Indian Finance Bill 2020 was tabled in Lok Sabha on March 23, 2020 along with certain Amendments to it and the bill was passed by the House on the same day. A discussion on these amendments have been captured in the note herewith. Inter-alia, Finance Act 2016 is also amended wherein, Equalization Levy at 2% on E-commerce operator for supply of goods and services is also included.
In the Indian criminal trial process, legal proceedings unfold within the framework of the criminal justice system, ensuring fairness and due process. The courtroom proceedings, guided by trial procedures, witness the prosecution presenting the case against the accused, countered by the defense's strategic advocacy. Evidence is meticulously presented, witnesses testify, and cross-examinations challenge testimonies. Jury selection, where applicable, ensures an impartial panel. Opening statements set the stage, while closing arguments encapsulate the case's essence. Throughout, the presiding judge ensures adherence to legal standards, making rulings pivotal to the trial's integrity and justice delivery. This overview is provided by Vishal Saini, Advocate.
You can reach me at https://vishalsainiadv.com
This presentation intents to explain the concepts of Set off and Carry Forward of losses under income tax law to students. For detail understanding of the concept viewers are invited to our YouTube Channel.
1. The document discusses various types of income tax returns that must be filed in India, including voluntary returns, belated returns, revised returns, and defective returns.
2. It provides details on which types of taxpayers must file returns based on their income level and composition, such as companies/firms, charitable trusts, and political parties.
3. After a return is filed, the taxpayer may receive a summary assessment, regular/scrutiny assessment, or be asked to rectify defects in the return.
The document provides information on preparing final accounts, including a profit and loss account and balance sheet. It explains that the profit and loss account is used to determine the net profit or loss for the period by adjusting the gross profit for indirect expenses and other incomes. The balance sheet shows the assets, liabilities, and capital as of a certain date. It discusses various adjustments that need to be made like closing stock, outstanding expenses, prepaid expenses, and depreciation, and how they impact both accounts.
This document provides a summary of provisions related to tax collection and recovery in India. It discusses key sections of the Income Tax Act that deal with collection and recovery (sections 220-232). It outlines the legislative history of changes to various sections over time. It then discusses the concepts of an "assessee in default" and levy of interest on defaulted payments. Specific topics covered include when tax is payable, deeming a taxpayer in default, computation of interest on defaulted payments, and how interest is adjusted in cases where the tax demand amount changes over time such as due to appeals.
Agricultural income - Relevant Income Tax IssuesAmitoz Singh
This presentation helps in understanding the meaning of Agriculture Income, its taxability, various issues pertaining to the understanding of agriculture and what will qualify as agriculture income. When the said income will be exempt ?
In the Indian criminal trial process, legal proceedings unfold within the framework of the criminal justice system, ensuring fairness and due process. The courtroom proceedings, guided by trial procedures, witness the prosecution presenting the case against the accused, countered by the defense's strategic advocacy. Evidence is meticulously presented, witnesses testify, and cross-examinations challenge testimonies. Jury selection, where applicable, ensures an impartial panel. Opening statements set the stage, while closing arguments encapsulate the case's essence. Throughout, the presiding judge ensures adherence to legal standards, making rulings pivotal to the trial's integrity and justice delivery. This overview is provided by Vishal Saini, Advocate.
You can reach me at https://vishalsainiadv.com
This presentation intents to explain the concepts of Set off and Carry Forward of losses under income tax law to students. For detail understanding of the concept viewers are invited to our YouTube Channel.
1. The document discusses various types of income tax returns that must be filed in India, including voluntary returns, belated returns, revised returns, and defective returns.
2. It provides details on which types of taxpayers must file returns based on their income level and composition, such as companies/firms, charitable trusts, and political parties.
3. After a return is filed, the taxpayer may receive a summary assessment, regular/scrutiny assessment, or be asked to rectify defects in the return.
The document provides information on preparing final accounts, including a profit and loss account and balance sheet. It explains that the profit and loss account is used to determine the net profit or loss for the period by adjusting the gross profit for indirect expenses and other incomes. The balance sheet shows the assets, liabilities, and capital as of a certain date. It discusses various adjustments that need to be made like closing stock, outstanding expenses, prepaid expenses, and depreciation, and how they impact both accounts.
This document provides a summary of provisions related to tax collection and recovery in India. It discusses key sections of the Income Tax Act that deal with collection and recovery (sections 220-232). It outlines the legislative history of changes to various sections over time. It then discusses the concepts of an "assessee in default" and levy of interest on defaulted payments. Specific topics covered include when tax is payable, deeming a taxpayer in default, computation of interest on defaulted payments, and how interest is adjusted in cases where the tax demand amount changes over time such as due to appeals.
Agricultural income - Relevant Income Tax IssuesAmitoz Singh
This presentation helps in understanding the meaning of Agriculture Income, its taxability, various issues pertaining to the understanding of agriculture and what will qualify as agriculture income. When the said income will be exempt ?
Section 60 discusses clubbing of income when the ownership of an asset is not transferred but the income from the asset is transferred to another person. Section 61 discusses clubbing of income from revocable transfers of assets. Section 62 provides exceptions for transfers made via a trust or more than 6 years ago. Section 63 defines "transfer" and "revocable transfer". Sections 64(1) and 64(1A) discuss clubbing the income of a spouse, son's wife, or minor child in certain situations such as transfers of assets without adequate consideration.
Income Tax Assessment Procedures - Section 143, 144 and moreSahil Goel
The document discusses various aspects of the income tax assessment procedure in India. It defines assessment as the procedure for determining a taxpayer's tax liability as per the taxation laws for a particular assessment year. There are different types of assessments - self-assessment, regular assessment, and best judgment assessment. It also discusses provisions around filing original and revised tax returns, notices issued by the assessing officer, and reopening of past assessments if income is found to have escaped assessment.
