Present Income tax regulations for Gold Holding: An analysis with Case Laws

  There is much speculation that government will seize excess gold holdings by an individual. But the government has clearly said that there is no such intention to do so. But what is the current Income Tax regulation regarding gold holdings? Here’s the answer. Notification: No. 347(E), dated 20-5-1978 says: Section(s) Referred: 132 ,132(11) Statute: INCOME TAX Date of Issue: 20/5/1978 In exercise of the powers conferred by sub-section (11) of section 132 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies every Commissioner, for the purpose of passing orders on applications against any order made under sub-section (5) of the said section by an Inspecting Assistant Commissioner, empowered under sections 125 and 125A of the said Act, in respect of any person within the jurisdiction of the said Commissioner. [No. 2303/F. No.

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Exposure Draft of Revised Guidance Note on Report under Section 92E of the Income-tax Act, 1961 (Transfer Pricing)

  In an era of liberalization and globalization of trade and investment and the emergence of e-commerce, the perceptible results have been – increase in the number of cross-border transactions, the complexity, speed and lack of transparency with which global business can be transacted. There is a general belief that multi-national corporations, in an effort to manage and minimize their global tax outflows, have employed creative transfer pricing approaches in the context of flow of goods, services, funds, intangibles, etc. When transactions are entered into between independent enterprises, the consideration therefore is determined by market forces. However, when associated enterprises deal with each other, it is possible that the commercial and financial aspects of the transactions are not influenced by external market forces but are determined based on internal factors.

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Impact of Demonetisation on Black Money, Widening of Tax Base and Direct Tax Collections

  Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 31st August, 2017 PRESS RELEASE Impact of Demonetisation on Black Money, Widening of Tax Base and Direct Tax Collections The Government launched a concerted drive against black money with Demonetisation being an important step in that direction. Among the main objectives of Demonetisation was the flushing out of black money and also conversion of the non-formal economy into a formal economy to expand the tax base. The impact of Demonetisation on black money, widening of tax base and Direct Tax Collections is summed up hereunder: A. Impact on black money: Quantum jump in Enforcement actions based on Demonetisation data: Searches   158% increase in number of searches (from 447 to 1152 groups) 106%

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ITBA- Conversion of Case from Limited to Complete Scrutiny – Reg.

  ITBA – Assessment Instruction No -4 DIRECTORATE OF INCOME TAX (SYSTEM) ARA Center, Ground Floor, E-2, Jhandewalan Extension, New Delhi –110055 F.No. System/ITBA/Instruction/Assessment/177/16-17/ Dated: 03/05/2017 To All Principal Chief Commissioners of Income-tax/ CCsIT (By Name) All Principal Director General of Income Tax / DGsIT (By Name) All Principal Commissioner of Income-tax/CsIT/CsIT(Admin & CO) (By Name) Sir/Madam, Subject: Launch of Income Tax Business Application (ITBA) – Assessment Module– Phase-4- Functionality for (1) Reference to Valuation Officer and (2) Conversion of Case from Limited to Complete Scrutiny – Reg. This is in reference to the subject mentioned above. The following processes forming a part of the Assessment module are now available to the users in ITBA: (A) Reference to Valuation Officer and (B) Conversion of Case from Limited to Complete Scrutiny. 2.

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DTAA provisions in Income Tax Act will override other provisions in Income Tax Act if beneficial to Tax Payer

  Recently, in Nagarjuna Fertilizers and Chemicals Limited v. ACIT, the Hyderabad bench of the Income Tax Appellate Tribunal held that the provisions of the Double Taxation Avoidance Agreement (DTAA), to the extent they are beneficial to the taxpayer, will override some of the sections of the Income Tax Act, 1961. Coming to the facts of the case, the appellant-assessee,  a Public Limited Company, had made certain payments for technical services to non-residents in 2011-12 and 2012-13. Some payments were made to non-residents in jurisdictions with which India did not have any Double Taxation Avoidance Agreement (DTAA). In such cases, the taxpayer deducted 20 per cent tax at source as the non-residents did not furnish Permanent Account Number (PAN). The income tax department had challenged this because the non-residents did not submit

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TDS cannot deducted from Tips received by Hotel Employees: Case Law

  In a recent judgment by ITAT, TDS cannot be deducted from tips received by hotel employees. The assessee company is engaged in the business of chain of hotels. Survey operation under section 133A of the Income Tax Act, 1961 was carried out at the business premises of the assessee company at Hotel -The Oberoi, New Delhi. During the survey proceedings, it was noticed that the assessee company was in receipt of extra amount known as “TIPS” paid by the guests in cash or through credit cards at the time of settlement of bills in appreciation of good services provided by the service staff. On disbursal of this amount to the employees by the hotel, no tax was deducted. The Assessing Officer required the assessee to explain why under the

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Case Law on PMGKY

  Where person from whom cash was seized during demonetisation 2016 and he was not tried under any provision of law, he would be eligible to deposit amount in PMGKY deposit scheme on or before 31-3-2007.   CWP No.1072 of 2017 IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH CWP No.1072 of 2017 Date of decision:23.01.2017 Vishal Jain … Petitioner Vs. State of Punjab and others … Respondents CORAM: HON’BLE MR. JUSTICE AMIT RAWAL Present:- Mr. Gurmohan Singh Bedi, Advocate for the petitioner. AMIT RAWAL J. Notice of motion. On asking of the Court, Mr.Yatinder Sharma, learned Additional Advocate General, Punjab accepts notice on behalf of the respondents-State. The petitioner has invoked the jurisdiction of Court under Article 226 of the Constitution of India seeking declaration that action

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​Income Tax Department (ITD) launches Operation Clean Money

  Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 31st January, 2017. Press Release Income Tax Department (ITD) launches Operation Clean Money Income Tax Department (ITD) has initiated Operation Clean Money, today. Initial phase of the operation involves e-verification of large cash deposits made during 9th November to 30th December 2016. Data analytics has been used for comparing the demonetisation data with information in ITD databases. In the first batch, around 18 lakh persons have been identified in whose case, cash transactions do not appear to be in line with the tax payer’s profile. ITD has enabled online verification of these transactions to reduce compliance cost for the taxpayers while optimising its resources. The information in respect of these cases is being

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Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016 

  Circular No.2 of 2017 F.No.142/33/2016-TPL(Part) Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes (TPL Division) *** Dated: 18th of January, 2017 Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016 The Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016 (hereinafter ‘the Scheme’) provides an opportunity to persons having undisclosed income in the form of cash or deposit in an account maintained with a specified entity to declare such income and pay tax, surcharge and penalty totaling in all to 49.9 per cent. of such declared income and make a mandatory deposit of not less than 25% of such income in the Pradhan Mantri Garib Kalyan Deposit Scheme, 2016.The Scheme has commenced on 17.12.2016 and shall

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Few Compliances of Income Tax to be done

  Furnishing of Permanent Account Number or Form 60, as the case may be, on or before 28th February, 2017 is made mandatory for persons having an account with banking company or a cooperative bank to which Banking Regulation Act 1949 applies. 15th January 2017 is the due date for submitting Form 61 where the aggregate of cash deposits between 9th November 2016 to 30th December 2016 is more than two lakh fifty thousand. Government has mandated the specified class of persons under Rule 114E to report cash deposits made during the period 01/04/2016 to 09/11/2016 aggregating to an amount exceeding the limits as specified in Sl.No.12 of Rule 114E. Download/Read Notification