceed 5% of their total receipts and payments.

(iv) Time limit for Re-opening Assessments u/s 147 reduced from 6 years to 3 years. In serious tax evasion cases having .

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Some 'AAPBEETI' Moments of Enigma in Tax Practice: Please Resolve These, Our Beloved FM!!

This article penned by our Founder Director Sh. Mayank Mohanka, FCA has been published in taxmann.com with the citation (2021) 123 taxmann.com 457 (Article). Knowledge is meant for sharing, so for the benefit of our Readers, the said article is being shared here as under: 

Enigma 1

“Sir the compensation received for compulsory acquisition of land (both agricultural as well as non-agricultural land) in an award under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLAAR Act, 2013), is exempt from the levy of I.

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Delhi High Court Gives a Refreshing Relief on the Issue of LTCG on Penny Stock by Holding that the theory of human behavior and preponderance of probabilities cannot be cited as a basis to turn a blind eye to the evidence produced by the assessee.

The Honourable Delhi High Court in the Case of "PCIT vs Smt. Krishna Devi" in ITA 130/2020 dated 15.1.2021, has given a refreshing breather and relief on the issue of LTCG on Penny Stocks. In its said judgement, the Hon'ble Delhi High Court has categorically held that the theory of human behavior and preponderance of probabilities cannot be cited as a basis to turn a blind eye to the evidence produced by the assessee.

For ready .

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Countdown to First Paperless Union Budget 2021 Begins with First Ever Union Budget Mobile App!!

The Count-down to the ‘Union Budget 2021-22’ has begun with the conducting of the ceremonial ‘Halwa Ceremony’ on 23.1.2021. As a customary ritual, a mouth-watering sweet-dish ‘Halwa’ is prepared in humongous quantity in a huge ‘Kadhai’ (as depicted in the picture), and is distributed by the FM among all the office bearers of the Finance Ministry involved in the Budget making process. Interestingly, halwa ceremony also marks the beginning of about a week’s lock-down period (not caused due to corona ofcourse) for the f.

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Pre-Budget 2021 Wish: ‘Audi Alteram Partem’

This Article penned down by Sh. Mayank Mohanka, FCA, Founder Director in M/s TaxAaram India Pvt Ltd has been published in the renowned website Taxmann.com with citation (2021) 123 taxmann.com 351 (Article). Knowledge is meant for sharing so this Article is shared herewith with our Readers as under: 

Audi alteram partem (or audiatur et altera pars) is a Latin maxim or phrase meaning "no man should be condemned unheard” or “hear the other.

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Pre-Budget 2021-22 Wish: Correct the Paradox of Putting ‘the Cart before the Horse’ i.e. ‘Audit before the Compliance’.

This article penned down by Sh. Mayank Mohanka, FCA, Founder Director is M/s TaxAaram India Pvt Ltd has been published in the renowned website Taxmann.com with the citation (2021) 123 taxmann.com 271 (Article).

Knowledge is meant for sharing, so for the benefit of our Readers, this article is now being shared here.

“Once in the Durbar of Raja Krishna Dev Rai, the king of Vijay Nagar in Southern India, two persons named ‘Vyapari’ and ‘Lekhakar’ came for seeking justice in respect of a dispute arising o.

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Learning the New Rules of Penalty Shoot-out. Faceless Penalty Scheme 2021, Decoded!!

1. Learning the New Rules of the Game

In the game of football, your good performance and hard work of the entire game can go for a toss with just one wrong or foul move resulting in the award of penalty shoot-out to your opponent. Sometimes, even an error of judgement by the Referee may also result in penalty. Whether its your foul play or the error of judgement by the Referee, once a penalty shoot is given to your opponent, then You are left with no other choice but to save your Goal. And for saving your goal, it is quintessential that you know the rules of penalty-shoot out like how many defenders can remain in the inside circle etc., s.

