INCOME TAX ACCOUNTING STANDARDS

INCOME TAX ACCOUNTING STANDARDS FOR COMPUTATION OF INCOME CHARGEABLE TO INCOME TAX

CBDT notified the ten “income computation and disclosure standards” to be followed by all assessees, following the mercantile system of accounting, for the purposes of computation of income chargeable to income-tax under the head “Profit and gains of business or profession” or “ Income from other sources”.

The Notified Standards are relating to :- Continue reading

Tolerable limit for determination of Arm Length Price changed

Tolerable limit for determination of Arm Length Price with respect to international transactions and specified domestic transaction has been notified separately for “wholesale trading” and “cases other than wholesale trading” at the rate of 1% and 3% respectively.

The “arm’s length principle” of transfer pricing states that the amount charged between related parties for a given product must be the same as if the parties were not related. An arm length price for a transaction is therefore what the price of that transaction would be on the open uncontrollable market. For commodities, determining the arm’s-length price can sometimes be as simple a matter as looking up comparable pricing from non-related party transactions, but when dealing with proprietary goods and services or intangibles, arriving at an arm’s length price can be a much more complicated matter. Continue reading

NIL TDS Certificate issued to each deductor separately

With effect from 24th September, 2014, Certificate for NIL TDS under section 197 to be issued to each deductor separately. No Nil TDS Certificate shall be valid if issued otherwise than to the person responsible for deducting the tax. However, common certificate for lower deduction of TDS to be issued to deductee only. Notification No. 46/2014 w.e.f 24-09-2014. Continue reading

Due Date for filling ITR extended to 30th November 2014

Due Date for filing ITR extended for Assessment Year 2014-15 from 30th September, 2014 to 30th November, 2014 in Specified Cases.

As per the provisions of the Income-tax Act, 1961 (‘the Act’), for an assessee, who is required to obtain Tax Audit Report (TAR) under section 44AB of the Act, the due date for furnishing his return of income is 30th September of the Assessment Year.

The Central Board of Direct Taxes (‘the Board’) vide order dated 20th August, 2014 extended the due date for obtaining and furnishing of Tax Audit Report under section 44AB of the Act for Assessment Year 2014-15 from 30th September, 2014 to 30th November, 2014. Subsequently, a number of representations were received in the Board requesting for extension of the due date for furnishing of return of income also. Writ petitions were also filed in various High Courts for directing the Board to extend the due date for furnishing of return of income from 30th September, 2014 to 30th November, 2014 in conformity with the extension of the due date for filing of Tax Audit Report. Continue reading