India: FAQs on income computation; Finance Bill 2017 amendments

India: FAQs on income computation; Finance Bill 2017

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


Related content

  • FAQs on income computation and disclosure standards: The Central Board of Direct Taxes (CBDT) issued a circular of “frequently asked questions” (FAQs) clarifying certain income computation and disclosure standards-related issues. Read a March 2017 report [PDF 342 KB]
  • Amendments to finance bill: Key amendments were passed in the Finance Bill, 2017. Read a March 2017 report [PDF 332 KB]
  • Revised rate of administrative charges under the Employees’ Provident Funds Scheme, 1952 and the Employees’ Deposit-linked Insurance Scheme, 1976: The government has issued a notification to revise the rate of administrative charges, effective 1 April 2017. Read a March 2017 report [PDF 398 KB]
  • Long-term capital loss set-off against long-term capital gain: The Pune Bench of the Income-tax Appellate Tribunal held that long-term capital loss on the sale of listed shares of a subsidiary company is allowed to be set-off against the long-term capital gain on the sale of unlisted shares. The taxpayer, while selling the shares of a listed company, opted to transact on off-market trade since the shares were of the group concern, and the group did not want the shares to be picked up by any stranger if traded on the stock exchange. Such business decisions taken by the taxpayer cannot be doubted and called as a “colourable device to set-off profits” arising on the sale of unquoted shares. The case is: Asara Sales and Investment Private Ltd. Read a March 2017 report [PDF 335 KB]
  • India and Brazil sign social security agreement: The Ministry of External Affairs, Government of India issued a press release notifying that the social security agreement between India and Brazil has been signed. Read a March 2017 report [PDF 257 KB]
  • Depreciation not allowed when lessee is not owner of asset: The Supreme Court of India held that the taxpayer is not entitled to depreciation on the property since it is not the owner of such property. The building belonged to the lessor firm and title in the building could not pass unless it were executed on a proper stamp paper and also were duly registered with the sub-registrar. Absent this, the taxpayer did not become the owner of the property. The case is: Mother Hospital Pvt. Ltd. Read a March 2017 report [PDF 329 KB]
  • Guidelines for waiver of interest charged for default in withholding and payment of tax: The government issued a circular as guidelines for waiver of interest charged under section 201(1A)(i) of the Income-tax Act, 1961. The Central Board of Direct Taxes has issued directions for reduced or waiver of interest charged under section 201(1A)(i) of the Income-tax Act, 1961 in the specified classes of cases. Read a March 2017 report [PDF 298 KB]
  • Provident fund and pension withdrawal benefit to be paid on the date of leaving service in India: International workers who are covered under a social security agreement (SSA) between India and any other country can withdraw their accumulated provident fund balances under the Employees’ Provident Funds Scheme, 1952 on ceasing to be an employee in an establishment. Further, the notification stipulated that provident fund accumulations will be paid to international workers in their bank account directly or through the employer. Read a March 2017 report [PDF 438 KB]

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