http://indpaedia.com/ind/index.php?action=history&feed=atom&title=Income_Tax_India%3A_LawsIncome Tax India: Laws - Revision history2026-08-29T10:30:37ZRevision history for this page on the wikiMediaWiki 1.19.2http://indpaedia.com/ind/index.php?title=Income_Tax_India:_Laws&diff=138362&oldid=prevJyoti: /* Corporates’ promotional activities */2025-11-26T11:30:32Z<p><span dir="auto"><span class="autocomment">Corporates’ promotional activities</span></span></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>The code of conduct prescribed by the MCI debars doctors from receiving favours in return for referring, recommending or procuring of patients for medical, surgical or any other treatment.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>The code of conduct prescribed by the MCI debars doctors from receiving favours in return for referring, recommending or procuring of patients for medical, surgical or any other treatment.</div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">=Deductions=</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">==Exploring business in India: Expenditure part of IT deduction: SC==</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">[https://epaper.indiatimes.com/article-share?article=22_10_2025_011_013_cap_TOI  Dhananjay Mahapatra, Oct 22, 2025: ''The Times of India'']</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">New Delhi : More than 25 years after a French oil exploration company was denied business expenditure deductions in income tax assessment, Supreme Court has ruled that even if the efforts of the foreign company failed to materialise into a contract, it cannot be denied expenditure deductions from IT assessment.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> Pride Foramer SA, incorporated in France and engaged in oil drilling activities, was awarded a 10-year contract by ONGC in 1983till 1993. Thereafter, it failed to procure another contract till Oct 1998. It produced before IT officials relevant material to show that between 1993-98, it had continuous business correspondences with ONGC regarding hiring of manpower services in respect of expert key personnel for drilling in deep waters and had unsuccessfully submitted a bid in 1996.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> Between 1993-98, the company claimed business expenditure deductions. This was allowed by the commissioner of income tax but Uttarakhand HC in 2009 reversed the decision. The company appealed against this before SC.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> A bench of Justices Manoj Misra and Joymalya Bagchi faulted the HC’s view that since the appellant did not have an office in India, it could not claim to have carried out business in India. </ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">SC said, “This view is wholly fallacious and contrary to the very scheme of the IT Act.” Writing the judgment, Justice Bagchi said, “The issue of ‘permanent establishment’ may be relevant for the purposes of availing the beneficial provisions of Double Tax Avoidance Agreement ... which is not a relevant consideration.”</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> “In an era of globalisation whose life blood is trans-national trade and commerce, the HC’s restrictive interpretation that a non-resident company making business communications with an Indian entity from its foreign office cannot be construed to be carrying on business in India is wholly anachronistic with India’s commitment to Sustainable Development Goal relating to ‘ease of doing business’ across national borders,” SC said.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">[[Category:Economy-Industry-Resources|IINCOME TAX INDIA: LAWSINCOME TAX INDIA: LAWSINCOME TAX INDIA: LAWSINCOME TAX INDIA: LAWSINCOME TAX INDIA: LAWS</ins></div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=Depreciation=</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=Depreciation=</div></td></tr>
</table>Jyotihttp://indpaedia.com/ind/index.php?title=Income_Tax_India:_Laws&diff=136249&oldid=prevJyoti: /* Capital gains */2025-05-21T13:48:13Z<p><span dir="auto"><span class="autocomment">Capital gains</span></span></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>The HC dismissed the IT department’s petition and held that fashion designers were entitled to tax exemptions meant for artists.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>The HC dismissed the IT department’s petition and held that fashion designers were entitled to tax exemptions meant for artists.</div></td></tr>
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<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>= Capital gains=</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>=Capital gains=</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>See [[Capital gains: India]]</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>See [[Capital gains: India]]</div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">=Compensation=</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">==‘Settlement’ of cases: compensation received for==</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">[https://epaper.indiatimes.com/article-share?article=24_04_2025_009_006_cap_TOI  Lubna Kably TNN, April 24, 2025: ''The Times of India'']</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">Mumbai : In what marks a secondmajor victory for a Mumbai resident, the income tax appellate tribunal (ITAT) has ruled in his favour in a long-standing tax dispute. It held that the compensation he received in the form of a flat worth Rs 2.6 crore for vacating a portion of the land alleged to be illegally occupied by him was a nontaxable ‘capital receipt’.