...Corporate Taxation | Case Study Analysis | Section 37: General Deductions | By | K Srilekha MBA | | I. FACTS: The assessee company who carried on the business of manufacture of silk was a member of Indian Silk Mills Association. The members entered into a working time agreement to restrict the working hours of the looms to 42 hours per week, so that over-production could be avoided. But, the members could transfer these loom hours amongst themselves. The assessee purchased loom hours from two members for a consideration of Rs 20 lakhs for a period of 6 months. The assessee claimed deduction of Rs. 20 lakhs as business expenditure, under section 37(1) of Income Tax Act. Is the claim justified? II. ANALYSIS OF FACTS: Each member of the association was manufacturing less than what it could have, if it was working full time. The members agreed to such an agreement as otherwise there would have been over-production of silk. The loom hours could be traded for, if you had an excess of them. Loom hours are the number of hours that you work your looms (mills) for. Section 37 speaks about ‘General Deductions’: Any expenditure not specifically covered by sections 30 to 36 is deductible under section 37, if the following conditions are satisfied: a) It should be in respect of business carried on by the assessee b) It should have been laid out or expended wholly or exclusively for the purpose of business c) It must have been incurred in the previous...
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...Are the repairs made to the electricity poles on Mc Donald’s farm tax deductable? Is it a case of merely a repair or its nature is of restoration or replacement? What are his tax implications on insurance claims Mc Donald received from damage to electricity poles by natural disaster? What are his tax implications on Mc Donald for resurfing the road (owned by neighbour Peppa) to access his farm? Law 1.) Assessable income consists of ordinary income and statutory income as per Income Tax Assessment Act 1997(ITAA97) section 6-1 (1). Section 6-5 of the Income Tax Assessment Act 1997 states that ordinary income is income according to ordinary concepts derived directly or indirectly from all sources whether in or out of Australia. Ordinary income is not defined in statute law; it is determined through case law and can be divided into four categories; income from personal exertion, income from business, income from profit-making schemes & income from property (Barkoczy, 2013, p. 266 - 267). A taxpayer’s accessible income includes not only amounts that are ordinary income but also amounts to that are statutory income (s6-10(1) ITAA97). Statutory income comprises amounts that are deemed by the legislation to the accessible income, But which are not otherwise necessarily income according to ordinary concepts. 2.) Taxpayers subtract deductions from their assessable income to arrive at their taxable income for the financial year. There are two types of deductions, general...
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...ASSESSMENT FOR TIM BUTTON REASONS FOR OBJECTION Tim Button objects to his Amended Income Tax Assessment for the financial year ending 30 June 2014 (the income year), issued to him by Notice of Amended Assessment dated 30 November 2014 (XXX_24376898/987). The total amount being objected to is $9.15 million in income and $4056 in deductions. The objected amount can be divided into the following: Inclusion of income for overseas work $ 150000 Inclusion of sale of Lutwyche property $ 9000000 Blue overalls $ (500) Steel-capped boots $ (270) Meals purchased while truck driving $ (3736) 1. TIM’S SALARY AND EXPENSES FOR OVERSEAS WORK CANNOT BE PART OF ASSESSABLE INCOME This is in relation to all services income earned prior to 25 April 2014, from Singapore Offshore Diving Company (SODC), for income year. The Income Tax Assessment Act 1997 (Cth) (ITAA97) stipulates that only ordinary1 and statutory2 income can be included in assessable income. Including expenses incurred and income earned abroad into assessable income is dependent on whether Tim is considered: an Australian resident, who is must have all sources of income assessed;3 or a non-resident, who will only be assessed on amounts derived directly or indirectly from Australian sources4 or specified within a specific statutory provision.5 The source of services income is generally derived from the place in which the services are performed.6 Duties...
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...You can receive income as a result of your personal exertion (that is, by working) or from an investment. Income may not always be in the form of money – in some situations goods and services may be treated as income Income derived from personal exertion cannot be alienated. PSI rules enabled the separation of income into that received from personal services and that received from other sources, then it would only be necessary to attribute the income solely from personal exertion to the individual performing the services However, it may be possible, depending on the nature of the contractual arrangements, to separate out the income that has come from items other than the personal services of an individual. Income earned directly from a person’s effort or skills. means an income amount that is earned, derived or received by a person by way of payment for personal exertion by the person but does not include an income amount received as compensation for the person's inability to earn, derive or receive income through personal exertion. means income consisting of earnings, salaries, wages, commissions, fees, bonuses, pensions, superannuation allowances, retiring allowances and retiring gratuities, allowances and gratuities received in the capacity of employee or in relation to any services rendered, the proceeds of any business carried on by the taxpayer either alone or as a partner with any other person, any amount received as a bounty or subsidy in carrying on a business...