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No Further Extension in Due Dates: CBDT Issues Order u/s 119, Rejecting All Representations for Extension in ITR Filing & Tax Audit Due Dates for AY 2020-21

The Apex Body CBDT has issued an Order u/s 119 of the Income Tax Act bearing F.No. 370153/39/2020-TPL, dated 11.1.2021, taking cognizance of the Hon'ble Gujarat High Court direction to look into the issue of extension of ITR filing and Tax Audit due dates for AY 2020-21 and has clarified that no further extension will be granted.

In the said Order, CBDT has mentioned that:

(i) The Government has been pro-active in providing relaxation to the taxpayers by extending due dates on 3 occasions;.

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If time period for Income Tax Officials has been extended upto 31.3.2021 then Why not for Taxpayers? : Gujarat High Court

The Honourable Gujarat High Court on 8.1.2021, in a writ petition filed by the Tax Professionals in the Case of “The All Gujarat Federation of Tax Consultants vs. Union of India” in R/Special Civil Application No. 13653 of 2020, have directed the Ministry of Finance to take an appropriate decision regarding the further extension of ITR Filing and Tax Audit Due Dates for the AY 2020-21, by 12th January 2021.

For ready reference of our Readers, the operating para of the said judgement is reproduced below:

“21. We are of the view that the respondent .

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CBDT finally extends ITR Filing, Tax Audit (for AY 2020-21) & Vivad se Vishwas Declaration Filing Due Dates amid Break-down of IT Website!! 

December 30, 2020

What a day it has been, with the incometax department's e-filing portal almost succombing and surrendering to the ever-growing traffic and rush on site and the tax professionals and taxpayers struggling to e-file and upload their xml files of returns of income or tax audits. 

Still the person managing and operating the official twitter handle of the Incometax department has been corageous and optimistic enough to upload these number of ITR filings for the day:

.

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Seven Reporting Clauses in Tax Audit Report (Form 3CA/CB read with 3CD) causing Dilemma & Hardships for Tax Auditor & Auditee, due to Non-Alignment of Tax Audit & ITR Filing Due Dates!!

All of us know that presently the Tax Audit due date for AY 2020-21 has been extended till 15.01.2021 and the due date for filing of Returns of Income in such tax auditable cases u/s 139(1) of the Income Tax Act, has been extended till 15.2.2021.

In this Taxalogue, I am discussing atleast Seven (7) Reporting Clauses in the Tax Audit Report (Annexure Form 3CD), which requires reporting by the Tax Auditor on certain specified compliances by the tax auditee uptill the due date of filing of return of income u/s 139(1) of the Income Tax Ac.

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Check Out the New Avatar of the Faceless Appeal Notice in Q-A Form!!

Well Yes Friends, the New Avatar of the Appeal Notice in Faceless Appeal Regime is Out Here at taxaaram.com for All Our Worthy Readers to See & Understand.

The New Faceless Appeal Notice is in Question-Answer (Q-A) Form, containing SIX (6) Questions & their Answers to Guide the Appellant through the Practical Gateways of Faceless Appeals Regime.

For Ready Reference of Our Worthy Readers, these Six Questions are shared below:

1. Why are you getting this communication?
Dear Appellant,
This communication is in connection with the above referred appeal preferred by you against the orde.

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All You Need to Know & Do in Faceless Appeals Regime!!

This Article penned down by Sh. Mayank Mohanka, FCA, Founder Director of TaxAaram India Pvt Ltd, has been published in the renowned website Taxmann.com with the Citation (2020) 122 taxmann.com 179 (Article).

Knowledge is meant for sharing, so for the benefit of our worthy Readers, this Article is now being shared here.

“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change”- Charles Darwin

1.Faceless Appeals: A New Era of Anonymous Adjudication

Friends, let me begin with an interestin.

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A Light in the Tunnel: Aatma Nirbhar Bharat Rozgar Yojna (ABRY) gets Union Cabinet’s Approval

Amid the chaotic broadcasting of the Kisan Andolan Stories and Bharat Bands, one good and positive news which has been missed by almost all the news channels and national dailies is the Union Cabinet’s Approval of Aatma Nirbhar Bharat Rozgar Yojna (ABRY) on 9.12.2020.

