Union Budget 2021 expectations for tax clarity and certainty

Our expectations from the Union Budget 2021 1
Union Budget
2021
Our expectations from the

Our expectations from the Union Budget 20212
Our expectations from the
Union Budget 2021
T
he countdown for the Union Budget 2021 is about to
begin. The Finance Minister, Smt. Nirmala Sitharaman
will be presenting her third budget on 01-02-2021. In
the Year 2020, the Govt. has announced multiple stimulus
packages to rejuvenate the economy impacted by COVID-19
pandemic. Where on one hand the Govt. has to incur a huge
sum to finance these packages, on the other hand, it has
suffered a loss of revenue as some industries have been
impacted severely by the pandemic. Thus, it is not likely that
Govt. may increase the basic threshold limit or announce any
new tax deduction in the upcoming budget. In the ensuing
budget, the govt. should focus on enforcing the basic canon
of taxation laws, that is, Canon of Certainty.
Recently the Govt. has enforced the end-to-end faceless
proceedings with full force, which creates a complete eco-
system of tax proceedings. Right from obtaining a PAN to
the filing of the return, and completion of assessment to
appeal proceedings, everything now happens electronically.
In a new world of e-proceedings, the Govt. must focus on
bringing the certainty in the tax provisions by clarifying the
ambiguous provisions, omitting the redundant provision and
recalibrating the outdated provision. It will bring confidence
in the taxpayers and reduce the tax litigation which is a major
impediment in the timely collection of revenue.
Every year we release a document which includes our
recommendation as well as expectations from the Union
Budget. This year also we have prepared a list of our
apprehensions and recommendations for the upcoming
budget to the Govt. This document highlights the
asymmetry and conflict between different provisions
which should be plugged to bring clarity in the law. As a
publisher, we believe that it is our responsibility to
highlight the gaps in the law and work as a bridge
between the revenue, taxpayer and tax professionals
Here is a list of our recommendations and expectations
for Union Budget 2021-22.

Section 234C provides for levy of interest in case an assessee has the
liability to pay the advance tax but he fails to pay the same or the
amount paid in each instalment is less than the amount he should
have paid in such instalments. However, it is provided under the said
section that if the shortfall in payment of tax happens on account of
underestimating or failure to estimate the accrual of income referred
under Section 115BBDA(1), then such shortfall shall be ignored while
determining the chargeability of interest.
Memorandum explaining the Finance Bill, 2017 explained the reason
for providing such relaxation as follows:
“In view of the uncertain nature of declaration and receipt of
dividend income, an assessee liable to pay advance tax may not
be able to correctly determine such liability within the payment
schedule, therefore if a shortfall in payment of advance tax is
on account of under-estimation or failure in the estimation of
income of the nature referred to in section 115BBDA, the interest
under section 234C shall not be levied”
Up to Assessment Year 2020-21, a shareholder receiving dividend from
a domestic company was exempt from paying tax on such dividend
as the tax was recovered from the company in form of dividend
distribution tax (DDT). However, where the amount of dividend
received by a specified resident shareholder exceeds Rs. 10 lakh then
the excess amount was chargeable to tax at a special rate of 10%
under Section 115BBDA.
With effect from Assessment Year 2021-22, the Finance Act, 2020 has
moved to the traditional system of taxation of dividend whereby the
domestic company would no longer be required to pay DDT on the
dividend declared, distributed or paid to the shareholder on or after
01-04-2020 and, consequently, the shareholders shall be liable to pay
tax on such dividend. Thus, Section 115BBDA would be of no relevance
as the entire amount of dividend shall now be taxable in the hands
of the shareholder as per the normal provisions of the Act. Thus, it
1. Consequential amendment needed
after the abolition of Dividend
Distribution Tax

INCOME TAX ACT
WITH SUPPLEMENT
Author : Taxmann
Edition : 65th Edition 2020
ISBN No : 9789389921618
Rs. 2345 USD 77
Date of Publication : September 2020
Weight (Kgs) : 2.045
No. of papers : 1964
ORDER NOW
Description
The Present Publication is the 65th Edition, with the following noteworthy features:
 Taxmann’s Bestseller Book for more than Five-Decades
 Follows the Six Sigma Approach to achieve the Benchmark of ‘Zero Error’
 Amended Provisions as per the following:
n The Finance Act, 2020
n The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
 Legislative History of Amendments, since 1961
 Relevant provisions of all other allied laws referred to in the Income-tax Act
 Specially curated ‘Guide to Amendments’
 Comprehensive Table of Contents
 Relevant Section Numbers are printed in Folios for Quick Navigation
Supplement to Income-tax Act
The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act 2020, has inserted
or amended 39 Sections of the Income-tax Act, 1961. This supplement to Income-tax Act provides all
amended and newly inserted Sections. These amendments are relating to:
 Change in the due dates of various compliances
 Reduction in the rates of TDS/TCS
 Clarifications regarding amended provisions of residential status
 Faceless proceedings
 Restoration and deferment of certain provisions relating to trusts
 Exemptions and deductions
 Taxation of Alternative Investment Funds (AIFs)
 Reduced rates of surcharge on dividend income in case of FPIs

is recommended that Section 234C should be amended to provide
relaxation from levy of interest if the shortfall in payment of advance
tax is attributable to wrong estimation or under-estimation of the
dividend income.
2. Taxability of dividend income
under the head profits and gains
from business or profession
With effect from Assessment Year 2021-22, the Finance Act, 2020
has abolished the dividend distribution tax (DDT) and moved to the
classical system of taxation of dividend. Thus, a domestic company
shall not liable to pay DDT on the dividend declared, distributed or
paid on or after 01-04-2020 and, consequently, such dividend shall be
taxable in the hands of shareholders. As dividend is now taxable in
the hands of shareholders, the timeless controversy of its taxability
under the relevant head of income would come to the fore again.
In the Income-tax Act, there are five heads of income - Salary, House
Property, Business or Profession, Capital Gain and Other Sources.
Income from other sources is a residuary head of income and sweeps
in all taxable incomes which fall outside the other four heads of
income. The provisions relating to the taxability of residuary income
are contained in Section 56. The relevant provisions read as under:
“Income from other sources
56. (1) Income of every kind which is not to be excluded from
the total income under this Act shall be chargeable to income-
tax under the head “Income from other sources”, if it is not
chargeable to income-tax under any of the heads specified in
section 14, items A to E.
(2) In particular, and without prejudice to the generality of the
provisions of sub-section (1), the following incomes, shall be
chargeable to income-tax under the head “Income from other
sources”, namely:—

INCOME TAX RULES
Set of 2 Volumes
Author : Taxmann
ISBN No : 9789389921625
Rs. 1945 USD 67
Date of Publication : August 2020
Weight (Kgs) : 1.76
ORDER NOW
Description
The Present Publication is the 57th Edition & Updated till Income-tax (20th Amendment) Rules, 2020 with
the following noteworthy features:
 Taxmann’s series of Bestseller Books for more than Five Decades
 Incorporates all the changes made till the Income-tax (20th Amendment) Rules, 2020
 Follows the Six Sigma Approach to Achieve the Benchmark of ‘Zero Error’
 Coverage of this book includes:
n All Rules and Schemes, which are either notified under the Income-tax Act or are referred to in
different provisions of the Income-tax Act, are covered
n Contains 23 divisions covering all Rules relevant under the Income-tax Act i.e.,
l Income-tax Rules
l ICDS
l STT Rules
n Equalisation Levy Rules
n Small Saving Schemes, etc.
 All Forms Carry Action Points that explains the Relevant Provisions and Process of Filing
 All Redundant and e-Forms are Marked for Quick Identifications

(i) dividends;
(ia) …………………………..;
(ib) …………………………..;
(ic) …………………………..;
(id) income by way of interest on securities, if the income is
not chargeable to income-tax under the head “Profits
and gains of business or profession”;
(ii) to (xi)……………………………….”
Clauses (i) to (xi) of Section 56(2) provide for chargeability of various
incomes under the head of other sources. Clause (i) explicitly specifies
that dividend shall be taxed under the head ‘Income from other
sources’. However, for several other items of income specified in
Clauses (ia) to (xi), the provision is qualified by the phrase ‘if such
income is not chargeable to income-tax under the head ‘Profits and
gains of business or profession’. For instance, as per clause (id),
interest on securities is chargeable to tax under the head other
sources only when it is not chargeable to income-tax under the head
“Profits and gains of business or profession”. The exclusion of the said
phrase from clause (i) suggests that the dividend income can never
be taxed as a business income and must always be taxed under the
head ‘Income from other sources’.
However, the taxability of dividend income under the head ‘business
or profession’ when it is connected to the business carried on by
assessee (for example, dividend received in respect of shares held
as stock-in-trade) has always been a matter of turf war.
The Delhi High Court in the case of CIT v. Excellent Commercial
Enterprises & Investments Ltd. [2005] 147 Taxman 558 (Delhi) held that
where shares are held by the assessee as a stock-in-trade, then it
could not be said that the dividend income would fall as an income
from other sources as contemplated under section 56. The Supreme
Court in the case of Brooke Bond & Co. Ltd. v. CIT [1986] 28 Taxman 426
(SC) held that the nature of the dividend income must be determined
having regard to the true nature and character of the income.
It is recommended that the alike other clauses, dividend income
should be taxable under the head ‘Income from other sources’ if it

DIRECT TAXES
MANUAL
WITH SUPPLEMENT
Set of 3 Volumes
Author : Taxmann
ISBN No : 9789389921595 Rs. 6190 USD 233
Date of Publication : September 2020
ORDER NOW
Description
The Present Publication is the 50th Edition that incorporates all changes made by the following:
 The Finance Act, 2020
 The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020
 The Income-tax (20th Amendment) Rules, 2020
Taxmann’s Direct Taxes Manual incorporates the following noteworthy features:
 Taxmann’s series of Bestseller Books for more than Five Decades
 Follows the six-sigma approach, to achieve the benchmark of ‘zero error’
 Published in three volumes:
n Volume 1: Income-tax Act as amended by the Finance Act, 2020 & the Taxation and Other Laws
(Relaxation and Amendment of Certain Provisions) Act, 2020. It also contains other allied Acts.
n Volume 2: The Income-tax Rules as amended up to the Income-tax (20th Amendment) Rules,
2020. It also contains other allied Rules
n Volume 3: It includes the following –
l All schemes relevant under the Income-tax Act, 1961
l Words and phrases as defined by various Courts and Tribunals
l Gist of all Circulars and Notifications which are in force
l Digest of all landmark rulings by the Apex Court, High Courts & Tribunals
§ Specimen, models, and drafts of deeds, letters such as indemnity bond, reply to notices, etc.

