India: Scientific research expenditures | KPMG | GLOBAL

India: Scientific research expenditures; tax deducted (withheld), collect at source

India: Scientific research expenditures

The KPMG member firm in India has produced reports describing the following tax developments (read more at the hyperlinks provided below).


Related content

  • Revised rules, forms for scientific research expenditures: The Central Board of Direct Taxes (CBDT) issued guidance amending the rules and forms for reporting expenditures relating to scientific research under section 35 of the Income-tax Act, 1961. The new rules are effective 1 July 2016. Read a May 2016 report [PDF 313 KB]
  • Revised rules for tax deducted (withheld) and collected at source: The CBDT issued guidance amending the rules for tax deducted (withheld) at source and tax collected at source. These amendments are effective 1 June 2016. Read a May 2016 report [PDF 287 KB]
  • Waiver of loan taken out for acquiring capital asset is taxable as business income: The Madras High Court held that a waiver of a loan taken out for purposes of acquiring a capital asset would related to acquiring a benefit or perquisite that would be arising from the business of the taxpayer. Therefore, a waiver of such loan would be taxable to the taxpayer as business income. The case is: Ramaniyam Homes (P.) Ltd. Read a May 2016 report [PDF 324 KB]
  • New age limit for making contributions to pension plans: The Ministry of Labour and Employment issued a notice that amends the age ceiling for individuals making contributions to an employees’ pension scheme (EPS), to 60 years (increased from the prior ceiling limit of 58 years). Read a May 2016 report [PDF 278 KB]
  • Taxpayer, as beneficial owner of royalty and interest income, is eligible for beneficial tax rate under the India-Singapore tax treaty: The Pune Bench of the Income-tax Appellate Tribunal held that a taxpayer that is the beneficial owner of royalty and interest income is eligible to claim the beneficial rate of tax under the India-Singapore income tax treaty. The case is: Imerys Asia Pacific Pvt. Ltd. Read a May 2016 report [PDF 397 KB]
  • Tax treatment of income from the transfer of unlisted shares: The CBDT issued guidance to clarify that the income arising from transfer of unlisted shares is considered under the heading “capital gain”—without regards to the holding period. Read a May 2016 report [PDF 276 KB]

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