Processing of return not necessary where scrutiny notice issued

Dividend Distribution Tax and common man Posted: 16 Mar 2012 09:15 PM PDT Though the proposed amendment to Section 115-O of the Act providing that in case any company receives, during the year, any dividend from any subsidiary and such subsidiary has paid DDT as payable on such dividend, then, dividend distributed by the... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Related person for the purpose of making an application before Settlement Commission Posted: 16 Mar 2012 09:00 PM PDT It is accordingly proposed to amend the provisions of section 245C of the Income-tax Act so as to provide that a person shall be deemed to have a substantial interest in a business or profession if such person is a beneficial owner of not less than... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Fee for filing applications before Authority for Advance Rulings (AAR) raised to Rs. 10,000 Posted: 16 Mar 2012 08:58 PM PDT Under section 245Q of the Income-tax Act, the prescribed fee for filing an application before the Authority for Advance Rulings (AAR) is Rs.2500. This fee was prescribed in 1993, when the provisions for Advance Rulings were first introduced and... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Not necessary to issue S.132 authorisation or make a requisition u/s. 132A separately in the name of each person in search cases Posted: 16 Mar 2012 08:55 PM PDT Under the existing provisions of section 132 and section 132A, an authorisation can be issued or a requisition can be made, as the case may be, where the Director General or the Director in consequence of information in his possession has reason to... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Sum received from life insurance policy exempt if premium for any of the years during policy tenure not exceeded 10% of sum assured Posted: 16 Mar 2012 08:47 PM PDT It is proposed to reduce the threshold of premium payable to 10% of the actual capital sum assured from 20% of the actual capital sum assured. Accordingly, it is proposed to amend section 10(10D) so as to provide that the exemption for insurance... [[ This is a content summary only. Visit www.taxguru.in for full article.]] S. 234D applies to proceeding completed on or after 1st June,2003 Posted: 16 Mar 2012 08:39 PM PDT In a recent decision of the Court, it has been held that the provisions of section 234D inserted with effect from 1.6.2003 would be applicable from the assessment year 2004-05 only and accordingly no interest could be charged for earlier assessment... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Govt to notify class of search cases where compulsory reopening of past six years not required Posted: 16 Mar 2012 08:35 PM PDT It is proposed that the provisions of section 153A and 153C may be amended so as to empower the Central Government to notify cases or class of cases in which the Assessing Officer shall not issue notice for initiation of proceedings for preceding 6... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Processing of return not necessary where scrutiny notice issued Posted: 16 Mar 2012 08:31 PM PDT Under the existing provisions, every return of income is to be processed under sub-section (1) of section 143 and refund, if any, due is to be issued to the taxpayer. Some returns of income are also selected for scrutiny which may lead to raising a... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Sum or property received by HUF from members not taxable Posted: 16 Mar 2012 08:29 PM PDT Under the existing provisions of clause (vii) of sub-section (2) of section 56 any sum or property received by an individual or HUF for inadequate consideration or without consideration is deemed as income and is taxed under the head "Income from... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Fair market value shall be deemed full value of consideration if actual consideration not attributable or determinable Posted: 16 Mar 2012 08:23 PM PDT Where in the case of a transfer, consideration for the transfer of a capital asset(s) is not attributable or determinable then for purpose of computing income chargeable to tax as gains, the fair market value of the asset shall be taken to be the... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Capital gain on amalgamation – No need for issue of share by amalgamated company to amalgamating subsidiary company Posted: 16 Mar 2012 08:19 PM PDT In a case where a subsidiary company amalgamates into the holding company, it is not possible to satisfy one of the conditions at (a) above, i.e. that the amalgamated company (the holding company) issues shares to the shareholders of the... [[ This is a content summary only. Visit www.taxguru.in for full article.]] No requirement of issue of shares where resulting company itself is a shareholder of demerged company Posted: 16 Mar 2012 08:01 PM PDT In case of a demerger, there is a requirement under section 2(19AA)(iv) that the resulting company has to issue its shares to the shareholders of the demerged company on a proportionate basis. However, it is not possible to satisfy this condition... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Rate of tax for short term capital gain under section 111A – Correction in proviso to section 111A Posted: 16 Mar 2012 07:56 PM PDT Under the provisions of section 111A tax on short-term capital gains, in the case of equity shares in a company or units of an equity oriented fund on which Securities Transaction Tax (STT) has been paid, is levied at the rate of 15%. This rate was... [[ This is a content summary only. Visit www.taxguru.in for full article.]] AO can refer valuation officer if in his opinion value taken on 1.4.1981 is higher than fair market value Posted: 16 Mar 2012 07:52 PM PDT It is proposed to amend the provisions of section 55A of the Income-tax Act to enable the Assessing Officer to make a reference to the Valuation Officer where in his opinion the value declared by the assessee is at variance from the fair market... [[ This is a content summary only. Visit www.taxguru.in for full article.]] HUF eligible to S.54B benefit on Capital gain from sale of agricultural land Posted: 16 Mar 2012 07:47 PM PDT Capital gains on transfer of land which, in the two years preceding the year in which it has been sold, has been used for agricultural purposes by assessee or his parent, is exempt if the whole of capital gains has been reinvested in the purchase of... [[ This is a content summary only. Visit www.taxguru.in for full article.]] No Capital Gain on Coversion of sole proprietary concern or firm into Company Posted: 16 Mar 2012 07:39 PM PDT Where transfer of an asset from one person to another is not regarded as a transfer under section 47, then, for the purpose of computation of capital gains, the cost of the asset in the hands of the successor under section 49 is taken as that of the... [[ This is a content summary only. Visit www.taxguru.in for full article.]] S.2 Definition of Commissioner to include Director of Income-tax Posted: 16 Mar 2012 07:36 PM PDT Section 116 of the Income-tax Act lists various Income Tax Authorities. At clause (c) of this section, Directors of Income-tax or Commissioner of Income-tax or Commissioners of Income-tax (Appeals) have been listed as one Income Tax Authority. Under... [[ This is a content summary only. Visit www.taxguru.in for full article.]] RBI exempt from Wealth Tax Posted: 16 Mar 2012 07:34 PM PDT In order to provide that the RBI is not liable to pay wealth-tax, it is proposed to amend section 45 of the Act to provide that wealth-tax shall not be levied on the net wealth of RBI. This amendment will take effect retrospectively from 1st April,... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Assessee liable to pay advance tax on income without deduction or collection of tax Posted: 16 Mar 2012 07:29 PM PDT In order to make an assessee liable for payment of advance tax in respect of income which has been received or paid without deduction or collection of tax, it is proposed to amend the aforesaid section to provide that where a person has received any... [[ This is a content summary only. Visit www.taxguru.in for full article.]] S.115JB P/L a/c prepared under regulatory Acts shall be basis for computing book profit for insurance,banking,electricity company Posted: 16 Mar 2012 07:26 PM PDT As per section 115JB, every company is required to prepare its accounts as per Schedule VI of the Companies Act, 1956. However, as per the provisions of the Companies Act, 1956, certain companies, e.g. insurance, banking or electricity company, are... [[ This is a content summary only. Visit www.taxguru.in for full article.]] MAT Payble on Gain from disposal of revalued asset even if Gain not credited to P/L a/c Posted: 16 Mar 2012 07:22 PM PDT It is, proposed to amend section 115JB to provide that the book profit for the purpose of section 115JB shall be increased by the amount standing in the revaluation reserve relating to the revalued asset which has been retired or disposed, if the... [[ This is a content summary only. Visit www.taxguru.in for full article.]]