is not chargeable to income-tax under the head ‘Profits and gains of
business or profession’. Section 56(2)(i) should be read as under:
(2) In particular, and without prejudice to the generality of the
provisions of sub-section (1), the following incomes, shall be
chargeable to income-tax under the head “Income from other
sources”, namely :—
(i) dividends [, if such income is not chargeable to income-tax
under the head “Profits and gains of business or profession”];
3. No MAT on dividend income of a
foreign company
Minimum Alternate Tax (MAT) is payable by the companies whose
tax on total income is less than 15%1
of ‘book profit’. ‘Book profit’ is
computed by making specified additions and deletions to the profit
determined as per the statement of profit and loss of the company. The
provisions of MAT apply to all types of companies (except cos. opting
for the concessional tax regime prescribed under Section 115BAA or
Section 115BAB or a co. earning income from life insurance business
as referred to under Section 115B). However, a foreign company is
not liable to pay MAT in the following situations:
(a) If it does not have a permanent establishment in India in
accordance with the provisions of DTAA;
(b) If it is a resident of a country with which India does not
have a DTAA and it is not required to get registered in
India under any law relating to companies; or
(c) If its income is taxable under presumptive taxation
schemes of Section 44B, Section 44BB, Section 44BBA or
Section 44BBB.
Thus, in other words, provisions relating to MAT apply to a foreign
company only when it is a resident of a country with which India has
DTAA and it carries on business through a permanent establishment
1 The tax rate shall be 9% if the assessee is located in an International Financial Services Centre
(IFSC) and derives income solely in convertible foreign exchange

MASTER GUIDE TO
INCOME TAX ACT
WITH SUPPLEMENT
Author : PRADEEP S SHAH ,
RAJESH S KADAKIA
ISBN No : 9789389921823
Rs. 2545 USD 80
Date of Publication : May 2020
Weight (Kgs) : 2.16
ORDER NOW
Description
This is a unique book which provides Analysis of all Statutory and Judicial changes in the Income-tax Act.
It also provides a Ready-Referencer for All-Important Procedural Aspects of the Act.
The Present Publication is the 30th Edition with the following coverage:
 Division 1: Section-wise commentary on changes made by the Finance Act, 2020 and Taxation and
Other Laws (Relaxation of Certain Provisions) Act, 2020
 Division 2: Income-tax Practice Manual
n Tabular presentation of all key provisions of the Act, i.e.,
l Tax-Free Incomes,
l Deductions & Allowances,
l Periods of Limitation,
n Analysis of all procedural aspects of the Act, i.e.,
l TDS,
l TCS,
l Returns,
 Division 3: Gist of all Circulars & Notifications which are in-force
 Division 4: Digest of all Landmark Rulings by the Apex Court, High Courts, and Tribunals
Supplement to Master Guide to Income-tax Act
The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020, has inserted
or amended 39 Sections of the Income-tax Act, 1961. This supplement to Master-Guide to Income-tax
Act provides all amended and newly inserted Sections along with commentary.
This book incorporates the following:
 Change in the due dates of various compliances;
 Reduction in the rates of TDS/TCS

situated in India. However, it should not be taxable under the
presumptive taxation schemes mentioned above.
Once it is determined that the foreign company is liable to pay MAT,
certain adjustments are made from its profits, interalia, following
incomes and expenses claimed in respect thereof are added back
or reduced from the net profit if same is credited or debited in the
profit and loss account, respectively:
1. Capital gain from securities;
2. Interest;
3. Royalty; and
4. FTS.
However, the aforesaid adjustments are made only when the income is
taxable at a rate lower than the rate of MAT. Thus, a foreign company
is not liable to pay MAT on aforesaid incomes. Here, it is to be noted
that the Finance Act, 2020 has abolished the dividend distribution
tax (DDT) with effect from Assessment Year 2021-22. Therefore, the
dividend declared, distributed or paid on or after 01-04-2020 is now
taxable in the hands of the shareholder. Thus, if a foreign company
receives dividend in respect of its investment in India, it shall be
liable to pay MAT on such dividend income even if such income is
chargeable to tax at a rate lower than the rate of MAT. Thus, it is
recommended that Section 115JB should be amended to provide that
dividend income and expenses claimed in respect thereof to be added
back or reduced from the net profit while computing MAT in case of
foreign company.
4. Section 54B exemption should be
allowed even if the new agricultural
land is purchased before the sale
of agricultural land
Section 54B provides an exemption to an Individual or HUF from
the capital gains arising from the transfer of agriculture land. The
exemption is allowed if the amount of capital gains is invested in a
new agriculture land within the prescribed time limit.

Description
This is a unique book which provides an In-Depth Rule Wise Commentary on Income-tax
Rules.
The Present Publication is the 27th Edition which incorporates all the amendments till the
Income-tax (22nd Amendment) Rules, 2020, with the following noteworthy features:
u Provides a gist of all Circulars and Notifications which are in-force
u Judicial Precedents on all Controversial Matters
u Comprehensive Commentary on Important Aspects of the Act and Rules
Supplement to Master guide to Income-tax Rules
This book is a supplement to Master guide to Income-tax Rules. It contains a commentary
on Income-tax Rules amended by the Income-tax (8th Amendment) Rules, 2020 to In-
come-tax (21st Amendment) Rules, 2020. This book incorporates the following:
u Manner of allowing depreciation or adjustment of additional depreciation for asses-
sees opting for concessional tax regime
u Non-applicability of provisions of section 139A to certain assessee
u Newly incorporated Form 26AS
u Amendment in TDS and TCS statements
u Amendment in ITR Forms
ORDER NOW
MASTER GUIDE TO
INCOME TAX RULES
WITH SUPPLEMENT
Author : Taxmann
Rs. 1995 USD 64
ISBN No : 9789389921830
Date of Publication : October 2020

The provisions of Section 54B provide relief when the capital gain
arising from the transfer of agricultural land is invested in another
agricultural land within two years after the date of transfer. Sections
54 and 54F also allow capital gain exemption if the
assessee purchases a residential house either within one year
before the date of the transfer or within two years after the
date of transfer of original asset.
Unlike Section 54/54F, Section 54B does not allow the capital gain
exemption if assessee purchases agricultural land before the date
of transfer of old agricultural land. It is recommended that the
deduction under Section 54B should be allowed even if the new
agricultural land is purchased by the assessee before the sale of
original agricultural land.
5. Tax deducted in the foreign
country to be treated as income of
the assessee
Section 198 of the Income-tax Act, 1961 provides that the tax
deducted at source should be included in the gross total income
of the assessee. The bare provision of Section 198(1) is reproduced
below:
‘All sums deducted in accordance with the foregoing provisions of this
Chapter shall, for the purpose of computing the income of an assessee,
be deemed to be income received’
Section 198 is covered under Chapter XVII of the Income-tax Act
which includes deduction/collection of taxes under Sections 192
to 206C. Thus, any tax deducted or collected under the Income-tax
Act shall be deemed as income of the assessee and accordingly, it
is added to the gross total income of the assessee.
However, the computation of income is often disputed if taxes have
been withheld outside India and the corresponding income is offered
to tax in India. In absence of an explicit provision in this regard, the
assessee includes the net income (i.e., amount so remitted to India

DIRECT TAXES READY
RECKONER WITH
SUPPLEMENT
Author : Vinod K Singhania
Edition : 44th Edition
(Assessment Year
2020-21 & 2021-22)
ISBN No : 9789389921601
Rs. 1825 USD 62
No. of papers : 912
ORDER NOW
Description
Taxmann’s Ultimate Best-Seller, ‘Direct Taxes Ready Reckoner’ is a ready-referencer for all provi-
sions of the Income-tax Act.
The Present Publications is the 44th Edition & it is updated till 5th October 2020, authored by Dr.
V.K. Singhania. The book has the following noteworthy features:
 Analysis of all amendments by the following:
n The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020,
and
n The Finance Act, 2020
n Crisp & highly curated analysis of all the amendments
n Analysis of all provisions of the Income-tax Act along with relevant Rules, Judicial Pronounce-
ments, Circulars and Notifications
Supplement to Direct Taxes Ready Reckoner
This book provides a complete analysis of all the amendments and insertions made by the Taxa-
tion and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. This book covers
the following:
n An analytical commentary on all the amendments and insertions such as change in due dates,
TDS/TCS rates, clarifications regarding amended provisions of residential status, faceless pro-
ceedings etc.
n A thorough analysis of newly inserted sections 194-O and 206C(1H)
n A complete description of amendments pertaining to alternative tax regime
n Illustrations on all the complex provisions

after withholding of taxes) to his gross total income. Whereas the
Assessing Officer assesses the gross amount.
This conflict arises due to the absence of a reference in Section 198
of taxes withheld outside India. Section 198 provides a deeming
fiction with respect to the taxes deducted or collected as per the
provisions of Income-tax Act, 1961 and does not include taxes
withheld outside India.
As the taxes paid outside India are eligible for the foreign tax
credit under Section 90/90A read with Rule 128, it is apprehended
that the amendments may be made to Section 198 to bring the
income earned outside India at par with the income earned in India.
6. Long-term capital gain referred to
in Section 112A should be taxed at
10% instead of MMR in the hands
of business trust
A business trust (REIT or InVIT) is governed by Section 115UA
read with Section 10(23FC), 10(23FCA) and Section 10(23FD) of the
Income-tax Act. A business trust is structured as a hybrid pass-
through entity, wherein it is allowed to pass certain income to its
unit-holders. Consequently, such incomes are exempt at the level
of business trust and taxable in the hands of the unit-holders.
The incomes which a business trust is allowed to pass through to
its unitholders are as follows:
(a) Dividend received from SPV;
(b) Interest received from SPV; and
(c) Rental income from real estate properties directly
owned by REITs.
The pass-through status is provided to the business trust only
in respect of the aforesaid incomes and all other incomes are
chargeable to tax in the hands of the business trust. Such other
income is taxable under Section 115UA at a maximum marginal rate

