Direct Tax Code 2010 bill has been perused , discussed with various stakeholders and examined by Parliament Standing Committee on finance which is chaired by Sri Yashwant Sinha . Now , the final report with its recommendations on Direct Tax Code (DTC) have been presented to Parliament. The Direct Tax Code 2010 Bill is […]
Higher tax bracket -read high basic tax exemption -has been recommended under amended Direct Taxes Code (DTC) Bill by Parliamentary Standing Committee on Finance. It is likely to submit its report within a week to Parliament , so that DTC bill with its recommendation can be introduced in the Budget session. It is expected that […]
In another blow to the Government, the Direct Tax Code is once again most likely to miss its already extended deadline of April 2012. It is now being expected to be implemented in April 2013 along with the proposed goods and services taxation (GST). Direct Tax Code The DTC that is meant to replace the […]
Readers must be aware that the courts and Tribunal has regarded the forfeiture of amounts of share or debenture application money as capital recipt. This was analysed in Is forefieture of share or debenture application money taxable? The Direct Tax Code has incorporated provision u/s 56(2) by which not only share application money , but...
There are umpteen number of cases where the liability in the books of accounts are carried for years. Under the present income tax Act , there is provision under section 41 of Income Tax Act under which remission of liability is deemed to be business income of the assessee. However, the test & condition laid...
Any income accruing to an individual outside India, in a financial year from a source other than a business controlled in or a profession set up in India, if the individual—
(a) has been a non-resident in India in nine out of ten financial years preceding that financial year; or
(b) has during the seven financial years preceding that financial year been in India for less than seven hundred and thirty days
# Do not stay for more than 60 days in a year in India if in previuos four years , he was in India for more than 365 days. If he was not, he can stay in India , safely upto 182 days.
# Also please go through the Double Taxation Avoidance Agreement signed between India and your country and find that what are the income which are taxed only in your country. For example , salary income earned in USA of a resident of USA is to be taxed in USA only even if he also becomes resident of Indi under I T Act.
The scheme of presumptive taxation is also continuing under Direct Tax Code 2010. Schedule 14 of the Direct Tax code contains eight business for which you can just pay tax at specified rates . The benefit attached to such presumptive tax scheme is that there is no obligation to either maintain books of accounts or getting your accounts audited . Here is the scheme:
Direct Tax Code 2010 has good news for companies Section 73 of the I T Act is about setting of losses of speculative business. Explanation to section 73 was inserted vide Taxation Laws (Amendment) Act, 1975, w.e.f. 1-4-1977?. The said insertion was on account of Wanchoo Committee Report. Explanation.—Where any part of the business of...