Are you ready for the new era of enhanced reporting in your Income Tax return?

The Income Tax department has notified the new Income Tax return forms (new forms) for the tax year 2018-19 on April 01, 2019. Upon analysis of the new forms, one can observe that the Income Tax authorities are seeking detailed disclosures by delving into the finer details of the nature of income. The additional disclosures … More Are you ready for the new era of enhanced reporting in your Income Tax return?

Indian Government drafts proposals for attribution of profits to permanent establishments (PEs) in India – Focus on India’s demand/market and deviation from TP principles

The attribution of profits to permanent establishment (PE) is one of the most litigated aspects of international tax in India. The Central Board of Direct Taxes (CBDT) had formed a committee to examine the existing scheme of profit attribution to PE and recommended changes. The committee’s draft report has been released by the CBDT[1] and … More Indian Government drafts proposals for attribution of profits to permanent establishments (PEs) in India – Focus on India’s demand/market and deviation from TP principles

Gift taxation: Uncertainty prevails after the withdrawal of CBDT circular

Gift Tax – Background The provisions of section 56(2)(vii) were introduced as a counter-evasion mechanism to prevent the laundering of unaccounted income under the pretext of a gift, particularly after abolition of the Gift Tax Act. Under the existing provisions of section 56(2)(vii), if an individual or an HUF received any sum of money or … More Gift taxation: Uncertainty prevails after the withdrawal of CBDT circular

Digital Tax: Taking a step ahead and expanding the footprint!

The Organisation for Economic Co-operation and Development (OECD), in the process of providing an answer on taxation of digital economy, issued a public consultation document titled “Addressing the Tax Challenges of the Digitalisation of the Economy” on 13 February 2019. The consultation document provides an opportunity to the interested parties for putting down their views … More Digital Tax: Taking a step ahead and expanding the footprint!

Have undisclosed foreign assets and income? You could be prosecuted

The Indian Government has been, for a long time, seeking to curb the menace of black money especially that is hoarded overseas.  Mandating the reporting of foreign assets by a resident and ordinarily resident tax payer in the India Tax Return (ITR) from tax year 2011-12 onwards was an effort in this direction which strengthened … More Have undisclosed foreign assets and income? You could be prosecuted

Digital Tax: The journey so far and what lies ahead

“The hardest thing to understand in the world is the income tax”- Albert Einstein. The emergence of diverse business models in a digital economy and the responses (and proposed responses) of various governments to tax companies in this space are certainly vindicating Einstein! Some of such models include (spotted as of today and still evolving) … More Digital Tax: The journey so far and what lies ahead

GST audit – it is the time to reconcile

India has experienced the completion of its first financial year of the much-awaited Goods and Services Tax (GST) from 1 July 2017 to 31 March 2018. This contemporary regime held high aspirations digitally by mandating taxpayers to undertake transaction-level reporting of its business on to its information technology/Goods and Services Tax network (IT/GSTN) platform. It … More GST audit – it is the time to reconcile