DIRECT TAXES LAW &
PRACTICE WITH SUPPLEMENT
Author : Vinod K Singhania ,
Kapil Singhania
Edition : Asst. Year 2020-21
& 2021-22
ISBN No : 9789389921939
Rs. 3670 USD 103
Weight (Kgs) : 2.96
ORDER NOW
Description
Direct Taxes Law & Practice – Professional Edition is one of the most trusted and bestselling commen-
taries on Income-tax Act.
The Present Publication is the 64th Edition, authored by Dr. V.K. Singhania & Dr. Kapil Singhania, incor-
porates all the amendments made by the following:
 The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act,2020
The salient features of this book are as follows:
 In-depth analysis of all provisions of Income-tax Act with relevant Rules, Judicial Pronouncements,
Circulars and Notifications
 Illustrations on all the complex provisions
Supplement to Direct Taxes Law and Practice
Supplement to Direct Taxes law and practice provides a detailed commentary on all the amendments
and insertions made by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions)
Act, 2020.
Key features of this book are as follows:
 A thorough analysis of all the amendments and insertions such as clarifications regarding amended
provisions of residential status, registration of trusts and institutions etc.
 A detailed commentary on Faceless proceedings

(i.e., 42.744%) except the capital gains covered under Section 111A
and Section 112. Section 111A provides for a concessional tax rate
of 15% in respect of short-term capital gain arising from the transfer
of listed equity shares, equity-oriented mutual funds or unit of a
business trust. Whereas, Section 112 provides for a concessional
tax rate of 20% in case of long-term capital gain.
The Finance Act, 2018, inserted a new Section 112A in the Income-
tax Act to tax the income arising from the transfer of a long term
capital asset, being a listed equity share or a unit of an equity
oriented fund or a unit of a business trust at the rate of 10% on
the amount of capital gain in excess of Rs. 100,000. However, no
consequential amendment was made under Section 115UA. Thus, it
is recommended that the capital gains covered under Section 112A
should be charged to tax at the rate of 10% and not at MMR in the
hands of business trust.
7. Definition of SPV under Income-
tax Act should be same as defined
under SEBI’s regulations on REITs
and InVITs
To boost investment in Real Estate and Infrastructure sectors, the
Government introduced the concept of Real Estate Investment
Trusts (REITs) and Infrastructure Investment trusts (InVITs).
REITs or InVITs are regulated by SEBI through SEBI (Real Estate
Investment Trusts) Regulations, 2014 and SEBI (Infrastructure
Investment Trusts) Regulations, 2014, respectively. The structure
of REITs or INVITs is similar to that of a mutual fund wherein money
is collected from the general public for investing on their behalf in
income-generating real estate properties or infrastructure projects.
REITs or InVITs invest in real estate properties or infrastructure
projects, respectively, either directly or through Special Purpose
Vehicle (SPV). Under SEBI (Real Estate Investment Trusts) Regulations,
2014, SPV is defined to mean a company or LLP in which REIT
holds at least 50% of the equity share capital or interest. Whereas,

Faceless Assessment and
Appeals
Ready Reckoner with Real Time Case
Studies
Author : Mayank Mohanka
Edition : 3rd Edition 2021
ISBN No : 9789390585984
Rs. 1295 USD 50
Date of Publication : December 2020
Weight (Kgs) : 0.54
No. of papers : 500
This book is a ready-reckoner for the assessees and tax practitioners, to
understand the 'Faceless Assessment Scheme, 2019 & Faceless Appeal Scheme,
2020, in an effective, qualitative and timely manner. An honest and sincere effort
has been made in the book, to explain & demonstrate the practical aspects and
nitty-gritties of the Scheme. This book aims to fully familiarise the reader, with
the following points:
u Manner, mode and methodology of conducting the faceless assessments
u Viewing and retrieving of e-scrutiny notices
The Present Publication authored by Mayank Mohanka, is the 3rd Edition &
updated up to 10th December 2020, with the following noteworthy features:
u [Illustrative Tables, Infographics, Visuals & Real-time Scrutiny Notices] The
New 'Faceless Assessment Scheme, 2019' & 'Faceless Appeal Scheme, 2020'
have been explained lucidly with illustrative tables, infographics, visuals & real-
time scrutiny windows
u [Practical Case-Studies] Real-time practical case studies on faceless
assessments on various issues, such as:
Cash Deposits during demonetisationn
Bogus Purchases, Seized Diary, AIR/STR informationn
u [Specimens] of suggestive qualitative and meritorious e-responses on faceless
assessments
u Contents of the book are as follows:
Faceless Assessmentsn
New Face of Faceless Assessmentsl
Decoding the New Faceless Assessment Scheme, 2019l
Description :
ORDER NOW

under SEBI (Infrastructure Investment Trusts) Regulations, 2014,
SPV is defined to mean a company or LLP in which InVIT holds the
controlling interest and at least 51% of the equity share capital
or interest. Further, under both the regulations, SPV has to meet
certain other conditions pertaining to investment and nature of
activities.
As far as tax implication of investing in REITs or InVITs is concerned,
they are given pass-through status under the Income-tax Act
whereby they are allowed to pass certain income, inter-alia, interest,
rent and dividend received from SPV to their unit holders without
paying the income-tax at their end. However, under Income-tax Act,
SPV is defined to mean an Indian company in which the business
trust holds controlling interest and any specific percentage of
shareholding or interest, as may be required by the regulations
under which such trust is granted registration. Definition of SPV as
provided under the Income-tax Act is to some extent is different
from the definition as provided under aforesaid SEBI Regulations.
The two basic differences in the definition of an SPV are as follows:
(a) As per SEBI Regulations, SPV can be an Indian company
or LLP. However, the Income-tax Act recognises only an
Indian company as SPV. Thus, if an SPV is incorporated
as LLP then pass-through status shall not be available
to business trust in respect of income received from
such SPV; and
(b) As per SEBI Regulations, REIT is not required to have a
controlling interest in SPV. However, as per Income-tax
Act, REIT should have the controlling interest and at
least 50% equity shareholding in SPV.
Considering these differences in the definition of SPV under the
Income-tax Act vis-à-vis SEBI Regulations, it is recommended to
amend the definition of SPV under Income-tax Act to align it with
the definition as provided under SEBI regulations.

This book provides a complete guide on the provisions of Section 56(2)(x). Deemed
income arises under this provision when any person receives gifts or acquires an
immovable property or specified moveable assets without consideration or for in-
adequate consideration.
Section 56(2)(x) engages significant time and attention of all taxpayers and tax prac-
titioners while planning and structuring any commercial transaction.
This book is a compilation of chapters written by three different authors, each one
of whom has a different mind-set and a different professional background and ex-
perience. This book is updated up to the Finance Act, 2020 & the key features of
this book are as follows:
Practical understanding of each and every aspect of Section 56(2)(x)
Highlights various issues and discrepancies arising out of Section 56(2)(x)
Detailed and holistic exposition of each and every issue like ‘receipt’, ‘consideration’,
etc.
Detailed and thorough analysis of Rule 11U and Rule 11UA

8. Clarification required for pass-
through of losses incurred by
Business trust and Securitisation
trust
In a pass-through regime, the tax is eliminated at the pool level and
tax is levied at the investor level. In other words, income earned
by an entity is exempt from tax in its hands and same is taxable in
the hands of its investor or unitholders in the same manner and to
the same extent as if the investment in underlying assets has been
made directly by the investors.
In the Income-tax Act, three types of entities, namely Category
I & Category II AIFs, Securitisation Trust and Business Trust, are
accorded a pass-through status. Securitisation Trusts enjoy the
pass-through status in respect of entire income whereas others are
provided with this status in respect of certain specified income only.
Income-tax Act contains provisions for the pass-through of income,
however, there is no guidance on the treatment of losses incurred
by them. The Finance (No. 2) Act, 2019, has amended Section 115UB
to allow carry forward of losses, other than the losses under the
head “Profits and gains of business or profession” at the investor
level in case of Category I and II AIFs. Memorandum explaining the
Finance (No.2) Bill, 2019, has explained the reasons behind such
amendment as follows:
“Pass-through of losses are not provided under the existing
regime and are retained at AIF level to be carried forward and
set off in accordance with Chapter VI. In order to remove the
genuine difficulty faced by Category I and II AIFs, it is proposed
to amend section 115UB to provide that………”
However, no similar amendment has been made in respect of the
Securitisation Trust and Business Trust.
Thus, it is recommended that Section 115UA and Section 115TCA
should be amended to bring clarifications in this regard.

GOLD & TAXATION
Author : Meenakshi Subramaniam
Edition : 2020 Edition
ISBN No : 9788194924654
Rs. 525 USD 20
Weight (Kgs) : 0.15
No. of papers : 184
ORDER NOW
Description
The one of a kind book on Gold & Taxes, is the first book in this domain, written
in simple & lucid language along-with plenty of examples, case studies & tables.
Any person being a buyer, seller, investor would not like to face heavy tax
burden, while fondly handling the shining, yellow gold. This book provides a
complete guidance on how to save taxes on gold, and law stated in this book is
amended up to 25th November 2020. Key features of this book are as follows:
u It encompasses all aspects of Income-tax
u Relevant GST principles such as composition scheme, Input tax credit,
have also been incorporated
u Examples, cases and tables for easy understanding
u Tips at the end of various chapter
u The contents of this book are as follows:
n How much gold can you hold?
n Search, seizure & income tax
n Gold & gold traders
n Appendices
l Historical Gold & Silver Rates
l Cost Inflation Index for Gold Sold after 1-4-2017, notified by
CBDT on 5-6-2017 for financial year 2001-02 and subsequent
years

9. Provisions of Section 80DD must be
rationalized
Section 80DD allows a deduction to a resident individual or HUF who
has incurred any expenditure for treatment of a dependent person
with a disability. The deduction is also allowed for the amount paid
or deposited in a scheme of LIC or another insurer for maintenance
of such a dependent person. However, the following two conditions
have to be satisfied to claim the deduction:
(a) The scheme must provide for payment of the annuity or
lump sum amount for the benefit of a dependant only
in the event of the death of such resident individual or
member of HUF; and
(b) Assessee nominates either the dependant or any other
person or a trust to receive the payment on his behalf for
the benefit of the dependant.
These conditions are harsh and illogical as a person cannot get the
lump sum or annuity amount of insurance policy till he is alive. Even
if he has paid all premiums and he needs the money for the benefit
of a dependent person, he is not allowed to get the maturity amount.
The Apex Court in the case of Ravi Agrawal v. Union of India [2019]
101 taxmann.com 70 (SC) had requested the Govt. to make suitable
amendments to Section 80DD so that maturity sum in Jeevan Aadhar
Policy floated by LIC under Section 80DD is disbursed for the benefit
of disabled person even before the death of assured parent/guardian.
Section 80DD also lacks other aspects which have been discussed
below:
(a) It prescribes the meaning of ‘disability’ as contained in the
Persons with Disabilities (Equal Opportunities, Protection
of Rights and Full Participation) Act, 1995. This Act has
been repealed. The new law the Rights of Persons with
Disabilities Act, 2016 covers more disability types2
;
(b) Non-resident persons are not allowed to claim Section
80DD deduction;
2 Applicable in case of Section 80U as well

