India: Expenses related to exempt income; treaty-override provisions

India: Expenses related to exempt income

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

Related content

  • Expenditure relating to exempt income: The Central Board of Direct Taxes (CBDT) issued a notice of amendments to Rule 8D of the Income-tax Rules, 1962. The rule concerns the disallowance of a claim for an expenditure relating to tax-exempt income. Read a June 2016 report [PDF 263 KB]
  • Treaty provisions, no override: The Chennai Bench of the Income-tax Appellate Tribunal held that a provision of the Income-tax Act, 1961 does not override a withholding tax rate prescribed by an income tax treaty. The case is: Pricol Ltd. Read a June 2016 report [PDF 325 KB]
  • Scientific research deduction: The Gujarat High Court held that once the Department of Scientific and Industrial Research grants approval of the taxpayer’s scientific research, the Assessing Officer cannot attempt to verify that conditions were satisfied in order to deny a deduction. The case is: B.A. Research India Ltd. Read a June 2016 report [PDF 304 KB]
  • General Anti-Avoidance Rules: The CBDT amended the general anti-avoidance rules (GAAR), to reflect an effective date 1 April 2017. Read a June 2016 report [PDF 278 KB]
  • Levy and collection: The Ministry of Finance issued guidance concerning the Krishi Kalyan Cess and an exemption from the cess for invoices issued on or before 31 May 2016. Read a June 2016 report [PDF 248 KB]

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