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> The first win came when he secured a valuable flat in Orchid Enclave in south Mumbai, through a settlement with the real estate redeveloper. As he was not included in the list of tenants that was submitted to the municipal corporation and/ or Mhada, he filed a legal suit against the redeveloper claiming to be a long-time lawful occupant of a portion of the land on which he had built a shed. This land was to undergo redevelopment. While the suit was pending, the builder reached a settlement with him and allotted him the flat. The second win was scored in the tax arena. The income tax (I-T) officer sought to treat the value of the flat as taxable under the head ‘income from other sources’ — a view upheld by the commissioner (appeals). This led to the individual filing an appeal with ITAT.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> ITAT noted that the individual has created nuisance to the redeveloper and the flat was allotted to him as compensation for removing this nuisance. Relying on judicial precedent, it held the value of the flat to be a capital receipt which is not subject to tax. The tribunal directed the I-T officer to delete the addition of Rs 2.6 crore that had been made to the individual’s taxable income.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> Anil Harish, advocate and partner at DM Harish & Co explained that two alternative contentions were put forward by this individual before the ITAT bench. The first was that he had been holding a capital asset (possessed a piece of land) for many years and surrendered this possession and the rights to the asset. In lieu of this, he obtained a residential house and the value of this new flat should be eligible for the deduction under Section 54F of I-T Act. The second contention was that he was given the new flat to remove the nuisance caused by his illegal occupation. This aspect was argued in detail during the ITAT hearing and was accepted by the bench.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> “The nuisance factor can be claimed only by a person who is an illegal occupant, not by a legal tenant who is surrendering his old flat under a redevelopment project. For legal tenants, the transaction would be a ‘transfer’. However, the value of the new flat would be allowed as a deduction under Section 54/54F of I-T Act, resulting in no taxable capital gains,” said Harish.</ins></div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=Corporates’ promotional activities=</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=Corporates’ promotional activities=</div></td></tr>
</table>Jyotihttp://indpaedia.com/ind/index.php?title=Income_Tax_India:_Laws&diff=135284&oldid=prevJyoti: /* Basic tenets */2025-03-25T20:41:36Z<p><span dir="auto"><span class="autocomment">Basic tenets</span></span></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>[[Category: Economy-Industry-Resources |I]]</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>[[Category: Economy-Industry-Resources |I]]</div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">=Income Tax Act=</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">==2025 vis-à-vis 1961==</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">[https://epaper.indiatimes.com/article-share?article=14_02_2025_001_020_cap_TOI Feb 14, 2025: ''The Times of India'']</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">[[File: Income Tax Act 1961 vis-à-vis changes in 2025.jpg| Income Tax Act 1961 vis-à-vis changes in 2025 <br/> From: [https://epaper.indiatimes.com/article-share?article=14_02_2025_001_020_cap_TOI Feb 14, 2025: ''The Times of India'']|frame|500px]]</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">FM Nirmala Sitharaman introduced Income Tax Bill, 2025, which seeks to repeal the 1961 law, in Lok Sabha. The bill has been referred to a select committee for detailed examination.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">''' WHAT IS THE KEY FOCUS? '''</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> ➤ Simplified language while retaining taxation principles, ensuring continuity while enhancing usability</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> ➤ Consolidation of amendments h Removal of obsolete provisions </ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">➤ Structural rationalisation through tables, formulae </ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">➤ Tax dept to give section-wise mapping on website to help taxpayers compare provisions </ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">''' WHAT WAS THE RESULT? '''</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> ➤ 1,200 provisos, 900 explanations removed </ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">➤ 150 clauses in section 10 of I-T Act now part of Schedules, presented in tables h All-numeric sections removed </ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">''' ANY CHANGE IN PROVISIONS FOR THE SALARIED? '''</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> ➤ No. But all provisions related to salary consolidated for ease of filing returns.