LAW RELATING TO
INCOME-TAX
SETTLEMENT COMMISSION
Author : G.C Das ,
Jayant G. Pendse
ISBN No : 9788194924630
Rs. 675 USD 20
Weight (Kgs) : 0.28
No. of papers : 256
ORDER NOW
Description
Legal structure in tax proceedings does not follow open Court procedure, where the
judge is neutral. In this system, the Assessing Officer is the investigator and adjudicator,
which impels him to lean towards his own judgement.
The institution of Settlement Commission has been created with the avowed purpose of
balanced resolution of tax disputes in a time bound manner.
This book deals with all legal and procedural aspects relating to resolution of tax disputes
in a very lucid manner. It will enable the tax professionals to handle the settlement cases
with ease and confidence. The key highlights of the book are as follows:
u [FAQs] have been provided on complex issues
u [Practical Problems] It covers all conceivable questions on law and practical prob-
lems faced by taxpayers post search and survey operations
u [Tabular Presentation] of answers, for easy comprehension
u [Case Studies] on common issues are provided, which serves as a practical guide.
This book covers all amendments up to 01-12-2020 and all important decisions rendered
by Courts. This book incorporates the following:
u Settlement Commission – Concepts, Features and Functions – An Overview
u Constitution, Framework and Functioning of the Settlement Commission [Section
245BA, 245BB, 245BC, and 245BD]
u Definition of ‘Case’ [Section 245A(b)]
u Application for Settlement of Case [Section 245C]
u Full and True Disclosure [Section 245C]

(c) If dependent dies before the policy-holder, the whole
amount received is fully taxable.
It is highly recommended that Govt. must streamline the provisions
of section 80DD.
10. Section 36(iva) should be
amended to include the impact
of the amendment made under
Section 80CCD in respect of
Central Government contribution
up to 14%
Section 80CCD was amended by the Finance (No. 2) Act, 2019 to
provide that the Central Government employees shall be allowed
a deduction for the amount deposited in the NPS in respect of
contribution made by the employer to the extent of 14% of salary in
the previous year. Post amendment maximum admissible deduction
in case of an employee would be as under:
(a) 14% of salary, if the contribution is made by the Central
Government.
(b) 10% of salary, if the contribution is made by any other
employer.
To allow deduction of such contribution, Section 36(iva) provides
that deduction shall be allowed to the employer with respect to the
contribution made by the employer towards NPS to the extent it
does not exceed 10% of the salary of the employee.
Since the contribution of Central Govt. towards NPS has increased
from 10% to 14%, the consequential changes should be made in
Section 36 to bring harmony between both the sections.

LAW RELATING TO
ASSESSMENT IN
SEARCH CASES
Complete Guidance on Journey of the Assessment Proceed-
ings starting from ‘Issue of Warrant’ till the ‘Levy of Penalty’
Author : G.C. Das
K. Chandrahas
Binding : Paperback
Weight (kgs) : 0.995INR 1995 | USD 50
Edition : 2nd Edition 2020
ISBN No. : 9789390128716
No. of Pages : 736
Description
The focus of the book is on assessment in search and seizure cases. Important concepts
and principles, which are relevant not only for search cases but also in dealing with regu-
lar assessments, have also been put together in this book. This book also deals with the
assumption of jurisdiction, retrospective legislation and judicial precedents.
The revised edition of this book incorporates a new chapter on ‘Digital Evidence’ in
recognition of growing importance of the subject. The Present Publication, authored by
G.C. Das and K. Chandrahas, is the Second Edition, as amended by the Finance Act, 2020
and the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act,
2020. The features of this book are as follows:
u Provides a complete journey of the assessment proceedings starting from the issue
of warrant till levy of penalty
u Complete description of assessment provisions with the help of supporting judicial
pronouncements
u Comprehensive digest of all Case Laws relating to search and seizure
u Subject index to quickly find out the relevant Case Law
u Contents of this book are as follows:
l Warrant of Search – Relevance in Assessment Proceedings
l Section 153A – An Overview
l Initiation of Proceedings u/s 153A – Jurisdiction Issues
l Procedure of Assessment u/s 153A
l New Claim of Deduction in Proceedings u/s 153A
l Use of Incriminating Evidence
l Assessment of Income of ‘Other Persons’ – Section 153C
ORDER NOW

11. Consequential amendment needed
in the Proviso to Section 206C(5)
due to omission of Section 203AA
The Proviso to Section 206C(5) provides that the Director-General
of Income-tax (Systems)/NSDL or the person authorised by it shall
prepare and deliver to the buyer referred to in Section 206C(1) or to
the licensee or lessee referred to in Section 206C(1C), a statement
specifying the amount of tax collected and other prescribed particulars.
Section 203AA read with Rule 31AB provides that such a statement is
required to be furnished in Form No. 26AS by the 31st
July following
the financial year during which taxes are collected.
The Finance Act, 2020, has omitted Section 203AA with effect from
01-06-2020 and a new section 285BB has been introduced from the
same date. Consequently, the CBDT omitted Rule 31AB and a new
Rule 114-I has been inserted to provide that the Principal Director
General of Income-tax (Systems) or the Director-General of Income-
tax (Systems) or any person authorised by him shall, upload such
annual information statement in Form No. 26AS in the registered
account of the assessee.
As Section 203AA has been omitted, corresponding omissions must
be made in the provisions of TCS as well. Thus, it is recommended
that the government should make consequential amendments by
omitting Proviso to Section 206C(5).
12. Start-ups may be penalised for
not fulfilling conditions under
Section 80-IAC in line with section
56(2)(viib)
Income-tax Act contains provisions to allow various exemptions and
deductions to the start-ups. Section 56(2)(viib) provides an exemption

TAX PRACTICE
MANUAL
Author : Gabhawala &
Gabhawala
ISBN No : 9789390128044
Rs. 4195 USD 103
Date of Publication : August 2020
Weight (Kgs) : 2.43
ORDER NOW
Description
This book is a practical guide for Tax Professionals to assist them in their day-to-day tax works. The
present publication is the 6th Edition which incorporates all the changes made by the Finance Act, 2020
& other Amendment Acts.
Key features of this book are as follows:
 Law relating to Tax Procedure has been explained lucidly and in a practical manner with check-lists,
necessary tips, etc.
 All-important Courts Decisions have been covered
 Every aspect of the tax practice has been explained elaborately
 330+ case-studies are given to deal with practical tax problems faced by the tax professionals
 Complete guide to draft deeds and documents such as:
n Affidavits
n Wills
n Special Business Agreements
n Family Arrangements
n Power of Attorney
n Lease
n Indemnity
n Guarantee
n Charitable Trust Deeds

from the angel tax to the start-up if it fulfils the conditions prescribed
under Notification No. GSR 127(E), Dated 19-2-2019 issued by the DPIIT.
Section 80-IAC provides deduction to the eligible start-up as defined
therein up to 100% of the business profits for three consecutive
assessment years.
A Proviso has been inserted to Section 56(2)(viib) by The Finance (No. 2)
Act, 2019 to provide that in case of failure to comply with the conditions
specified in the notification issued by DPIIT, the consideration received
from the issue of shares, as exceeding the fair market value of such
shares, shall be deemed to be the income of the company chargeable
to tax for the previous year in which such failure takes place. Penal
provisions under Section 270A were also introduced in case of failure
to fulfil the conditions.
However, Section 80-IAC does not contain any provision to withdraw
the deduction if the start-up fails to fulfil the prescribed conditions.
It is apprehended that a corresponding amendment could be
made to Section 80-IAC to withdraw the deduction if the assessee
company fails to comply with the conditions prescribed in the DPIIT’s
notification.
13. Capital gain provisions should
not contain the reference of
any particular year in respect of
sovereign gold bonds scheme
Sovereign Gold Bond (SGB) Scheme is an investment scheme of the
Central Government which offers the investors an alternative to hold
gold in physical form. There are several benefits of investing in SGBs.
An individual is not liable to pay capital gain tax on redemption of
SGBs. Section 47 of the Income-tax Act provides that any transfer
of Sovereign Gold Bond issued by the RBI under the Sovereign Gold
Bond Scheme, 2015, by way of redemption, by an assessee being an
individual shall not be treated as a transfer for the purpose of capital
gain.

TAXATION OF
CAPITAL GAINS
ISBN No : 9789390128136
Rs. 1795 USD 58
Date of Publication : July 2020
Weight (Kgs) : 0.68
No. of papers : 672
ORDER NOW
Description
This book is a ‘complete guide for an in-depth and thorough understanding’ of the provisions
of Income-tax Act in respect of ‘taxation of Capital Gains’.
This book is the 9th edition which incorporates all the amendments made by the Finance Act,
2020. Key features of the books are as under:
 Complete analysis of each aspect with the help of relevant judicial pronouncements and
Circular & Notifications
 Illustrations for easy understanding of various complex provisions
 Guidance on the controversial issues with supporting Case Laws
 Separate chapter for treatment of capital gains in case of Charitable trusts
 Checklist of actions to claim deductions with extended time-limits for compliances under
the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020

Section 47 refers to the Sovereign Gold Bond issued under the
Sovereign Gold Bond Scheme, 2015. However, the Central Government
issues a new Sovereign Gold Bond scheme every year. Thus, section
47 should be suitably amended to remove reference of any particular
year from the Sovereign Gold Bond Scheme.
The similar amendment is also required under the Fourth proviso to
Section 48 which provides the benefit of indexation while computing
long-term capital gain arising from the transfer of Sovereign Gold
Bond.
14. Need for an enabling provision
to deduct tax under Section 194N
as cash withdrawn is not an income
Section 194N was introduced by the Finance (No. 2) Act, 2019, which
was subsequently substituted with a new provision by the Finance
Act, 2020. This provision requires deduction of tax at source from
the cash withdrawn by a person from his account maintained with a
bank, co-operative bank or a post office.
Section 194N is covered under Chapter XVII which is relating to the
collection and recovery of tax. Section 4 and Section 190 contain the
enabling provisions for deduction and recovery of tax.
Section 4(1) provides that income-tax shall be levied in respect of
total income of the relevant year. Section 4(2) provides that in respect
of income chargeable under sub-section (1), income-tax shall be
deducted at the source or paid in advance, where it is so deductible
or payable under any provision of this Act.
Section 190 is relating to the deduction/collection of tax and payment
of advance tax. Sub-section (1) of the said section provides that:
“Notwithstanding that the regular assessment in respect of any
income is to be made in a later assessment year, the tax on
such income shall be payable by deduction or collection at
source or by advance payment or by payment under sub-section
(1A) of section 192, as the case may be, in accordance with the
provisions of this Chapter.”

