Segregation of bad portfolio by debt fund – tax implications

Recent NBFC crisis and downgrading of corporate bonds have affected several mutual funds that invest in debt securities. Interestingly fund houses have reacted very differently. Many are writing down defaulting papers. Some have deferred repayment of maturity proceeds of their fixed maturity plans. One of HDFC mutual fund’s debt schemes sold its affected securities to its AMC thereby protecting investors. Kotak repaid its investors after deducting maturity proceeds attributed to…

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Liaison Office – A taxable presence?

Introduction 1. An enterprise having established itself in its home country, usually tests its waters outside its domestic boundaries, with an endeavour to obtain its share in the universal pie of globalisation fruits. In its initial phase of establishment of its business in the host country, a multinational corporation (‘MNC’) conducts market research, develops strategies to explore the foreign markets, formulates plans, maintains liaison with the government officials, etc. Post-such preliminary…

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Capital gains tax: Sold house? Now buy a new one in your name

Any property sale in India attracts capital gain tax on the gains arising therefrom under the Income Tax Act. Though the gains arising on sale of property get taxed as capital gains, relief against certain capital gains are provided upon satisfaction of the prescribed conditions. One of such reliefs is available under Section 54 of the Act, in respect of long-term capital gains arising on the sale of residential house…

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I-T dept allows manual filing by resident, NRI taxpayers for nil/lower TDS certificate- Suraj Nangia

The income tax department on Monday allowed the manual filing of form by resident and NRI taxpayers wanting to apply for deduction of taxes at a lower or nil rate on total income. Suraj Nangia, Partner shares his views on aforementioned story for following publications: *   PTI (This news has been picked up by 34 other news publications including Economic Times, Business Standard, Financial Express, Business Today etc.) *   Hindu…

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CBDT outlines recommended approaches to deal with rulings exchanged under BEPS Action 5

The main focus of the BEPS Action Plan 5 issues in October 2015 was on agreeing and applying a methodology to define the substantial activity requirement to assess preferential regimes, looking first at intellectual property (IP) regimes and then other preferential regimes. The work has also focused on improving transparency through the compulsory spontaneous exchange of certain rulings that could give rise to BEPS concerns in the absence of such…

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Not filing a return in India will leave taxpayer in an incredibly vulnerable position

There has been tremendous growth in the number of foreign enterprises which work on short-term projects in India. As per the prevailing tax deducted at source (TDS) provisions, their entire income is subject to TDS at the applicable rates which fully covers their Indian tax liability. The question then arises as to whether filing of a tax return is necessary in India. Enterprises not well versed with the Indian tax…

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Evolving tax reforms: Bane for exporters by Suraj Nangia

Rapidly changing domestic tax environment to get in sync with international tax developments like BEPS, could have some fall outs that may impact general business environment as a whole.  One such aspect is the changes sought in taxing regime both at the domestic tax as well as international tax front that could potentially interfere with the exports. Suraj Nangia, Partner and Neha Malhotra, Executive Director contributed an op-ed piece on…

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Incentivising ‘quality orders’ of CIT(A)

The Income Tax judicial process in India starts with the Commissioner of Income Tax (Appeals), CIT(A) for short, followed by the Income Tax Appellate Tribunal, High Courts and finally the Supreme Court. The taxpayer, when aggrieved by the order of the tax officer, is granted a right to file an appeal before CIT (A). The CIT (A), being a quasi-judicial authority, is expected to function with an impartial, independent and…

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How to claim credit if you have paid taxes abroad- Suraj Nangia

As the non-corporate taxpayers are gearing up for filing their income tax returns for Financial Year 2017-18, which is due by 31st July 2018, there are several aspects, that needs to be kept into mind while computing the taxable income and tax liability of such taxpayers. Suraj Nangia, Partner and Shailesh Kumar, Director- Direct Taxation contributed an article on How to claim credit if you have paid taxes abroad for DNA. http://www.dnaindia.com/personal-finance/report-how-to-claim-credit-if-you-have-paid-taxes-abroad-2641704  

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Common mistakes to avoid while filing ITR-1- Suraj Nangia

There’s about a week left to file the IT return without having to pay any fine for submitting a delayed income tax return. July 31 is the last date for individuals to file their ITR for assessment year 2018-19 without any penalty.  Suraj Nangia, Partner with inputs from Radhika Arora contributed an article on Common mistakes to avoid while filing ITR-1 for Financial Express. Attached is link to the article – https://www.financialexpress.com/money/income-tax/income-tax-return-common-mistakes-to-avoid-while-filing-itr-1/1254221/

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