Implementation of e-verification scheme-2021
Dewan P N Chopra
by admin
1M ago
CBDT implements e-verification Scheme-2021 to reconcile mismatches between third party information and ITR filed by Taxpayers CBDT issues Press Release dated 26.02.2024 on Implementation of e-Verification Scheme-2021. This Press Release apprises that: The Income Tax Department has identified certain mismatches between the information received from third parties on Interest and Dividend Income, and the Income Tax Returns filed by the Taxpayers. Also mentioned that in many cases, the taxpayers have not even filed Income Tax Returns. In order to reconcile such mismatch, an on-screen functio ..read more
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Direct listing of equity shares of unlisted Public Companies incorporated in India on International Exchanges
Dewan P N Chopra
by admin
2M ago
The Government of India has issued following notifications on 24th January, 2024 namely; Foreign Exchange Management (Non-Debt Instruments) Amendment Rules, 2024  Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024. The aforementioned notifications enable unlisted public Indian companies as well as listed companies, to access global capital beyond the domestic exchanges through international stock exchanges set up in IFSC. The framework allows unlisted public Indian companies to list their shares on an international exchange. The operational guidelines for list ..read more
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Investment under Employee Benefit Scheme/ESOP/Sweat Equity Shares
Dewan P N Chopra
by admin
2M ago
The new regime for Overseas Investment (“Regulations on OI”) as issued by Reserve Bank of India on August 22, 2022 permits resident individuals being employee or a director of an office in India or branch of an overseas entity or a subsidiary in India of an overseas entity or of an Indian entity in which the overseas entity has direct or indirect equity holding, to acquire, without limit, shares or interest under Employee Stock Ownership Plan or Employee Benefits Scheme or Sweat Equity Shares offered by such overseas entity, provided that the issue of Employee Stock Ownership Plan or Employee ..read more
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Utilizing Tax Treaty Advantages for Non-Residents
Dewan P N Chopra
by admin
3M ago
In the rapidly expanding world of global business, transactions across borders have become the norm. As services are sourced from abroad, payments to non-residents have become routine. Understanding the tax implications of these payments is crucial, and one key aspect is Tax Deducted at Source (TDS) under Section 195 of the Income Tax Act, 1961. Who is required to deduct TDS u/s 195? Any person responsible for paying to a non-resident, any interest (excluding certain specified interest payments) or any other sum chargeable under the provisions of Income Tax Act, 1961 (not being income chargeab ..read more
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Comprehending the Changing Dynamics of Share Valuation Concerning Angel Tax
Dewan P N Chopra
by admin
3M ago
Background and Introduction Finance Act, 2012 introduced a tax on closely held companies under Section 56(2)(viiib) of the Income Tax Act, 1961 (the Act) when it received consideration from resident investors on issue of shares at a value that exceeded fair market value. Further, the Finance Act, 2023 widened the scope of these provisions and included taxation of excess premium received by closely held companies from non-resident investors. The FMV is to be calculated in accordance with Rule 11UA of the Income Tax Rules, 1962 (the Rules). These guidelines were to be modified to incorporate v ..read more
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MCA Notifies Limited Liability Partnership (Significant Beneficial Owners) Rules, 2023
Dewan P N Chopra
by admin
4M ago
MCA issued LLP (Significant Beneficial Owners) Rules, 2023 (“SBO Rules”) on 9th November 2023, requiring LLPs to identify and report details of Significant Beneficial Owner (“SBO”) to MCA. NON-APPLICABILITY The SBO Rules shall not apply to: contribution held by the Central Government, State Government, or local authority; LLPs/entities controlled by the Central Government or State Government(s) or both; investment vehicles registered with the SEBI, or regulated by the RBI or IRDAI or PFRDA. IMPORTANT PROVISIONS AND DEFINITIONS Holding of indirect interest in a LLP According to Rule 3(k ..read more
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Supreme Court’s Landmark Ruling on Double Tax Avoidance Treaties (DTAA)
Dewan P N Chopra
by admin
5M ago
Hon’ble Supreme Court in the case of Nestle SA & Others [Civil Appeal No 1420/2023] has ruled that the issuance of a notification under Section 90 of the Income Tax Act, 1961 (the Act) is an indispensable and obligatory requirement for a Court, Tribunal, or authority to give effect to a DTAA or any protocol altering its terms, thereby modifying existing provisions of law. The Supreme Court also concluded that, a stipulation in a DTAA or a Protocol with one nation, requires same treatment in respect to a matter covered by its terms, subsequent to its being entered into when another natio ..read more
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Rule 114B: CBDT Amends PAN-related Rules for Foreign Companies and NRs Transacting with IFSC Banking Units
Dewan P N Chopra
by admin
6M ago
The Central Board of Direct Taxes (CBDT) has amended rules related to obtaining and quoting Permanent Account Number (PAN). The amendments have been made in Rule 114B, 114BA and 114BB of the Income Tax Rules, 1962 (the Rules). Amendment in Rule 114B:Rule 114B points out various transactions in relation to which quoting of PAN is mandatory. Second Proviso to this rule allows a person to furnish a declaration in Form No. 60 if they do not hold a PAN. The CBDT has amended this proviso to exclude a company or a firm from the requirement to furnish Form No. 60. Also, a new proviso has been inserte ..read more
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Family Investment Fund (FIF)
Dewan P N Chopra
by admin
6M ago
On April 19, 2022, the International Financial Services Centres Authority (IFSCA) published the International Financial Services Centres Authority (Fund Management) Regulations, 2022 (“FM Regulations”) overhauling the fund regime in International Financial Services Centre (IFSC) and introduced Family Investment Funds for managing the financial affairs of a single family. FUND STRUCTURE: A Family Investment Fund (FIF) may be structured as: Company Limited Liability Partnership Trust (Contributory Trust) CORPUS: Corpus of USD 10 million to be raised within a period of 3 years from the date of ..read more
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Rule 11UA: New Methods for Valuing CCPS and Unquoted Shares
Dewan P N Chopra
by admin
6M ago
The Finance Act, 2023 amended section 56(2)(viib) of the Income Tax Act, 1961 (‘the Act’) to bring into account the consideration received from non-residents for issuance of shares. Now, the CBDT has notified Income-tax (Twenty-First Amendment) Rules, 2023, amending Rule 11UA to implement the amendment made to Section 56(2)(viib).The changes notified in Rule 11UA are mentioned below: CBDT has separately introduced a mechanism for arriving at the fair market value of Compulsorily Convertible Preference Shares (CCPS) for investment from residents as well as non-resident residents; it a ..read more
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