​Proposed notification under section 115JG (1) of the Income-tax Act, 1961 in respect of conversion of Indian branch of foreign bank into Indian subsidiary company – comments of stakeholders​

  Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 17th November, 2017. PRESS RELEASE Proposed notification under section 115JG (1) of the Income-tax Act, 1961 in respect of conversion of Indian branch of foreign bank into Indian subsidiary company – comments of stakeholders Finance Act, 2012 inserted a new Chapter XII-BB consisting of section 115JG in the Income-tax Act, 1961 (the Act) which contains “Special provisions relating to conversion of Indian Branch of a foreign bank into a subsidiary company”. Section 115JG of the Act, inter alia, provides that in case the conversion of Indian Branch of foreign bank fulfils the conditions notified by the Central Government, the capital gains arising from such conversion shall not be chargeable to tax and the

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Cabinet approves the protocol amending the Agreement between India and Kyrgyz for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income 

  The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for the protocol amending the Agreement between India and Kyrgyz Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. The Protocol amending Double Taxation Avoidance Agreement (DTAA) aims to update Article 26 (Exchange of Information) of the DTAA to international standards. The updated Article provides for exchange of information to the widest possible extent. The new paragraphs 4 and 5 being inserted into the existing Article 26 of the DTAA provide that the State from which information is requested cannot deny information on the ground that it has no domestic tax interest in that information or that the information requested is held by a

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Sec. 10(46) CBDT notifies Haryana State Legal Services Authority

  Under Section 10(46) of the Income-tax Act, 1961 Central Government notifies Haryana State Legal Services Authority, constituted by the Government of Haryana under the Legal Services Authorities Act, 1987, in respect of the following specified income arising to that Authority. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 9th November, 2017 S.O. 3563(E).—In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, the Haryana State Legal Services Authority, constituted by the Government of Haryana under the Legal Services Authorities Act, 1987, in respect of the following specified income arising to that Authority, namely:— (a) grants received from Central Authority i.e.

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Sec. 10(46) CBDT notifies ‘Telangana Building and Other Construction Workers Welfare Board’

  Under Section 10(46) of the Income-tax Act, 1961 Central Government notifies ‘Telangana Building and Other Construction Workers Welfare Board’, a board established by the Government of Telangana, in respect of the following specified income arising to that board. MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) Notification No. 95/2017 New Delhi, the 9th November, 2017 S.O. 3564(E).—In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘Telangana Building and Other Construction Workers Welfare Board’, a board established by the Government of Telangana, in respect of the following specified income arising to that board, namely:— (a) Cess received; (b) Registration and renewal fee collection from the

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Appoint counsels to represent cases before NCLT: CBDT to PrCCIT

  MOST URGENT F.No.278/M-52/2003-ITJ(Pt.) Government of India Ministry of Finance (Department of Revenue) Central Board of Direct Taxes *** New Delhi, the 8th November, 2017 To, All Pr. Chief Commissioners of Income Tax, Subject:- Issue regarding representation before the benches of National Company Law Tribunal (NCLT) – reg. Sir/Madam, Kindly refer to the above. 2. On June 01,2016, the Ministry of Corporate Affairs (MCA) published a notification regarding the constitution of National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT). The setting up of the NCLT and NCLAT are part of the efforts to move to a regime of faster resolution of corporate disputes and to pave way for the faster implementation of the bankruptcy code. Under the new “Insolvency and Bankruptcy Code” 2016, 11 Benches of

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Clarification on Indirect Transfer provisions in case of redemption of share or interest outside India under the Income-tax Act, 1961

  Circular No.28/2017 F.No.500/10/2017-FT&TR-IV Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Dated, the 7th of November, 2017. Sub: Clarification on Indirect Transfer provisions in case of redemption of share or interest outside India under the Income-tax Act, 1961 Under the provisions contained in section 9(1 )(i) of the Income-tax Act, 1961 (‘Act’), all income accruing or arising, whether directly or indirectly, through or from any business connection in India, or through or from any property in India, or through or from any asset or source of income in India or through the transfer of a capital asset situate in India, shall be deemed to accrue or arise in India. Explanations 5, 6 and 7 of section 9(1 )(i) further define the scope of

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Direct Tax Collections for F.Y. 2017-2018 show Growth of 15.2% up to October, 2017 

  Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 7th November, 2017. PRESS RELEASE Direct Tax Collections for F.Y. 2017-2018 show Growth of 15.2% up to October, 2017 The provisional figures of Direct Tax collections up to October, 2017 show that net collections are at Rs. 4.39 lakh crore which is 15.2% higher than the net collections for the corresponding period of last year. Net Direct Tax collections represent 44.8% of the total Budget Estimates of Direct Taxes for F.Y. 2017-18 (Rs. 9.8 lakh crore). Gross collections (before adjusting for refunds) have increased by 10.7% to Rs.5.28 lakh crore during April-October, 2017. Refunds amounting to Rs. 89,507 crore have been issued during April, 2017 to October, 2017.   (Surabhi Ahluwalia) Commissioner of

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​Notification of Third Protocol to the Convention between Government of India and New Zealand 

  Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 7th November, 2017. PRESS RELEASE Notification of Third Protocol to the Convention between Government of India and New Zealand The Third Protocol for amendment of the Convention between the Government of the Republic of India and the Government of New Zealand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income was signed by both countries on 26th October 2016. The Protocol entered into force in India on 7th September 2017 and has been notified in the Official Gazette on 2nd November 2017. The Protocol updates the existing framework of exchange of tax related information to latest international standard which will help curb tax evasion

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​Cases pertaining to ‘Panama Papers’ Investigation in full swing

  Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 6th November, 2017. PRESS RELEASE Cases pertaining to ‘Panama Papers’: Investigation in full swing Pursuant to revelations made by the International Consortium of Investigative Journalists (ICIJ), a Washington based organization in April 2016 about certain Indians having linkages with entities in offshore no tax/low tax jurisdictions, the Government constituted a Multi-Agency Group (MAG) on 4th April 2016, inter alia, to facilitate co-ordinated and speedy investigation. The MAG consisted of officers of Central Board of Direct Taxes (CBDT), Enforcement Directorate (ED), Financial Intelligence Unit (FIU) and Reserve Bank of India. So far, the MAG has submitted 7 reports to the Government. The Panama Papers contained brief particulars of about 426 persons, prima facie, Indians

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​Investigations in cases of ‘Paradise Papers’ to be monitored through reconstituted Multi Agency Group 

  Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 6th November, 2017. PRESS RELEASE Investigations in cases of ‘Paradise Papers’ to be monitored through reconstituted Multi Agency Group Revelations made today in the media under the name ‘Paradise Papers’ [based upon expose done by the International Consortium of Investigative Journalists (ICIJ)] indicate that out of 180 countries represented in the data of offshore entities held by persons of different nationalities, India ranks 19th in terms of number of names. 714 Indians reportedly appear in the tally. The Paradise Papers include nearly 7 million loan agreements, financial statements, emails, trust deeds and other paperwork over nearly 50 years from inside Appleby, a prestigious offshore law firm with offices in Bermuda and beyond. The

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