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IT Act 1961
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… Read More »ESOPs-Related Compensation Present an Interesting Dilemma
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… Read More »Short Note from Tax History: Cost of Acquisition and Capital Gains Tax
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… Read More »SAAR v/s GAAR: Inauguration of an Interpretive Dilemma
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… Read More »Section 71(3A), IT Act, 1961 is Constitutional: Delhi HC
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,… Read More »Section 54, IT Act, 1961: A Short Note on its Evolution
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… Read More »Tax Treatment of Mandatory CSR: Alignment of CGST Act, 2017 and IT Act, 1961
Taxation of Perquisites: SC Rules on Constitutionality
Challenge In a recent judgment, the Supreme Court ruled on constitutionality of Section 17(2)(viii), IT Act, 1961 and Rule 3(7)(i), IT Rules, 1962 which include concession loans under perquisites and provided for their valuation respectively. Section… Read More »Taxation of Perquisites: SC Rules on Constitutionality
Intersection of Trusts, DTAAs, and IT Act, 1961: Profile of ADIA Case
Abu Dhabi Investment Authority (‘ADIA’) is currently embroiled in a tax dispute in India that involves questions about its eligibility to claim tax benefit under India-UAE DTAA, recognition of foreign trusts in India, and interpretation… Read More »Intersection of Trusts, DTAAs, and IT Act, 1961: Profile of ADIA Case