</ins></div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=Basic tenets=</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=Basic tenets=</div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Section 80D under the Income Tax Act provides for tax deductions for buying health insurance policies, popularly called mediclaim plans. In an era of increasing healthcare costs, the government, to encourage people to take mediclaim policies, allows taxpayers some sops for these policies. A taxpayer can get claim deductions of up to Rs 25,000 per year for payment towards premium for health insurance plans for the taxpayer, spouse and dependent children. The limit is enhanced up to Rs 30,000 even if either the taxpayer or the spouse is a senior citizen. Within these limits one can also claim deductions of up to Rs 5,000 per year as a cost for preventive health check up. The government also allows mediclaim premium of up to Rs 30,000 for policies taken for parents.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Section 80D under the Income Tax Act provides for tax deductions for buying health insurance policies, popularly called mediclaim plans. In an era of increasing healthcare costs, the government, to encourage people to take mediclaim policies, allows taxpayers some sops for these policies. A taxpayer can get claim deductions of up to Rs 25,000 per year for payment towards premium for health insurance plans for the taxpayer, spouse and dependent children. The limit is enhanced up to Rs 30,000 even if either the taxpayer or the spouse is a senior citizen. Within these limits one can also claim deductions of up to Rs 5,000 per year as a cost for preventive health check up. The government also allows mediclaim premium of up to Rs 30,000 for policies taken for parents.</div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=Rates of income tax in India=</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=Rates of income tax in India=</div></td></tr>
</table>Jyotihttp://indpaedia.com/ind/index.php?title=Income_Tax_India:_Laws&diff=134918&oldid=prevPdewan: /* Appeals */2025-02-14T10:59:54Z<p><span dir="auto"><span class="autocomment">Appeals</span></span></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>''The number of tax slabs  in 1949, and since 1995''</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>''The number of tax slabs  in 1949, and since 1995''</div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">=B=</ins></div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=Appeals=</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=Appeals=</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>==2015: Appeals only for Rs 10 lakh +==</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>==2015: Appeals only for Rs 10 lakh +==</div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Nayak said: “This showcases the intent of the instructions and the SC has rightly acted on it.”</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Nayak said: “This showcases the intent of the instructions and the SC has rightly acted on it.”</div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=Artists=</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=Artists=</div></td></tr>
</table>Pdewanhttp://indpaedia.com/ind/index.php?title=Income_Tax_India:_Laws&diff=134072&oldid=prevJyoti: /* Residential status determined by no. of days stayed */2024-12-21T09:22:10Z<p><span dir="auto"><span class="autocomment">Residential status determined by no. of days stayed</span></span></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>For instance, if an expat is a US tax resident, he will pay tax on his global income in the US (this would include tax on India source income). However, for taxes paid in India -say tax withheld at source against fixed deposits in a bank in India -he will get a foreign tax credit (a tax credit for the taxes paid or withheld in India against the US taxes payable by him). This will lower the US tax outgo.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>For instance, if an expat is a US tax resident, he will pay tax on his global income in the US (this would include tax on India source income). However, for taxes paid in India -say tax withheld at source against fixed deposits in a bank in India -he will get a foreign tax credit (a tax credit for the taxes paid or withheld in India against the US taxes payable by him). This will lower the US tax outgo.</div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">===B: Criteria===</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">[https://epaper.indiatimes.com/article-share?article=09_10_2024_033_021_cap_TOI  Oct 9, 2024: ''The Times of India'']</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">Mumbai : The income tax appellate tribunal (ITAT) recently ruled that income earned in the US would be taxable for an individual residing in India, reports Lubna Kably. While the individual initially declared an income of Rs 9,570 for 2012-13, his taxable income surged to Rs 43.5 lakh after the US income was added.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> Under tax laws, residential status determines tax liability. Non-residents, for example, are not taxed in India on foreign income. However, in this case, the individual was a tax resident of both India and the US, requiring the application of the ‘tie-breaker test’ under the India-US tax treaty to determine which country he was a resident of. </ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">Applying this test, which takes into account certain criteria, ITAT concluded that the individual’s “centre of vital interest” was closer to India, making his US income taxable in India.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">''' Active biz activities in India outweigh passive US investments: ITAT '''</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">The criteria are, sequentially, permanent home, centre of vital interest, habitual abode, and nationality. Parizad Sirwalla, partner and head (global mobility services tax) at KPMG India, explained that a returning Indian, for instance, could be a tax resident of both India (based on number of days spent in the country) and the US (based on citizenship).