Aatma Nirbhar Bharat Rozgar Yojna (ABRY) was announced under the financial stimulus package Aatma Nirbhar Bharat Package 3.0, by the Union Finance Minister Smt. Nirmala Sitharaman on the occasion of Dhanteras on 9.11.2020.

 Key Highlights of Aatma Nirbhar Bharat Rozgar Yojna (ABRY)

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Key Takeaways from New FAQs issued by CBDT & Practical Guide to e-File Declaration Form 1 under Vivad se Vishwas Scheme, 2020

The Apex Body CBDT has issued Circular No. 21/2020 dated 4.12.2020 containing FAQ's & Clarifications on some crucial & vital issues in the Vivad se Vishwas Scheme, 2020. This Circular has been issued in continuation of its earlier Circular No. 9/2020 dated 22.4.2020 (containing Questions 1 to 55), containing 34 more FAQs (Q. no. 56-89).

It is pertinent to mention here that CBDT has stipulated the last date for filing of Declaration Form 1, to opt for settlement of the incometax disputes, under the Vivad se Vishwas Scheme as 31.12.2020. Further the declarants can make the payment of disputed tax without a.

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CBDT Issues Further FAQs Clarifying some Critical Issues in Vivad se Vishwas Scheme, 2020

The Apex Body CBDT has issued Circular No. 21/2020 dated 4.12.2020 containing FAQ's & Clarifications on some crucial & vital issues in the Vivad se Vishwas Scheme, 2020. This Circular has been issued in continuation of its earlier Circular No. 9/2020 dated 22.4.2020 (containing Questions 1 to 55), containing 34 more FAQs (Q. no. 56-89).

For ready reference of our worthy readers, the said CBDT Circular No. 21/2020 dated 4.12.2020 containing 34 more FAQs (Q. no. 56-89), is being enclosed as per the pdf file below.

Further, the practicalities and nuances of filing the online Declaration Forms under th.

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When is the New Personal Tax Regime u/s 115BAC Beneficial? An In-depth Break-Even Point Analysis

1. The new FY 2020-21 corresponding to the AY 2021-22, has already started w.e.f 1.4.2020. So, it is very essential on our part to be equipped and ready with an informed, wise and timely decision concerning the opting or not of the new personal tax regime u/s 115BAC of the Income Tax Act, 1961.

A lot has already been written about the new personal tax regime u/s 115BAC of the Income Tax Act, 1961, but the silver-lining of this article is its “Break-Even Point Analysis”, between the New Personal Tax Regime of Reduced Tax Rates with No Deductions and the Old Personal Tax Regime with Higher Tax Rates with Deductions, i.

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Income & Expenditure pertaining to Pre-Commencement Business Period: Revenue or Capital?

“To be curious is a good thing and to work towards satisfying ones’ curiosity is even better.”

Introduction:

The critical question concerning the nature and taxability of ‘income’ and ‘expenditure’ pertaining to the ‘pre-commencement business/commercial production’ period, in newly incorporated business enterprises and ‘start-ups’ has always remained a confusing and litigative issue with Revenue Authorities considering the expenses as capital in nature and income as revenue in nature and the assessees wishing to treat the same in e.

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GST Compliance Alert for 93% of Registered Persons: the Crucial Date of 30th November, 2020.

In India, at present about 93% of the total Registered Persons under GST are having their annual turnover of up to Rs. 5 crores, and the tomorrow’s date of 30.11.2020 is very significant and crucial for all such registered persons.

Uptill 31.12.2020, the businesses and traders having an annual aggregate turnover in excess of Rs. 1.5 crores are required to mandatorily file monthly GSTR 1 (Return for Outward Supplies) and GSTR 3B (Consolidated Return of Outward & Inward Supplies).

It is pertinent to mention here that the Government of India, Ministry of Finance (Department of Revenue), CBIC, vide 

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SOPs Issued by Income Tax Department for Faceless Assessments

The Principal Chief Commissioner of Income Tax, NeAC, with the prior approval of the Central Board of Direct Taxes has laid down the Standard Operating Procedure (SOPs) for Assessment Unit, Verification Unit, Technical Unit and Review Unit to facilitate assessment under Faceless Assessment Scheme, 2019.

