India: Tax treatment of depreciable asset, vacancy allowance, employee uniforms

India: Tax treatment of depreciable asset

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

Related content

  • Depreciable asset is short-term asset, eligible for exemption: The Supreme Court of India held that even though a depreciable asset is treated as a short-term asset, it is eligible for an exemption under a special provision for computing capital gains of depreciable assets. T The case is: V.S. Dempo Company Ltd. Read a September 2016 report [PDF 289 KB]
  • Vacancy allowance availability: The Mumbai Bench of the Income-tax Appellate Tribunal held that a vacancy allowance cannot be asserted when the property was not let out during the year, regardless of the taxpayer’s “intention to let” the property. The case is: Sharan Hospitality Private Limited. Read a September 2016 report [PDF 351KB]
  • Tax treatment, workplace dress code not a uniform: The Gujarat High Court held that a dress code established by an employer for employees is not to be treated as a uniform, and thus, the uniform allowance paid for the purchase/maintenance of the dress code is not eligible for an exemption from tax as a “uniform allowance,” and is subject to tax withholding at source by the employer. The case is: Oil and Natural Gas Corporation Limited. Read a September 2016 report [PDF 368 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