This document provides an overview of the statutory requirements for annual returns and audits under the Goods and Services Tax (GST) in India. It discusses key provisions regarding the requirement for audits based on annual turnover thresholds, the types of annual returns to be filed by different registered taxpayers, and the reconciliation statement that must be submitted along with audited annual accounts. The reconciliation statement aims to reconcile the turnover and tax amounts declared in the annual return with the audited financial statements. The document also clarifies differences in the turnover thresholds referenced in the GST law versus rules.
1. The document discusses the key concepts of supply, time of supply, and valuation under the GST laws of India. It defines various types of supplies, specifies activities that constitute supply, and outlines the schedules for determining the nature of supply transactions.
2. Regarding time of supply, it provides rules for goods and services, composite/mixed supplies, supply of vouchers, and the rates applicable before and after a change in tax rates.
3. On valuation, it states that the transaction value shall be the value of supply between unrelated parties, and includes certain additions while excluding specified discounts and abatements in determining value.
The document discusses the rules for setting off and carrying forward of business losses under the Income Tax Act. It explains that losses can be set off against profits of the same source (section 70) or different heads of income (section 71) subject to certain restrictions. Unabsorbed losses can be carried forward for a maximum of 8 years for business losses and 4 years for speculation business losses to be set off against future profits.
Income tax is a tax paid to the government on income. There are different types of taxes including direct taxes like income tax paid directly by taxpayers. Income tax is assessed based on an individual's gross total income, which is the aggregate income from five heads - salaries, house property, business/profession, capital gains, and other sources. Key concepts include taxable income, tax exemption limits, tax rates, residential status, tax deductions, and different types of income like casual income, capital gains income etc.
This document provides an overview of key GST concepts including levy and collection, composition levy, input tax credit, registration procedures, tax invoices, and other documentation.
The main topics covered are levy and collection of CGST and SGST, composition levy eligibility and conditions, input tax credit eligibility and components, registration procedures including application, amendment and cancellation, and requirements for tax invoices, credit/debit notes, receipt/refund vouchers, and payment vouchers.
Presentation on Residence and tax liability, ppt on Residence and tax liabilityLeena Gauraha
Presentation on Residence and tax liability, ppt on Residence and tax liability, Residence and tax liability, Different Residential status, types of Resident, Residential status: Sec. 6 (1), Basic Conditions to determine residential status, Additional conditions [Sec. 6(6)(a)] to determine residential status, Conditions to be satisfied to be a resident, Residential Status in a nutshell.
Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill...DVSResearchFoundatio
The document summarizes key amendments proposed in the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020 relating to direct tax provisions in India. Some key amendments include providing tax incentives to Category-III Alternative Investment Funds located in International Financial Services Centres, reducing the surcharge on dividend income for Foreign Portfolio Investors, clarifying provisions related to residential status, extending timelines related to the Vivad se Vishwas scheme for settling tax disputes, and introducing faceless assessment schemes for various tax proceedings. The Bill also proposes some other miscellaneous amendments related to exemptions, penalties, and powers of tax authorities.
The document summarizes changes made to tax deducted at source (TDS) provisions by the Finance Act of 2020. Several existing sections related to TDS were amended and new sections for TDS on various types of payments were introduced. Key changes include amendments to TDS for dividends, interest, technical services fees, and mutual fund income. New sections introduce TDS for cash withdrawals, business trust unit income, and e-commerce participant payments. The changes are effective from financial years 2020-21 onward.
The document summarizes key income tax implications in India for the financial year 2022-23 based on amendments made in the Finance Act 2022.
It outlines that income tax rates, health and education cess rates, and surcharge rates remain unchanged for FY2022-23. It introduces provisions for taxation of virtual digital assets at 30% and mandatory TDS of 1% on transfer of such assets. It also allows individuals to file an updated income tax return within 24 months of the assessment year on payment of additional tax. The document provides details of various deductions available under Chapter VI-A of the Income Tax Act.
Union budget 2015-16: Deciphering the key Direct and Indirect Tax ProposalsCA VISHAL TAYAL
The budget document discusses several proposed changes to India's direct tax laws:
1. Personal and corporate income tax rates remain unchanged but a new surcharge of 2-5% is imposed. Corporate tax will be reduced to 25% over 4 years. Several deductions have increased including for health insurance and pension contributions.
2. Regulations are changed to provide tax benefits to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (INVITs) to encourage investment.
3. Rules are clarified regarding taxation of indirect transfers of assets in India to reduce disputes. Several exemptions are added for amalgamations and demergers.
1) The Union Budget for 2010-2011 made several amendments to direct and indirect taxes in India.
2) Some key amendments included increasing the basic income tax exemption limit and reducing tax rates for individual taxpayers earning between Rs. 1.6 lakh to Rs. 8 lakh per year.
3) The budget also increased tax deductions for investments made in infrastructure bonds and health insurance premiums.
4) For corporate taxes, the surcharge on domestic companies was reduced from 10% to 7.5% and MAT rates were increased. Threshold limits for tax deducted at source were also revised upward.
5) Several amendments were made to provide tax incentives for research and development activities and for specified
TaxAlerts cover significant
tax news, developments and
changes in legislation that
affect Indian businesses. They
act as technical summaries . For more information,
please contact EY India.
TaxAlerts cover significant
tax news, developments and
changes in legislation that
affect Indian businesses. They
act as technical summaries . For more information,
please contact EY India.