The SOPs provide guidance to the units of ReACs and outline the process for facilitating faceless assessments in electronic environment as envisaged in FAS 2019.

For ready reference of our Readers, the SOPS issued by NeAC for Assessment Unit, Verification Unit, Technical Unit and Review Unit to facilitate assessment under Faceless Assessment Scheme, 2019 are being reproduce.

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Understanding the New GST Diwali Bonanza-Quarterly Return Monthly Payment (QRMP) Scheme with Practical Illustrations

The Goods & Service Tax (GST), inspite of its PAN India roll-out as ‘One Nation One Tax’, w.e.f. 1.7.2017, has been looked upon with some reservations and apprehensions by the small and middle level businesses and traders on account of its perceived complicated compliances including the requirement of monthly return filings.

Currently, the businesses and traders having an annual aggregate turnover in excess of Rs. 1.5 crores are required to mandatorily file monthly GSTR 1 (Return for Outward Supplies) and GSTR 3B (Consolidated Return of Outward & Inward Supplies).

The GST Reform has been introduced .

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       🌹🌹शुभम करोति कल्याणम, 
                   अरोग्यम धन संपदा, 
                   शत्रु-बुद्धि विनाशायः, 
                   दीपःज्योति नमोस्तुते ! 🌹🌹

आपको सपरिवार पंचदिवसीय प्रकाश पर्व:
धनतेरस, चतुर्दशी,  दीवाली, गोवर्धन पूजा एवं भाई दूज की अनन्त हार्.

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FM Gifts ‘Aatma Nirbhar Bharat Stimulus Package 3.0’, on the Occasion of Dhanteras

The festival of ‘Dhanteras’ kickstarts the festivities of Diwali, bringing with it new hopes, aspirations, enthusiasm and vibrancy. According to Hindu mythology, on this day, Goddess Lakshmi emerged from the ocean of milk along with a pot full of Gold and Lord Kuber. It is believed that Goddess Lakshmi brings Lord Kuber to fulfill the wishes of the devotees. So, people worship Goddess Laksmi and Lord Kuber (God of wealth), on this auspicious day.

The Hon’ble FM Smt. Nirmala Sitharaman has also come up with the much needed Financial Stimulus Package - ‘Aatma Nirbhar Bharat Stimulus Package 3.0&rsqu.

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MCA Issues Important Clarification to Rectify an Anomaly in Extension of LLP Settlement Scheme, 2020 & Due Date of Filing Form 8 for FY 2019-20.

All Limited Liability Partnerships (LLPs) registered under Limited Liability Act, 2008, are required to file two statutory forms viz. Form 11 and Form 8, annually.

The Annual Return in Form 11 is to be submitted within 60 days of closure of the financial year i.e. by 30th May of the subsequent financial year. The Statement of Account and Solvency in Form 8 is to be submitted within 30 days from the expiry of six months from the closure of the financial year i.e. by 31st October of the subsequent financial year.

The Ministry of Corporate Affairs (MCA) on 9.11.2020, has.

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Remembering Demonetisation on its Fourth Anniversary!!!

Who can forget…?

November 8, 2016

Time: 8 p.m.

"To break the grip of corruption and black money, we have decided that the five hundred rupee and thousand-rupee currency notes presently in use will no longer be legal tender from midnight tonight, that is 8th November 2016."

Yes, with these historic words, the Hon’ble PM Modi has announced the demonetisation of Rs. 500 and Rs. 1000 notes, the Specified Banned Notes (SBNs), on the eve of 8.11.2016, in his surprise prime time address to the Nation.

1. Operation Clean Money (OCM)

Post demonetisation of Rs. 50.

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Amazon (Gopal Subramanium) vs. Reliance/Future Group (Harish Salve): An Inriguing Battle of Market Share & Nerves

All of us are aware of the much talked about announcement of the acquisition of the Kishor Biyani's Future Group Retail Business including Big Bazar by the Mukesh Ambani's Reliance Industries (RIL) for a consideration of Rs. 24,713 crores. 