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...capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953, is a public ruling for the purposes of that Part . Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20). Taxation Determination Income tax: what is the significance of the Archer Brothers principle in the context of liquidation distributions? 1. In a joint judgment, the Full High Court of Australia in Archer Bros Pty Ltd (In Vol Liq) v. FCT (1952-53) 90 CLR 140 at 155; 10 ATD 192 at 201 observed by way of obiter dicta: 'By a proper system of bookkeeping the liquidator, in the same way as the accountant of a private company which is a going concern, could so keep his accounts that...distributions could be made wholly and exclusively out of...particular profits...or income...' 2. These observations have given rise to what is known as the Archer Brothers principle. The principle is that if a liquidator appropriates (or 'sources') a particular fund of profit or income in making a distribution (or part of a distribution), that appropriation ordinarily determines...
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...ARVINDBHAI VALJIBHAI BHANUSHALI NOTES ON STATEMENT OF TOTAL INCOME ASST.YEAR : 2009-10 1. The Assesse has filed her original return electronically on 28/10/2009 vide E-filing Acknowledgement Number-99913080281009. And also has filed Physical original Income-tax return u/s.139(1) of the I.T.Act, 1961 on 28/10/2009 with the office of Income Tax Officer ward-3,Kheda range,Nadiad vide R No. 495. This Income-tax Return is filed in response to notice dated 07/10/2010 issued by A.C.IT C.C.1(4) Ahmedabad u/s.153A of the I.T.Act, 1961 2. All supporting evidences filed with the original return of income are required to be considered as part and parcel of this Income-tax Return. 3. The search proceedings u/s.132 of the I.T. Act 1961 was carried out by the Income-tax Department on 04/03/2010 at the residential premises of the assessee. at 11C,Punit Park Society, opp. New Court, Mehmadavad . Proceedings u/s.132 of the Act was also carried out at the locker No.183 of State Bank Of India, at Mahemdavad . During the course of search following assets were found and seized. Particulars Found Seized Annexure Amount Annexure Amount Gold Ornaments and Jewellery JF 24,80,615 -- Nil Cash ...
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...77 countries up to May,2010. Bilateral relief may be granted in either one of the following methods: (a) Exemption method, by which a particular income is taxed in only one of the two countries; and (b) Tax relief methods under which, an income is taxable in both countries in accordance with the respective tax laws read with the Double Taxation Avoidance Agreements. However, the country of residence of the taxpayer allows him credit for the tax charged thereon in the country of source. In India, double taxation relief is provided by a combination of the two methods. (ii) Unilateral relief : This method provides for relief of some kind by the home country where no mutual agreement has been entered into between the countries. 4.2. Double Taxation Relief Provisions under the Act: Section 90 and 91 of the Income Tax Act, 1961 provides for double taxation relief in India. 4.2.1.Agreement with foreign countries or specified territories –Bilateral Relief [Section 90]: (i) Section 90(1) provides that the Central Government may enter into an agreement with the Government of any country outside India or specified territory outside India- (a) for granting of relief in respect of – (i) income on which income tax has been paid both in India and in that country or specified territory; or (ii) income tax chargeable under this Act and under the corresponding law in force in that country or specified territory to promote mutual...
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...SECTION ONE 1.1 Background to the study. The Nigeria tax system is basically structured as a tool for revenue generation. This is a legacy from the pre-independence government based on 1948 British tax laws and has been mainly static since enhancement. The history of direct taxation in Nigeria dates back to 1904 when the system of personal tax was introduced in Northern Nigeria by Lord Lugard. The Nature Revenue Ordinance was introduced in 1917 also in Northern Nigeria and extended to the East in 1928. The three regions, as Nigeria was previously constituted, had various legislations for direct and indirect personal taxes prior to independence in 1960. It was not until 1961 that a uniform Tax Law come into force for the whole federation known as the Income Tax Management Act (ITMA) of 1961. This was based on the recommendations of the Raiseman Fiscal Commission of 1958 which was embodied in Nigeria Constitution) Order in Council, 1960. The ITMA has been effectively repealed and replaced by the Personal Income Tax Act generally referred as Decree No. 104 of 1993. The Personal Income Tax Act No.104 (PITA) regulates Personal Income Taxation in Nigeria. Personal income tax is a tax that is imposed on individuals who are either in employment or running their own small businesses under a business name or partnership. Liability to personal income tax in Nigeria does not depend on the domicile or nationality of the tax payer. Profits arising from a trade, business, profession or vocation...
