S. Jaykishan

Chartered Accountants

Direct Taxation

Revenue recognition for real estate developers – Indian GAAP vs ICDS

Revenue recognition for real estate developers  – Indian GAAP vs ICDS

-By CA Vivek Newatia

Real estate as a subject has always been of interest to all professionals considering the complex implications of the transactions – legal, accounting or taxation. One question which has perplexed everyone is whether revenue in the books of real estate developers should be recognised on percentage completion method (POCM) or project completion method/ completed contract method (CCM).

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Controversies surrounding Section 14A of the Income Tax Act

Controversies surrounding Section 14A of the Income Tax Act

-By CA Vivek Newatia
-By CA Puja Borar

Section 14A introduced by the Finance Act 2001 with retrospective effect from 1st April 1962 has been one of the most litigated provisions with different courts interpreting it differently. The Section provides for disallowance of such expenditure which is incurred in relation to income which does not form part of the total income.

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Budget 2016

Budget 2016

– By Team S.Jaykishan

The Union Budget for the year 2016-17 was presented by the Finance Minister in the parliament on 29thFeb 2016.The Government has announced a series of measures to reduce litigation and rationalisation of tax proposals. The nine point agenda mentioned in the budget speech is a welcome move.The Government is set to introduce a framework for Base Erosion and Profit Shifting (BEPS), a global agreement to check tax avoidance by multinationals, making it difficult for the MNCs […] Read More >>


Budget 2015

Budget 2015

– By Team S. Jaykishan

The Union Budget for the year 2015-16 was presented by the Finance Minister in the parliament on 28th Feb 2015. This being the first full budget by the new government, expectations were running high. Significant announcements were made by the Hon’ble Finance Minister in his speech. He emphasized on curbing black money generation and coming down heavily on tax evaders. Emphasis was given on stability of tax regime and clear focus was seen on promoting […] Read More >>


Disallowance u/s 14A with reference to a dealer of shares and securities

Disallowance u/s 14A with reference to a dealer of shares and securities

– By CA BK Newatia

Right from its inception, the scope of section 14A of the Income Tax Act, 1961 has been a subject matter of controversies and litigation between the tax payers and the tax collectors. One of the issues, surrounding disallowance u/s. 14A, is the possibility of disallowance of an expenditure in the hands of a dealer of shares and securities, who holds such shares and securities […] Read More >>


Income Computation and Disclosure Standards – An Overview

Income Computation and Disclosure Standards – An Overview

– By CA Vivek Newatia, CA Puja Borar

As per the provisions of Section 145, Income chargeable under the head “Profits and gains of business or profession” or “Income from other sources” shall be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee.
The Central Government has been empowered by the provisions of sub-section 2 of Section 145 to notify the Income Computation and Disclosure Standards for any […] Read More >>




Budget 2014

Budget 2014

-By Team S.Jaykishan

The article contains an analysis of the new provisions introduced and the amendments to the existing ones by the Union Budget 2014-15 presented by the Finance Minister on July 10, 2014. The first budget in 10 years by a non-UPA government has announced a roadmap of policy initiatives that is likely to lead the economy back to 7-8% growth levels in the next 3-4 years. The government also aims to stabilize the macro-economy with lower levels of […] Read More >>