</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> “In determining the basic residency under the domestic tax laws of each country, the fact that US tax residency (among other conditions) is based on US citizenship/ green card status does have its own nuances as such individuals are always taxed in the US on their global income,” she adds. </ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">In this particular case, the individual was a tax resident of India, having spent more than 183 days in the country in 2012-13. He was also a US citizen, one of the criteria for tax residency in America.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> “The tie-breaker test is sequential, meaning if the tie is broken at one stage, subsequent criteria do not need to be applied. However, these criteria are highly subjective and vary with each individual’s circumstances,” Sirwalla explained.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> The individual argued before ITAT that his family (including his wife and three children) were all US citizens, and one of his daughters was studying in the US. While he earned income from investments in both India and the US, he held larger investments in the US, and hence claimed he was a US resident. Accordingly, he argued that his US income should not be taxed in India.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> In contrast, income tax department pointed out that the individual had spent more than 183 days in India, and both his spouse and two of his children lived in Mumbai, while only one daughter resided in the US. Besides, he was the managing director of a private company in India, co-owned with his wife.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> ITAT noted that determining the ‘centre of vital interest’ requires analysing both personal and economic relationships. The tribunal observed that while the individual had family ties to the US, his immediate family and business activities were centred in India. His siblings and parents residing in the US were deemed less relevant than his stay in India with his wife and children.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> On the economic front, ITAT gave more weight to his active business involvement in India over his passive investments in the US. The individual had returned to India to run a film distribution company, co-founded with his wife in 2009, and was actively involved in its operations. Thus, ITAT ruled that he was a resident of India, making his US income taxable here.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">''' Details '''</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">[https://epaper.indiatimes.com/article-share?article=09_10_2024_028_017_cap_TOI  Oct 9, 2024: ''The Times of India'']</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">The criteria are, sequentially, permanent home, centre of vital interest, habitual abode, and nationality. Parizad Sirwalla, partner and head (global mobility services tax) at KPMG India, explained that a returning Indian, for instance, could be a tax resident of both India (based on number of days spent in the country) and the US (based on citizenship).</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> “In determining the basic residency under the domestic tax laws of each country, the fact that US tax residency (among other conditions) is based on US citizenship/ green card status does have its own nuances as such individuals are always taxed in the US on their global income,” she adds. In this particular case, the individual was a tax resident of India, having spent more than 183 days in the country in 2012-13. He was also a US citizen, one of the criteria for tax residency in America.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> “The tie-breaker test is sequential, meaning if the tie is broken at one stage, subsequent criteria do not need to be applied. However, these criteria are highly subjective and vary with each individual’s circumstances,” Sirwalla explained. </ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">The individual argued before ITAT that his family (including his wife and three children) were all US citizens, and one of his daughters was studying in the US. While he earned income from investments in both India and the US, he held larger investments in the US, and hence claimed he was a US resident. Accordingly, he argued that his US income should not be taxed in India. </ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">In contrast, income tax department pointed out that the individual had spent more than 183 days in India, and both his spouse and two of his children lived in Mumbai, while only one daughter resided in the US. Besides, he was the managing director of a private company in India, co-owned with his wife.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> ITAT noted that determining the ‘centre of vital interest’ requires analysing both personal and economic relationships. The tribunal observed that while the individual had family ties to the US, his immediate family and business activities were centred in India. His siblings and parents residing in the US were deemed less relevant than his stay in India with his wife and children.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> On the economic front, ITAT gave more weight to his active business involvement in India over his passive investments in the US. The individual had returned to India to run a film distribution company, co-founded with his wife in 2009, and was actively involved in its operations. Thus, ITAT ruled that he was a resident of India, making his US income taxable here.</ins></div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=Permanent account number (PAN)=</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=Permanent account number (PAN)=</div></td></tr>