TAXATION OF
START-UPS & INVESTORS
Author : SRINIVASAN ANAND G
ISBN No : 9789390128211
Rs. 895 USD 43
Date of Publication : July 2020
No. of papers : 416
ORDER NOW
Description
This book is a ready-referencer to understand the taxation of start-ups and other operational
issues.
All complex provisions have been explained with detailed Case studies and Illustration. The
Current Publication is the 3rd Edition which incorporates all the changes made by the Finance
Act, 2020. The key features of this book are as follows:
 Analysis of every provision applicable to a start-up, inter-alia, Section 80-IAC, Section 54GB,
etc.
 A thorough examination of the notification issued by the DPIIT for eligible start-ups
 Guidance on registration of a startup as a firm or a company
 Impact of revision in definition of MSMEs on Start-ups
 Analysis of Emergency Credit Line Guarantee Scheme (ECLGS)
 Case studies and Illustrations for easy understanding of complex laws
 FAQs for resolution of queries

This provision explicitly provides that the collection and deduction
of tax shall be made in respect of the income of the assessee. If the
amount received could not be categorised as income in the hands
of the receiver on which tax is leviable, no tax can be deducted/
collected at source.
TDS on cash withdrawal was introduced as a measure to promote
cash-less economy and to discourage payments in cash. Section
194N requires deduction of tax from the amount withdrawn from
the accounts, however, it contradicts with provisions of Section 4 and
Section 190. There is no income component in the cash withdrawn
from a bank account, thus, the question of TDS should not arise.
This proposition has been affirmed by the Supreme Court in the case
of CIT v. Eli Lilly & Co. (India) (P.) Ltd. [2009] 178 Taxman 505 (SC) that
if a particular income falls outside section 4(1) then TDS provisions
cannot come in. The Madras High Court in the case of Tirunelveli
District Central Co-operative Bank Ltd. v. JCIT [2020] 119 taxmann.com
21 (Madras) has also held that tax cannot be deducted under Section
194N if cash withdrawn is not an income of the account holder.
Thus, it is expected that Govt. may bring suitable amendment under
the law to end any possible litigation on this provision.
15. Enhance the scope to apply for
lower tax collection certificate
An assessee can apply to the Assessing Officer to issue a certificate
for collection of tax at lower rates under section 206C(9). Such
certificate shall be issued if existing and estimated tax liability of
assessee justifies collection of tax at a lower rate. This benefit is only
available to the persons covered under sub-sections (1) and (1C) of
section 206. The assessee covered under sub-section (1F) (sale of
motor vehicle), (1G) (remittance of foreign currency under LRS or
sale of an overseas tour package) and (1H) (sale of goods) does not
have the option to approach the assessing officer to issue lower tax
collection certificate. It is suggested that the benefit to apply for
lower collection certificate shall also be extended to the persons
covered under sub-sections (1F), (1G) and (1H) of section 206C.

GUIDE TO
NEW CORPORATE TAX RATES
Author : Taxmann
Edition : June 2020
ISBN No : 9789390128037
Rs. 495 USD 37
Date of Publication : June 2020
Weight (Kgs) : 0.24
No. of papers : 208
ORDER NOW
Description
This book is a ready referencer to understand the alternative corporate tax regime. It provides
a complete analysis of all changes made by the Finance Act, 2020 & is updated till 15th June
2020. Key features of this book are as follows:
 In depth analysis of new tax regimes introduced for the domestic companies
 Evaluation of the impact of removal of enhanced surcharge on FPIs and capital gains, etc.
 Analysis of MAT exemption and concession

16. No penalty to be imposed if there
is a reasonable cause on failure to
file the statement or certificate of
donation
Any person who donates to a charitable trust is allowed to claim a
deduction under Section 80G provided such trust satisfies certain
conditions. The Finance Act, 2020 has inserted an additional condition
that the charitable trust shall file a statement of donation and issue a
certificate of donation to the donor. If the trust defaults in the filing
of the statement or issuing the certificate of donation, the donor shall
not be entitled to claim the deduction in respect of donation made
to such trust.
A similar amendment has been made under section 35 which provides
for a deduction for the sum paid to a scientific research association,
Indian company for scientific research or to a university, college, or
institution for scientific, social science or statistical research. It has
been provided that the deduction shall be available to donor only
when such association, company, university, college or institute files
statement of donation and issues certificate of donation to donor.
To ensure compliance with the aforesaid provisions, a new Section
271K has been inserted which empowers the Assessing Officer to
levy a penalty of Rs. 10,000 to Rs. 1 lakh, if donee fails to furnish
the statement of donation to the Income-tax Department or fails
to furnish a certificate of donation to the donor. The penalty under
Section 271K may be levied by Assessing Officer even in cases where
there is reasonable cause for the failure in the furnishing of statement
or certificate by the assessee. Section 273B provides relaxation from
the penalty if the assessee proves that there was reasonable cause
for the prescribed failure. It is recommended that Section 273B should
include a reference of Section 271K so that no penalty can be imposed
if the assessee proves that there was reasonable cause for the said
failure.

ORDER NOW
TAXATION OF LOANS GIFTS
& CASH CREDITS
As Amended by Finance Act 2020
Author : Taxmann
ISBN No.: 9789390128020
Description:
This book provides a ready referencer on the taxability arising from
loans, gifts and cash credits. The present publication is the 9th
Edition which incorporates all the changes made by the Finance Act,
2020. This book is divided into four divisions incorporating:
Undisclosed Income – Covering all aspects and complexity
involved under Section 68 to Section 69D
Taxation of Gifts of Money
Taxation of Gifts of Immovable Property
Taxation of Gifts of Movable Property

17. Prosecution under Section 276BB
should be non-cognizable under
Section 279A on the lines of Section
276B
Section 276B provides for the prosecution if the assessee fails to
deposit the tax so deducted by it with the Central Government. Section
276BB provides for the prosecution if the assessee fails to deposit the
tax collected by it with the Central Government.
Section 279A lists down the offences which are non-cognizable under
the Income-tax Act. This provision includes Section 276B but does not
include Section 276BB. As both the provisions deal with the situations
of default in deposit of tax deducted or collected by the assessee,
there should be parity in both the scenarios. So, it is recommended
that section 276BB should also be covered under the list of non-
cognizable offences.
18. No prosecution should be launched
under Section 276BB if there is a
reasonable cause of default
Section 276B provides for the prosecution if the assessee has failed
to deposit the tax deducted by him and Section 276BB provides for
prosecution if the assessee has failed to deposit the tax collected by
him.
Section 278AA provides relief from the prosecution if the assessee
proves that there was a reasonable reason for failure. This provision
includes Section 276B but does not include Section 276BB. As both
the provisions deal with the situations of default in deposit of tax
deducted or collected by the assessee, there should be parity in both
the scenarios. So, it is recommended that section 276BB should also
be covered under the list of offences under Section 278AA for which
punishment is not imposed if there are reasonable causes.

LAW RELATING TO
PROHIBITION OF BENAMI
PROPERTY TRANSACTIONS
ACT 1988
Author : Taxmann
ISBN No : 9789389921922
Rs. 1050 USD 47
Weight (Kgs) : 0.52
No. of papers : 488
ORDER NOW
Description
This book provides section-wise commentary on Benami Laws. The cur-
rent publication is the 3rd Edition incorporating all the changes made by
the Finance Act, 2020. Key features of this book are as follows:
 Thorough analysis of the Benami Laws
 Complete understanding of each appellate authority along with their
powers
 Penalty and prosecutions linked with the Benami transactions
 Subject index to quickly find out the relevant matter

19. Full exemption should not be
denied to the trust on violation of
Section 13
Section 13 of the Income-tax Act outlines the circumstances in which
exemption of Sections 11 and 12 shall not be allowed to a charitable
or religious trust. It restricts the exemption where trust gives benefit
to an interested person. As a practice, the Assessing Officer denies
the exemption in respect of entire income under Section 11 if there
was a violation of provisions of section 13.
The Bombay High Court in the case of CIT(Exemptions), Pune v. Audyogik
Shikshan Mandal [2019] 101 taxmann.com 247 (Bombay) has held that
where funds of assessee-trust were utilized for purchase of a car in
the name of its trustee, there was a violation of Section 13(2)(b), read
with Section 13(3). However, denial of exemption under Section 11
should be limited only to the amount which was diverted in violation
of Section 13(2)(b).
Thus, it is recommended that necessary amendments should be made
under Section 13 to ensure that the denial of exemption to trust is
restricted to amount which was diverted in violation of Section 13.
20. Timelines in Section 24/54/54F
should be aligned with the
timelines allowed for completion of
RERA approved projects
Section 24 allows a deduction for the interest paid or payable on
the housing loan. If the house property is self-occupied, the interest
shall be deductible up to Rs. 200,000 if the property is purchased or
constructed within 5 years from the end of the financial year in which
the amount is borrowed. If the property could not be purchased or
completed within the said period, the deduction shall be reduced to
Rs. 30,000. Similarly, the deductions under Sections 54 and 54F are
not be allowed if the purchase or construction of new house property