In the Finance bill passed by Lok Sabha, the government has made certain significant changes predominantly with regard to the applicability of various provisions as were originally introduced in the Finance Bill. Our tax alert providing brief summary of the significant changes in relation to Income Tax Act, 1961
The budget document summarizes key changes for salaried individuals, taxation of long term capital gains (LTCG), business income, international taxation, and miscellaneous items. For salaried taxpayers, deduction limits for medical expenses and interest income were increased. LTCG will now be taxed at 10% for gains over Rs. 1 lakh. Business income rules were expanded and tax rates increased for large companies. International tax provisions now include a broader definition of permanent establishment and taxing digital businesses based on economic presence in India. Various deductions and exemptions were also introduced or modified.
The document summarizes key proposals in the Indian Budget 2013 relating to direct and indirect taxes. For direct taxes, it outlines changes such as increased surcharge rates for foreign companies, a new tax on commodities derivatives trading, increased royalty and technical fee rates, and incentives for manufacturing investments over $20 million. It also covers proposals relating to power sector incentives, dividend distributions, and taxation of alternative investment funds. For indirect taxes, it notes customs, excise, and service tax changes.
- Dividend income received by shareholders is now taxable in their hands at normal tax rates instead of being exempt as was the case earlier.
- Deduction of up to 20% of dividend income is allowed for interest expenses incurred to earn the dividend income. No other expenses are deductible.
- For companies receiving dividends, a deduction under section 80M is available if the dividend amount is distributed to shareholders one month before the income tax return filing date.
Highlights of Changes in Direct & Indirect Taxes in 2016-2017 budget
Direct Tax include Income tax,CHANGES IN INDIRECT TAXES - (CUSTOMS ACT, 1962 ,CENTRAL EXCISE ACT, 1944 ,AMENDMENTS IN SERVICE TAX )
Section 60 discusses clubbing of income when the ownership of an asset is not transferred but the income from the asset is transferred to another person. Section 61 discusses clubbing of income from revocable transfers of assets. Section 62 provides exceptions for transfers made via a trust or more than 6 years ago. Section 63 defines "transfer" and "revocable transfer". Sections 64(1) and 64(1A) discuss clubbing the income of a spouse, son's wife, or minor child in certain situations such as transfers of assets without adequate consideration.
Income Tax Assessment Procedures - Section 143, 144 and moreSahil Goel
The document discusses various aspects of the income tax assessment procedure in India. It defines assessment as the procedure for determining a taxpayer's tax liability as per the taxation laws for a particular assessment year. There are different types of assessments - self-assessment, regular assessment, and best judgment assessment. It also discusses provisions around filing original and revised tax returns, notices issued by the assessing officer, and reopening of past assessments if income is found to have escaped assessment.
This document provides an overview of the statutory requirements for annual returns and audits under the Goods and Services Tax (GST) in India. It discusses key provisions regarding the requirement for audits based on annual turnover thresholds, the types of annual returns to be filed by different registered taxpayers, and the reconciliation statement that must be submitted along with audited annual accounts. The reconciliation statement aims to reconcile the turnover and tax amounts declared in the annual return with the audited financial statements. The document also clarifies differences in the turnover thresholds referenced in the GST law versus rules.
1. The document discusses the key concepts of supply, time of supply, and valuation under the GST laws of India. It defines various types of supplies, specifies activities that constitute supply, and outlines the schedules for determining the nature of supply transactions.
2. Regarding time of supply, it provides rules for goods and services, composite/mixed supplies, supply of vouchers, and the rates applicable before and after a change in tax rates.
3. On valuation, it states that the transaction value shall be the value of supply between unrelated parties, and includes certain additions while excluding specified discounts and abatements in determining value.
The document discusses the rules for setting off and carrying forward of business losses under the Income Tax Act. It explains that losses can be set off against profits of the same source (section 70) or different heads of income (section 71) subject to certain restrictions. Unabsorbed losses can be carried forward for a maximum of 8 years for business losses and 4 years for speculation business losses to be set off against future profits.
Income tax is a tax paid to the government on income. There are different types of taxes including direct taxes like income tax paid directly by taxpayers. Income tax is assessed based on an individual's gross total income, which is the aggregate income from five heads - salaries, house property, business/profession, capital gains, and other sources. Key concepts include taxable income, tax exemption limits, tax rates, residential status, tax deductions, and different types of income like casual income, capital gains income etc.
This document provides an overview of key GST concepts including levy and collection, composition levy, input tax credit, registration procedures, tax invoices, and other documentation.
The main topics covered are levy and collection of CGST and SGST, composition levy eligibility and conditions, input tax credit eligibility and components, registration procedures including application, amendment and cancellation, and requirements for tax invoices, credit/debit notes, receipt/refund vouchers, and payment vouchers.
Presentation on Residence and tax liability, ppt on Residence and tax liabilityLeena Gauraha
Presentation on Residence and tax liability, ppt on Residence and tax liability, Residence and tax liability, Different Residential status, types of Resident, Residential status: Sec. 6 (1), Basic Conditions to determine residential status, Additional conditions [Sec. 6(6)(a)] to determine residential status, Conditions to be satisfied to be a resident, Residential Status in a nutshell.
Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill...DVSResearchFoundatio
The document summarizes key amendments proposed in the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020 relating to direct tax provisions in India. Some key amendments include providing tax incentives to Category-III Alternative Investment Funds located in International Financial Services Centres, reducing the surcharge on dividend income for Foreign Portfolio Investors, clarifying provisions related to residential status, extending timelines related to the Vivad se Vishwas scheme for settling tax disputes, and introducing faceless assessment schemes for various tax proceedings. The Bill also proposes some other miscellaneous amendments related to exemptions, penalties, and powers of tax authorities.