</table>Jyotihttp://indpaedia.com/ind/index.php?title=Income_Tax_India:_Laws&diff=133616&oldid=prevJyoti: /* Joint ownership of one flat won’t bar tax benefit on another: ITAT */2024-11-07T16:28:08Z<p><span dir="auto"><span class="autocomment">Joint ownership of one flat won’t bar tax benefit on another: ITAT</span></span></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div> While divergent high court decisions existed, ITAT held that Supreme Court had laid down a principle that if two views are possible, one more favourable to taxpayer must be adopted. Accordingly, it was held that Singh could claim this tax benefit.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div> While divergent high court decisions existed, ITAT held that Supreme Court had laid down a principle that if two views are possible, one more favourable to taxpayer must be adopted. Accordingly, it was held that Singh could claim this tax benefit.</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>[[Category:Economy-Industry-Resources|IINCOME TAX INDIA: LAWSINCOME TAX INDIA: LAWSINCOME TAX INDIA: LAWSINCOME TAX INDIA: LAWS</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">==Flats, twin: Treated as a single unit==</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">[https://epaper.indiatimes.com/article-share?article=21_10_2024_013_001_cap_TOI Lubna Kably, Oct 21, 2024: ''The Times of India'']</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">Mumbai: Ina significant judgment, the income tax appellate tribunal (ITAT), Mumbai bench, ruled in favour of N Aggarwal, a taxpayer, granting him full tax benefit for investment made in two adjoining flats, which were treated as a single unit.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> Aggarwal had claimed a tax deduction of several crores under Section 54-F of Income Tax (I-T) Act, following his investment in two adjoining flats in a gated estate in Andheri. Under this section, if a taxpayer sells long-term assets (other than house property) and invests the entire net sales consideration in ‘one’ residential house, within the specified period, the entire long-term capital gain arising from the sale of the original assets is exempt from tax. In case the entire net sale consideration is not invested and only a part of it is invested in a residential house, tax exemption is allowed proportionately. Post an amendment in 2015, Section 54-F allows exemption only when the taxpayer purchases or constructs one residential house.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> In this case, the issue raised by I-T department was that the taxpayer had purchased two flats under two separate agreements and, thus, the intention to treat it as one single house was not met.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> On the other hand, Aggarwal maintained that these two flats were always meant to be used as a single residential unit. Since the builder originally obtained approval in the form of two independent units, the agreement was entered separately for each flat. Subsequently, the plan was amended — treating both flats as a single unit — and approved by Maharashtra Housing and Area Development Authority (Mhada).</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> “As long as the house is used by the taxpayer as one single unit, though by conversion, in our view, the exemption cannot be denied under Section 54F,” said the ITAT bench. The bench took the fact pattern into consideration. It noted that the builder originally got the plan approved as two separate units and the plan was subsequently revised in order to suit the requirement of the buyer to use it as one single unit. The revised plan very categorically identifies one kitchen and other necessary structures to be used as a single dwelling unit. The revised plan was not opposed by I-T authorities with anycontrary evidence.</ins></div></td></tr>
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</table>Jyotihttp://indpaedia.com/ind/index.php?title=Income_Tax_India:_Laws&diff=133377&oldid=prevJyoti: /* Loans */2024-09-23T17:11:35Z<p><span dir="auto"><span class="autocomment">Loans</span></span></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div> Justices Khanna and Datta said, “Rule 3(7)(i) posits SBI’s rate of interest, that is the PLR, as the benchmark to determine the value of benefit to the assessee in comparison to the rate of interest charged by other individual banks. Fixation of SBI’s rate of interest as benchmark is neither an arbitrary nor unequal exercise of power.”</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div> Justices Khanna and Datta said, “Rule 3(7)(i) posits SBI’s rate of interest, that is the PLR, as the benchmark to determine the value of benefit to the assessee in comparison to the rate of interest charged by other individual banks. Fixation of SBI’s rate of interest as benchmark is neither an arbitrary nor unequal exercise of power.”</div></td></tr>
