Lower TDS under section 194LC extended to any type of long term foreign currency bonds.

Lower TDS deduction at the rate of 5% under section 194LC extended to any type of long term bonds raised in foreign currency subject to compliance of conditions specified under circular 15/2014.

Section 194LC of the Income-tax Act, 1961, introduced by the Finance Act 2012,provided for lower withholding tax at the rate of 5% on the interest payments by Indian companies on borrowings made in foreign currency by such companies from a source outside India. The benefit was available in respect of borrowings made either under an agreement or by way of issue of long term infrastructure bonds. Continue reading

Income Tax Refund cheques deliver on new address provided by J&K taxpayers

Income Tax Department for processing income tax refund given a option to the taxpayers residing in the state of Jammu & Kashmir, to provide new address for delivery of refund cheques,

The recent floods in Jammu & Kashmir which claimed more than 280 lives and destroyed property worth thousands of crores and State had never witnessed such type of disaster before. As per the initial assessment reports on the damages to the private property, a total of 353864 structures have been damaged. “83044 pucca houses have been fully damaged and 96089 partially. Similarly, 21162 kachha houses were fully damaged and 54264 partially damaged besides 99305 huts, cowsheds, were also damaged.

Due to this natural disaster, person who resides there & affected by flood relocate themselves and Income tax department come forward to help them by giving option to provide new address for delivery of income tax refund cheques.

Refer below circular dated 15/10/2014 Continue reading

On transfer of technical manpower upto 50%, deduction u/s 10A/AA cannot be denied.

Mere transfer or redeployment of existing technical manpower to the extent of “50% of total technical manpower actually deployed in new unit” from an existing unit to a new SEZ unit in the first year of commencement of business will not construed as splitting up or reconstruction of an existing business. Hence deduction under section 10A or 10AA of the act cannot be denied.

Earlier, CBDT had issued circular no. 12/2014 dated 18th July, 2014 to clarify that mere transfer or re-deployment of existing technical manpower from an existing unit to a new SEZ unit in the first year of commencement of business will not be construed as splitting up or reconstruction of an existing business, provided the number of technical manpower so transferred does not exceed 20 percent of the total technical manpower actually engaged in developing software at any point in the given year in the new unit.
Continue reading

Taxation of ‘ AIF ‘ non-charitable trusts in the hand of trustees

CBDT clarify that if the trust deed does not specify the name of investors and their beneficial interest, then entire income of the Alternative Investment Funds shall become liable to be taxed at the Maximum Marginal Rate of income -tax in the hands of the trustees of such AIF’s in their capacity as ‘Representative Assessee’.

It is also clarified that in such cases, No assessment of same income shall be conduct in the hands of investor by invoking section 166, since the corresponding income has already been taxed in the hands of the ‘Representative Assessee’ under section 164(1) of the Act. Continue reading