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...Respected Sir/ Madam, After completing my Bachelors in Commerce (Honours) Degree from PGDAV College, University of Delhi, I cleared the IPCC exam (Both Groups) in 2011 and have given my CA Final in May 2015 and completed my articleship in September 2014. To demonstrate the required and relevant skills, I have included my work experience in the CV (attached) but here is a brief summary of my plausible contribution to your organisation, My experience in finance, audit and taxation field both technically and practically helped me to familiarise myself with the updated information about the market conditions and the recent reforms. It also equipped me with the skills and training needed to meet tight deadlines, the ability to display sound judgment when handling sensitive and confidential information, strong decision making and problem solving skills. I’m a dependable, self-motivated professional with tactical interpersonal skills and I sincerely believe I have the qualifications needed to become a valued member of your team. I would be proud to be associated with your organisation and would strive to help the company meet future goals. I am confident that an interview would be a great way to discuss this position further. My resume, enclosed herewith for your reference, contains additional information on my experience and skills. You can reach me on +91- 9953028279 or can email me at divyanijhara17@gmail.com Thank you for your time. Sincerely, Divya Nijhara ...
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...Foreign Exchange Management Act The Foreign Exchange Regulation Act of 1973 (FERA) in India was repealed on 1 June, 2000. It wasreplaced by the Foreign Exchange Management Act (FEMA), which was passed in the winter sessionof Parliament in 1999. Enacted in 1973, in the backdrop of acute shortage of Foreign Exchange in thecountry, FERA had a controversial 27 year stint during which many bosses of the Indian Corporate worldfound themselves at the mercy of the Enforcement Directorate (E.D.). Any offense under FERA was acriminal offense liable to imprisonment, whereas FEMA seeks to make offenses relating to foreignexchange civil offenses.FEMA, which has replaced FERA, had become the need of the hour since FERA had becomeincompatible with the pro-liberalisation policies of the Government of India. FEMA has brought a newmanagement regime of Foreign Exchange consistent with the emerging frame work of the World Trade Organisation(WTO). It is another matter that enactment of FEMA also brought with itPrevention of Money Laundering Act, 2002 which came into effect recently from 1 July, 2005 and the heat of which isyet to be felt as “Enforcement Directorate” would be invesitigating the cases under PMLA too.Unlike other laws where everything is permitted unless specifically prohibited, under FERA nothing was permitted unless specifically permitted . Hence the tenor and tone of the Act was very drastic. It providedfor imprisonment of even a very minor offence. Under FERA, a person was...
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...stakeholders involved. Deal structuring from a tax perspective is one of the critical factors for any business restructuring proposition, such that the transaction is tax neutral or results in minimizing the tax implications. Such acquisitions may be routed through direct investments or through an International Holding Company (IHC). An IHC would be advantageous in case the promoter/company wishes to keep the cash flows generated from overseas operations outside India for future growth needs. In case of direct investments, the entire surplus amount would have to be repatriated to India and the same would be subject to tax in India, thereby reducing the disposable income in the hands of the promoter/company. Income generated overseas could be repatriated to the Indian Company in the form of interest, royalties, service or management fees, dividends, capital gains. Such income when repatriated to the Indian Company by the IHC or to the IHC by the target company would attract double taxation. Double taxation is a situation in which two or more taxes are paid for the same income/transaction which arises because of the overlap between different countries tax laws and jurisdictions. The liability is then mitigated or off settled by tax treaties between the two countries. An ideal location for an IHC would be one with low/nil withholding tax on receipts, on income streams and on subsequent re-distribution as passive income. Some of the jurisdictions preferred for repatriating...
