UPDATES FROM TAX GURU 31.07.2009

UPDATES FROM TAX GURU Builders need to pass on Housing tax benefit to home buyers otherwise benefit may not be extended in future Having given tax holiday to builders, Finance Minister Pranab Mukherjee today warned that if the incentives are not passed on to the consumers the same may not be extended in future.  "I expect the developers to pass on the benefit of the tax... MRTP Commission getting more complains then CCI Even after three months of the Competition Commission of India (CCI) coming into force, its predecessor, the Monopolies and Restrictive Trade Practices Commission (MRTPC) is continuing to accept fresh cases on a daily basis.  Complainants are... ICWAI asked government to equate cost accountants with chartered accountants A priority area of the new president of the Institute of Cost and Works Accountants of India (ICWAI), G N Venkataraman, is to make the institute more visible. In an interview with Sapna Dogra Singh, he said ICWAI would also lobby with the... Agreement for Avoidance of Double Taxation with the Government of the Republic of Tajikistan India and Tajikistan have written the new chapter of their relations when both nations have inked on the Double Taxation Avoidance Agreement (DTAA). With an aim of bolstering the flow of technology, investment and services both India and Tajikistan... Over 200 PSU do not have company secretary in employment though they are mandated to have one Over 200 public sector undertakings (PSUs) do not have a company secretary on their rolls even though they are mandated to have one, the government informed Parliament on Thursday.  "As per information available, 233 PSUs have not appointed a... Analysis of Report of Board of Directors to Shareholders Introduction The Board of Directors of a Company play a fiduciary role in protecting the interest of shareholders by providing adequate information on the company's management and its functioning. They are the custodian of the money that the... Services availed by a manufacturer for outward transportation of final products from the place of removal is input service SUMMARY OF CASE LAW The services availed by a manufacturer for outward transportation of final products from the place of removal should be treated as an input service in terms of Rule 2(1)(ii) of the Cenvat Credit Rules, 2004 and thereby enabling... Deduction U/s. 80-IB(10) need to be given proportionally if a few residential units are exceeding the built-up area of 1500 sq. ft prescribed by section SUMMARY OF CASE LAW If an assessee has developed a housing project, wherein the majority of the residential units has a built-up area of less than 1500 sq.ft. i.e., the limit prescribed by section 80-IB(10) and only a few residential units are... Not allowing cross examination is procedural defect and will not make an assessment null and void SUMMARY OF CASE LAW The omission to allow cross examination merely prevents the ITO from making an addition and can be corrected by allowing the cross examination and the AO can be directed to proceed further to examine the matter afresh on the... Merely because an addition is made to the income declared by the assessee, penalty u/s. 271(1)(c) cannot be imposed SUMMARY OF CASE LAW Even post Dharmendra Textile Processors' judgment by the Supreme Court, merely because an addition is made to the income declared by the assessee, penalty under section 271(1)(c) cannot be imposed; Supreme Court's... Brokerage paid on renting of property not allowable u/s. 23 and 24 of the Income Tax Act SUMMARY OF CASE LAW There is no provision for deduction on account of brokerage paid in connection with renting out of the property; merely because the brokerage may have been paid out of the rental income, it cannot be said that a charge has been... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 30.07.2009 (Empanelment and Budget News)

UPDATES FROM TAX GURU Empanelment with Allahabad Bank for practicing CAs as Concurrent/ Revenue Auditor BIODATA FORMAT-2009 Allahabad Bank invites applications in the under noted prescribed format from practising firms of Chartered Accountants of India who are willing to have their firm empanelled as Concurrent/ Revenue Auditor in the Bank. The... Brokers claimed depreciation on BSE card value; Department moved High court Stock broking firms on Monday argued before the Bombay High Court that they are entitled to claim depreciation costs on the value of their Bombay Stock Exchange (BSE) membership cards while calculating their tax liabilities. The Income Tax... Five easy to follow Security tips for Indian tax payers filing their return online It's that time of the year again when you need to file your end of year income tax return, but is the plethora of paperwork bogging you down? The Indian government has just made things easier by launching the facility of filing your income tax... AP High Court dismiss plea challenging induction of strategic investor into Satyam The Andhra Pradesh High Court on Tuesday dismissed a petition filed by a shareholder challenging the Company Law Board's (CLB) order to induct a strategic investor into Satyam Computer Services Ltd. The designated judge to hear cases arising out of... Budget clarified on taxability of Property gift received from non Relatives and Capital gain on sell of that property subsequently The Centre has changed the definition of 'income' under the Income-Tax law to ward off litigation on a Budget proposal on taxation of property passed on as gifts. The gifting route was hitherto used to escape the tax net, but this Budget sought to... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 29.07.2009 (New tax Breaks & ST Exemption in Finance Bill)

