Direct Tax Laws & International Taxation - November 2017 MTP

(i) Mr. Priyank is an eligible assessee engaged in eligible business, since he is a resident individual, being a retailer, whose total turnover does not exceed Rs. 2 crore. Therefore, he is eligible to opt for presumptive taxation scheme under section 44AD and declare presumptive income@8% of total turnover [6%, in respect of the amount of turnover received by way of account payee cheque or account payee bank draft or use of ECS through a bank account during the previous…

Computation of total income RBL Corporation LLP for the A.Y.2017-18 Particulars Profits and Gains from Business or Profession Net profit as per profit and loss account (Rs. 10,25,000 + Rs. 20,50,000) Add: Items debited to profit & loss account but not allowable as deduction/to be considered separately Rs. 30,75,000 (1) (2) (3) (4) Interest on capital payable to partners in excess of 12% disallowed under section 40(b) (Rs. 100 lakhs × 3%) Working Partner’s salary (to be considered separately) Depreciation…

(a) As per section 32(1)(iia), an assessee engaged in the business of manufacture or production of any article or thing or engaged in the business of generation, transmission or distribution of power is entitled for an additional depreciation @ 20% of the actual cost of such plant & machinery acquired and installed. Additional depreciation shall, however, not be available in respect of those plant & machinery which, before its installation by the assessee, were used either within India or outside…

(a) The issue under consideration is whether B Ltd. can claim depreciation on the excess consideration paid by it over the value of net assets acquired from A Ltd. in a scheme of amalgamation, by treating the same as goodwill, and considering it as an intangib le asset within the meaning of Explanation 3 to section 32(1). This issue came up before the Supreme Court, in CIT v. Smifs Securities Ltd. (2012) 348 ITR 302, wherein it was observed that…

Computation of tax liability of Watson for the A.Y.2017-18 Particulars Income taxable under section 115BBA Income from participation in matches in India Advertisement of product on TV Contribution of articles in newspaper Income taxable under section 115BB Income from horse races Total income Tax@ 20% under section 115BBA on Rs. 6,10,000 Tax@ 30% under section 115BB on income of Rs. 20,000 from horse races Rs. Rs. 5,00,000 1,00,000 10,000 20,000 6,30,000 1,22,000 Add: Education cess@2% and SHEC@1% 6,000 1,28,000 3,840…

(a) Section 2(24) defining income, includes within its fold, assistance in the form of a subsi dy or grant or cash incentive or duty drawback or waiver or concession or reimbursement, by whatever name called, by the Central Government or State Government or any authority or body or agency in cash or kind to the assessee, other than – (1) the subsidy or grant or reimbursement which is taken into account for determination of actual cost of the asset in…

(i) Section 192 requires deduction of tax from salary at the time of payment. Thus, the employer is not required to deduct tax at source when salary has not been paid but is merely credited to the account of the employee in its books of account. Victory Ltd. therefore, is not required to deduct tax at source in respect of the salary merely credited to the account of employee Sunny which is not paid. If salary has been paid during…

M/s. ABC Corporation, a partnership firm, has earned a gross total income of Rs. 300 lacs for the year ended 31-3-2017. The firm has not undertaken any international transaction or specified domestic transaction during the said year. The above includes a profit of Rs. 220 lacs from an industrial undertaking having a turnover of Rs. 80 crores. This is the fourth year and deduction under section 80-IA of the Income-tax Act, 1961 is available to the extent of Rs. 200…