However, subsequent to the announcement of this Reliance-Future Group deal, a lot of interesting developments, both in domestic front and in international front have taken place, which may not be known to many. So, it will really be worthwhile to know about the subsequent interesting and intriguing developments concerning this deal.

Jeff Bezos' Amazon, Relianc.

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Faceless Assessments & Appeals: Missing Out on that Odd Cup of Tea with AO/CIT(Appeals) for a Far More Rewarding TEA of Transparency, Efficiency & Accountability!!!

Friends let me begin with an interesting question....

"What comes across your mind when you hear these terms and phrases- artificial intelligence, machine learning, advanced algorithm based data analytics, automated random allocation system, automated examination tool, hash function, video telephony? Any science fiction movie or any space science mission?

Well, here I am simply referring to some of the terminology being used in the New Legislative Schemes of Faceless Assessments & Appeals. 

The usage of the above tec.

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Charitable Trusts and Institutions, Universities and Educational Institutions, Hospitals and Medical Institutions registered u/s 10(23C), get an Opportunity for Filing Delayed Audit Reports

The Charitable Trusts and Institutions, Universities and Educational Institutions, Hospitals and Medical Institutions registered u/s 10(23C) of the Income Tax Act, 1961, (the Act), are entitled for exemption from Income Tax, subject to the application of atleast 85% of their receipts/income towards the objectives for which these institutions have been established. 

Where the total income of such institutions, exceeds the basic exemption limit, i.e. Rs. 2,50,000/- in any previous year, the accounts of such institutions are required to be audited by a qual.

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Preparing & Filing Error Free GST Annual Return (Form GSTR-9) MADE EASY through Offline Utility

1. About Form GSTR-9 Offline Utility

Q.1 What is Form GSTR-9 Offline Utility?

Ans: Form GSTR-9 Offline utility is an Excel-based tool to facilitate the preparation of annual return in Form GSTR-9. This Annual return is to be filed once, for each financial year, on the GST Portal, by the registered taxpayers who were regular taxpayers, including SEZ units and SEZ developers.

Taxpayers may use the offline utility to furnish details of purchases, sales, input tax credit or refund claimed or demand created etc. in this return. Once return is pr.

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All You Wish to Know About the GSTN Compulsory e-Invoicing w.e.f. 1.10.2020

With the Mandatory GST e-Invoicing for the Businesses having Turnover of more than Rs 500 crores, completing One Month on 31.10.2020, the Government is now planning to make the e-Invoicing Compulsory for the Businesses with aggregate turnover of Rs 100 crores & more, very soon.

The e-invoice system, the game changer in the GST system, was launched on 1st October, 2020 for the businesses with aggregate turnover of more than Rs. 500 Crores in the financial year. Path breaking e-invoice initiative which completed one month on the 31st October, is poised to revolutionize the way businesses interact with each other. According to NIC, w.

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FACELESS, CONTACTLESS, PAPERLESS TURANT CUSTOMS CLEARANCE

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When You Go For Seeking Adjournment & Ends Up in Winning Your Case!!!

Sipping my favourite cup of ginger tea  ☕

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On this Rashtriya Ekta Diwas (National Unity Day), TaxAaram conveys its sincere gratitude, love & respect & pays its homage to the Iron Man of India, Sh. Vallabh Bhai Patel, on his 145th Birth Anniversary.

TaxAaram believes in the Collective Wisdom & Empowerment of All the Taxpayers & Citizens of Our Country, and is therefore working tirelessly & earnestly in making the taxpayers aware & updated about all the developments in tax & corporate laws, through its authentic & accurate blogs published in taxaaram.com on consistent & regular basis.

TaxAaram also urges all the taxpayers to kindly e-file their ITRs & GS.

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Understanding New Equalisation Levy & TDS on e-Commerce Transactions with Practical Illustrations

1. Digital Tax: The Backdrop

With the expansion of information and communication technology, the supply and procurement of digital goods and services have undergone exponential expansion everywhere, including India. The digital economy is growing at a faster rate than the global economy as a whole.