UPDATES FROM TAX GURU  Finance Minister given more tax breaks in finance bill passed in Lok Sabha The Finance Minister announced a slew of amendments on both income-tax and service tax fronts to achieve the objective of "generating economic activity in the present environment of economic slowdown." The Lok Sabha later passed the... What makes an Income Accrue or Arise in India although earned outside India? A look at what constitutes as Income on Indian soil and what is not from the perspective of the IT department. The IT department defines certain incomes as Accruing or Arising in India. This is the basis of calculating your income and income tax.... Notification on Service tax exemption to maintenance of road Construction and laying of new roads attract zero service tax, but repairs and maintenance do attract service tax. Government by Notification No. 24/2009-Service Tax, dated 27th July, 2009 exempted Repairs and maintenance work of Roads too from... Despite s. 271(1B), s. 271 (1)(c) penalty is not valid if AO's satisfaction not recorded at stage of initiation In the case of: Madhushree Gupta vs. UOI, Decided by: Delhi High Court In Ram Commercial Enterprises 246 ITR 568 (Del) {affirmed in Rampur Engineering 309 ITR 143 (Del) (FB)}, the Delhi High Court held that if the AO did not record his satisfaction... Mere retraction of the confession may not be sufficient to make confessional statement irrelevant In the case of: Meghraj Jain vs. UOI, Decided by: Bombay High Court Pursuant to a search under FERA, the premises of the appellant were searched on 11.4.1989. Foreign currency was recovered though no incriminating material was found. In his.... As expected RBI kept key policy rates unchanged in the monetary policy review The RBI has kept the key rates unchanged and increased the inflation forecast to 5 per cent. The GDP is expected to grow at 6 per cent and the money supply growth is seen at 18 per cent, according to the quarterly review of the economy, released on... Incomes which are tax-free under the Income Tax Act, 1961 (Simple Guide) 1. Agricultural income: Any income which you receive as income from any agricultural activity is deemed as not included in total income. If your father is into agriculture and he gives you a part of the income as a gift, then you don't need to... With Regards,  CA Sandeep Kanoi  Website: http://www..taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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UPDATES FROM TAX GURU 28.07.2009 (Finance Bill Approved)

UPDATES FROM TAX GURU Finance bill for 2009-10 gets approval of Lok Sabha The Lok Sabha has passed the Finance Bill for 2009-10 by a voice vote on Monday, Finance Minister Pranab Mukherjee has said that economic recovery has begun and India would achieve 8-9 pc economic growth by the end of 2010. Finance Minister Pranab... Insider trading norms not applicable to ESOPs Market regulator SEBI has clarified on the interpretation of certain amendments in the insider trading norms, in response to a few queries from companies. The regulator said the six-month restriction for directors and employees to transact in shares... Stock brokers need to settle the balance funds/securities lying in the trading accounts of clients on the last day of every month AFTER numerous complaints of rampant misuse, the Securities and Exchange Board of India (Sebi) has proposed that stock brokers must settle the balance funds/securities lying in the trading accounts of clients on the last day of every month.Brokers... Government planning to include the concept of class action suit in new Companies bill With lessons from the multi-crore rupee Satyam fraud case, the government is planning to include the concept of class action suit in new Companies bill, likely to be introduced in the current session of Parliament, to help investors claim damages... Lami Nagar road in East Delhi renamed as Chartered Accountant's Lane Mukherjee Nagar in north Delhi is home to a large number of civil service aspirants. Katwaria Sarai is preferred by students trying to crack the engineering and medical entrance exams. And chartered accountants? Well they seem to prefer Laxmi Nagar... Cheers! Mvat rate on wine in Maharashtra reduced to 4% Maharashtra government has given into the demand from various quarters including farmers and slashed the VAT back to 4% from the recent increase to 25% while the imported wines will attract the duty of 20% instead of 25%. The decision was taken at a... I-T department started scrutinising returns of charitable trusts In a move that could lead to some charitable trusts losing their registration, the income-tax (I-T) department has started scrutinizing the returns they had filed earlier, two officials said. This follows a government directive last year to these... ICAI asked government to mandate all companies to file their financial statements in XBRL format Domestic companies may soon have to file financial statements in a computerised format to enable easy flow of information between regulators and facilitate comprehensive financial data analysis. In a letter to the ministry of corporate affairs, the... Additional Information/AIR transaction details need to be disclosed in ITR The income tax return filing process requires that a lot of information be provided to the tax authorities. Most people gear up by ensuring they have collected all the details necessary for ensuring the correct income is shown and the right.... RBI expcted to keep key policy rates unchanged in the monetary policy review The Reserve Bank of India might change its bias towards softening interest rates into a more cautious outlook but is expected to keep key policy rates unchanged in the monetary policy review on Tuesday. At the same time, banking sources close to the... FM's reply to the debate on Finance (No.2) Bill,2009 in lok Sabha on 27th July 2009 Madam Speaker, at the outset, I would like to thank all the honourable Members who have participated in the discussion on the Finance (No.2) Bill, 2009. I would also like to thank all other stakeholders who have participated in the debate outside... IRDA put cap on charges to be levied on ULIP Circular No: 20/IRDA/Actl/ULIP/09-10 Sub: Unit linked products – Cap on charges The Insurance Industry has introduced ULIPs which have found favour with insurance customers in India. These products prescribe certain charges which are deducted... Circular on Issue of Indian Depository Receipts (IDRs) A.P. (DIR Series) Circular No. 05, dated 22-7-2009 Attention of Authorised Dealer Category-I (AD Category-I) banks is invited to Companies (Issue of Indian Depository Receipts) Rules, 2004 (IDR Rules) notified by the Ministry of Corporate Affairs... With Regards,  CA Sandeep Kanoi  Website: http://www.taxguru.in/  Get LEGAL & FINANCIAL UPDATES FROM TAX GURU delivered by emai

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