The document summarizes changes made to tax deducted at source (TDS) provisions by the Finance Act of 2020. Several existing sections related to TDS were amended and new sections for TDS on various types of payments were introduced. Key changes include amendments to TDS for dividends, interest, technical services fees, and mutual fund income. New sections introduce TDS for cash withdrawals, business trust unit income, and e-commerce participant payments. The changes are effective from financial years 2020-21 onward.
The document summarizes key income tax implications in India for the financial year 2022-23 based on amendments made in the Finance Act 2022.
It outlines that income tax rates, health and education cess rates, and surcharge rates remain unchanged for FY2022-23. It introduces provisions for taxation of virtual digital assets at 30% and mandatory TDS of 1% on transfer of such assets. It also allows individuals to file an updated income tax return within 24 months of the assessment year on payment of additional tax. The document provides details of various deductions available under Chapter VI-A of the Income Tax Act.
Union budget 2015-16: Deciphering the key Direct and Indirect Tax ProposalsCA VISHAL TAYAL
The budget document discusses several proposed changes to India's direct tax laws:
1. Personal and corporate income tax rates remain unchanged but a new surcharge of 2-5% is imposed. Corporate tax will be reduced to 25% over 4 years. Several deductions have increased including for health insurance and pension contributions.
2. Regulations are changed to provide tax benefits to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (INVITs) to encourage investment.
3. Rules are clarified regarding taxation of indirect transfers of assets in India to reduce disputes. Several exemptions are added for amalgamations and demergers.
1) The Union Budget for 2010-2011 made several amendments to direct and indirect taxes in India.
2) Some key amendments included increasing the basic income tax exemption limit and reducing tax rates for individual taxpayers earning between Rs. 1.6 lakh to Rs. 8 lakh per year.
3) The budget also increased tax deductions for investments made in infrastructure bonds and health insurance premiums.
4) For corporate taxes, the surcharge on domestic companies was reduced from 10% to 7.5% and MAT rates were increased. Threshold limits for tax deducted at source were also revised upward.
5) Several amendments were made to provide tax incentives for research and development activities and for specified
TaxAlerts cover significant
tax news, developments and
changes in legislation that
affect Indian businesses. They
act as technical summaries . For more information,
please contact EY India.
TaxAlerts cover significant
tax news, developments and
changes in legislation that
affect Indian businesses. They
act as technical summaries . For more information,
please contact EY India.
In the Finance bill passed by Lok Sabha, the government has made certain significant changes predominantly with regard to the applicability of various provisions as were originally introduced in the Finance Bill. Our tax alert providing brief summary of the significant changes in relation to Income Tax Act, 1961
The budget document summarizes key changes for salaried individuals, taxation of long term capital gains (LTCG), business income, international taxation, and miscellaneous items. For salaried taxpayers, deduction limits for medical expenses and interest income were increased. LTCG will now be taxed at 10% for gains over Rs. 1 lakh. Business income rules were expanded and tax rates increased for large companies. International tax provisions now include a broader definition of permanent establishment and taxing digital businesses based on economic presence in India. Various deductions and exemptions were also introduced or modified.
The document summarizes key proposals in the Indian Budget 2013 relating to direct and indirect taxes. For direct taxes, it outlines changes such as increased surcharge rates for foreign companies, a new tax on commodities derivatives trading, increased royalty and technical fee rates, and incentives for manufacturing investments over $20 million. It also covers proposals relating to power sector incentives, dividend distributions, and taxation of alternative investment funds. For indirect taxes, it notes customs, excise, and service tax changes.
- Dividend income received by shareholders is now taxable in their hands at normal tax rates instead of being exempt as was the case earlier.
- Deduction of up to 20% of dividend income is allowed for interest expenses incurred to earn the dividend income. No other expenses are deductible.
- For companies receiving dividends, a deduction under section 80M is available if the dividend amount is distributed to shareholders one month before the income tax return filing date.
Highlights of Changes in Direct & Indirect Taxes in 2016-2017 budget
Direct Tax include Income tax,CHANGES IN INDIRECT TAXES - (CUSTOMS ACT, 1962 ,CENTRAL EXCISE ACT, 1944 ,AMENDMENTS IN SERVICE TAX )
Compilation of CBDT Notifications & Circulars issued in July 2020ManishBhatnagar21
Below is the list of Notifications & Circulars issued by CBDT in the month of July 2020 and the same has been compiled so that you won't miss any Notifications & Circulars updates from Income Tax Department:
The document discusses key proposals in the Finance Bill 2009 related to direct taxation in India. Some key points include:
1) Abolishing Fringe Benefit Tax and Corporate Dividend Tax from April 2010. Corporate tax rates remain unchanged.
2) Personal income tax exemption limits are increased for senior citizens, women and others for Assessment Year 2010-2011.
3) TDS provisions are overhauled with changes to various tax deduction rates for payments like rent, contracts, interest etc.
4) Tax incentives are provided for sectors like infrastructure, affordable housing and renewable energy. Deductions for research and development are expanded.
The document summarizes key income tax proposals in India's Union Budget for the assessment year 2021-22. It outlines that income tax rates remain unchanged, with rates of 5%, 20%, and 30% applied to income slabs. It also introduces a new, optional tax regime with lower rates and removal of exemptions/deductions. Key benefits of the new regime include lower taxes but loss of deductions like HRA and standard deduction. The document also discusses changes to residential status rules and removal of dividend distribution tax.
The document summarizes key amendments made in the Finance Act 2011 relating to income tax slabs, deductions, exemptions, and tax rates. Some key points include:
- The income tax slabs for individual/HUF taxpayers were increased from Rs. 1,60,000 to Rs. 1,80,000 providing a tax benefit of Rs. 2060.
- The age limit for senior citizens for income tax purposes was reduced from 65 to 60 years and further classified into two categories based on age.
