No additional income tax u/s 115R on redemption/repurchase/allotment of bonus units

CBDT clarify that section 115R is applicable only in respect of  income distributed by way of dividend.

No additional income tax is required to be paid by a specified company or a mutual fund in respect of redemption/repurchase of units as well as at the time of allotment of bonus units to existing units.

Consequently CBDT also clarify that the benefit of exempt income under section 10(35) is only available in respect of dividend distribution and normal tax shall be payable by assessee on redemption/repurchase/allotment of bonus units as per Income Tax Act.

Refer Circular  Continue reading

Disallowance u/s 14A irrespective of Exempt Income earned or not during the relevant FY

There was controversy that whether disallowance can be made invoking section14A of the Act even in those cases where no income has been earned by an assessee which has been claimed as exempt during the financial-year.

Now CBDT issued the clarification that the disallowance of expenses by invoking section 14A shall be made irrespective of the fact that exempt income has been earned or not during the relevant financial year.

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Due Date of TDS Return extended for Government Deductor

Due date of filling TDS/TCS statement by government deductor/collector is hereby extended to 31.03.2014 for –

  1. FY 2012-13 – 2nd to 4th Quarter
  2. FY 2013-14 – 1st to 3rd Quarter

Further CBDT also clarified that ‘fees under section 234E’ of the Act already paid in consequence of late filling of TDS/TCS statement by a Government deductor shall not be refunded.

CBDT also sweetly reprimand  the government deductor/ collector that the above extension is one time and no extension shall be available in future and advised the deductors/collectors to co-ordinate with the respective PAO/DTO/CDDO to ensure timely receipt of BIN/filing of TDS/TCS statements.

Refer Circular  Continue reading