As per Finance Act, 2023, where a private company* issues shares (equity or preference) to non-resident investors** in excess of FMV, such excess consideration is taxable in the hands of private company under the head 'Income from other sources'. Now CBDT notified below investor types as exempt from this angel tax scope.- Government and Government related … Continue reading Non-residents exempt from Angel tax
Author: SC
Checklist for donations under 80G
Make sure not to make charitable donations exceeding Rs.2000 in cash Verify if Donee is registered under Sec. 80G at Income Tax Department Portal Collect proof of donation in Form no. 10BE Not to fall prey to unscrupulous tax evasion strategies. Remember it is us who are responsible for our tax return (not our tax … Continue reading Checklist for donations under 80G
Fast track mergers involving Startups or Small companies to be approved by MCA within 60 days
According to Section 233 of the Companies Act 2013, fast track merger is a simplified and speedy process for effecting mergers and amalgamations by certain classes of companies* without the involvement of NCLT. As part of process, ROC and Official liquidator have to raise objection/suggestion, if any, to the merger scheme with 30 days (from the date … Continue reading Fast track mergers involving Startups or Small companies to be approved by MCA within 60 days
TDS on Salary – You can choose between Old tax & New tax regimes
It is clarified by Income tax department (via Circular no. 4 dated Apr 5, 2023) that employee can choose either old tax or new tax regime for the purpose of TDS deduction on his salary and employer should follow accordingly. In case employee does not intimate his choice, employer shall follow New tax regime for … Continue reading TDS on Salary – You can choose between Old tax & New tax regimes
How Interest Rate Cap Works: An Intro for Floating Rate Borrowers
If you are considering taking out a variable-rate loan, you may be wondering how to protect yourself from the risk of rising interest rates. One possible solution is to buy an interest rate cap, which is a type of interest rate derivative (IRD) contract that limits the maximum interest rate you have to pay on … Continue reading How Interest Rate Cap Works: An Intro for Floating Rate Borrowers
Why one need to check AIS
Annual Information Statement (AIS), developed by Income Tax Department, tracks 50+ types of income/transactions (eg. Salary, Rent, Dividend, Interest, Property transactions, Sale/purchase of securities, Cash deposits/withdrawals, Insurance policy proceeds, GST Sales & Purchases etc.) using our PAN. One can check all incomes & transactions (from FY 2020-21) which are being tracked under our PAN either … Continue reading Why one need to check AIS
Compliances & options to be made during March 2023
Updates March 31 is also last date for investments in Non-equity oriented Mutual funds (i.e. where <=35% of a MF proceeds are invested in Indian equity shares) who want to avail concessional tax treatment on LTCG. June 30 is last date for PAN-Aadhaar linking September 30 is last date for Nomination for Demat and trading … Continue reading Compliances & options to be made during March 2023
Startup Founders and Investors – Be cautious of private placements via crowdfunding platforms
On March 1, MCA - RoC Delhi imposed penalties on two startups (refer Order 1 and Order 2) which had raised funds via private placement of Compulsorily Convertible Debentures (CCDs) on a popular fintech platform in violation of Companies Act, 2013. The key rules violated by these startups are: Sec. 42(7) which states that no company issuing … Continue reading Startup Founders and Investors – Be cautious of private placements via crowdfunding platforms
Bonus Stripping vs Bond Washing
Bonus Stripping Bonus Stripping is practice of buying securities in advance of bonus securities record date (i.e. usually buying happens after bonus announcement but before record date) and selling original securities after ex-date thereby booking short term capital loss on original securities. Under Sec. 94(8) of Income tax act, this short-term capital loss will be … Continue reading Bonus Stripping vs Bond Washing
Income Tax Proposals – Budget 2023
Individuals: No changes in old tax regime Changes in New tax regime: Income tax slabs were changed (see below table). Limit for 100% Rebate on Income tax is enhanced from 5 lac to 7 lac. Standard deduction for salary (50K) and family pension (15K) can be claimed henceforth. Scope of assesses eligible for new tax … Continue reading Income Tax Proposals – Budget 2023