- Deductions under section 80C, 80CCC, and 80CCD were amended and the contribution made under section 80CCD was excluded from the overall deduction limit of Rs. 1,
Section 35AD provides a deduction for capital expenditure incurred by an assessee engaged in
specified business. This section has been amended to:
1) Extend the list of specified businesses to include certain infrastructure facilities.
2) Clarify that deduction is available for capital expenditure other than on land, goodwill, and financial
instrument.
3) Provide that deduction is available for previous year in which asset is put to use for specified
business, instead of year of acquisition.
Budget 2017: Clause by clause analysis of amendments to direct tax laws - V. ...D Murali ☆
Budget 2017: Clause by clause analysis of amendments to direct tax laws - V. K. Subramani - Article published in Business Advisor, dated February 10, 2017 - http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Taxmann's Highlights of the Finance Bill, 2021 – Income TaxTaxmann
The document summarizes key proposals in the Finance Bill 2021 related to direct taxes in India. Some key points include:
1. Exemption proposed for cash allowance received in lieu of leave travel concession during COVID-19, subject to conditions.
2. Threshold for tax audit increased to Rs. 10 crore from Rs. 5 crore if at least 95% transactions are through digital modes.
3. Time limits reduced for processing ITR, notice for scrutiny and reopening assessments.
4. Faceless scheme proposed for ITAT appeals and new Dispute Resolution Committee for small taxpayers.
5. Income-tax Settlement Commission to be discontinued and replaced by Interim Board of Settlement.
MSMEs and startups - Sandeep JhunjhunwalaTilak Agarwal
A webinar presentation on "Recent tax and regulatory considerations for MSMEs and Start-ups" with special emphasis on Govt's Atmanirbhar stimulus package" to the members of 10,000 Startups
Equalisation Levy - Newly introduced - scope and nuances finalTilak Agarwal
A webinar on Scope and Nuances of newly introduced Equalisation Levy was presented to the members of Bangalore branch of ICAI. This presentation summarizes some of the relevant considerations and case studies along with issues unresolved on new EQ Levy on e-commerce business. Also covers the Interplay between EQ Levy and TDS u/s 194-O
Detailed discussion on introduction of Equalisation Levy in India, relevant considerations, EQ Levy 2.0 (on NR E-commerce operator), some unresolved issues, interplay between EQ Levy 2.0 and TDS on e-commerce business u/s 194-O has been captured here making it a comprehensive deck for e-commerce players.
NRI - Finance Act 2020 - Implications for NRIsTilak Agarwal
Finance Act 2020 has amended Residency rule for Indian citizens and PIOs, and has also introduced citizenship based tax in India. The implications of such amendment in direct tax law has been captured here along with benefits from elimination of DDT.
Finance Act 2020 not only infused a new TDS provision for E-commerce business in India, it also brought in new Equalization Levy at 2% on E-commerce Operators (non-resident) thereby widening the tax base for the growing digital economy.
Section 269SU of the Income-tax Act, 1961Tilak Agarwal
The document discusses new provisions introduced in Section 269SU of the Income Tax Act that require businesses with over 500 million INR in annual sales to provide digital payment facilities. The Central Board of Direct Taxes issued a notification specifying debit cards, UPI, and UPI QR codes as acceptable digital modes. The requirements apply starting January 1, 2020 to businesses meeting the sales threshold in FY 2018-19. Failure to comply can result in penalties of 5000 INR per day, though a grace period until January 31, 2020 is provided. The document also outlines some practical challenges businesses may face in implementation.
Dividend Distribution Tax in India has been abolished by the Finance Act 2020 and what does it mean for the US investors / parent co is captured in a single slide.
Integrating Advocacy and Legal Tactics to Tackle Online Consumer Complaintsseoglobal20
Our company bridges the gap between registered users and experienced advocates, offering a user-friendly online platform for seamless interaction. This platform empowers users to voice their grievances, particularly regarding online consumer issues. We streamline support by utilizing our team of expert advocates to provide consultancy services and initiate appropriate legal actions.
Our Online Consumer Legal Forum offers comprehensive guidance to individuals and businesses facing consumer complaints. With a dedicated team, round-the-clock support, and efficient complaint management, we are the preferred solution for addressing consumer grievances.
Our intuitive online interface allows individuals to register complaints, seek legal advice, and pursue justice conveniently. Users can submit complaints via mobile devices and send legal notices to companies directly through our portal.
Corporate Governance : Scope and Legal Frameworkdevaki57
CORPORATE GOVERNANCE
MEANING
Corporate Governance refers to the way in which companies are governed and to what purpose. It identifies who has power and accountability, and who makes decisions. It is, in essence, a toolkit that enables management and the board to deal more effectively with the challenges of running a company.
Safeguarding Against Financial Crime: AML Compliance Regulations DemystifiedPROF. PAUL ALLIEU KAMARA
To ensure the integrity of financial systems and combat illicit financial activities, understanding AML (Anti-Money Laundering) compliance regulations is crucial for financial institutions and businesses. AML compliance regulations are designed to prevent money laundering and the financing of terrorist activities by imposing specific requirements on financial institutions, including customer due diligence, monitoring, and reporting of suspicious activities (GitHub Docs).