‘Micro Small & Medium Enterprises (‘MSME’) Ready Reckoner’ is a comprehensive
book on laws governing MSMEs in India. This book provides an analysis of all provi-
sions of the MSME Act, 2006 along with relevant Circulars and Notifications.
The Present Publication is the 1st Edition, which incorporates all the amendments
announced by the Government of India and Reserve Bank of India (‘RBI’), such as:
‘Covid-19 Relief Measures’ announced by RBI,
New MSME definition,
Emergency Credit Line Guarantee Scheme and,
Clarification on new registration for existing EM Part-II/UAM.
The Book has been divided into 8 divisions as under:
MSMEs – Definition, Classification And Registration | Is there a uniform definition of
small businesses or small and medium enterprises (‘SME’) for the purposes of all
laws benefitting SMEs?
Benefits to Registered MSMEs
Benefits to Small Businesses, whether Registered MSMEs or Not
Legal Forms of Organisation MSMEs Can Adopt (with Pros and Cons of each Legal
Form)
MicMicro Enterprises

could not be completed within the prescribed time-period (1 year
before or 2 years after the date of transfer in case of purchase
and 3 years after the date of transfer if the new property has to be
constructed).
Generally, in township projects, the developers take a minimum
period of 5 years before handing over the possession of the property
to the buyers. In that case, if a buyer gets the possession of the
new house after 5 years, he is not allowed to claim a deduction for
the interest under Section 24. Similarly, no deduction is allowed
under Section 54/54F if the purchase or construction of the house
property could not be completed within prescribed period of 2/3
years. Therefore, it is recommended that the time-limits under
these provisions should be aligned with the time-limits allowed for
RERA approved projects. Alternatively, the time limit to invest in
the new house for Section 54/54F deduction should be increased
to 5 years that bring these provisions at par with Section 24 which
also allows 5 years to complete the purchase or construction of the
house property.
21. Condition to pay emoluments by
specified modes under section
80JJAA should be applicable in
case of new businesses also
Section 80JJAA of the Income-tax Act provides that every assessee,
earning business income and liable to the tax audit, is eligible to
claim a deduction under this provision for additional employee cost.
The deduction shall be allowed for 30% of the additional employee
cost in three assessment years.
However, such deduction shall be allowed only if the assessee fulfils
certain conditions. One of the conditions is that emoluments must
be paid by any of the following modes:
(a) An account payee cheque;
(b) Account payee bank draft;

TRUSTS AND NGOs READY
RECKONER WITH SUPPLEMENT
Rs. 1795 USD 50
Description
This book is a comprehensive commentary on taxation of Trusts and NGOs. The Present
Publication is the Latest Edition, updated till 6th October 2020 & amended as per the fol-
lowing:
u The Finance Act, 2020
u The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act,
2020
Key features of the book are as under:
u [Commentaries] on Law relating to Taxation of NGOs with flowcharts and illustrations
u [Practical Guide] with extensive analysis of the exemptions available from the busi-
ness income of NGOs
u [Landmark Cases] on all controversial issues.
u [Comparative Analysis] of Registration under Section 12AB and approval under Sec-
tion 10(23C)
Supplement to Trusts & NGO
The Finance Act, 2020, has completely changed the old registration or approval process of
certain trust or institutions. The Taxation and other laws (Relaxation and Amendment of
Certain Provisions) Act, 2020, deferred the applicability of these provisions and restored
the old provisions. This book provides a complete analysis of these provisions. This book
includes the following:
u A complete guide on the amended registration or approval provisions
u Discussion on the deferment of the applicability of the amended registration or ap-
proval provisions
u Discussion on the provision requiring filing of statements and issue of certificate of
donation
u Analysis of the issues pertaining to the organisations which are registered and ap-
proved under sections 12AA and 10(23C) simultaneously
ORDER NOW
Author : Manoj Fogla ,
Suresh kumar Kejriwal ,
Tarun Kumar
ISBN No : 9789390128051
Weight (Kgs) : 0.94
No. of papers : 660

(c) By use of electronic clearing systems through a bank
account; or
(d) Other prescribed electronic modes i.e. Credit/debit card,
IMPS, RTGS etc.
This condition is applicable in case of an existing business only.
To move towards digital India initiative, it is expected that the above
condition regarding payment of emoluments through above modes
may be extended in case of new businesses also.
22. Seller for the purpose of TCS under
Section 206C(1F) should include
Individual or HUF
The Finance Act, 2016, inserted sub-section (1F) to Section 206C
to bring high-value transactions within the tax net. This provision
provides that every person, being a seller, who receives any amount
as consideration for the sale of a motor vehicle of the value exceeding
Rs. 10 lakhs, shall collect tax from the buyer at the rate of 1% of the
sale consideration.
The term ‘seller’ has been defined under clause (c) of Explanation to
Section 206C. This clause defines the meaning of seller with respect
to sub-section (1) and sub-section (1F) of Section 206C. However, to
include an individual or a HUF within the meaning of ‘seller’, it provides
that total sales, gross receipts or turnover of such individual or HUF
from the business or profession carried on by him should exceed Rs.
1 crore in case of business or Rs. 50 lakh in case of profession during
the financial year immediately preceding the financial year in which
the goods of the nature specified in the Table in sub-section (1) are
sold. This Explanation has inadvertently omitted to give a reference
of sub-section (1F) of Section 206C.
It is recommended that clause (c) of the Explanation to Section 206C
should be amended to mention the reference of sub-section (1F) also.
This Explanation should read as under:

This book provides a detailed commentary on provisions relating to Tax Audit and
clauses of Form 3CD
The Present Publication is the 12th Edition, updated till 20th September 2020, in-
corporating all the changes made by the following:
The key features of this book are as follows:
• The Finance Act 2020
• The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions)
Act 2020
• Analysis of the audit requirement under Income tax provision
• An in-depth discussion on every clause of the tax audit report Form No. 3CA, 3CB
and 3CD;
• Analysis of guidance note released by the ICAI on tax Audit.

(c) “seller” with respect to sub-section (1) and sub-section (1F)
means the Central Government, a State Government or any
local authority or corporation or authority established by or
under a Central, State or Provincial Act, or any company or
firm or co-operative society and also includes an individual or
a Hindu undivided family whose total sales, gross receipts or
turnover from the business or profession carried on by him
exceed one crore rupees in case of business or fifty lakh rupees
in case of profession during the financial year immediately
preceding the financial year in which the goods of the nature
specified in the Table in sub-section (1) or sub-section (1F)
are sold.
23. Audit might be necessary for
claiming exemption under Section
80-IBA
Deductions under Chapter VI-A are broadly categorised under 5
parts as follows:
(a) Part A: General
(b) Part B: Deductions in respect of certain payments
(c) Part C: Deduction in respect of certain incomes
(d) Part CA: Deduction in respect of other incomes
(e) Part D: Other deductions
Almost all sections providing profit-linked deductions under Part-C
of Chapter VI-A require an assessee to fulfil certain conditions.
One of such conditions is to get the book of accounts audited
from a Chartered Accountant and furnish a report of such audit
electronically in specified form (i.e., audit report is furnished in Form
10CCB to claim deduction under Section 80-IA).
Deduction prescribed under Section 80-IBA is also a profit-linked
deduction. This section provides that an assessee deriving profits
and gains from the business of developing and building housing

DEDUCTION OF TAX AT
SOURCE
WITH ADVANCE TAX AND REFUNDS
WITH SUPPLEMENT
Author : Vinod K Singhania
ISBN No : 9789390128112
Rs. 1895 USD 63
No. of papers : 828
ORDER NOW
Description
This book provides a complete and thorough analysis of the Income-tax provisions relating
to deduction or collection of tax at source, advance tax and refunds.
The Present Publication is the 33rd Edition, updated till 6th October, 2020 & amended as
per the following:
 The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act,
2020
Key features of the book are as follows:
 Information on all the interconnected provisions are provided at a single place
Supplement to Deduction of Tax at Source with Advance Tax and Refunds
This book is a ready referencer to understand the provisions of TDS, advance tax and re-
fund which are amended by the Taxation and other laws (Relaxation and Amendment of
Certain Provisions) Act, 2020. This book incorporates:
 Extended time limits and relief under Section 234A
 Amendments linked with advance tax provisions
 Reduced rates of TDS and TCS
 Guidelines and clarifications for deduction of tax under section 194-O
 Guidelines and clarifications for collection of tax under section 206C(1H)

projects is eligible to claim deduction under this provision. 100% of
the profits and gains derived from this business is deductible under
this provision. To claim the deduction, the assessee has to comply
with various conditions as to the size of the plot of land, residential
unit, stamp duty value and the time-limit for completion of the
project. However, condition to get the books of account audited is
not a prerequisite for claiming this deduction.
It is expected that Section 80-IBA, being a profit linked
deduction, would also require the assessee to get his book of
accounts audited for being eligible to claim such deduction.
24. Section 10(50) exemption should
be available for the supplies made
on or after 01-04-2020
The Finance Act, 2020, has extended the scope of equalisation
levy with effect from 01-04-2020 to cover within its ambit the
consideration received or receivable for e-commerce supply or
services made or facilitated by an e-commerce operator. Consequent
amendments have been made to Section 10(50) which provides for
an exemption in respect of the income from a transaction which is
chargeable to equalisation levy.
The amendment to Section 10(50) provides for the exemption in
respect of the income arising from any e-commerce supply or
services made or provided or facilitated on or after the 01-04-2021.
Such amendment is not in sync with the provisions of Section 165A
inserted by the Finance Act, 2020. Section 165A provides for levy of
equalisation levy on or after 01-04-2020, whereas the exemption
under Section 10(50) is available for the supply of goods or services
made on or after 01-04-2021. There is a contradiction in the date
from which the provision for levy of equalisation levy comes into
force and the date from which exemption under section 10(50) shall
be available.

TDS
HOW TO MEET YOUR
OBLIGATIONS
WITH SUPPLEMENT
Author : Taxmann
ISBN No : 9789389921816
Rs. 1650 USD 59
No. of papers : 980
ORDER NOW
Description
This book provides a complete and thorough analysis of the Income-tax provisions relating to deduc-
tion or collection of tax at source. The Present Publication is the 26th Edition, updated till 6th October
2020 & amended as per the following:
 The Finance Act 2020
 The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020.
Key features of the book are as under:
 Information about all the interconnected provisions are provided at a single place
 Detailed analysis of TDS and TCS provisions
 Complete analysis of the rules prescribed in respect of TDS and TCS
 Illustrations for easy understanding of various complex provisions
Supplement to TDS – How to Meet your Obligations
This book provides a complete and thorough analysis of the provisions of TDS and TCS as amended
by the Taxation and other laws (Relaxation and Amendment of Certain Provisions) Act, 2020. This
book incorporates:
 Reduced rates of TDS and TCS;
 A compliance calendar relating to TDS and TCS;
 Guidelines and clarifications for deduction of tax under Section 194-O;
 Frequently Asked Questions on section 206C(1H) requiring collection of tax on sale of goods.