Currently in the digital domain, business may be conducted without regard to national boundaries and may dissolve the link between an income-producing activity and a specific location. From a certain perspective, business in digital domain doesn't seem to occur in any physical location but instead takes place in the nebulous .

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Post Extension of Last Date for Making Payment of Taxes, under the Vivad se Vishwas Scheme, CBDT issues very important Clarification concerning the timeline for making payment of taxes under the Scheme

The Central Government vide the notification S.O. 3847(E), dated 27th October, 2020, has extended the date for payment without additional amount under Vivad se Vishwas from 31St December, 2020 to 31″ March, 2021. The said notification also notified the last date for filing declaration under Vivad se Vishwas as 31′ December, 2020.

Under the existing provisions of sub-section (2) of section 5 of.

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CBDT further extends the last date for making payment under Vivad se Vishwas Scheme and also notifies the last date for filing Declaration in Form 1 under the Scheme 

In exercise of the powers conferred by section 3 of the Direct Tax Vivad se Vishwas Act 2020, the CBDT vide its Notification No. S.O. 3847(E) dated 27.10.2020, have further extended the last date for making payment of disputed tax without additional amount under the Vivad se Vishwas Scheme, from 31st December, 2020 to 31st March, 2021. 

Further, the Declaration in Form 1 u/s 4 of the Act, for opting for settlement of income tax disputes under the Vivad se Vishwas Scheme, are required to be filed electronically, latest by 31st December, 2020. 

Therefore.

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EPFO WhatsApp Helpline Numbers for Speedy Redressal of Grievances of Subscribers

The Employees Provident Fund Organisation (EPFO) has launched a WhatsApp helpline service for speedy redressal of grievances of its subscribers. This facility is in addition to various other means of grievance redressal forums of EPFO which include EPFiGMS portal and a dedicated 24x7 call centre. So far, EPFO has redressed more than 1,64,040 grievances and queries through this WhatsApp Helpline Service.

WhatsApp helpline is now functional in all the 138 regional offices of EPFO. Any stakeholders cansimply file grievance or seek guidance on any queries relating to services provided by EPFO, byputting a WhatsApp message on the helpline number of the concerned regional.

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GST Alert: Taxpayers Beware of Two Critical Dates viz. 15.10.2020 & 20.10.2020

CBIC -the Apex Body of Indirect Tax Administration in India has recently issued two very significant Notifications, mandating crucial GST Compliances viz.

(i) Blocking of E-Way Bill (EWB) Generation Facility for Taxpayers with AATO over Rs 5 Cr., after 15th October, 2020 (Compliance Deadline: 15.10.2020)

(ii) Clarification relating to application of sub-rule (4) of rule 36 of the CGST Rules, 2017 for the months of February, 2020 to August, 2020 (Compliance Deadline: 20.10.2020 concerning Filing of GSTR 3B Return for September 2020)

Now, we shall be discussing and analysing the above two important C.

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Practical Case Studies on Tax Payable under the Vivad se Vishwas Scheme, 2020

In view of the outbreak of Novel Corona Virus (Covid-19), the Ministry of Finance has brought in an Ordinance called as “The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2020”, on 31.3.2020, in order to provide several relief measures relating to statutory and regulatory compliance matters.

As per Clause No. 5 in Chapter IV of The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2020, an amendment in section 3 of the Direct Tax Vivad se Vishwas Act, containing the provisions relating to the specified due dates for payment of tax payable by the declarant under the Vivad se Vishwas scheme, has been made and accordingly t.

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Decoding ‘The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020’

“The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020”, (hereinafter referred to as ‘The Taxation Amendment Bill 2020’, for brevity sake), has been passed in the Lok Sabha on 19.9.2020.

The Taxation Amendment Bill 2020 will replace the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020, promulgated in March, 2020.

Interestingly, the language of the introductory provision of clause 3 in the said ‘Taxation Amendment Bill, 2020’, makes one to think that all statutory compliance deadlines falling between 20th March 2020 and 31st December 2020.

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Faceless Assessments: Few Critical Suggestions to Make Them Flawless!!