सुप्रीम कोर्ट ने यह भी माना था कि मजिस्ट्रेट का यह कर्तव्य है कि वह सुनिश्चित करे कि अधिकारी पीएमएलए के तहत निर्धारित प्रक्रिया के साथ-साथ संवैधानिक सुरक्षा उपायों का भी उचित रूप से पालन करें।
2. Amendments to Finance Bill 2020
Section Amendment to Finance Bill 2020 Implications
Sec 6(1) Expl 1(b)
Threshold for residency of Indian citizens and Indian origins
visiting India whose total income excluding income from
foreign sources exceeds 15 lakhs during the PY reduced
from 182 to 120 days
Intends to provide relaxation to NRIs
by reducing residency thresholds to
120 days for those having income
exceeding INR 15 lakhs
Sec 6(1) Expl 1A
An Indian citizen whose total income excluding income from
foreign sources exceeds 15 lakhs during the PY and is not
liable to tax in any other country or territory shall be deemed
to be resident in India
The amended provisions intends to
narrow down the scope of taxability to
only those Indian citizens with total
income exceeding INR 15 lakhs per
annum
Sec 6(6)
Added to existing definition of “Not Ordinarily Resident”
• Indian citizens and Indian origins visiting India whose total
income excluding income from foreign sources exceeding
INR 15 lakhs during the PY who has been in India for a
total period 120 days or more but less than 182 days
• Indian citizen deemed to be resident in India
The amended provisions has omitted
the proposed definition of RNOR and
has included deemed resident and NRI
staying in in India for 120 days or more
but less than 182 days
3. Amendments to Finance Bill 2020
Section Amendment to Finance Bill 2020 Implications
Expl to Sec 6
Definition of “income from foreign sources” – Income which
accrues or arises outside India except income derived form
a business controlled in or profession set up in India
Clarification on the term - income from
foreign sources
Expl to 3rd
proviso
Sec 10(23C)/ Expl 2
Sec 11(1)
An explanation is proposed to be added to clarify that
income of the fund or trust or other relevant institution shall
not include voluntary contribution made with specific
direction that they shall form part of corpus of such fund,
trust, etc
Clarification on income of any fund,
trust shall exclude contributions with
specific directions which shall form
part of corpus fund
12th
proviso to Sec
10(23C)
Provision where voluntary contribution with a specific
direction shall form part of the corpus of the trust or
institution is proposed to be extended to contribution to
corpus of university, educational institution, hospital, other
medical institution
Extending the treatment contribution to
corpus of trust, institutes as application
of fund to contribution to corpus of
university, education institute etc
4. Amendments to Finance Bill 2020
Section Amendment to Finance Bill 2020 Implications
Sec 10(23FE)
Exemption of dividend/ LTCG/ interest arising from an
investment made by wholly owned subsidiary of Abu Dhabi
Investment Authority and Sovereign Wealth Fund in India,
whether in the form of debt or share capital or units (earlier
only debt or equity) subject to specified condition.
The entities eligible for such exemption is proposed to also
include specified pension funds
As per the amended provisions,
investments could be made in share
capital or units as against term used
earlier as equity. Eligible entities would
also include specified pension fund
Sec 10(23FE)
Restrict exemption u/s 10(23FE) to investment made during
the period from April 1, 2020 to March 31, 2034
Clarifies that exemption is available
only for investments during the
specified period
5. Amendments to Finance Bill 2020
Section Amendment to Finance Bill 2020 Implications
Sec 10(23FE)
• Expand the scope of entities investments qualifying for
exemption to include investment made in business trust
as specified in Sec 2(13A)(i) or category I or II Alternative
investment Fund regulated by SEBI having 100%
investment in the specified companies (carrying out
activities as specified under clause (b))
• Further the amendment also authorizes CBDT to issue
guidelines for interpretation of the above eligibility clause
which have to be laid before the Parliament
• The amendment further provides that if a person avails
exemption and subsequently, it fails to satisfy any
condition for exemption, then the said income for which
the exemption is claimed would be taxable in the year in
which such failure takes place
Provides much clarity by specifying
the list of qualified investments
Sec 10(34)
Provides clarity that exemption is available for dividend
income if DDT is paid under Sections 115-O and 115BBDA
even if it received after April 1, 2020
This is a much required amendment for
taxpayers following cash system of
accounting
6. Amendments to Finance Bill 2020
Section Amendment to Finance Bill 2020 Implications
Sec 80M
Dividends received from foreign company and business
trust is also proposed to be allowed as deduction in
computing the total income of the recipient domestic
company
Deduction is allowed to dividends
received from foreign company and
business trust as well. Removes
cascading effect of tax. Foreign
companies with POEM distributing
dividends to Indian parent Co should now
qualify for deduction under Section 80M
Sec 115A(1)(a)
Clause (BA) is substituted with the following
(BA) the amount of income-tax calculated on the amount
of income by way of interest to referred to in –
i. Sub-clause (iia) at the rate of 5 percent – Interest
u/s 10(47
ii. Sub-clause (iiaa), (iiab) or (iiac) at the rate specified in
the respective sections – Section 194LC, 194LD and
194LBA respectively
As per existing provisions, interest under
all the sections mentioned herewith were
taxable at 5 percent in the same clause.
However, TDS rate u/s 194LC was
proposed to be reduced to 4 percent in
the original finance bill 2020. Thus, by
splitting the clauses, taxability of interest
under each section is delinked now
7. Amendments to Finance Bill 2020
Section Amendment to Finance Bill 2020 Implications
Sec 115BAA(2)(i)
Deduction under Chapter VI-A allowed to companies opting
for lower tax rates are (a) Section 80JJAA - with effect from
April 1, 2020 (b) Section 80M – with effect from April 1,
2021
Section 80M is applicable only from
April 1, 2021 onwards (assessment
year)
Sec 115BAB(2)(c)(i)
Deduction allowed to new manufacturing companies opting
for lower tax rates, are (a) Section 80JJAA – with effect from
April 1, 2020 (b) Section 80M – with effect from April 1, 2021
Section 80M is applicable only from
April 1, 2021 onwards (assessment
year)
Sec 115BAC(5)
Option can be exercised by Individual/ HUF having no
income from business or profession every year at time of
filing ITR
For Individuals/ HUF having income from business or
profession, option can be exercised only once and once
the new option has been exercised, it shall apply to
subsequent assessment years
The earlier provisions imposed the
condition only on individuals/ HUFs
having income from business that once
the option of paying tax under new rejig
is opted, it shall apply to all subsequent
years. Amended provisions now cover
income from profession as well for this
condition
8. Amendments to Finance Bill 2020
Section Amendment to Finance Bill 2020 Implications
Sec 194J
Rate of TDS on fees for technical services (other than fees
for professional services) or royalty for sale, distribution or
exhibition of cinematographic films is proposed to be
reduced to 2% from the existing rate of 10%
Relief by way of reduced rate of TDS
at 2% is also extended to the Cinema
industry on Royalty payments for
sale, distribution or exhibition of
cinematographic films
Sec 194A(5)
TDS on interest other than interest on securities.