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<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>[[Category:Economy-Industry-Resources|IINCOME TAX INDIA: LAWSINCOME TAX INDIA: LAWSINCOME TAX INDIA: LAWSINCOME TAX INDIA: LAWS</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">==Loan scholarships for higher education overseas==</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">[https://epaper.indiatimes.com/article-share?article=28_08_2024_017_019_cap_TOI  Lubna Kably & Reeba Zachariah TNN, August 28, 2024: ''The Times of India'']</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">Mumbai : The Income-Tax Appellate Tribunal has recently held that grant of loan scholarships by JN Tata Endowment for higher education of Indian students overseas will not debar it from income-tax (I-T) exemption. </ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">The trust, which was established in 1892 by Tata Group founder J N Tata, awards merit-based loan scholarships to students across India for higher studies overseas. Every year, 90 to 100 scholars are selected across disciplines ranging from the sciences (applied, pure and social) to management, law, commerce and the fine arts.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> According to JNTE’s website, selected students enter into a legal agreement with the foundation. The loan-scholarship agreement is for seven years and the student is required to repay the full amount in five equal instalments between the third and seventh year. JNTE has a corpus of Rs 200 crore. For FY11, JNTE had filed an I-T return declaring a nil income, owing to its tax exempt status. However, the I-T officer had held that ‘application of income’ and ‘charitable purpose’ should both be confined to India. </ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">According to the I-T officer, mere payment to an Indian student in India was not sufficient for the purpose of exemption, as the education itself (which denotes application of income) was availed outside India. </ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">In his assessment order, the I-T officer had added that — “If there is a charitable purpose, education (in this case), which tends to promote international welfare in which India is interested, an order from the Central Board of Direct Taxes is required…” for the purpose of claiming the tax exemption.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> On these grounds, he held that the loan-scholarship amount of Rs 4 crore given to students for education abroad will not be exempt. Penalty proceedings for filing inaccurate particulars of income were separately initiated.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline"> When the Commissioner (Appeals) ruled in favour of JNTE, the I-T officer filed an appeal with the ITAT. The tax tribunal ruled in favour of JNTE, holding that the education grant given to Indian students, in India, for higher education abroad fulfils conditions of application of money for such purpose in India. Tata Trusts, of which JNTE is part, declined to comment.</ins></div></td></tr>
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</table>Jyotihttp://indpaedia.com/ind/index.php?title=Income_Tax_India:_Laws&diff=133251&oldid=prevJyoti: /* Brand name gifting cannot be taxed */2024-09-18T18:48:26Z<p><span dir="auto"><span class="autocomment">Brand name gifting cannot be taxed</span></span></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=Gifts=</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>=Gifts=</div></td></tr>
<tr><td class='diff-marker'>−</td><td style="background: #ffa; color:black; font-size: smaller;"><div>== Brand name gifting cannot be taxed==</div></td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div>==Brand name gifting cannot be taxed==</div></td></tr>
<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>[https://timesofindia.indiatimes.com/business/india-business/cant-tax-essar-brand-gift-to-ruia-family-trust-itat/articleshow/88196124.cms  Lubna Kably, Dec 10, 2021: ''The Times of India'']</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>[https://timesofindia.indiatimes.com/business/india-business/cant-tax-essar-brand-gift-to-ruia-family-trust-itat/articleshow/88196124.cms  Lubna Kably, Dec 10, 2021: ''The Times of India'']</div></td></tr>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Taking the litigation forward, the tax department submitted additional grounds of appeal to the ITAT. In appeal, the I-T official sought to question whether Essar Investments was the genuine owner of the brand and whether settlement in favour of the trust was a bona fide transaction. The ITAT bench, composed of judicial member Ravish Sood and accountant member S Rifaur Rahman, dismissed this as it was a "complete volte face”.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>Taking the litigation forward, the tax department submitted additional grounds of appeal to the ITAT. In appeal, the I-T official sought to question whether Essar Investments was the genuine owner of the brand and whether settlement in favour of the trust was a bona fide transaction. The ITAT bench, composed of judicial member Ravish Sood and accountant member S Rifaur Rahman, dismissed this as it was a "complete volte face”.