Knowledge Base

Find articles, help and information using our knowledge base

Apex Court: Most Favored Nation (MFN) Clause in DTAA is not automatically applicable
The Supreme Court has finally put a full stop on the long going dispute of the Most-Favored Nation (MFN) clause in DTAA. India entered into DTAA with Netherlands, France and Switzerland, members of OECD, containing MFN clauses.
By CA. Kavit Vijay
Last update on November 28,2023
Guiding principles to determine Place of Effective Management (POEM) for foreign companies| Income Tax Act, 1961
Place of effective management (POEM) determines the place where management of the company is actually situated to determine the correct residential status of the company for Income tax purposes.
By CA. Kavit Vijay
Last update on November 7,2023
Place of Effective Management (POEM) in India for Foreign Companies | Income Tax Act, 1961
Under Income Tax Act, 1961, it is very important to determine the residential status of any person as it helps in determining the scope of taxable income in India. Until 2015, the concept of determination of residential status of foreign companies was very simplified.
By CA. Kavit Vijay
Last update on October 24,2023
New Valuation rules notified for Equity Shares and CCPS for Angel Tax purpose| Income tax amendment
CBDT has notified new valuation methods by amending provisions of Rule 11UA of Income Tax rules with effect from 23rd September, 2023. This amendment is made post covering fundings received from non-resident in excess of Fair market value under income tax ambit.
By CA. Kavit Vijay
Last update on October 17,2023
Companies are entitled to claim credit of Tax payable in Thailand on Dividend Income even if no taxes are paid
The Assessee earned dividend income from its subsidiary company based in Thailand. Assessee was liable to pay Income Tax @ 10% on such dividend income in Thailand. However, tax was exempted due to the statutory regime obtained in Thailand. While filing ITR in India, Assessee disclosed such income and claimed the credit of tax @ 10% which was payable in Thailand but not paid due to exemptions.
By CA. Kavit Vijay
Last update on September 4,2023
Reporting by Indian concerns of Indirect transfer under Income Tax| Form 49D
Where foreign company or entity held assets in India through an Indian concern, then such Indian concern is required to file information in Form 49D about transfer of share or interest of such foreign company or entities with Income tax authorities of India India.
By CA. Kavit Vijay
Last update on August 22,2023
Clarification on Changes in TCS Rates on Foreign Remittance u/s 206C(1G)| Circular No. 10 of 2023 dated 30th June, 2023
Finance Act, 2023 amended the provisions of Section 206(1G) to increase the rate of TCS from 5% to 20% for remittance under LRS as well as purchase of tour program packages and removed the threshold limit of INR 7,50,000.
By CA. Kavit Vijay
Last update on July 25,2023
Income tax on Profit/ Loss from Intraday share trading
Trading in the share market has increased a lot and not only persons who are engaged in hardcore share trading, other persons also invest funds in the share market. Every income in India is liable to Income tax. Similarly, profit or loss earned from share trading is also liable to income tax.
By CA. Kavit Vijay
Last update on June 26,2023
Income Tax/ Capital gains on sale of inherited property
Inheritance of property is a very common scenario and these properties are sold subsequently as well. In India, the sale of inherited property can have potential tax implications, particularly regarding capital gains. Capital gains tax is levied on the profit earned from the sale of an asset, including inherited property.
By CA. Kavit Vijay
Last update on June 12,2023
Guidelines for compulsory selection and procedure of selection during the Financial Year 2023-24
CBDT has recently issued comprehensive guidelines for the procedure of compulsory selection of income tax returns for thorough scrutiny during the financial year 2023-24.
By CA. Kavit Vijay
Last update on June 5,2023