Direct Tax Amicus: September 2020

Sub-section (1H) introduced in Section 206 of the Income-tax Act, 1961 by the Finance Act, 2020, seeks to extend the ambit of Tax Collection at Source (‘TCS’) to consideration received from sale of goods.

Direct Tax Amicus: August 2020

Doctrine of Merger is a common law doctrine which is founded on the principles of propriety in the hierarchy of justice delivery system. The underlying logic of Doctrine of Merger is that there cannot be more than one decree or an operative order governing the same subject-matter at a given point of time.

Direct Tax Amicus: July 2020

Section 115BAA of the Income Tax Act, 1961 is a reduced corporate taxation scheme introduced for domestic companies vide the Taxation Laws (Amendment) Act, 2019 (w.e.f. AY 2020-21). Once opted for, the domestic company would be taxed at 25.17% (effective tax rate inclusive of surcharge and cess) during the lifetime of the said company in respect of its total income.

Direct Tax Amicus: June 2020

After the recent introduction of exemption to Sovereign Wealth Funds in respect of certain income earned from India, the issue as to whether such entities are subject to tax, in the first place, has been reignited.

Direct Tax Amicus: May 2020

Section 132(4A) of the Income Tax Act, 1961 empowers an Assessing Officer to presume that anything that is found in searched premises belongs to the occupant of such premises. However, this power to presume is not absolute in the hands of the Assessing Officer, in that the presumption is rebuttable.

Direct Tax Amicus: April 2020

OECD’s plan to build a ‘Unified Approach’ for taxing digital economy has been testing the patience of the consumer/ user facing countries since long. India was one of the first countries to implement a digital tax levy called the ‘Equalization levy’ in 2016, and now in 2020 it has broadened the scope of the levy.

Direct Tax Amicus: March 2020

Finance Bill, 2020 has proposed to relieve corporates from paying distribution tax on dividends (‘DDT’) and proposes to go back to the old school ways of taxing such dividends in the hands of the shareholders. The Bill has also proposed re-introduction of Section 80M of the Income Tax Act which was omitted vide Finance Act, 2003.

Direct Tax Amicus: February 2020

Benami Transactions (Prohibition) Act, 1988 after the amendment in 2016 also provides for confiscation of benami properties besides criminalizing benami transactions. The Rajasthan High Court recently deliberated upon the question as to whether the consequences of the Amendment Act were retrospective in nature.

Direct Tax Amicus: January 2020

The article in this issue of Direct Tax Amicus intends to discuss few crucial aspects concerning claim of and computing deduction under Section 36(1)(viia) of the Income Tax Act. Until 2017, only specified categories of banks were permitted to claim deduction qua provision for bad and doubtful debts.

Direct Tax Amicus: December 2019

The phrase ‘applied for charitable purposes in India’ under Section 11 of the Income Tax Act has been a subject matter of litigation in the recent past. Considering the position as it was prevalent prior to the amendment in the Income Tax Act, 1922 in 1953 (effective from 1-4-1952), period post amendment and after introduction of Income Tax Act, 1961, the author is of the view that it can be said that the mandate under Section 11(1)(a) is only to apply the income in India for charitable purposes