CBDT withdraws Circular on 56(2)(viia) applicability to fresh issuance of shares; Cites subjudice matters

Posted on January 9, 2019

CBDT withdraws Circular no. 10 dated 31st Dec 2018 clarifying that Section 56(2)(viia) of the Income-tax Act, 1961 (‘the Act’) shall not be applicable in cases of receipt of shares by a closely held company (specified company) or a firm as a result of fresh issuance of shares.

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Posted in Direct Tax |

CBDT: Sec. 56(2)(viia) not applicable to receipt of ‘freshly issued shares’ by closely held co.

Posted on January 3, 2019

CBDT clarifies that Sec. 56(2)(viia) shall not apply to receipt of shares by a closely held company (specified co.) or a firm on fresh issuance of shares; Takes note of representations that the term ‘receives’ used in 56(2)(viia), being of wider import, might lead to “taxation of income in the cases where the shares are received by a firm or specified co. as a result of the fresh issuance of shares including by way of issue of bonus shares, rights shares and preference shares or transactions of similar nature”;

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Posted in Direct Tax |

CBDT has notified Non-Securities Transaction Tax scenarios for 10% LTCG under section 112A

Posted on October 5, 2018

CBDT has issued Final Notification under section 112A(4) specifying nature of equity share acquisitions in respect of which requirement of payment of Securities Transaction Tax would not apply for 10% LTCG tax, no major changes vis-à-vis the draft notification;

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Posted in Direct Tax |

Exemption on interest income on specified off-shore Rupee Denominated Bonds

Posted on September 18, 2018
CBDT issue press release dated 17.09.2018 announcing tax exemption for interest payable by an Indian company or a business trust to a non-resident or foreign company in respect of rupee denominated bond issued outside India during September 17th, 2018 to March 31st, 2019.

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Posted in Direct Tax |

Government extends due date for furnishing of FORM GSTR-1 to October 31

Posted on September 11, 2018

Due Date for furnishing FORM GSTR-1 for the period from July 2017 to September 2018 has been extended till October 31, 2018 for all registered persons having the aggregate turnover above Rs 1.5 crores; This includes registered persons in Kerala, or whose principal place of business is in Kodagu (Karnataka) and Mahe (Puducherry).

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Posted in GST Update |