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]

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform