RECENT UPDATES IN DIRECT & INDIRECT TAXES AND IN OTHER AREAS OF PROFESSIONAL INTEREST

INCOME TAX

CIT Vs Vikas International 

Income Tax - Sections 28(iiib), 80HHC - export - gem stones - polished diamonds - Whether premium on the licences purchased by assessee from outside parties for sale or import, would be liable to be treated as cash assistance taxable u/s. 28(iiib) as against its export eligible to deduction us. 80HHC - Whether the said assistance would be taxable as income from other sources - Whether deduction u/s 80HHC could be claimed on export of cut and polished diamonds and gem stones. - Revenue's appeal dismissed : GUJARAT HIGH COURT

Important CBDT Circular On Depreciation/ Amortisation Of Intangible Assets

The CBDT has issued Circular No. 09/2014 dated 23.04.2014 in which it has dealt with the important issue of treatment of expenditure incurred for development of roads &highways in Build-Own-Transfer (BOT) agreements.

HOW TO OPEN DOCX, XLSX, PPTX IN MS OFFICE 2003

For all those members who have MS Office 2003 or older versions: 

Please follow below mentioned steps to make your current version (e.g. MS Office 2003) to be able to open all Office 2007 as well as 2010 versions with minor formatting and visual inabilities, (follow the Figures in the end for better understanding): 

Finance Ministry admits unauthorised access of Income Tax E-Filing Account

In a reply to RTI Filed by PRI Finance Ministry has admitted that there have been instances when the authentication details of certain class of e-filers have been obtained by persons from sources other than the e-filing website and then the passwords were reset and the e-filing account accessed.

Get Your Insurance Policy in Demat form – Open e-Insurance Account

You have been enjoying the benefits ofDemat account and would have experienced the ease and convenience that Demat form of holding Securities have brought to dealings in Securities Market. Now it’s time to hold Insurance Policies in electronic form and experience the same ease and convenience.

Financial statements, Audit / Board’s report for FY 13-14 to be governed by Companies Act 1956

General Circular 08/2014,  Dated 04.04.2014

Subject: Commencement of provisions of the Companies Act, 2013 with regard to maintenance of books of accounts and preparations/adoption/filing of financial statements, auditors report, Board’s report and attachments to such statements and reports— Applicability with regard to relevantfinancial year.

WHO REQUIRE WHICH ITR. - COMPULSORY E FILLING WITH OR WITHOUT DIGITAL SIGN

Table showing Income Tax form number and by whom it can be filled

Form Person	Description
Sahaj (ITR-1) Individual	Income from salary/pension:    or Income from one house property(excluding where loss brought forward from previous year): or Income from other sources( excluding winnings from lottery and income from races horses) and where no loss from income from other source Note:Further in a case where income of another person like spouse,minor child,etc.is to be clubbed with the assessee this return form can be used only if the income being clubbed falls in to above income categories only. Following person can not file ITR-1 ·         Person have claimed relief under section 90, 90A or 91 of foreign tax paid. ·           ·         Any resident having any asset (including financial interest in any entity) located outside India or a signing authority in any account located outside India. ·         Claimed exempted income more than 5000/-
ITR-2  Individual / HUF	Individual who can not file Sahaj above and where the total income does not include any income chargeable to income-tax under the head “Profits or gains of business or profession”,
ITR-3 Individual / HUF	partner in a firm and income chargeable to income-tax under the head “Profits or gains of business or profession” does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm
ITR-4S Individual / HUF	deriving business income and such income is computed in accordance with special provisions referred to in section 44AD and section 44AE of the Act for computation of business income Following person can not file ITR-4S ·         Person have claimed relief under section 90, 90A or 91 of foreign tax paid. ·         Any resident having any asset (including financial interest in any entity) located outside India or not a signing authority in any account located outside India. ·         Claimed exempted income more than 5000/-
ITR-4 Individual / HUF	Not covered in sr number 1 to 4 Above and deriving income from a  business or profession
ITR-5 Partnership Firms (& others)	Not being an individual or a Hindu undivided family or a company or a person to which Sr no 8 applies.Applicable for All source of Incomes
ITR-6 Company	Not covered in 8 below.All Income heads
ITR-7 person including a company whether or not registered under section 25 of the Companies Act, 1956	required to file a return under sub-section (4A) or sub-section (4B) or sub-section (4C) or sub-section (4D) of section 139

Compulsory e filing of Income Tax return:

1.    Individual & HUF:

(i)            If income exceeding 5 Lakh; or

(ii)          if deduction under section 90, 90A,91 claimed in return; or

(iii)         resident and has

(a) assets (including financial interest in any entity) located outside India; or

(b) signing authority in any account located outside India

Or

(iv)         assessee is required to furnish Electronically a report of audit specified under sub-clause (iv), (v), (vi) or (via) of clause (23C) of section 10, section 10A, clause (b) of sub-section (1) of section 12A, section 44AB, section 80-IA, section 80-IB, section 80-IC, section 80-ID, section 80JJAA, section 80LA, section 92E or section 115JB or to give a notice under clause (a) of sub-section (2) of section 11 of the Act

2.    Firm

3.    Company

4.    person who required to file a return under sub-section (4A) or sub-section (4B) or sub-section (4C) or sub-section (4D) of section 139

Compulsory e filing of Income Tax return with Digital Signature:

1.              To whom provisions of section 44AB (Audit) are applicable

2.              Company

3.              Political party require to file ITR-7

Partners Not Liable to Tax on exempted income of Firm :CBDT clarification

SECTION 10(2A) OF THE INCOME-TAX ACT, 1961 - FIRM - SHARE OF PROFITS TO PARTNER OF FIRM - CLARIFICATION ON INTERPRETATION OF PROVISIONS OF SECTION 10(2A) IN CASES WHERE INCOME OF FIRM IS EXEMPT

CIRCULAR NO. 8/2014 [F.NO.173/99/2013-ITA-I], DATED 31-3-2014

Income tax - Whether, after 18 years of the Search conducted, documents obtained under RTI Act can be relied upon for establishing that no notice u/s 143(2) was issued - YES: HC

Income tax - Whether, after 18 years of the Search conducted, documents obtained under RTI Act can be relied upon for establishing that no notice u/s 143(2) was issued - YES: HC 

By TIOL News Service

ERNAKULAM, APR 04, 2014: THE issue before the Bench is - Whether document obtained under Right to Information Act for establishing the non issuance of notice u/s 143(2) can be accepted as an evidence, although there has been a lapse of 18 years since the search was first conducted. And the answer favours the assessee.

Concealment penalty upheld as assessee had given false info about date and cost of acquisition of capital asset

IT : Where assessee gave incorrect information about date of acquisition and cost of acquisition of a property sold during relevant year, it was sufficient to raise an inference that assessee intended to evade tax liability on capital gain and, therefore, impugned penalty order passed by Tribunal under section 271(1)(c) was to be upheld