Case Name : CIT Vs. Bangalore District Co-Operative Milk Producers Societies Union Ltd. Citation : [2013] 36 TAXMANN.COM 120/357 ITR 676/261 CTR 442 (KAR.) Court : Karnataka High Court Section : 194 TO 206C Meaning : The explanation ‘works contract’ has a definite legal connotation. What is stated in the section 194c(1) is for ‘carrying […]
Read MoreAuthor: Prashant Thakur
The author has spent more than 30 years in the field of taxation. Wrote four books -3 on on Indian Tax Law and 1 on US tax law for cryptocurrency. Apart from https:taxworry.com , he also writes on https://irstaxapp.com which is for US tax laws. He is a tech enthusiast and manages a cloud computing company that publishes innovative software.
Meaning of “Varnish”
Case Name : Dr. Beck & Co. India Ltd. Vs. ITO Citation : [1984] 10 ITD 145 (BOM. – TRIB.) Court : ITAT-Bombay Schedule : ELEVENTH SCHEDULE Meaning : The expression ‘varnish’ should also be read along with the other items in item 26. It would be seen that pigments, colours, paints, etc., Form one […]
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Setting up an NGO ?Which Form –Society or Trust or Company – is the Best?
An NGO (Non Governmental Organization) is usually formed for the charitable or social work. In India, an NGO can be formed under three types of law –Society Registration Act 1860 or Indian Trust Act 1882 or Companies Act 1856. Out of these three, only Companies Act is a central legislation where as the other two laws […]
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No Summon u/s 131(1) Without Pending Proceeding !
The simple answer from various judicial pronouncement is in negative i.e summon can not be issued without pending proceeding under Income Tax Act. However, the provision u/s 131 of the Income Tax Act itself, nowhere mentions such limitation. This is unlike section 133(6) of the Income Tax Act which clearly mentions that if there is no […]
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Section 14A Not to Apply if No Exempt Income Received , Special Bench Order Set Aside !
After five years of wait , finally , ITAT Special Bench order in case of Cheminvest Ltd vs CIT [2009] 121 ITD 318 (Delhi) (SB) has been set aside by Delhi High Court vide its judgement dated 2nd September 2015 . This Special Bench order must have become basis for dis-allowance u/s 14A in thousands of cases […]
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Period of Holding : How to Compute in 11 Situations Like Gift , Inheritance etc?
Period of holding of a capital asset is very important step in determination of liability of capital gains. If you are holding shares or mutual fund units or other securities and sold through stock exchange , it shall be tax free if it is held for 12 months or more before sale . Similarly, other assets […]
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Allotment Date Matters for Period of Holding in Case of Flats or Plot of Land!
When a flat owner desires or sells the flat , the one question which perplex him and his tax adviser is the counting of period of holding of the flat . The question which bothers everyone specially for a person who buys the flat or house from a builder is -which date -allotment date or […]
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Claim Credit for State Tax Paid Even if DTAA Applies to Only Federal Law !
Like in India , there are taxes paid in States in USA and there are taxes paid to USA government under Federal Tax law i.e Code 26 . It is well known that under Income Tax Act , the taxes paid are not allowed as business expense. However Double Taxation Agreement does allow the scope […]
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How to Know if You Are Tax Resident under US Tax Laws ?
Whether a person is tax resident of United States of America is the first thing one will have to to find out in order to understand the implication of various tax provisions on him and whether a particular receipt can be assessed under Code 26 or Internal Revenue Code. As far as foreign citizen is concerned, […]
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