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The Central Board of Direct Taxes (CBDT) has notified the revised income tax (I-T) return forms for non-salaried individuals for the assessment year 2015-16 (financial year 2014-15, which ended as of March 31, 2015). Of forms ITR-3 to ITR-7, companies are required to file their tax returns using form ITR-6 which, as compared to earlier years, calls for a plethora of additional disclosures. Some of these disclosures, such as corporate social responsibility (CSR) expenditure, relate to new regulations applicable to India Inc for the first time during the financial year 2014-15. Others have been introduced to enable tax authorities to keep better track of overseas assets and income.The latter could help tax authorities detect money laundering. For the year ended March 31, 2015, India Inc has incurred for the first time expenditure towards CSR. Such expenditure is not treated as business expenditure under section 37 (1) of the I-T Act and is not allowed as a deduction for tax purposes (in

The Central Board of Direct Taxes (CBDT) has prescribed forms ITR-3 to ITR-7 for taxpayers such as sole proprietors (businessmen or professionals), limited liability partnerships, partnership firms, Hindu Undivided Families (HUFs) and companies (see table). It has also notified that foreign portfolio investors (FPIs) have to file their tax returns using ITR-6. These entities are now required to state their Sebi registration number. In India, long-term capital gains arising on sale of Indian securities via a stock market against which securities transaction tax (STT) has been paid are exempt from capital gains tax. In contrast, shortterm capital gains are taxable in India. However, under a few tax treaties -such as the tax treaty with Mauritius -even short-term capital gains are tax-exempt in India. The ITR-6 form now calls for detailed disclosure of short-term capital gains by non-resident taxpayers (which would include FPIs) who have availed of treaty benefits. These taxpayers are re

1.  Merely because the assessee made a claim which is not acceptable ipso facto cannot be said to have made a wrong claim by furnishing inaccurate particulars attracting penalty under Section 271(1) (c) of the Income Tax Act.[ Principal CIT vs. G.K. Properties PVT LTD, Andhra High Court] 2.  Versions of company forms 20B, 23AC, 21A, 23ACA, 66, 23ACA (XBRL), 4 LLP, FC-4, 23B, and FC-1 are modified w.e.f. 01.08.2015. 3.  VAT not applicable on transfer of right to use of goods if effective possession and control of the goods are not transferred.[ High Court of Delhi: Hari Durga Travels vs. CTT] 4.  Exemption applicable to “execution of works contracts relating to buildings, bridges, roads and canals” under Rajasthan Sales Tax Act, also extends to fixing profile safety steel barriers at hazardous locations on national highway, as the same are relatable to roads itself. [Rajasthan High Court CTO vs. Penar Industries Ltd] 5.  RBI has reviewed the guidelines on restructuring of advan

Despite lawmakers’ severe criticism of a high-level committee that has recommended an overhaul of India’s main environmental laws, environment minister Prakash Javadekar on Wednesday said amendments to country’s six green laws would be ready by October-November. The environment ministry formed a high-level committee led by former cabinet secretariat TSR Subramanian in August 2014 to review India’s six major environmental laws—Environment (Protection) Act, 1986, Forest (Conservation) Act, 1980, Wildlife (Protection) Act, 1972, the Water (Prevention and Control of Pollution) Act, 1974, the Air (Prevention and Control of Pollution) Act, 1981 and the Indian Forest Act 1927. The idea was to bring them in line with current requirements in the country. The committee in its report in November 2014 recommended a major overhaul of the environmental sector. But it came under severe criticism from opposition parties as well as activists who alleged that it has done a hurried job without pr

As corporate India gears up to switch to a new accounting standard ( Ind- AS) from FY17, the government has set up a committee to assess the impact of minimum alternate tax (MAT) on companies under the new accounting regime. The committee, supervised by the Central Board of Direct Taxes ( CBDT), has experts from the Institute of Chartered Accountants of India ( ICAI), taxation and senior officials of the tax department as its members. The committee will look at ways to resolve the differences, arising in MAT computation when a company adopts the International Financial Reporting Standards- compliant Ind- AS. Several industry bodies had earlier made a representation to the CBDT that the issue of higher incidence of MAT on companies that follow the new accounting standard was making them cagey. Speaking at a conference on financial reporting, Rajesh Kumar Bhoot, director, CBDT, said the committee was expected to submit its report by October. Tax experts said companies that were c

GST bill will be amended to say that states will be compensated ‘for 5 years’ rather than up to five years The National Democratic Alliance (NDA) government set the stage for ambitious reform legislation to roll out the goods and services tax (GST), with the cabinet on Wednesday signing off on amendments to the GST bill to be tabled in the Rajya Sabha. The cabinet also approved a proposal to set up a fund to kick-start stranded infrastructure projects and a bill to replace the Consumer Protection Act, 1986, which would bring e-commerce companies under the consumer protection and competition laws, aimed at safeguarding the interests of online shoppers. The cabinet accepted most of the changes in the GST legislation proposed by a Rajya Sabha select committee that submitted its report to Parliament last week, seeking to break an impasse on the bill that’s seen as one of the most important tax reforms in post-independence India. The government has agreed to change the language pr

Initiating action for non-compliance, the Corporate Affairs Ministry has asked many unlisted companies to explain why they have not appointed women directors on their boards as mandated under law. Thousands of corporates are required to have at least one woman director on their boards under the provisions of the Companies Act, 2013. Noncompliance can attract penalties. The ministry has decided to initiate action after noticing that many companies are yet to comply with the woman director norms, according to sources. The Registrar of Companies (RoC) has started issuing show-cause notices to unlisted firms in this regard, sources said. Certain class of unlisted companies were required to have at least one woman director on their boards by March 31, 2015. Most provisions of the new law for companies came into effect from April 1, 2014. After receiving their responses, the ministry would decide on appropriate action against such companies and under the Act, penalties can also be