Amit Maheshwari News

India is preparing to merge its diverging tax and financial reporting frameworks into a unified system, two people aware of discussions said, in a move aimed at dismantling one of the most cumbersome hurdles for corporate India.The overhaul seeks to harmonize the Indian Accounting Standards (IndAS)—used for shareholder reporting—with the Income Computation and Disclosure Standards (ICDS) mandated by tax authorities. If successful, this would represent the most significant structural shift in the nation’s accounting landscape since IndAS was first adopted in 2016.The move is significant because tax accounting standards, called the ICDS, issued by the Income Tax department and the Indian Accounting Standards or IndAS, notified by the ministry of corporate affairs follow different accounting principles.IndAS aims to capture the economic position of a company at a given point in time using fair valuation of assets and liabilities, an approach useful for investors.

IT sector, according to the data.There has also been a visible surge in companies explicitly branding themselves as AI-focused. At the beginning of FY26, 84 companies in every 10,000 new registrations mentioned ‘AI’ in their names.

Subscribe to enjoy similar stories. NEW DELHI : The Central Board of Direct Taxes (CBDT) has emphasized the obligation to deduct tax at source (TDS) by employers and others making various payments, reiterating the legislative changes introduced in the past few years on penalty provisions.

I bought a flat in Thiruvananthapuram in 1991 for Rs 3.75 lakh, which included registration charges and interior work costs at the time. This year, I sold it for Rs 43.5 lakh. I need clarification on capital gains, including indexation, as I understand real estate transactions preceding 2001 are still eligible for indexation benefits. How much tax will I have to pay? Will the gains be taxed at 20% or 12.5%? Sudhir Kaushik Co-founder & CEO, TaxSpanner: The tax liability amounts to Rs 5,97,750 lakh with indexation, but it will be lower if you opt for the method without indexation, as it will come to Rs 4,96,875. Based on the calculation, opting for the new capital gain tax at 12.5% without indexation will be beneficial for you by Rs 1,00,875. Also read | Capital gains tax changed, big relief for homeowners: 12.5% LTCG tax or 20% tax with indexation, which will reduce tax outgo?

As many as 5,44,205 appeals were pending resolution with the Income Tax (IT) Department at commissioner (appeals) level as of January 31 this year, and 63,246 at various Income Tax Appellate Tribunals (ITATs), High Courts, and the Supreme Court, FE has learnt.

My PPF corpus of about Rs 30 lakh matures on 31 March. I can continue the account for five years and withdraw every year an amount equivalent to the annual interest earned, or I can invest Rs 15 lakh each in two Senior Citizens’ Savings accounts for me and my spouse. My income tax slab is 20%. Which option is better? Amit Maheshwari, Partner, AKM Global: A PPF account matures after 15 years from the end of the financial year in which it is opened.

The CBDT has permitted income tax authorities to file appeals irrespective of monetary threshold in cases relating to TDS/TCS, undisclosed foreign income, or information received from investigating agencies like ED and GST Intelligence. Currently, tax authorities can file appeals before the ITAT, High Court and Supreme Court, if the disputed tax demand exceeds Rs 50 lakh, Rs 1 crore and Rs 2 crore respectively — a threshold fixed in 2019.

NEW DELHI : Direct tax revenue as a share of gross domestic product (GDP) touched a record 6.1% in FY23 amid a strong growth in mop-ups and an increase in the number of tax payers, the Central Board of Direct Taxes (CBDT) said on Tuesday. The share of women in the total number of Permanent Account Numbers (PAN), needed for a host of financial transactions, also improved to 41% at the end of March 2023, up from 37.2% at the end of March 2019, suggesting increased participation of women in financial activity, data shared by CBDT showed. Women in the age group of 20-40 years accounted for close to two-fifths of all PAN numbers issued by the end of March 2023.

The Supreme Court on Wednesday issued an interim stay on the Delhi High Court’s order which declared that any Income Tax (IT) assessment order issued without Document Identification Number (DIN) has no legal standing.

The Income Tax (IT) Department is likely to file an appeal in the Supreme Court (SC) against a Delhi High Court (HC) ruling which declared any IT assessment order issued without Document Identification Number (DIN) has no legal standing.

