Articles on "Income Tax Act 1961"

Major amendments in Income Tax, 1961 through the Finance Bill, 2016 Part-I

Date posted: Wednesday 9 March 2016

Finance Minister Arun Jaitley, presented the Budget for the year 2016-17 on 29th February, 2016. We have come up with a detailed analysis of the changes proposed by the Finance Minister in a series of articles. This Part-I of the “Major Amendments in Income Tax, 1961 through the Finance Bill, 2016” series will highlight the existing provisions, proposed provisions and the date from which the proposed provisions will be effective on the below mentioned topics.

Whether the capital Gain on contribution of land by partner to partnership firm is chargeable u/s 45(3) or 50C of the Income Tax Act?

Date posted: Friday 28 August 2015

When a partner contributes a piece of land as his capital in the partnership firm, what shall be the consideration for calculation of capital gain on such transfer of land? Since no actual consideration arises, the consideration shall be deemed as per section 45(3) or Section 50C of the Income Tax Act, 1961. Will the consideration, as per Section 45(3), be the amount credited in the partner’s capital account? Or will the consideration, as per Section 50C, be the value adopted by the revenue for levying stamp duty?

Advance Pricing Agreement

Date posted: Saturday 8 August 2015

Transfer pricing has been the bone of contention between the tax department and MNCs as the two sides have divergent views on the pricing structure of the Indian subsidiaries. The issue of transfer pricing has generated much heat in India involving MNCs operating here such as Cairn, WNS and Nokia. Disputes relating to transfer pricing between Multinational Companies (“MNCs”) and Revenue Department is a major area of litigation for resident and non-resident taxpayers. The concept of Advance Pricing Agreement was introduced in July, 2012 with the introduction of Section 92CC in the Income Tax Act, 1961 (“IT Act”). Under Section 92CC, companies could enter into an Advance Pricing Agreement (“APA”) with tax authorities for determining the arm’s length price or specifying the manner in which the arm’s length price will be determined for the next five years. Seeking to further reduce litigations related to transfer pricing, the ‘roll back’ provision under the APA was notified in October, 2014 that enabled companies to enter into APA with tax authorities for the previous four years. However the rollback provisions could not be implemented because of absence of rules. In March, 2015, the CBDT introduced rules for rollback provisions of APA. Four months after the rollback norms were notified, the Central Board of Direct Taxes (“CBDT”) signed first rollback unilateral advance pricing agreement (APA) on 3rd of August, 2015. This article will take you through the rules for rollback provisions of APA and the details of the press release regarding the signing of the first rollback APA.

Changes in Finance Bill, 2015

Date posted: Saturday 2 May 2015

On 30th April, 2015, the Finance Bill, 2015 was approved in the Lok Sabha with a number of changes in the Finance Bill as proposed on 28th February, 2015. New amendments are proposed, some proposed amendments are removed. This article will give you an overview of the major changes in the Finance Bill, 2015 as approved by the Lok Sabha.