Shubham Goel & Associates

01/07/2020

06/09/2019

Profit from sale of land after converting it into various plots not taxable as business profit: HC

INCOME TAX : Where AO held that profit arising from sale of land was business income of assessee because he had divided said land into plots after providing space for infrastructural facilities, in view of that Assessing Officer had not brought on record any permission by assessee from Municipal Authorities or any of Government Authorities to act as a colonizer and, moreover, mere development of infrastructual facilities to make land saleable would not change intention of assessee in absence of any other material contrary to facts, impugned order was to set aside and profit in question was to be taxed as capital gain

[2019] 108 taxmann.com 224 (Rajasthan)
HIGH COURT OF RAJASTHAN
Commissioner of Income-tax, Alwar
v.
Hazarilal Goyal*

Taxmann is the most reliable online source for research on income tax, indirect tax & GST, company law, IFRS, Ind AS & international taxation related information.

16/03/2019

Life of a PPF account:

A PPF account has lock in period of 15 years after maturity, a subscriber has the option to extend the maturity period of the PPF account in a block of 5 years. The account can be extended for 'N' number of blocks of 5 years each. It will continue to earn the prevailing interest rate even if you do not make any contributions. However, this extension must be given within a year of maturity.
During the 5 year blocks, you can only withdraw once a year. However, the amount that can be withdrawn during the five years cannot not be more than 60 per cent of the balance at the start of block.

24/02/2019

Another blow to real estate industry...If inventory remains unsold by 31.3.19, industry is going to loose good amount of input tax credit from today's decision of the GST Council...Already troubled Real Estate Sector, going to face another heat......

22/02/2019

*MCA froms filing 2019* :

Forms to be filled for this year:

# Initial MSME 1 : within 30 days from date of availability of form on MCA portal

# One time DPT 3 : within 90days from date of notifications i.e 20th April 2019

# E form Active ( INC 22A) : on or before 25the April 2019

# DIN 3KYC : on or before 30th April 2019

# MSME 1 (1st half) : on or before 30th April 2019

DPT 3 : on or before 30th June 2019

# Annual Filling AOC 4: on or before 29th October 201.9

# MSME 1 (2nd half) : on or before 30th October 2019

Return MGT 7: on or before 28th November 2019

22/02/2019

The Government has issued The Banning of Unregulated Deposit Schemes Ordinance 2019 on 21.02.2019. Pursuant to this ordinance now any Individual or group of individuals can’t take any deposit or loan from any person other than relatives and Partnership firm can take deposit or loan from relatives or partner or partners only.

22/02/2019

Active Comparny Tagging Identities and Verification (ACTIVE).-

Everycompany incorporated on or before the 31 December,2017 shall file the particulars
of the company and its registered office, in E-Form ACTIVE (Active Company Tagging
Identities and Verification) on or before 25.04.2019. If not filed than Company become "Active Non Compliant"

After 25.04.2019 penalty of Rs.10,000 is payable to make company "Active Compliant"

If not filed then company can not file-
1. Increase in Authorised Capital (SH-7)
2. Increase in Paid up capital (PAS-3)
3. Director appointement resignation (DIR-12)
4. Change in Registered office.(INC-22)
5. Any order from Competent Authority (INC-28)

Attachment "Photograph of Building of registered office showing external building and internal office showing at least one director or KMP who is signing the E-form

03/10/2016

MCA introduced SPICE (Simplified Proforma for incorporating Company electronically) w.e.f. 02.10.2016 in e-form INC-32.

Highlights of INC-32

· This form can be file even after approval of INC-1. This facility was not provided in INC-29.

· Memorandum of Association has been provided in Electronic Mode INC-33.

·Article of Association has been provided in Electronic Mode INC-34.

·By new e-MOA & AOA no need of signatures of subscribers, Instead of sign of subscribers DSC of Subscribers can be affix on MOA & AOA.

·By new e-MOA & AOA no need of signatures of witness, Instead of sign of witness DSC of witness can be affix on MOA & AOA.

·Information in the form is increased in comparison of INC-29.

02/10/2016

Whether TDS has to be done on Interest paid to NBFC

Many Small and Medium Enterprises (SME) borrow money (unsecured loans) from Non-Banking Financial Companies (NBFC). Whether interest paid on such loan attracts TDS provisions is a question frequently asked by the accountants. Here is the answer.

As per Section 194A of the Income Tax Act, 1961 a business enterprise (proprietary concern covered u/s Section 44AB, company, firm, etc) has to deduct tax (TDS) on the interest payable towards the loan from NBFCs.

Why this provision may miss the attention of the companies?

The repayment of NBFC loan is done on Equated Monthly Installments (EMI) basis. The institutions will either collect post dated cheques or get the mandate signed for Electronic Clearing Service (ECS) from the bank. So, the borrower will have no opportunity to deduct tax and pay the balance interest to the financial institution. Obviously, this provision of TDS misses the attention of the company and thus violates the Section 194A of Income Tax.

What will happen if TDS is done?

Suppose, you have to pay an annual interest of Rs.1,00,000 to a NBFC (say, Cholamandalam Finance), deduct tax at 10% and deposit to the government account. If it is not done, 30% of interest i.e., Rs.30,000 will be disallowed from your expenditure u/s 40(a) (ia).


In case of EMI, how to deduct Tax?

This is a common problem faced by all companies. As I have already mentioned, the interest is paid as EMI and the company will not have any option of deducting tax and paying the balance interest.

In such cases, the borrower has to pay TDS at the applicable rate (currently it is 10%) and remit it to the government. On quarterly basis, file ETDS return and issue Form 16A to NBFC.

While submitting Form 16A, make a covering letter asking them to refund TDS amount. Maybe with a little perseverance, you will get your money back.

Exemptions from deduction of TDS: The Income Tax department provides certain exemptions from TDS u/s 194A and some of them are –

Interest paid on loans from banks, co-operate societies, LIC or Public financial institutions (such as State Finance Corporation), Insurance company or UTI
Interest paid by the firm to its partners
If the interest paid during the financial year is less than Rs.5000
Compiled by :CA Prasad
This is not a legal opinion.