I retired on 30 June 2023. I have an EPF corpus of Rs 85 lakh. If I don’t withdraw from it, will the interest earned be subject to tax? Is it better to transfer the EPF corpus to my NPS tier 1 account to earn tax-free interest and growth? Please advise on how to grow my corpus to beat inflation in a tax-efficient manner. Amit Maheshwari, Partner, AKM Global: According to the provisions of the Income-tax Act, 1961, and aligned rules, withdrawal of EPF corpus on retirement, after a continuous service of at least five years, will be tax-exempt under Section 10(12).

Supreme Court Thursday held that the lower 5% withholding tax on dividend income of companies was not available to all Organisation for Economic Co-operation and Development (OECD) countries just on the most favoured nation (MFN) basis. A bench led by Justice Ravindra Bhatt held that international treaty practices are not enforceable in India unless the government notifies them, a ruling that experts said will have wide ramifications for the industry. «The decision of the apex court will have wide repercussions for the industry and could result in millions of dollars of additional tax revenue for the government,» said Amit Maheshwari, tax partner, AKM Global, adding that it could also entail reopening of past cases in form of fresh action by tax authorities. The top court set aside a 2021 Delhi High Court ruling that allowed Nestle SA, Concentrix Services, Steria and others a concessional withholding tax rate of 5% on dividend income from their Indian arms, extending the MFN clause in the OECD. The court also made it clear that preferential treatment given to a country under a double taxation avoidance agreement did not automatically get extended to other member countries unless the earlier treaty with them was amended. Experts said other countries could also revisit the position on benefits under these treaties.

Given that 3.5 million cases of tax refunds are “held up”, the Income Tax (IT) department is considering organising campaigns to assist the taxpayers, apart from proactively pursuing other means to process the refunds.

I had bought a flat in 1992 and want to sell it now. To calculate the indexed cost of acquisition, the cost inflation index (CII) is available only from 2001-2. How do I get the index for earlier years? Preeti Khurana, Director of Advocacy and Regulations, ClearTax: Many taxpayers were facing difficulty in computing capital gains using 1 April 1981 as base due to the non-availability of relevant information.

New Delhi: The government has exempted units of investment trusts and exchange traded funds (ETFs) issued by entities based in GIFT City or traded in exchanges there from capital gains tax. The Central Board of Direct Taxes (CBDT) notified the exemption from capital gains tax any unit of investment trust; a unit of a scheme; and a unit of an ETF launched under the International Financial Services Centres Authority (Fund Management) Regulations, 2022.

The Income Tax Department has notified rules for valuing rent-free accommodation provided by employers. The notification will help employees who are drawing substantial salaries and living in rent-free accommodation provided by their employers to save more.

The Central Board of Direct Taxes (CBDT) on 19 August issued a notification to value rent-free accommodation provided by employers, reported news agency PTI. 

rent-free accommodation provided by their employers will now be able to save more and get a higher take-home salary as the income tax department has revised norms for valuing such houses. The Central Board of Direct Taxes (CBDT) has notified amendments to the Income Tax Rules which will come into effect from September 1.

tax benefits on fat insurance policies which was announced in this year’s union budget. The detailed 17-page guidelines posted on the tax authority’s website explained the changes introduced in the Income Tax Act this year with situations and examples.

Income Tax department on Wednesday prescribed a mechanism for calculating income proceeds from life insurance policies where aggregate annual premium exceeds Rs 5 lakh. The Central Board of Direct Taxes (CBDT) has notified the Income Tax Amendment (Sixteenth Amendment), Rules, 2023, prescribing rule 11UACA for calculating income with respect to the sum received upon maturity of life insurance policies wherein the amount of premiums exceed Rs 5 lakh and such policy/policies are issued on or after April 1, 2023. According to the change, for policies issued on or after April 1, 2023, the tax exemption on maturity benefits under Section 10(10D) will only be applicable if the aggregate premium paid by an individual is up to Rs 5 lakh a year. For premiums beyond this limit, the proceeds will be added to the income and taxed at applicable rates. The change in tax provision with regard to life insurance policies, except ULIP, was announced in the Union Budget 2023-24.

From July 1, you will have to pay 1 percent TDS (tax deducted at source) on transfer of a virtual digital asset (VDA), as per a new income-tax section, 194S, introduced in the Finance Act, 2022. The TDS is required to be made at the time the buyer makes the payment to the seller. In its previous circular, dated 22 June, the Central Board of Direct Taxes (CBDT) made it clear that onus of withholding TDS will be on the buyer, exchange or broker. Read more about it here.