Central Government by way of notification in the Official
Gazette, may provide for non-deduction of TDS or
deduction at a lower rate from such payment to such
person or class of persons, as may be notified
It’s a new addition in the Finance Bill.
Central Government has assigned
itself power to notify such non-
deduction or deduction at lower rate.
Sec 194K
i. TDS at 10% introduced on any income received from
Mutual Funds u/s 194K
ii. However, TDS will not apply in case -
a) The payment does not exceed INR 5,000 during the
financial year; or
b) If the income is in the nature of Capital Gain
Amended provisions has cleared the
clouds on the transaction of
redemption of mutual funds units.
Capital Gain on account of
redemption of units will not be subject
to TDS under Section 194K
9. Amendments to Finance Bill 2020
Section Amendment to Finance Bill 2020 Implications
Sec 194N
TDS by Banking Company, Co-operative Society or Post
Office in case of payment is made in cash to the recipient
who is an account holder with the payer
i. TDS at 2% on a sum exceeding INR 1 crore
ii. If the recipient has not filed income tax return for all 3
preceding previous years –
a) 2% on a sum exceeding INR 20 Lakhs but does not
INR 1 Crore
b) 5% on a sum exceeding INR 1 crore
Amended provisions provides relief to
taxpayers (person who withdraws
money) who have been regularly filing
return of income and hence rewarding
law abiding citizens by way of lower
TDS rates
Sec 194LBA(2A) TDS under section 194LBA is not applicable on dividend
income referred to in section 10(23FC)(b) paid by Business
Trust (REITs or InvITs) to its unit holders (resident as well
as non-resident), if the SPV (as referred in section
10(23FC)) has not exercised the option u/s 115BAA, ie
lower tax regime
This proposed amendment would
bring back the previous regime of
REITs and InvITs distributing dividend
freely to unit holders. However,
SPVs shall continue to pay tax at
higher rates
Dividend would be taxable in the
hands of unit holder
10. Amendments to Finance Bill 2020
Section Amendment to Finance Bill 2020 Implications
Sec 194-O
(4) – Empowering CBDT to issue guidelines (with the
approval of Central Government) to remove difficulties arising
in giving effect to Section 194-O (5) – Every guidelines to be
laid before each house of Parliament and it is binding on
Income-tax authorities as well as e-commerce operator (6) –
For this section, e-commerce operator shall be deemed to be
person responsible for paying e-commerce participant
Deeming provisions for e-commerce
operator removes the earlier
requirement of paying to e-commerce
participant.
This section is in effect from
October 1, 2020 onwards. Thus, TDS
compliance is deferred by 6 months
Sec 197A(1F)
Central Government by way of notification may provide for
non-deduction of TDS or deduction at a lower rate from such
payment to such person or class of persons, including
institution, association or body or class of institutions,
associations or bodies, as may be notified by the Central
Government in official Gazette
It’s a new addition in the Finance Bill.
As per existing provisions, Central
Government could only notify non-
deduction, not lower rate
Sec 92CB
Amended to include income referred in Section 9(1)(i) under
Safe harbour mechanism
Consequential amendment is proposed
as income referred in Sec 9(1)(i) is also
subject to SHR as proposed in the
introduced finance bill
11. Amendments to Finance Bill 2020
Section Amendment to Finance Bill 2020 Implications
Sec 206C(1G)
&
Sec 206C(1H)
TCS provisions for purchasing of overseas tour package
or making foreign remittance exceeding INR 7 lakh during
a financial year (1G) and TCS on sale of goods exceeding
INR 50 lakh to a buyer in a financial year by seller having
turnover of more than INR 10 crores (1H) to be effective
from October 1, 2020.
Following proviso are proposed to replace the existing
proviso in sub-section (1G) -
i. Threshold of INR 7 lakhs in financial year would apply
only for remittances other than for purchase of
overseas tour packages
ii. TCS at 0.5% only if remittance is out of loan obtained
for pursuing any education (section 80E)
iii. TCS is not applicable if buyer of overseas tour
packages / remitter has already deducted TDS
The substituted proviso intends
to provide that the threshold of
INR 7 Lakhs in a FY would not
apply even if the remittance is
through LRS for the purchase of
overseas tour packages
Provides relief to students
applying for studies outside India
12. Amendments to Finance Bill 2020
Section Amendment to Finance Bill 2020 Implications
Sec 206C(1G)
&
Sec 206C(1H)
Following words have been inserted at the requisite places
in sub-section (1H) to keep export and import of goods out
of the purview of TCS.
i. In sub-section (1H), the words ‘being exported out of India
or goods’ are inserted after the words ‘other than goods’
ii. In second proviso to sub-section (1H), the words ‘on
the goods purchase by him from the seller’ are inserted
after the words ‘provision of this Act’
iii. In Explanation (a)(C) to sub-section (1H), the words ‘any
other person’ has been substituted with the words ‘the
person importing goods into India or any other person’
No TCS on export and import
of goods from / to India is a
welcome move
Clarifies that TCS and TDS
cannot be applicable on same
transaction
Proposed new Sub-sections
(1-I) – CBDT is authorised to issue guidelines for removal of
any difficulty
(1J) – Guidelines to be binding on Tax Authorities and the
person liable to collect such tax.