It is recommended that section 10(50) should be revisited to provide
an exemption in respect of the income arising from any e-commerce
supply or services made or provided or facilitated on or after the
01-04-2020.
25. Section 269T restrictions
regarding repayment to the
person who made loan, deposits
or specified advances should be
extended to each permissible
mode
Section 269T prohibits a person from repayment of any loan,
deposit or any specified advance received by it otherwise than by
an account payee cheque/bank draft (drawn in the name of the
person who has made the loan, deposit or specified advance) or by
use of electronic clearing system through a bank account or other
prescribed electronic modes.
If the repayment is made by way of account payee cheque or bank
draft, the cheque or draft should be drawn in the name of the
person who has made the loan, deposit or specified advances. The
provision does not make any similar reference if the repayment is
being made by use of electronic clearing system through a bank
account or other prescribed electronic modes. In other words,
if the repayment is made in the name of any other person, the
provision shall not be deemed to be violated if it is made by use
of electronic clearing system through a bank account or other
prescribed electronic modes.
It is recommended that to bring parity in respect of each permissible
mode of repayment, Section 269T should be amended to incorporate
the condition as to repayment in the name of the same person who
has made the loan, deposit or specified advances in respect of each
such mode.

YEARLY TAX DIGEST &
REFERENCER
(SET OF 2 VOLUMES)
Edition : Vol I : 49th Edition;
Vol II : 25th Edition
2020
ISBN No : 9789389546828
Rs. 2995 USD 86
Date of Publication : January 2020
ORDER NOW
Description
This book provides professionally drafted digests of all case laws reported at the taxmann.
com during a calendar year i.e. from January to December. It also provides information about
the circulars and notifications issued by the Dept. during the year. The present publication is
the 49th edition which incorporates all these case laws, circulars and notifications for the year
2019.
Key Features:
 Case laws digests and notifications have been arranged section wise
 Chronological list will help you to quickly find the required case law
 Digest provide a quick glimpse of the ratio laid down in the case law
Volume 1
A Section -wise Case Book of Judgments of Supreme Court/High Courts reported in www.tax-
mann.com in year 2019
Also Incorporating:
 Section -wise Compendium of Circulars issued by CBDT during 2019
 Text of Notifications issued during 2019
Volume 2
A Section-wise Case Book of Decisions of Income - tax Appellate Tribunal reported in www.
taxmann.com in year 2019

26. Deduction of tax on dividend paid
by any mode other than cash
Section 194 provides for deduction of tax from dividends. The tax has
to be deducted by every Indian company or a company which has
made the arrangements for declaration and payment of dividends
within India. However, no tax shall be deducted from the payment of
dividend to an individual shareholder, if the payment is made by any
mode other than cash and the aggregate amount of dividend paid or
distributed to him during a financial year does not exceed Rs. 5,000.
The relaxation from the deduction of tax is available if the dividend is
paid by any mode other than cash. This provision provides a negative
list of the prohibited mode of payment. Whereas various provisions,
inter-alia, Section 40A(3), Section 269SS, Section 269T, Section 269ST,
etc. provide a positive list of the permissible mode of payment.
Therefore, it is recommended that alike other provisions Section 194
should have the positive list of the permissible mode of payment, that
is, an account payee cheque or account payee bank draft or use of
electronic clearing system through a bank account or through such
other electronic mode as may be prescribed.
A similar amendment is also recommended in Sections 80D, 80GGA,
80G and 36(1)(ib).
27. Bad debts should be deductible
under section 57
The bad debts written off from the books of account is allowable as
a deduction from the income taxable under the head ‘Profits and
Gains from Business or Profession’. Whereas on the counterpart
such a claim is not allowable while computing the income under the
head ‘Income from other sources’. The deductions allowable from
the residuary income is specified in section 57. As per Section 57(iii),
the deduction is allowed for an expenditure which has been incurred
wholly and exclusively to earn the income included under the head

Complete Guide for Resolution of Complexities Involved
in the Concept of Permanent Establishment
The study of Permanent Establishment has emerged as intriguing and complex
subject. This book serves as a complete guide for resolution of complexities in-
volved in the concept of permanent establishment.
The structure of the book is as follows:
The contents of the book are as follows:
This book opens up with ‘adaptation of Indian domestic tax laws’ to the ‘global
trend’
The advent of ‘Significant Economic Presence’ and its ramification on the changing
concept on business connection has been deliberated in this book
Evolution of permanent establishment (‘PE’) in the e-world
Insights into Multilateral Conventions (‘MLI’) & OECDs position on the changing garb
of PE
The book closes with the impact of changing philosophy of PE in the internationalThe book closes with the impact of changing philosophy of PE in the international
tax space & in the domestic tax legislature.
Introduction
Territorial nexus becomes aerial
Adaptation of Indian Domestic Laws

‘Income from other sources’. This view has been affirmed by the
Kerala High Court in Malankara Plantations Ltd. v. Asstt. CIT [2015] 64
taxmann.com 132 (Kerala).
Income from other sources is a residuary head of income and sweeps
in all such taxable incomes which fall outside the other four heads
of income. Section 57 specifically provides the list of expenditure
which are allowed to be deducted from the income taxable under
the head of other sources. Such discriminatory provision causes
hardships to the assessee. Thus, it is recommended that deduction
for bad debts shall be allowed under section 57 while computing
the income from other sources.
28. Enhance the scope of not being an
assessee-in-default
If any person, responsible for the collection of tax at source, fails
to collect the whole or any part of the tax or after collection fails to
deposit the same to the credit of the Central Government, then he
shall be deemed to be assessee-in-default. A collector is not deemed
to be in default if the amount is received from a person who has
considered such amount while computing income in the return and
has paid the tax due on such declared income. The receiver will have
to obtain a certificate to this effect from a Chartered Accountant in
Form No. 27BA and submit it electronically.
However, this relief is allowed only in respect of sub-sections (1) and
(1C) of section 206C. It is recommended to extended this benefit
to the persons covered under sub-sections (1F), (1G) and (1H) of
section 206C.
29. Relaxation in carry forward of
losses of Start-ups
In the initial years of operations, start-ups generally test their
business viability. There is a tendency to offer a deep discount
to generate revenues in the initial years. Consequently, start-ups

This book is a comprehensive guide to understand the taxation and regulatory
aspect of the cross-border movement of employees, that results in secondment ar-
rangements as amended by Taxation and Other Laws (Relaxation and Amendment
of Certain Provisions) Act 2020. As with any cross-border arrangement, multiple
complex laws are involved, this book serves as a primer to understand these com-
plexities and related compliances.
The discussion in this book starts with determining who is the employer of the ex-
patriate, which is important to identify the correct laws to be complied with. This
book aims at providing the reader, an insight into implications that typically arise in
secondment arrangement(s), under various Indian laws in the hands of the expatri-
ate & company, such as:
Expatriate
• Immigration Laws
• Personal Income Tax
• Custom Baggage Rules

start generating revenues but not profits, due to which, they end up
mounting huge losses. At present, the business losses can be carried
forward for 8 Assessment Years immediately following the year for
which the loss was first computed.
As most start-ups have front-loaded expenses in the initial years and
will not have profits to offset against it for several years, the carried
forward losses often lapses without set-off against future profits.
Thus, it is recommended that in the case of start-ups, this limit of 8
years should be either removed or it should be raised to at least 10
years.
30. Rationalisation of the rate of tax on
sale of shares of DPIIT recognised
start-ups
The shares of start-up companies are not listed on any stock exchange.
Thus, the capital gains arising from the transfer of such shares are
taxed at twice the rate at which listed shares are taxed. There is no
concession in taxability of the capital gains despite being a riskier
investment.
It is recommended that the Govt. should consider bringing the
taxability of unlisted equity shares of DPIIT recognised start-ups at
par with listed shares. This will lower the cost of capital and boost
more investments in the start-up ecosystem.
31. Reference of Section 12AB in the
fourteenth Proviso to Section
10(23C)
The Finance Act, 2020 introduced a new Section 12AB for registration
of charitable and religious trusts. The amendment made by the
Finance Act 2020 has been deferred to 01-04-2021 by the Taxation
and other Laws (Relaxation and Amendment of Certain Provisions)
Act, 2020.

Set of 2 Volumes
WITH GST LAW GUIDE & DIGEST OF
LANDMARK RULINGS
Taxmann’s GST Manual contains Compilation of Amended GST Acts, Rules, Circulars
& Notifications. What sets it apart is the presentation of the Amended GST Act,
along-with Relevant Rules, Forms, Circulars, Notifications, Dates of Enforcements
and Allied Laws referred to in the Section.
Along with the above, the readers get a specially curated comprehensive Guide to
GST Laws & Section-wise digest of Landmark Rulings under the GST Law
The present publication is the 14th Edition that incorporates all changes made by
the Finance Act, 2020 & updated till 31st July, 2020, with the following noteworthy
features:
Taxmann's series of Bestseller Books on GST Laws
Follows the six-sigma approach, to achieve the benchmark of 'zero error'
Published in two volumes:

The Fourteenth Proviso to Section 10(23C) provides that if any
payment is made by institutions approved under sub-clause (iv)
or sub-clause (v) or sub-clause (vi) or sub-clause (via) of section
10(23C) out of the accumulated funds to trusts registered under
Section 12AA or approved under section 10(23C) then it should not
be considered as an application of Income.
The reference to Section 12AB is missing in the said Proviso. The
reference to ‘Section 12AA’ should be substituted with ‘Section 12AA
or Section 12AB’ w.e.f 01-04-2021 to bring entities registered under
section 12AB under its ambit from 01-04-2021.
32. Deferment of tax on perquisite
arising from ESOPs should be
allowed in case of employees of
all start-ups
When an employee is allotted shares under Employee Stock Option
Plan (ESOP), the difference between the fair market value of shares
on the date of exercising the option and the amount paid by the
employee for such shares is taxable as perquisite and, consequently,
the employer is required to include the amount of perquisite in the
salary of the employee and deduct tax thereon under Section 192
in the year in which shares are allotted.
As employees do not get any immediate benefit from the shares
allotted under the ESOPs, the deduction of tax thereon in the year
of allotment itself is very burdensome for them as it reduces the
cash flow in their hand. To defer the burden of taxes, the Finance
Act, 2020 made amendments under various sections of the Income-
tax Act to provide for the deferment of TDS and payment of tax on
income in the nature of perquisites arising from ESOPs. However,
such amendments are applicable only in case of an employee of
the eligible start-up as referred to in Section 80-IAC.
An entity is considered as start-up only when it is recognised as such
by the Department for Promotion of Industry and Internal Trade
(DPIIT). Recognition of DPIIT is not sufficient to avail the benefit of

