IT Act 1961
-
Skeletal Timeline of Income Tax Reform in India
1860-1886: Income tax was introduced in India for the first time in 1860 to overcome the financial difficulties due to First War of Independence of 1857. The period of 1860-1886 saw the Govt alternating between income…
-
Shimla HC Decodes Scope of Sec 43-B, IT Act, 1961
In a recent judgment, the Shimla High Court had to adjudicate on the conditions prescribed in Section 43-B, IT Act, 1961 for an assessee to claim deductions. The issue related to Section 43-B(f) which envisages deductions to…
-
Issuance of Shares under Amalgamation Scheme is Not Transfer of Property: ITAT
The Rajkot Bench of ITAT recently ruled that issuance of shares under a scheme of amalgamation does not amount to transfer of capital assets under IT Act, 1961. The Assessing Officer had applied Sec 56(2)(vii)(c)(ii) of the IT…
-
Fee for Technical Services: Future Demands Answers
Introduction Tax practitioners tend to refer to Fee for technical services (‘FTS’) and Royalty income in tandem with an intent to highlight the shape shifting nature of both concepts under domestic and international tax law. And…
-
ESOPs-Related Compensation Present an Interesting Dilemma
Introduction Employee Stock Options (ESOPs) are typically taxable under the IT Act, 1961 in the following two instances: first, at the time of exercise of option by the employee as a perquisite. The rationale is that the…
-
Short Note from Tax History: Cost of Acquisition and Capital Gains Tax
This article aims to examine in detail a judgment on capital gains tax that continues to have enduring relevance. B.C. Srinivasa Shetty case was decided in 1981 by a 3-Judge Bench of the Supreme Court and its observations…
-
SAAR v/s GAAR: Inauguration of an Interpretive Dilemma
In a recent decision, the Telangana High Court dismissed petitioner’s contention that General Anti-Avoidance Rule (‘GAAR’) cannot be applied by the Income Tax Department since the impugned fact situation is apparently covered by Specific Anti-Avoidance Rule (‘SAAR’).…
-
Section 71(3A), IT Act, 1961 is Constitutional: Delhi HC
In a recent judgment, the Delhi High Court held that Section 71(3A), IT Act, 1961 was constitutional and did not violate Art 14 and/or Art 19(1)(g) of the Constitution. The High Court’s primary reasoning was that the…
-
Section 54, IT Act, 1961: A Short Note on its Evolution
Section 54, IT Act, 1961 provides exemption from capital gains tax if an assessee sells residential house and reinvests the capital gains in another residential house. While core of the Section 54 has remained unaltered, various…
-
Tax Treatment of Mandatory CSR: Alignment of CGST Act, 2017 and IT Act, 1961
In this article, I elaborate on one of the several changes introduced by Finance Act, 2023 to CGST Act, 2017. Section 17, CGST Act, 2017 was amended via Finance Act, 2023 to clarify that the goods…