Even perfection has room for improvement.”- Ty Warner

Faceless Assessments are indeed a revolutionary and path-breaking initiative of the Government, aimed at reforming and overhauling the tax administration system and curbing the undesirable practices prevailing in the system, by eliminating the personal interface between the assessee and the assessing authority.

However, it is not uncommon for any new reform-oriented initiative to face some teething problems during the initial stages of its implementation and practice.

In this Article, an honest and sincere effort has been made to bring out all the criti.

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FAQs on ‘Faceless Assessment Scheme, 2019’

“To be curious is a good thing and to be able to satisfy someone’s curiosity is even better.”

‘Frequently Asked Questions’ (FAQs) on ‘Faceless Assessments’

Our Hon’ble PM Sh. Narendra Modi has launched a new platform for Transparent Taxation for ‘Honouring the Honest Taxpayers’, coining three new terms viz. Seamless, Painless & Faceless, for showcasing the perceived changed nature of the tax administration in India. The thrust of this taxation platform is on Faceless Assessments, Faceless Appeals and Taxpayers’ Charter.

.

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Final Resolve of FY 2019-20 AGM Due Date Impasse. MCA Extends AGM & Annual Accounts Laying Date for around 12 Lakh Indian Companies by Three Months to 31.12.2020, from existing due date of 30.9.2020.

1. Legislative Provisions

By virtue of the provisions of first proviso to section 96(1) of the Companies Act, 2013, every Indian Company is required to hold an Annual General Meeting (AGM), (other than its first AGM), within a period of six months from the close of the financial year. The Audited Annual Financial Statements (Balance Sheet) are also laid down in the AGM of the Company.

Further, the third proviso to section 96(1) of the Companies Act, 2013 provides that the Registrar of Companies may, for any special reason,.

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Practical Case Study on Faceless Assessment u/s 143(3) on the Issue of Accounting for Revenue Recognition & Expenditure Booking in Real Estate Business

The issue of revenue recognition and expenditure booking in real estate business of the assessees is also a common scrutiny criterion under CASS.

There are two acceptable methods of accounting for Revenue Recognition & Expenditure Booking in Real Estate Business:

     (i)  Percentage of Completion Method: Under this method the revenue and expenditure of the real estate project are booked in proportion to the completion of such real estate project.

    (ii)  Completed Contract Method: Under this method the revenu.

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The New Face of Faceless Assessments!!

“Anonymity is the fame of the future.” - John Boyle O’ Reilly

1.1 Faceless assessments: A Paradigm Shift in tax administration!!

Well Yes Friends, FACELESS ASSESSMENTS have become a REALITY now…

Our Hon’ble PM Sh. Narendra Modi has launched a new platform for Transparent Taxation for ‘Honouring the Honest Taxpayers’, coining three new terms viz. Seamless, Painless & Faceless, for showcasing the perceived changed nature of the tax administration in India. The thrust of this taxation platform is on Faceless As.

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TDS u/s 194N Not Applicable if the Cash Withdrawals do not constitute the Income of the Account Holder: Madras High Court Rules in Tirunelveli District Central Co-operative Bank Ltd vs. JCIT (TDS)

In its very recent judgement the Hon'ble Madras High Court have held that, TDS u/s 194N is not applicable if the cash withdrawals do not constitute the income of the account holder.

The principal observation of the Madras High Court in the case of Tirunelveli District Central Co-operative Bank Ltd vs. JCIT (TDS), is being reproduced as under:

"17. A mere look at Section 201 of the Act would indica.

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Liaison Office in India engaged in Preparatory & Auxiliary Business Activities is not a Permanent Establishment (PE) : Supreme Court pronounces Landmark Judgement  dated 24.4.2020, in "Union of India vs UAE Exchange Centre", in Civil Appeal No. 9775 of 2011

In its recent landmark judgement in the case of "Union of India vs UAE Exchange Centre (Civil Appeal No. 9775 of 2011)", the Hon'ble Supreme Court have laid down that Liaison Office of a Non Resident Entity in India, engaged in Preparatory & Auxiliary Business Activities, in accordance with RBI approval, is not to be considered as a Permanent Establishment (PE) of that Non Resident Entity in India, so as to attract taxability in India.

