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September 2016

Direct Tax Amicus: July 2016

Article

New Foreign Tax Credit Rules - Certain grey areas-

Recently, the Central Board of Direct Taxes notified the rules for granting of Foreign Tax Credit (FTC) to resident taxpayers on income earned in foreign jurisdiction. However, taxpayers may require more clarity in certain areas. For instance, whether FTC claimed in the return has to be enhanced if the Assessing Officer increases income of tax payer during asssessent, whether FTC can be claimed in case of loss and so on…

 

Notifications & Circulars

  • Relaxation from deduction of tax at higher rate under Section 206AA – Rule prescribing conditions, notified
  • Income Declaration Scheme – CBDT clarifies various issues
  • TDS need not be deducted by IFSC Banking Units on interest paid

 

Ratio Decidendi

  • Taxable situs of intangibles like trademarks and goodwill is location of owner thereof
  • TDS need not be deducted on professional fee which is not in money terms
  • Annual value of house property vacant throughout the year can be NIL
  • Delay by builder in completing the project – Buyer not disentitled from availing capital gains exemption

 

July, 2016/Issue-23 July, 2016/Issue-23

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