</div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">==…from NRI brother not taxable==</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">[https://epaper.indiatimes.com/article-share?article=20_08_2024_018_006_cap_TOI  Lubna Kably, August 20, 2024: ''The Times of India'']</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;">Mumbai : In a significant ruling, Income-tax Appellate Tribunal’s (ITAT) Mumbai bench has held that a gift of Rs 20 lakh received by a taxpayer from his non-resident Indian brother, based in the UAE, is not subject to tax. This judgment underscores that Indian tax laws exempt certain gifts from being taxed, particularly those received from close relatives. Under Income Tax (I-T) Act, gifts exceeding Rs 50,000 are generally taxed as ‘income from other sources’ at the applicable slab rate, in hands of the recipient. However, exemptions exist: “Gifts received from relatives, on the occasion of marriage, or through a will or inheritance are not taxed. Under Section 56 (2)(x) of I-T Act, gifts from a brother fall under the exempted category.”</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> The case involved A Salam, who received the substantial gift from his brother. However, I-T officers initially classified the gift as taxable income. Commissioner of appeals supported this decision, arguing on grounds that the taxpayer failed to convincingly prove the donor’s creditworthiness and genuineness of the gift. Consequently, Salam filed an appeal with ITAT.</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"></ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> In his defence, he provided evidence that his brother, a long-term resident of Dubai who was engaged in business there for over 25 years, made the gift out of “natural love and affection”. The amount was transferred through three cheques from Bank of Baroda and ICICI Bank. He also submitted his brother’s bank statements, passport, and investor-class visa to establish his identity and financial capacity. A gift deed dated Aug 26, 2022, was also provided to support legitimacy of the gift.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins style="color: red; font-weight: bold; text-decoration: none;"> ITAT member Prashant Maharishi, who presided over the case, in addition to taking cognisance of the evidence produced, also noted that parental names of the donor and recipient matched. This clearly established that the two men are real brothers. He concluded that the Rs 20 lakh received should not be classified as taxable income and directed I-T officials to delete the addition made.</ins></div></td></tr>
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</table>Jyotihttp://indpaedia.com/ind/index.php?title=Income_Tax_India:_Laws&diff=133020&oldid=prevJyoti: /* TDS (tax deducted at source) */2024-08-21T19:44:56Z<p><span dir="auto"><span class="autocomment">TDS (tax deducted at source)</span></span></p>
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<tr><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>“It is clear that the accused admitted not paying deducted TDS amount within the stipulated time. No doubt, the accused paid the tax with interest and penalty, but it was after the stipulated period,” the court said.</div></td><td class='diff-marker'> </td><td style="background: #eee; color:black; font-size: smaller;"><div>“It is clear that the accused admitted not paying deducted TDS amount within the stipulated time. No doubt, the accused paid the tax with interest and penalty, but it was after the stipulated period,” the court said.</div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">==Transit rent not income, can’t be taxed: HC==</ins></div></td></tr>
<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">[https://timesofindia.indiatimes.com/india/transit-rent-not-income-cant-be-taxed-says-hc/articleshow/110475972.cms May 29, 2024: ''The Times of India'']</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">MUMBAI: In a landmark decision, Bombay HC has held that transit rent, which is paid by a developer to a flat owner/tenant on dispossession of the flat, is not a revenue receipt. It cannot be taxed in the hands of the recipient. Thus, the question of deduction of tax at source (TDS) by the developer from the amount payable to the flat owner/tenant does not arise, it said.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">On a writ filed by Sarfaraz S Furniturewalla, the issue before HC was whether there should be a deduction of TDS on the amount payable to him as transit rent by the builder. </ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">TOI has earlier covered orders passed by ITAT, which have held that transit rent is a 'capital receipt' and it is not a revenue stream of income. Thus, it is not taxable in the hands of the recipient.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">HC said transit rent, which is commonly referred to as hardship/rehabilitation/displacement allowance, is paid by the developer or landlord to a flat owner/tenant who suffers hardship due to dispossession of his/her house. Transit rent is not to be considered as a revenue receipt and is not liable to tax. Thus, there will be no question of deduction of tax from the amount paid by the developer.</ins></div></td></tr>
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<tr><td colspan="2"> </td><td class='diff-marker'>+</td><td style="background: #cfc; color:black; font-size: smaller;"><div><ins class="diffchange diffchange-inline">A tax expert attached to a developer company said the HC order provides clarity. It is beneficial not only to flat owners or tenants who receive transit fees but also developers.</ins></div></td></tr>
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</table>Jyotihttp://indpaedia.com/ind/index.php?title=Income_Tax_India:_Laws&diff=132358&oldid=prevPdewan: /* See also */2024-07-24T18:42:07Z<p><span dir="auto"><span class="autocomment">See also</span></span></p>
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</table>Pdewan