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...| ------------------------------------------------- Top of Form | | | | Language | | | | ------------------------------------------------- Top of Form | Bottom of Form | | | | | | * Tenders * Downloads * Income Tax Returns * Wealth Tax Return * Forms * Challans * International Taxation * Non Residents * Foreign Companies * Advance Rulings * Transfer Pricing * DTAA * Comprehensive agreements * Limited agreements * Other Agreements * Tax Information Exchange Agreement (TIEA) * Witholding Tax * Tax Law and Rules * Acts * Income Tax Act * Wealth Tax Act * Gift Tax Act * Expenditure Tax Act * Interest Tax Act * Finance Acts * Rules * Income Tax Rules * Wealth Tax Rules * Gift Tax Rules * Expenditure Tax Rules * Interest Tax Rules * Advance Ruling * ITAT Rules * Settlement Commission Rules * Circulars * Notifications * About Us * History of Direct Taxation * Vision, Mission, Values * Organisation and Functions * CBDT * Directorate Generals * Administration * Legal & Research * Systems * Vigilance * NADT * Exemptions * HRD * International Taxation ...
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...in the illustration shown below. If your policy offers variable returns then the illustration will show two different rates of assumed future investment returns. These assumed rates of return are not guaranteed and they are not the upper or lower limits of what you might get back as the value of your policy is dependent on a number of factors including future investment performance. Details of Person to be Insured Date of illustration Name of the person to be insured Date of birth of the person to be insured Age of person to be insured (in years) Gender of the person to be insured Plan Details Plan option Policy term (in years) Premium payment period (in years) Premium payment mode Sum insured (in Rs) Instalment premium (in Rs) Service tax and education cess (in Rs) Total installment premium (in Rs) Guaranteed annual payout option 12-Apr-2013 A 01-Jan-1978 35 Male Average 10 year G-Sec rate in the last 5 years 2 Year 2012 2011 2010 Rate 7.86% 7.8% 7.66% 7.48% 7.27% Lump Sum Cover Option 25 15 Annual 1000000 58660 1813 60473 Flexible payout option 2009 2008 Guaranteed Benefits (in Rs) Policy Year Projected Guaranteed Benefit @ 8 % (in Rs) Projected Guaranteed Benefit @ 8 % (in Rs)...
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...DRF 27: Entrepreneurship and Management of Small Business Name: Aswin J . R Enrolment No: A12N28165008 I. Critically examine the uses of Entrepreneurship Development Programmes (edps) in India. Entrepreneurship plays a very important role in the economic development. Entrepreneurs act as catalytic agents in the process of industrialization and economic growth. Joseph Schumpeter states that the rate of economic progress of a nation depends upon its rate of innovation which in turn depends upon the distribution of entrepreneurial talent in the population. Technological progress alone cannot lead to economic development unless technological breakthroughs are put to economic use by entrepreneurs. It is the entrepreneur who organizes and puts to use capital, labour and technology in the best possible manner for the setting up of his enterprise. Importance of entrepreneurship development programme (EDP) is to enable entrepreneurs initiating and sustaining the process of economic development in the following ways- 1. Creation of Employment Opportunities: Unemployment is one of the most important problems confronting developing and underdevelopment countries, EDP's enable prospective entrepreneurs in the setting up of their own units, thus enabling them to get self-employment. With the setting up of more and more units by entrepreneurs, both on small and large scale, numerous job opportunities are created for the others. Entrepreneur...
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...SHAKTI IT SERVICES PVT. LTD. Investment – Declaration Form For the Financial Year 2015-16 |Emp. Name |: |Afshan Shaik | |Designation |: |Senior Technical Writer | |Address |: |Afshan Shaik , 2nd Floor, House No. | |Pan No. |: |AJYPA1645C | | | |8-1-284/OU/72 Plot no 72, O.U. Colony, | | | | | | | |ShaikPet, Hyderabad – 500008, Telangana State| | | | | | | | | |Phone No. |: |9963129998 | 1) In case of the person residing in rented house and is in receipt of HRA. |From |To |Name of Landlord , Address and PAN |Rent p.m. |Total Rent | | |April 2016 |Sayeeda Banu, W/O Mohammed Abdul Baseer, 3rd Floor, |14000 |154000 | |March 2015 | |House No. 8-1-284/OU/72 Plot no 72, O.U. Colony, | | | | | |ShaikPet, Hyderabad – 500008, Telangana State | | | | ...
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