Due date of furnishing audit report in case of international transactions extended to 30th November

Due date of furnishing audit report in case of international transactions extended to 30th November Posted: 16 Mar 2012 07:15 PM PDT As per the existing provisions of the Income-tax Act, the report of audit under section 44AB is required to be furnished by 30th September of the assessment year. Section 139 was amended vide Finance Act 2011 to extend the due date of furnishing of... [[ This is a content summary only. Visit www.taxguru.in for full article.]] No Exemption to charitable organization in case commercial receipts exceed the specified threshold Posted: 16 Mar 2012 07:02 PM PDT In case where the activity of any trust or institution is of the nature of advancement of any other object of general public utility, and it involves carrying on of any activity in the nature of trade, commerce or business; but the aggregate value... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Extension of time for completion of assessments and reassessments Posted: 16 Mar 2012 06:41 PM PDT The existing provisions of section 153 and 153B, inter alia, provides the time limit for completion of assessment and reassessment of income by the Assessing Officer. Time limits have been provided for completion of assessment or... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Vodafone Effect – All demands on transfer of share of a company registered or incorporated outside India valid irrespective of any judgment Posted: 16 Mar 2012 06:35 PM PDT Validation clause: It is proposed to provide for validation of demands raised under the Income-tax Act in certain cases in respect of income accruing or arising, through or from transfer of a capital asset situate in India, in consequence of the... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Extention in time limit for issue of notice to person who is treated as agent of a non-resident Posted: 16 Mar 2012 06:31 PM PDT Budget 2012- Amendments are proposed in section 149, to extend time limit for issue of notice in case of a person who is treated as agent of a non-resident, the time limit presently prescribed of two years be extended to six years. It is also... [[ This is a content summary only. Visit www.taxguru.in for full article.]] S. 1945 CBDT may specify taxability of Foreign Payment, Amount Taxable and Tax Deductible Posted: 16 Mar 2012 06:29 PM PDT It is proposed to amend section 195 to provide that the Board may, by notification in the Official Gazette, specify a class of persons or cases, where the person responsible for paying to a non-resident, not being a company, or to a foreign company,... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Retrospective amendment in S.9(1)(vi) to clarify that consideration for use or right to use of computer software is royalty Posted: 16 Mar 2012 06:24 PM PDT (i) To amend section 9(1)(vi) to clarify that the consideration for use or right to use of computer software is royalty by clarifying that transfer of all or any rights in respect of any right, property or information as mentioned in Explanation... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Govt amends IT Act w.e.f. 01.04.1962 to bring deals like Vodafone Under Tax Net Posted: 16 Mar 2012 06:20 PM PDT It is, proposed to amend the Income Tax Act in the following manner:- (i) Amend section 9(1)(i) to clarify that the expression 'through' shall mean and include and shall be deemed to have always meant and included by means of, in consequence of... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Budget 2012 introduces General Anti Avoidance Rule (GAAR) Posted: 16 Mar 2012 01:09 PM PDT GENERAL ANTI-AVOIDANCE RULE (GAAR) The question of substance over form has consistently arisen in the implementation of taxation laws. In the Indian context, judicial decisions have varied. While some courts in certain circumstances had held that... [[ This is a content summary only. Visit www.taxguru.in for full article.]] "Person responsible for paying" in case of payment by Central Government or Government of a State Posted: 16 Mar 2012 12:59 PM PDT Under the existing provisions of section 204 of the Income-tax Act, a "person responsible for paying" has been defined to include employer, company or its principal officer or the payer. There is a lack of clarity in the case of payment made by... [[ This is a content summary only. Visit www.taxguru.in for full article.]] S. 201 Extension of time for passing an order in certain cases to six years Posted: 16 Mar 2012 12:57 PM PDT Under the existing provisions section 201 of the Income-tax Act, a person can be deemed to be an assessee in default, by an order, in respect of non-deduction/short deduction of tax. Such order can be passed within a period of four years from end of... [[ This is a content summary only. Visit www.taxguru.in for full article.]] increase in Threshold for TDS on compensation or consideration for compulsory acquisition Posted: 16 Mar 2012 12:55 PM PDT Under the existing provisions of the section 194LA of the Income-tax Act, a person responsible for paying any compensation or consideration for compulsory acquisition of immovable property (other than agricultural land) is required to deduct tax at... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Intimation after processing of TDS statement rectifiable and appealable Posted: 16 Mar 2012 12:53 PM PDT In order to reduce the compliance burden of the deductor and also to rationalise the provisions of processing of TDS statement, it is proposed to provide that the intimation generated after processing of TDS statement shall be i) subject to... