S. Jaykishan

Chartered Accountants

Author Archive for S Jaykishan

SECTION 276B

Offences u/s 276B and Compounding

By CA Puja Borar and Vivek Sethia

Section 276B of the Income Tax Act, 1961 deals with the failure to pay tax to the credit of the government and punishment under the said provision carries a rigorous imprisonment varying from three months to seven years of jail along with fine. But if there is no reasonable cause for such failure, then the application for compounding may be made. The Article seeks to discuss all the key aspects […] Read More >>


Payments to Non Residents – Grossing Up and Section 206AA

Payments to Non Residents – Grossing Up and Section 206AA

By CA Puja Borar

The provisions of Section 195 read with Section 206AA has been surrounded with increased controversies and complexities. This Article seeks to discuss the interoperability of Section 195, 195A and Section 206AA in the light of judicial pronouncements in relation to the same. It intends to analyze the various possible ways of determining the withholding tax in respect of remittance made to a non-resident beneficiary in the absence of […] Read More >>


Wealth Tax

Wealth Tax

The CBDT has vide its notification dated 23.06.2014, notified Wealth-tax (1st amendment) Rules, 2014 which substitutes the existing Form of return of net wealth with a new form. The new Form prescribes certain new reporting clauses and substitutes some existing clauses with new ones. In the said rules, Form BB has been inserted in the Appendix after the existing Form BA.

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Key takeaways from the new form 3CD

Key takeaways from the new form 3CD

The CBDT has vide its notification dated 25.07.2014, notified Income-tax (7th amendment) Rules, 2014 which substitutes the existing Form No. 3CD with a new form. The new Form 3CD prescribes certain new reporting clauses and substitutes some existing clauses with new ones. The new form requires tax auditor to furnish more and detailed information in the new form for tax audit report.

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Income from Alternate Investment Fund to be taxed at 30%

Income from Alternate Investment Fund to be taxed at 30%

The income of Alternative Investment Funds (AIF) shall be taxed at the rate of 30 per cent. Such funds basically pool in money from domestic and overseas investors and invest on the basis of a pre-determined policy. The Central Board of Direct taxes was requested to clarify whether the income of such funds would be taxable in the hands of investors (contributors to the fund) or the trustees of the fund […] Read More >>


Liberalised Remittance Scheme (LRS) for resident individuals – Increase in the limit from USD 75,000 to USD 125,000 and its utilization for acquisition of immovable property

Liberalised Remittance Scheme (LRS) for resident individuals

RBI vide A.P.(DIR Series) Circular No. 138 dated June 3, 2014, has enhanced the existing limit of USD 75,000 per financial year (April-March) in respect of the Liberalised Remittance Scheme for resident individuals to USD 125,000 per financial year (April-March). Accordingly, AD Category – I banks have been allowed to remit up to USD 125,000 per financial year, under the Scheme, for any permitted current or capital account transaction or a combination of both.

It […] Read More >>


Financial Commitment (FC) by Indian Party under Overseas Direct Investments (ODI) – Restoration of Limit

Financial Commitment (FC) by Indian Party under Overseas Direct Investments

In an attempt to shore up the rupee, former RBI chief Duvvuri Subbarao vide A.P. (DIR Series) Circular No. 23 dated August 14, 2013 had limited the overseas investment by Indian companies to 100% of their net worth from the existing 400%. Assessing the improvements in the market scenario, and the appreciation in rupee from the last years recorded low levels against dollar, RBI has again relaxed the norms for overseas […] Read More >>