13. Amendments to Finance Bill 2020
Section Amendment to Finance Bill 2020 Implications
TDS rates and
surcharge
Rates of TDS and surcharge for FY 2020-21
• 20% TDS rate on dividend income in respect of non-
resident(Indian or any other person or company other than
domestic companies)
• Dividend income shall also be included for the purpose of
surcharge at the rate of 10% and 15% of such TDS
• Dividend income shall be excluded for the purpose of
surcharge at the rate of 25% and 37% of such TDS.
Also provided that where the total income includes dividend
income, the rate of surcharge on the amount of Income-tax
deducted in respect of that part of income shall not exceed 15%.
Withholding on dividend income
of non-residents, as per the
existing provision was required
to be done at 40 percent (in
case of non-treaty jurisdiction).
However, This seemed to be an
anomaly as the final tax liability
was still at 20 percent in such
cases
Amended provisions provides
much clarity by specifying the
rate of TDS on dividend
Relaxation has been provided
to HNIs by excluding dividend
income from higher surcharge
rates
Will Section 115-A benefit and
20 percent interest deduction –
both are available, or dividends
are to be offered to tax on gross
basis – needs clarity
14. Amendments to Finance Bill 2020
Section Amendment to Finance Bill 2020 Implications
163(3)
163(3) – It shall apply to consideration received or receivable for
specified services provided on or after the commencement of
this Chapter, and to consideration received or receivable for e-
commerce supply or services made or provided on or after April
1, 2020
Amended provisions proposes
the levy even on supply of goods
or provision of services online or
through internet
164(ca)
E-commerce operator means a non-resident who owns,
operates or manages digital or electronic facility or platform for
online sale of goods or online provision of services or both
Definition of e-commerce
operator to be only non-resident
164(cb)
E-commerce supply or services means –
i. Online sale of goods owned by e-commerce operator or
services provided by operator
ii. Online sale of goods or provision of services facilitated by
the operator
iii. Any combination of the above
Definition of supply of goods or
provision of services online. This
definition also includes e-
commerce aggregators
164(d)
Equalization Levy means tax leviable on consideration received
or receivable for any specified service or e-commerce supply or
services under the provisions of this Chapter
Definition of Equalization Levy
modified to include levy on online
supply of goods and services
165
Marginal Heading of the section changed to “Charge of
Equalization Levy on specified services”
Earlier, section was specifically
assigned to Equalization Levy on
Advertisements
Equalization Levy was introduced by the Finance Act 2016. The Finance Bill 2020 intends to make the below
proposed amendments.
15. Amendments to Finance Bill 2020
Section Amendment to Finance Bill 2020 Our Intake
165A New section inserted. Each sub-sections enumerated below
165A(1)
Equalization Levy at 2% shall be levied from April 1, 2020,
on the consideration received / receivable by e-commerce
operator from e-commerce supply or services to –
i. Person resident in India
ii. Non-resident in the specified circumstances as
referred in section 165A(3)
iii. Person who buys goods or services or both using
internet protocol (“IP”) address located in India
Equalization Levy is proposed to be
levied on supply of goods or
services to India
However the rate is reduced to 2%
165A(2)
Equalization Levy shall not to be charged –
i. Where e-commerce operator has Permanent
Establishment (“PE”) in India and such supply of
goods and / or services is connected with such PE
ii. Where equalization levy is leviable u/s 165
iii. Sales, Turnover or Gross Receipts of e-commerce
operator, from such e-commerce supply is less than
INR 2 Crore in the preceding FY
Similar to earlier provisions, no levy
in case the e-commerce operator
has PE in India as it would
tantamount to business income
Threshold limit for non-levy is kept
on a higher side to eliminate smaller
or new players
165(3)
Specified Circumstances means –
i. Sale of advertisement, which is targets a customer,
either resident in India or who access advertisement
through IP address located in India
ii. Sale of data, collected by a person, either resident in
India or who uses IP address located in India
Equalization levy on services from
Non-resident to non-resident only on
those which affects the Indian
customers
16. Amendments to Finance Bill 2020
Section Amendment to Finance Bill 2020 Our Intake
166
Marginal Heading of the section changed to “Collection and
recovery of equalization levy on specified services”
Change of heading only
166A
New section inserted. Every e-commerce operator is
required to remit equalization levy to the credit of Central
Government u/s 165A quarterly on the due date mentioned
below:
Equalization on levy on supply of
goods or provision of services is a
regular tax and not a deduction
from payment
The onus of paying the levy is on
the e-commerce operator
Due date of paying the levy is 7th
day of the month following the
quarter with 31st March being due
date for last quarter of the FY
167 to 180
Provisions relating to filing of annual statement, interest and
penalty for non-deduction or delay in remitting the
equalization levy, rectification of mistakes, litigation
proceedings and others are proposed to be aligned to
include Equalization Levy u/s 165A
All regulatory and compliance
provisions have been modified and
aligned to include equalization levy
on supply of goods and services
Sec 10(50)
Amended to exempt income arising from e-commerce
supply or services chargeable to equalisation levy applicable
from April 1, 2021
It is consequential amendment to
exempt income arising from e-
commerce supply or services
chargeable to equalisation levy
Quarter ending Due Date
30th June 7th July
30th September 7th October
31st December 7th January
31st March 31st March