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Heavy Penalty for delay & incorrect information in TDS/TCS Statement Posted: 16 Mar 2012 12:49 PM PDT In order to provide effective deterrence against delay in furnishing of TDS statement, it is proposed – (i) to provide for levy of fee of Rs.200 per day for late furnishing of TDS statement from the due date of furnishing of TDS statement to the... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Disallowance of business expenditure on account of non-deduction of tax on payment to resident payee Posted: 16 Mar 2012 12:41 PM PDT In order to rationalise the provisions of disallowance on account of non-deduction of tax from the payments made to a resident payee, it is proposed to amend section 40(a)(ia) to provide that where an assessee makes payment of the nature specified... [[ This is a content summary only. Visit www.taxguru.in for full article.]] S. 201 Deemed date of payment of tax by resident payee is date of furnishing of return of income Posted: 16 Mar 2012 12:35 PM PDT it proposed to amend section 201 to provide that the payer who fails to deduct the whole or any part of the tax on the payment made to a resident payee shall not be deemed to be an assessee in default in respect of such tax if such resident payee –... [[ This is a content summary only. Visit www.taxguru.in for full article.]] S. 80TTA Deduction for interest on deposits in savings accounts up to 10K Rs. Posted: 16 Mar 2012 12:25 PM PDT Under the proposed new section 80TTA of the Income-tax Act, a deduction up to an extent of ten thousand rupees in aggregate shall be allowed to an assessee, being an individual or a Hindu undivided family, in respect of any income by way of interest... [[ This is a content summary only. Visit www.taxguru.in for full article.]] S. 80D Deduction for expenditure on preventive health check-up not exceeding Rs. Five Thousand Posted: 16 Mar 2012 12:19 PM PDT It is proposed to amend this section 80D to include any payment made by an assessee on account of preventive health check-up of self, spouse, dependant children or parents(s) during the previous year as eligible for deduction within the overall... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Senior Citizen Age Reduced to 60 years for S.80D, 80DDB, 197A & for Form 15H Posted: 16 Mar 2012 12:09 PM PDT The Finance Act, 2011 amended the effective age of a senior citizen being an Indian resident from sixty-five years of age to sixty years for the purposes of application of various tax slabs and rates of tax under the Income Tax Act, 1961 for income... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Extension of sunset date for tax holiday for power sector to A.Y. 2013-14 Posted: 16 Mar 2012 12:05 PM PDT Under the existing provisions of section 80-IA(4)(iv) of the Income-tax Act, a deduction from profits and gains is allowed to an undertaking which,— (a) is set up for the generation and distribution of power if it begins to generate power at any... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Deduction for capital expenditure on specified business extended to three new businesses Posted: 16 Mar 2012 12:02 PM PDT It is proposed to include three new businesses as specified business for the purposes of the investment-linked deduction under section 35AD, namely:-(a) setting up and operating an inland container depot or a container freight station notified or... [[ This is a content summary only. Visit www.taxguru.in for full article.]] S.35AD Deduction allowable if Assesee transfers the operation of hotel to another person Posted: 16 Mar 2012 12:00 PM PDT it is proposed to provide a suitable clarification so that a hotel owner continues to be eligible for the investment- linked deduction under section 35AD if he, while continuing to own the hotel, transfers the operation of such hotel to another... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Weighted deduction for expenditure for skill development Posted: 16 Mar 2012 11:50 AM PDT In order to incentivise companies to invest on skill development projects in the manufacturing sector, it is proposed to insert a new provision in the Income-tax Act to provide weighted deduction of 150% of expenses (not being expenditure in the... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Weighted deduction for expenditure incurred on agricultural extension project Posted: 16 Mar 2012 11:48 AM PDT Agricultural extension services play a critical role in enhancing the productivity in the agricultural sector. In order to incentivise the business entities to provide better and effective agriculture extensive services, it is proposed to insert a... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Weighted deduction for scientific research and development available till A.Y. 2017-18 Posted: 16 Mar 2012 11:46 AM PDT Under the existing provisions of Section 35(2AB) of the Income-tax Act, a company is allowed weighted deduction at the rate of 200% of expenditure (not being in the nature of cost of any land or building) incurred on approved in-house research and... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Power sector allowed initial depreciation at 20% of actual cost of new machinery Posted: 16 Mar 2012 11:44 AM PDT In order to encourage new investment by the assessees engaged in the business of generation or generation and distribution of power, it is proposed to amend this section to provide that an assessee engaged in the business of generation or... