Income Tax

Section 43CA has been inserted as an anti-avoidance measure to provide that where the consideration for the transfer of an asset (other than capital asset), being land or building or both, is less than the stamp duty value, the value so adopted or assessed or assessable (i.e., the stamp duty value) shall be deemed to … Read more

Section 40A(7) provides that no deduction would be allowable to any taxpayer carrying on any business or profession in respect of any provision (whether called as provision or by any other names) made by him towards the payment of gratuity to his employers on their retirement or on the termination of their employment for any … Read more

Section 115BB This section provides that income by way of winnings from lotteries, crossword puzzles, races including horse races or card games and other games of any sort or from gambling or betting of any form would be taxed at a flat rate of 30% plus surcharge, if applicable, plus health and education cess@4%. However, … Read more

Conditions for Section 54D There must be compulsory acquisition of land and building or any right in land or building forming part of an industrial undertaking. The land and building should have been used by the assessee for purposes of the business of the industrial undertaking in the 2 years immediately preceding the date of … Read more

What is Slump Sale? As per section 50B of the Indian Income Tax Act, Slump sale means transfer of one or more undertakings, by any means, for a lump sum consideration without values being assigned to the individual assets and liabilities in such transfer. Capital gains – Whether long-term or short-term? [Section 50B(1)] Any profits … Read more

Section 46(1) – No capital gain to company on distribution of assets to shareholders on liquidation: Wwhere the assets of a company are distributed to its shareholders on its liquidation, such distribution shall not be regarded as a transfer by the company. Therefore, there will be no capital gain to the company. Section 46(1) has … Read more

If an agreement is entered into under this section, the effect of the same shall be as under:- (i) If no tax liability is imposed under the Income-tax Act, the question of resorting to the agreement would not arise. An agreement cannot impose any tax liability where the liability is not imposed by the Act. … Read more