GST TARIFF
WITH GST RATE RECKONER
(SET OF 2 VOLUMES)
ISBN No : 9789389546880
Rs. 2650 USD 93
Date of Publication : February 2020
ORDER NOW
Description
This book is a comprehensive guide to GST tariff for goods and services. It provides HSN-wise and SAC-
wise tariff of all goods and services. It comes in a set of 2 volumes and is the 13th edition amended up to
February 1, 2020.
Incorporating
 GST Tariff for goods with HSN Code
 GST Tariff for services with SAC Code
 General rules of interpretation
 Rates specified in other Acts
Volume 1 - Goods Tariff
Incorporating:
 GST Tariff for Goods with HSN Code
 Rates specified in other Acts
 GST Rate Reckoner for Goods/Commodity Index
Volume 2 - Services Tariff
Incorporating:
 GST Tariff for Services with Service Code and Explanatory Notes to the Scheme of Classification of Ser-
vices
 Services Index
 GST Tariff Notifications (Rate of tax and exemptions)

deferment of tax on perquisite arising from ESOPs. A start-up must
also hold a certificate of eligible business from the Inter-Ministerial
Board of Certification to avail such benefit.
Till date, only 260+ start-ups have been recognised by the Inter-
Ministerial Board of Certification which is not even 1% of the number
of start-ups recognised by the DPIIT. Thus, it is recommended that the
benefit of deferment of tax on perquisite arising from ESOPs should
be extended to employees of all start-ups recognized by the DPIIT.
33. Higher rate of interest for non-
deposit of TCS amount
Section 201 provides the consequences in case of any failure to deduct
or to pay the tax deducted at source. The provision provides that
deductor shall be liable to pay interest at the rate of 1% per month/
part of the month in case there is a failure to deduct tax. However,
where a deduction has been made but tax has not been deposited,
the interest is levied at the rate of 1.5% for every month or part of
the month.
In contrast to above Section 206C prescribed only a single rate of
interest. If the collector fails to collect TCS or after collecting fails
to deposit it with Govt., interest is levied at the rate of 1% for every
month or part month. It is expected that the Govt. may bring parity
in the penal provision for both the default. Section 206C could be
amended to provide a higher rate of interest in case tax has been
collected but not deposited to the credit of Central Govt.
34. No Section 44AD benefit for
speculative business
Section 44AD provides that an assessee being a resident individual,
HUF or a partnership firm (excluding LLP) carrying on any business
is eligible to declare its income at the presumptive rate of 6% or 8%
as the case may be.

GST
LAW & PRACTICE
Author : Arpit Haldia ,
Mohd. Salim
ISBN No : 9788194939788
Rs. 2295 USD 65
Weight (Kgs) : 1.25
ORDER NOW
Description
This book provides a complete coverage of the GST Law. What sets it apart, is the ‘unique
way of presenting’ the compendium of amended & annotated text of Central & Integrat-
ed GST Acts along with Relevant Rules, Forms, Circulars, Notifications and Case Laws. In
other words, read the Section and get the following:
u Text of relevant Rules & Notifications
u Gist of relevant Circulars
u Date of enforcement of provisions
u Allied Laws referred
u GST Forms with Action Points
u Gist of relevant Case Laws with easy-to-understand summary
Case Laws pertaining to Classification of Goods & Services under GST Regime are given in
a separate division.
The Present Publication is the Latest Edition (amended up to 25th November 2020). This
book contains:
u Central GST Act, 2017, Integrated GST Act, 2017 and GST (Compensation to States)
Act, 2017
u List of Notifications
u List of Circulars and Clarifications
u Case Laws pertaining to Classification of Goods and Services under GST

However, the following persons cannot opt for provisions of Section
44AD:
(a) Person carrying on the business of plying, hiring or leasing
goods carriages referred to in Section 44AE;
(b) Persons carrying on professions as referred under Section
44AA(1);
(c) Persons earning income in the nature of commission or
brokerage; or
(d) Person carrying on agency business.
Income-tax Act does not restrict the person carrying on speculative
business to opt for presumptive taxation scheme prescribed under
Section 44AD. Instructions appended to the ITR Form 4, however,
provides that income from the speculative business is not required
to be computed under Section 44AD. It is expected that instead of
clarifying in the instructions to the ITR, it may be provided specifically
in the provision itself to avoid any litigation on this point.
35. Amount received by a continuing
partner on reduction in his profit-
sharing ratio could be taxable
In the case of Anik Industries Ltd. v. Dy. CIT [2020] 116 taxmann.com
385 (Mumbai ITAT), a partner with 30% share in the partnership
firm reduced its share to 25% and the share so reduced (5%) was
distributed to the existing partners. There was an adjustment of profit-
sharing ratio between existing partners which was routed through
partners’ current account. In view of the aforesaid arrangement,
the compensation was received by the existing partner for such a
reduction in the profit-sharing ratio. The Tribunal held that it would
not tantamount to capital gains chargeable to tax under section 45(1)
as there was no dissolution and the firm continued its business.
Income-tax Act distinguishes the partnership firm from its partners.
This implies that the taxability of a partnership firm shall be different
from its partners. When a partner introduces the capital into the

CUSTOMS LAW &
FOREIGN TRADE POLICY
Author : V.S. Datey
Edition : 22nd Edition 2020
ISBN No : 9789389921892
Rs. 2995 USD 82
Weight (Kgs) : 1.99
ORDER NOW
Description
Taxmann’s book on ‘Customs Law & Foreign Trade Policy’ covers comprehensive analysis of the Customs
Laws as amended by the Finance Act 2020, the Foreign Trade Policy 2015-20 and Rules and Regulations
prescribed under the Customs Act, 1962.
The 22nd Edition is updated till Finance Act, 2020 with the following noteworthy features:
 Detailed analysis of provisions of the Customs laws and Foreign trade Policy 2015-20 along with rele-
vant Judicial Pronouncements, Circulars, and Notifications
 Covers the legal text of the Customs Act, 1962 and its Rules and Regulations as amended by Finance
Act, 2020
 Follows the Six-Sigma Approach, to Achieve the Benchmark of ‘Zero Error’
 Analysis of GST provisions at appropriate places
 Detailed coverage of various export promotion schemes (EPCG, Advance Authorisation, EOU, etc.)

firm, the partners shall be subject to capital gains in accordance with
Section 45(3) and in case of retirement or dissolution of the firm the
provisions of Section 45(4) comes into play.
However, there is no provision in the Act to deal with a situation
where a partner reduces his share in the firm and in lieu of that gets
some compensation from the new partners. As the compensation
received by the existing partner for reduction of profit-sharing ratio
have the semblance of ‘transfer’ of a capital asset, an amendment
is expected to tax such benefits accruing to the continuing
partner and curb this tax planning.
36. Allow payment of advance tax in
a single instalment in case Section
44AE presumptive scheme is opted
Section 211 of the Income-tax Act provides the due dates and the
amount of advance-tax payable in instalments by the taxpayers. This
provision provides that a taxpayer is required to pay the advance
tax in four instalments during the financial year on the specified due
dates. However, this provision allows the taxpayers, who have opted
for presumptive taxation scheme under Section 44AD and Section
44ADA, to pay 100% of advance tax by 15th
March of the financial year.
As there are more presumptive taxation schemes allowed under
Sections 44AE, 44B, 44BB, etc. but this option to pay advance tax in
single instalment is allowed only for those taxpayers who have opted
for Section 44AD and 44ADA presumptive scheme. If the analogy behind
such provision was to extend this option to only resident taxpayers,
then this option should be allowed to those resident taxpayers as
well who have opted for Section 44AE presumptive scheme. Thus, it is
recommended that the option to pay the entire advance tax in a single
instalment should be extended to those assessees as well who have
opted for Section 44AE presumptive scheme.

As Amended by Finance Act 2020
Taxmann’s Ultimate Best-Seller ‘GST Ready Reckoner”, authored by Mr. V.S. Datey, is
a ready reference for all provisions of the GST Law. It covers all important topics of
GST along with relevant Case Laws, Notifications, Circulars, etc.
The present publication is the 14th Edition incorporating all the amendments made
by the Finance Act, 2020 and updated till July 27, 2020. This book follows the Six-Sig-
ma approach to achieve the benchmark of ‘zero-error’.
The book has been divided into 55 chapters in respect of all-important provisions
including the following:
GST Valuation Rules
Input Tax Credit
Concept of Reverse Charge
GST Taxability on Real-Estate Related Services
Offences and Penalties under GST
Appeals and Revision in GST

37. Holding period in case of
conversion of FCEB into shares
According to the provisions of Section 47(xa) conversion of Foreign
Currency Exchangeable Bonds into shares is not regarded as transfer.
Capital gains will arise at the time of transfer of shares received at
the time of conversion. However, there is no corresponding provision
for taking holding period of the shares from the day of acquisition
of the FCEB.
So, it is suggested that provision should be made in Section 2(42A)
to provide that holding period of such shares should be taken from
the date of acquisition of FCEB and not from the date of allotment
of shares.
38. Time-limit may be specified for
passing an order in case of default
in deduction of tax from the
payment made to non-resident
As per Section 201 of the Income-tax Act, if a person responsible for
deduction of tax at source, fails to deduct the whole or any part of
the tax or after deduction fails to deposit the same to the credit of
the Central Government, then he shall be deemed to be an assessee-
in-default.
Sub-section (3) of Section 201 provides that no order deeming a
deductor to be an assessee-in-default, on failure to deduct the tax
from a person resident in India, shall be passed after expiry of 7 years
from the end of the financial year in which payment is made, or credit
is given or after the expiry of 2 years from the end of the financial
year in which correction statement is furnished, whichever is later.
However, these time limits are applicable only when TDS defaults
are related to payments made to a person resident in India. In other
words, sub-section (3) does not apply if there is a default in deduction
of tax with respect to payments made to a non-resident.

Union Budget 2021 expectations for tax clarity and certainty

Union Budget 2021 expectations for tax clarity and certainty

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie Union Budget 2021 expectations for tax clarity and certainty

Ähnlich wie Union Budget 2021 expectations for tax clarity and certainty (20)

Mehr von Taxmann

Mehr von Taxmann (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Union Budget 2021 expectations for tax clarity and certainty