Page 8 - Income Tax Act

Top 10 biz headlines: Firms may get tax relief, fresh DHFL default & more

From DTC task force recommending slashing of corporate tax to 25% for domestic and foreign firms to DHFL defaulting on financial repayment obligations, here are the top business headlines for Tuesday

Tax terrorism: Embedded in laws & practice

Blaming tax officials will not help us get to the root of the issue. The problem is government itself, in two important ways

DTC task force likely to submit report to Nirmala Sitharaman on Monday

The government last month expanded the scope of the task force to look into five more areas

Income Tax dept relaxes assessment and scrutiny norms for start-ups

In cases where start-ups are recognised by the DPIIT but scrutiny involves wider issues, the I-T dept has asked its field formations not to pursue the issue of angel tax during assessment proceedings

New direct tax code panel report to overhaul I-T Act delayed by 15 days

This is the second extension for the taskforce under the CBDT member Akhilesh Ranjan

FM bowls a googly: Living on the edge with widening black money net

A threat of getting prosecuted under both Income Tax Act and Black Money Act

Budget 2019: Sitharaman extends capital gains benefits for entrepreneurs

The government had introduced Section 54GB in FY13

Here's how to avail benefits under Section 54 and 54F when buying a house

Remember that under Section 54, exemption is allowed on the lower of the two - capital gains or the amount invested in a new house

Why promotional expenses have been a subject matter of tax litigation

Domestic entities that incur huge advertising, marketing and promotion expenses are helping create marketing intangible for a foreign associates enterprise, says M S Ananth of Nishith Desai Associates

Enough provisions to scrutinise accounts of political parties, says CBDT

There are enough provisions in the Income Tax Act to scrutinise the accounts of political parties even though their income is tax exempt, says govt

I-T amendment bill is unleashing tax terrorism on India: Congress

The party also said the Prime Minister Narendra Modi has created an "artificial drought" in the country and demonetisation is a "panic strike" on the people of the country.

Subsidies counted for tax benefit

The Supreme Court has ruled that subsidies given as incentives to industries set up in backward areas are deductible under the Income Tax Act. In a large number of appeals moved by the commissioner of income tax against judgments of the Gauhati high court, the apex court rejected the contention of the tax officials that amounts received as subsidies were revenue receipts and did not qualify for deduction under Section 80.The revenue authorities argued that as Section 80 spoke of profits and gains "derived from" any business, such profits and gains must have a direct nexus with the business. Subsidies do not have such a nexus and are grants from the government. Rejecting the argument, the Supreme Court ruled that so long as profits and gains emanated directly from the business itself, the fact that the immediate source of the subsidies is the government would make no difference, as subsidies like transport and electricity are only to reimburse costs actually incurred in the manufactur