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विघ्नेश्वराय वरदाय सुरप्रियाय लम्बोदराय सकलाय जगद्धितायं। नागाननाय श्रुतियज्ञविभूषिताय गौरीसुताय गणनाथ नमो नमस्ते॥ आप सभी को गणेश चतुर्थी की बहुत-बहुत बधाई। गणपति बाप्पा मोरया!!

TaxAaram Wishes You All a very blissful, joyful & auspicious Ganesh Chaturthi. May Lord Ganesha blesses all of us with health, happiness, properity and peace.

                                    &.

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LTCG on Penny Stocks & Vivad Se Vishwaas Scheme 2020

In addition to the Settlement of Disputes pertaining to OCM/Demonetisation, another major reason for bringing out this Vivad Se Vishwaas Tax Amnesty Scheme as asserted by the learned Revenue Secretary is to ensure amicable resolution of disputes concerning Long Term Capital Gains on Sale of Penny Stocks.

The claim of exemption of long-term capital gains on sale of penny stocks u/s 10(38) of the Act, is one of the most common and regular scrutiny criteria under Computer Assisted Scrutiny selection (CASS), now-a-days.

The Capital Market Regulatory Body SEBI have identified 58 odd scrips of listed companies in which unfair trade practices and price rigging were done. The assessing author.

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Practical Case Study on ‘Faceless e-Assessment’ u/s 143 on the issue of Long Term Capital Gain on Penny Stocks u/s 10(38)

The claim of exemption of long-term capital gains on sale of penny stocks u/s 10(38) of the Act, is one of the most common and regular scrutiny criteria under CASS, now-a-days. The Capital Market Regulatory Body SEBI have identified 108 odd scrips of listed companies in which unfair trade practices and price rigging were done. The assessing authorities taking cognizance of such adverse scrips based on the reports of investigation wing and the purported statements by entry operators concerning the misuse of the mechanism of exemption of long-term capital gain on sale of penny stocks in routing back of the ‘unaccounted/.

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Analysis of AAR Ruling in Tiger Global International Holdings’ Transfer of Flipkart’s Shares

It appears that unsettling the already settled legal position has become the new normal in legal jurisprudence now a days. The case in point is the recent ruling pronounced by AAR in the Group Cases of Tiger Global International Holdings, Mauritius in Re (AAR/04/05/07 of 2019).

In the said ruling, AAR has adjudicated upon the question of whether capital gains arising to the Mauritius based Group Companies of Tiger Global International Holdings, Mauritius, (the applicants), from the sale of shares held by them in M/s Flipkart Pvt Ltd, a Singapore based company (deriving its value substantially from assets located in India) would be.

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Operation Clean Money (OCM)/Demonetisation Cases & Vivad Se Vishwas Scheme 2020

 

Who can forget…?

November 8, 2016

Time: 8 p.m.

"To break the grip of corruption and black money, we have decided that the five hundred rupee and thousand-rupee currency notes presently in use will no longer be legal tender from midnight tonight, that is 8th November 2016."

Yes, with these historic words, the Hon’ble PM Modi has announced the demonetisation of Rs. 500 and Rs. 1000 notes, the Specified Banned Notes (SBNs), on the eve of 8.11.2016, in his surprise prime time address to the Nation.

1. Operation Clean Money (.

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“Artificial Intelligence, Machine Learning, Advanced Data Analytics, Complex Algorithms based Automated Allocation System, Automated Examination Tool, Hash Function, Video Telephonyand the list goes on……

No, any science fiction movie or any space science mission are not being talked about here. Only the ‘phraseology’ and ‘terminology’ being used in the recent Official Gazetted Notification No. SO 3264 issued by the Ministry of Finance on 12.9.2019, bringing to fore the ‘New Scheme of E-assessment 2019’, is being referred to here.

‘Welcome to the New Era of ‘Faceless’, ‘Jurisdiction-less&rsquo.