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Exemption to income of foreign company received in India in Indian currency from crude oil sale Posted: 16 Mar 2012 11:41 AM PDT It is proposed to insert a new clause (48) in section 10 of the Income-tax Act to provide for exemption in respect of any income of a foreign company received in India in Indian currency on account of sale of crude oil to any person in India... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Budget 2012 – Important changes in respect of Custom Duty Posted: 16 Mar 2012 11:16 AM PDT There is no change in the peak rate of basic customs duty of 10% applicable to non­agricultural goods with few exceptions which are separately discussed. The rates below the peak are also being retained. Notification no. 21/2002-Customs dated... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Budget 2012 – Important changes in respect of Central excise duty Posted: 16 Mar 2012 11:04 AM PDT The standard rate of Central Excise duty for non-petroleum products has been enhanced from 10% to 12% ad valorem. The merit rate of excise duty for non-petroleum goods that hitherto attracted 5% has been increased to 6%. Similarly, the rate of duty... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Date of Applicability of Amendments in Custom and Central Excise Duty Posted: 16 Mar 2012 10:48 AM PDT The Finance Minister has introduced the Finance Bill, 2012 in Lok Sabha today, i.e., 16th March, 2012. Changes in Customs and Central excise law and rates of duty have been proposed through the Finance Bill, 2012 [clauses 114 to 126 for customs;... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Budget 2012- Chapterwise Explanatory Notes on Excise Duty Posted: 16 Mar 2012 10:35 AM PDT General excise duty rate (CENVAT rate) is being enhanced from 10% to 12%. Consequently, the merit rate of 5% is being enhanced to 6% while 1 % excise duty applicable on 130 items is also being enhanced to 2%with a few exceptions. The statutory or... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Budget 2012- Chapterwise Explanatory Notes (Customs) Posted: 16 Mar 2012 10:29 AM PDT Chapter 1 to 4 -No change. Chapter 5 -5.1 Basic customs duty on artemia classified under tariff item 0511 99 11 is being reduced from 30% to 5%. [S.No. 15 of notification No. 12/2012-Customs dated 17.03.2012 refers] [[ This is a content summary only. Visit www.taxguru.in for full article.]] Deduction for investment in Equity Shares under Rajiv Gandhi Equity Savings Scheme Posted: 16 Mar 2012 10:12 AM PDT The Union Finance Minister Shri Pranab Mukherjee in his Budget speech in Lok Sabha today said that the scheme allows for income tax deduction of 50 per cent to new retail investors, who invest up to Rs 50,000 directly in equities and whose annual... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Service Tax Exempted on Copyrights Relating to Recording of Cinematographic Films Posted: 16 Mar 2012 10:09 AM PDT There is something to cheer about for the film industry in the Union Budget 2012-13. While presenting the Union Budget 2012-13 in Lok Sabha today, the Finance Minister Shri Pranab Mukherjee said that the year 2012 marked the beginning of the... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Advance Pricing Agreement Introduced to bring down Tax litigation Posted: 16 Mar 2012 10:03 AM PDT Advance Pricing Agreement is an agreement between a taxpayer and a taxing authority on an appropriate transfer pricing methodology for a set of transactions over a fixed period of time in future. The APAs offer better assurance on transfer pricing... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Govt to introduce white paper on means to Curb Black Money Posted: 16 Mar 2012 09:54 AM PDT Curbing the Black Money A Priority Concern for the Government; Number of Proactive Steps To Tackle the Malaise Announced; White Paper to be Laid in Current Session Itself: FM [[ This is a content summary only. Visit www.taxguru.in for full article.]] Service Tax Exempted for Items on Negative List (Check List) Posted: 16 Mar 2012 09:52 AM PDT Health Care, Services Provided by Charities, Religious Persons, Independent Journalists, Sportspersons Among Others also Exempted from Service Tax. In his Budget Speech, the Union Finance Minister ShriPranab Mukherjee said that the Government has... [[ This is a content summary only. Visit www.taxguru.in for full article.]] One Page Common Return for Central Excise and Service Tax Proposed Posted: 16 Mar 2012 09:50 AM PDT As a measure of harmonization between Central Excise and Service Tax, the Government has made a number of alignments. This was announced by the Finance Minister Shri Pranab Mukherjee while presenting the Union Budget 2012-13 in Lok Sabha today. [[ This is a content summary only. Visit www.taxguru.in for full article.]] Service Tax Rate Raised from 10 Per Cent to 12 Per Cent Posted: 16 Mar 2012 09:48 AM PDT The Service tax rate has been raised from 10 per cent to 12 per cent. Presenting the Union Budget 2012-13 in Lok Sabha today, the Union Finance Minister ShriPranab Mukherjee said that to maintain a healthy fiscal situation, the Government has... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Measures Introduced to Allow Corporates to Access Lower Cost Funds Posted: 16 Mar 2012 09:40 AM PDT Measures Introduced to Allow Corporates to Access Lower Cost Funds; Promote Higher Level of Investments in Several Sectors. Rate of Withholding Tax on Interest Payments on ECBs Proposed to be Reduced to 5 Per Cent From 20 Per Cent. Restriction on... [[ This is a content summary only. Visit www.taxguru.in for full article.]]