Once Income Tax is Paid on Execution of Agreement to Sale It is Not Permissable to Tax Twice on Execution of Sale Deed

The PCIT v. Dipak Govindbhai Dalwadi case (2023) 147 taxmann.com 393 (Guj.) highlights an important issue regarding the imposition of taxes on the sale of land. The case involves an assessee who entered into an agreement to sell his land for Rs. 95,00,000/- in 2008, with registration taking place in 2012. The Assessing Officer found …

Foreign Tax Credit Cannot be Disallowed on Account of Delay in Filing Form 67

The Income Tax Act allows residents of India to deduct the income tax paid in the United States from their tax liability, as per the provisions of the Double Taxation Avoidance Agreement (DTAA) between India and the United States. Rule 128(9) of the Rules, which does not provide for the disallowance of Foreign Tax Credit …

Employee Cannot Be Called Upon To Pay Income Tax Even Though TDS Not Deposited By Employer

The Delhi High Court recently allowed a writ petition filed by an individual, referred to as the Assessee, and quashed a demand notice raised against them by the Revenue for tax deducted at source (TDS) by their employer, Kingfisher Airlines, which was not duly deposited. The Court held that the Assessee cannot be called upon …

What is Better for Startup: Startup Organizational Structure

India is a hub for startups, with a growing number of entrepreneurs starting their own businesses in various industries. When starting a business in India, it is important to consider the right business structure to adopt. The right business structure will help you to achieve your goals, protect your interests, and comply with legal requirements. …

Capital or Revenue Receipt: Interest on Fixed Deposits to be Adjusted from Interest Paid on Borrowing During Period of Construction

A filed appeal challenges the order passed by the Income Tax Appellate Tribunal on November 29, 2019, for the Assessment Year 2012-13. The appellant’s counsel argues that the ITAT made an error by allowing the capitalisation of interest on fixed deposit receipts (FDRs) earned during the construction period without appreciating that the assessee did not …

Buyer is Liable to Deduct TDS of Non-Resident Indian (NRI) on Sale of Immovable Property: Ignorance of Law is No Excuse

The Bangalore ITAT recently dismissed an appeal by Nitesh Estates Ltd., a real estate company, that was subject to Section 201 proceedings for non-deduction of tax at source under Section 195 on the sale of an apartment to non-resident (NRI) Mr. Mahesh Bhupathi. The ITAT found that once the conditions laid down in Section 195 …

This Ruling Will Help NRI Selling Immovable Property and Receiving Sale Consideration in Cash

The Income Tax Appellate Tribunal (ITAT) in Bangalore has allowed an appeal filed by an NRI-assessee and deleted the penalty imposed under Section 271D of the Income Tax Act, 1961. The ITAT held that the NRI-assessee had a reasonable cause for accepting part of the sale consideration in cash, despite the violation of Section 269SS. …

No TDS on Payment to Irish Company Facebook not Having Permanent Establishment for Advertisement Services

During the year, an assessee paid Rs. 67,68,768/- to an Irish company for advertisement services without deducting tax at source. The Assessing Officer disallowed the payment under section 40(a)(i) for non-deduction of tax at source. However, the Commissioner (Appeals) observed that the Irish company had certified that it did not have a Permanent Establishment (PE) …

Top Mistakes to Avoid as a Non-Resident Indian (NRI) During Tax Return Filing

As a Non-Resident Indian (NRI), filing income tax returns in India can be a complex and daunting task. It is important to avoid common mistakes that can lead to unnecessary penalties and legal issues. Here are some of the top mistakes that Non-Resident Indian (NRI) should avoid while filing their income tax returns. We welcome …

Non-Resident Indians (NRI) Buying Immovable Property in India: Important Reading for Non-Resident Indians (NRIs)

Acquiring property in India can be a complex process, particularly for those who reside outside the country. Indian citizens living abroad, known as Non-Resident Indians (NRI), are subject to specific regulations when it comes to purchasing or investing in Indian properties. The Foreign Exchange Management Act (FEMA) of 1999 and the notifications issued under it …

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