07 Jan 2021

Owing to the ongoing COVID pandemic situation in the country and the resultant disruption in normal business operations, several representations from professional bodies and other stakeholders were made to the Hon’ble Finance Minister to further extend the due dates for Income Tax Audit, GST Audit and filing of Income tax returns.>>

Share this:
30 Nov 2020

In a bid to provide an additional boost to the economy, as well as the home buyers, the Union Finance Minister – Nirmala Sitharaman, has announced a new stimulus package under Atma Nirbhar Bharat 3.0, on November 12, 2020.  As per the announcement, the acceptable difference between the ‘circle rate’ and the ‘agreement value’ for residential properties has been hiked from the existing 10% to 20%. The tax sop announced is expected to provide relief both to Developers as well as to Buyers, on the notional gains on which income tax is paid by them. The relief, which has been made effective from November 12, 2020, and will be applicable until June 30, 2021, is applicable only on the primary purchase of residential unit of value up to Rs. 2 crores.>>

Share this:
12 Aug 2019

The government has introduced a slew of tax measures in the union budget 2019 directed at taxing rich individuals and entities. One of these measures was the proposal to levy tax on listed companies when they buy back shares from the shareholders. The imposition of 20% tax on share buyback which was earlier applicable only to unlisted companies drew in a lot of flak and concerns from corporate giants. The stipulation was brought in as an anti-abuse provision to discourage buyback of shares and encourage dividend distribution to shareholders in case of surplus earnings by a companyThere was a feeling that listed companies took to the buy-back route to avoid paying the dividend distribution tax (DDT) pegged at an effective rate of 20.5576%. Therefore, it was deemed essential to plug this loophole that corporates were exploring to evade taxes. However, it is unfair to look at the corporate action of share buyback from such a narrow perspective. Apart from being a tax saving option, buyback also increases earnings per share of the company, avail positive debt-equity ratio and facilitates an exit route to shareholders. On that account, the government needs to issue clarification regarding the applicability of the announcement to existing buyback proposals and other legal implications of the same >>

Share this:
27 Feb 2018

From a tax perspective, 2017 was eventful for India. It witnessed application of GAAR (General Anti Avoidance Rules) from April 1, 2017, shifting of the indexation base year from 1981 to 2001[1] for the purpose of capital gains taxation, reduction in corporate tax rate to 25 % for companies having a turnover less than INR 50 Crores among various other tax reforms.>>

Share this:
05 Aug 2016

The government’s efforts to make India more business and investment friendly involve structural changes, regulatory amendments as well as a thrust on economic diplomacy. The Draft Model for India’s Bilateral Investment Treaty (“BIT”) released by the government in 2015 is one more instrument that has significant potential to attract foreign investment into India while also encouraging Indian businesses to expand globally.>>

Share this:
23 Jul 2014

“Every tax ought to be so contrived as both to take out and keep out of the pockets of the people as little as possible over and above what it brings to the public treasury of the state” wrote Adam Smith in The Wealth of Nations (Book V, Chapter II, Part II).Taxes are a critical component of any government’s revenue. Hence, the rates and collection mechanisms must be judicious so that taxpayers are not overburdened. That alone will ensure improved tax collections- which is one of the avowed objectives of the transition to a GST regime.>>

Share this:
15 Jun 2014

The service sector accounts for more than 50% of India’s GDP and hence the study of tax on services is of great relevance. As and when it comes into effect, the GST regime is expected to subsume service tax. Therefore, issues in the present scheme of things under service tax may impede functional efficiency of the new GST regime.>>

Share this: