Settled view on Deemed Dividend u/s 2(22)(e)

The CBDT vide Circular No.19/2017 dated 12/06/2017 provided a settled view on deemed dividends u/s section 2(22)(e).

The section reads as follows:

Section 2(22) clause (e) of the Income Tax Act, 1961 (the Act) provides that “dividend” includes any payment by a company, not being a company in which the public are substantially interested, of any sum by way of advance or loan to a shareholder, being a person who is the beneficial owner of shares (not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits holding not less than ten per cent of the voting power, or to any concern in which such shareholder is a member or a partner and in which he has a substantial interest (hereafter in this clause referred to as the said concern) or any payment by any such company on behalf, or for the individual benefit, of any such shareholder, to the extent to which the company in either case possesses accumulated profit.

Based on the various decisions in courts namely CIT vs. Creative Dyeing & Printing Pvt. Ltd., CIT vs Amrik Singh,  CIT, Agra vs Atul Engineering Udyog  the board has settled that  trade advances, which are in the nature of commercial transactions would not fall within the ambit of the word ‘advance’ in section 2(22)( e) of the Act.

It also provided that henceforth appeals may not be filed on this ground.

Find the entire circular below:

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Cost Inflation Index with 2001-02 as base year announced for the purposes of Capital Gains

Central Government  vide S.O. 1790(E) has notified Cost Inflation Index with base year as 2001-02 for the purposes of Capital Gains calculation under The Income Tax Act, 1981.

Sl. No. Financial Year Cost Inflation Index
1 2001-02 100
2 2002-03 105
3 2003-04 109
4 2004-05 113
5 2005-06 117
6 2006-07 122
7 2007-08 129
8 2008-09 137
9 2009-10 148
10 2010-11 167
11 2011-12 184
12 2012-13 200
13 2013-14 220
14 2014-15 240
15 2015-16 254
16 2016-17 264
17 2017-18 272

Find the entire notification below:

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Extension of Date of furnishing of SFT under Section 285BA of the Act (F.No.279/Misc./M-63/2017-ITJ)

The CBDT has extended the date of filing of Statement of Financial Transactions by reportable entities of reportable transactions as specified in Rule 114E of Section 285BA of The Income Tax Act,1961 for A.Y. 2017-18 FROM 31st May, 2017 to 30th June, 2017 by issuing an order under section 119 of the act dated 31st May, 2017.

Read the order below:

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Chapter wise GST rates for goods.

Click on the link below for  chapter wise rate of GST on goods-

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State Budget:Tamil Nadu-2017-18-English version.

Budget Speech of Thiru D. Jayakumar, Hon’ble Minister for Fisheries, Finance and Personnel and Administrative Reforms, Government of Tamil Nadu,  for the year 2017-2018 to the Legislative Assembly on 16th March, 2017. Read the rest of this entry »

Section-115BBF:Tax on Income from Patent.

With effect from 01.04.2017 new section 115BBF has been inserted which relates to taxation of income from Patents-

Under the section if income of an assesse includes any income from royalty in respect of a patent developed and registered in India, the income tax payable shall be sum of-

1.10% of Income by way of royalty from patent.

2.Tax on Income excluding the income from royalty from patent.

The section however states that no deduction shall be allowed to the eligible assesse in computing Income from royalty by way of Patent.

The section also states that where an eligible assessee opts for taxation of income by way of royalty in respect of a patent developed and registered in India for any previous year in accordance with the provisions of this section and the assessee offers the income for taxation for any of the five assessment years relevant to the previous year succeeding the previous year not in accordance with the provisions of this section, then, the assessee shall not be eligible to claim the benefit of the provisions of this section for five assessment years subsequent to the assessment year relevant to the previous year in which such income has not been offered to tax in accordance with the provisions of the section.


Schedule wise Maharashtra VAT rates

Click on the link below for current Schedule wise vat rates for Maharashtra: Read the rest of this entry »