The devil of demonetization

To understand the devil of demonetization we have to go back a little beyond the date of demonetization. The Govt had announced an Income Declaration Scheme ( IDS ) which closed in September 2016. This scheme was a failure as it did not bring out even a miniscule of black money in the economy. There ...

Sale of Property & Repatriation of funds by NRIs

NRIs may have  immovable property in India Acquired when they were residents in India or They might have inherited such assets or received them as gifts or They might have bought them through funds from abroad If an NRI wants to sell immovable property and remit the funds abroad he can do so easily by ...

ELEVEN things you should know about filing of your Income Tax return

  Declare your entire income. In the Income Tax Return form there is a separate section for declaring exempt income also. Income like interest on Public Provident Fund, interest on tax free bonds, dividend on equity shares etc is exempt from tax but this also needs to be declared Income of minors is taxable in ...

New feature on our website – PAY & ASK

We have added a new ‘Pay & Ask’ feature on our site. You may ask queries relating to the following subjects: a. Taxation as per the Indian Income Tax Act including queries on taxation of salaries, income from house property, capital gains on sale of immovable property, mutual funds, shares and other assets, income from ...

Perpetual Bonds

PERPETUAL BOND, which is also known as a ‘perpetual’ or ‘perp’, is a bond with no maturity date.  As the name suggests, they are perpetual in nature i.e. they donot have any maturity date.  However,  an option would be given to the investor to redeem them after a certain period – say 5 years or ...

Amended law on Development Agreements

There was a lot of controversy on the date of accrual of capital gains  to the Landowner in case of a Development Agreement. After a plethora of judgements the law was more or less settled that such capital gain would accrue on the date of the Development Agreement cum GPA.  Tax payers were finding it ...

Buying or Selling ‘Immovable Property’ ? – You Must Read This

SELLERS If the document value is less than Stamp Duty Value, difference amount will be treated as part of Sale Consideration No part of the Sale Consideration can be received in cash ( except for a small amount of Rs 20,000) Development Agreement cum GPA attracts Capital Gains Tax in the hands of the Landowner ...

Important budget 2017 amendments everyone should know

Expenditure in cash cannot exceed Rs 10,000 ( earlier this limit was Rs 20,000 ) No cash receipts of Rs 2 lakhs or more per day, per transaction or per event. Donations in cash allowed only upto Rs 2000 ( earlier this limit was Rs 10,000 ) Taxation of capital gain in the hands of ...

Gifts in the hands of Individuals

Under the provisions of Section 56(2)  gifts are taxed in the hands of the receiver (donee) if the aggregate value of the gifts during an year exceeds Rs 50,000. Once the amount exceeds Rs 50,000 whole of the amounts will be added to income and they would get taxed at the rate applicable to the ...

Retrospective amendment of Section 115BBE

If income is offered to tax and source cannot be proved, it gets taxed under section 115BBE. Hitherto the tax rate for this kind of income was 30 % irrespective of the slab you are in. After demonetisation the Govt. brought in a few drastic amendments and one of these amendments is to Section 115BBE. ...