Dhanraj Sharma

Dhanraj Sharma is CEO of Tax Concept. He is on a Mission to Educate and Empower 10,000+ Professionals across the Country.

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Breaking: Long Awaited Updated ITR (ITR-U) is Now Live On Income Tax Portal

Income Tax E-filing Portal has posted an update that: E-filing of Updated ITR u/s 139(8A) has been enabled for AY 2020-21 and AY 2021-22 using Excel utility for ITR 1 and 4. Refer details in News section. Please click Downloads | Income Tax Department to access and download the same for clicking respective AY folder. …

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Long Term Capital Gains Claimed Exempt u/s 10(38) Cannot Be Treated As Bogus Unexplained Income If Paper Work is in Order: ITAT Kolkata

In the case of Surya Prakash Toshniwal HUF vs. ITO, ITAT Kolkata has held that: The lower authorities have not brought on record any concrete evidence for disallowing the long term capital gain of the assessee. The AO should have issued notices and summons to M/s RFL and ACPL under section 133(6) and 131 of …

Long Term Capital Gains Claimed Exempt u/s 10(38) Cannot Be Treated As Bogus Unexplained Income If Paper Work is in Order: ITAT Kolkata Read More »

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What is Advance Ruling Under Income Tax?

Advance ruling means the determination of a question of law or fact specified in the application in relation to tax liability of an applicant arising out of transactions which have been undertaken or proposed to be undertaken. The Finance Act, 2021 has provided that the Authority for Advance Rulings shall cease to operate with effect …

What is Advance Ruling Under Income Tax? Read More »

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What Fees is To Be Paid Along With Application For Advance Ruling?

​The fees to be paid along with application shall be as follows: Amount of transaction(s) does not exceed Rs. 100 crore: Rs. 2 Lacs Amount of transaction(s) exceeds Rs. 100 crore but does not exceed Rs.300 crore: Rs. 5 Lacs Amount of transaction(s) exceeds Rs. 300 crore: Rs. 10 Lacs Other Cases: Rs. 10,000 Source: …

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Are The Advance Ruling Under Income Tax Binding On Taxpayers Or Tax Authorities?

An advance ruling pronounced by the Authority is binding on the follows :- The Applicant. The Commissioner. Commissioner of Income-tax (Appeals). Income-tax authorities who are subordinate to Commissioner In respect of transaction for which ruling had been sought​. Source: Income Tax India’s Official Website

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Stock Options Are Intended To Motive Employees And So Expenditure Thereon Is A Deductible Revenue Expenditure: ITAT Delhi

In the case of Religare Commodities Ltd vs. ACIT, ITAT Delhi has held that: The discount under ESOP is in the nature of employees cost and is hence deductible during the vesting period w.r.t. the market price of shares at the time of grant of options to the employees. The amount of discount claimed as …

Stock Options Are Intended To Motive Employees And So Expenditure Thereon Is A Deductible Revenue Expenditure: ITAT Delhi Read More »

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What Are Consequences For Furnishing Inaccurate Statement Of Financial Transaction Or Reportable Account?

​​​​​​​​​If a prescribed reporting financial institution referred to in Section 285BA(1) who is required to furnish statement of financial transaction or reportable account, provides inaccurate information in the statement, and where: (a) the inaccuracy is due to a failure to comply with the due diligence requirement prescribed* under section 285BA(7) or is deliberate on the …

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What Are Consequences Of Not Filing Statement Of Financial Transaction Or Reportable Account?

​​​​​​​​Non-furnishing of statement of financial transaction or reportable account will attract penalty under section 271FA. Penalty can be levied of Rs. 500 per day of default. However, section 285BA(5)​ (as discussed earlier) empower the tax authorities to issue a notice to the person directing him to file the statement within a period not exceeding 30 …

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What is The Mode And Due Date For Filing Statement Of Financial Transaction Or Reportable Account?

​​​​The statement of financial transaction shall be furnished electronically (under digital signature) in Form No. 61A to the Director of Income-tax (Intelligence and Criminal Investigation) or the Joint Director of Income-tax (Intelligence and Criminal Investigation). However a Post Master General or a Registrar or an Inspector General may furnish Form No. 61A in a computer …

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Purchases Cannot Be Treated As Bogus Merely On The Basis Of Statements And Affidavits Filed By Alleged Vendors Before Sales Tax Department: ITAT Mumbai

In the case of ACIT vs. Mahesh K. Shah, ITAT Mumbai has held that: Mere reliance by the AO on information obtained from the Sales Department or on statements/affidavits of the 12 parties before the Sales Tax Department or that these parties did not respond to notices issued under section 133(6) of the Act, would …

Purchases Cannot Be Treated As Bogus Merely On The Basis Of Statements And Affidavits Filed By Alleged Vendors Before Sales Tax Department: ITAT Mumbai Read More »

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Who is Not Required To Pay Advance Tax?

​​​​​Following are not required to pay Advance Tax: (1.) A resident senior citizen (i.e., an individual of the age of 60 years or above during the financial year) not having any income from business or profession is not liable to pay advance tax. (2.) Taxpayer who opted for presumptive taxation scheme of section 44AD or …

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What is Instant PAN?

Income Tax Department has launched a new functionality on the e-filing portal which allots a PAN to the assessee on basis of his Aadhaar Number. This facility can be used by an assessee only if the following conditions are fulfilled: 1.) He has never been allotted a PAN; 2.) His mobile number is linked with …

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How To Get Area Code For My Area For Allotment Of PAN?

It is mandatory to provide the AO Code while applying for PAN and TAN. AO Code (i.e., Area Code, AO Type, Range Code and AO Number) of the Jurisdictional Assessing Officer must be filled up by the applicant. These details can be obtained from following links: Click on below link for AO Code of PAN: …

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Taxpayer is Eligible To Claim ITC As Per Invoice in Absence Of System Based Matching: Gujarat High Court

In the case of M/S New Nalbandh Traders vs State Of Gujarat, the Gujarat High Court has held that: On the perusal of the aforesaid provisions, it can be said that there is a specific mechanism for reversing the credit in the case of a discrepancy in the ITC availed by the recipient, against the …

Taxpayer is Eligible To Claim ITC As Per Invoice in Absence Of System Based Matching: Gujarat High Court Read More »

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Section 206AA Does Not Have Overriding Effect Over Other Provisions Of The Act: ITAT Hyderabad

In the case of Nagarjuna Fertilizers and Chemicals Limited vs. ACIT, ITAT Hyderabad (Special Bench) has held that: In view of the above discussion, we are of the view that the provisions of section 206AA of the Act will not have a overriding effect for all other provisions of the Act and the provisions of …

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Method To Calculate Aggregate Turnover Under GST

Aggregate turnover is computed on all India basis for a person having same Permanent Account Number (PAN). It is sum of value of all outward supplies falling in the following four categories: Taxable supplies Exempt supplies Exports of goods or services or both Inter-state supplies.  but excludes the value of inward supplies on which tax …

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What is The Validity Of PAN?

​PAN obtained once is valid for life-time of the PAN-holder throughout India. It is not affected by change of address or change of Assessing Officer etc. However, any change in the PAN database (i.e. details provided at the time of obtaining PAN) should be intimated to the Income Tax Department by furnishing the details in …

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How To Sign PAN Application (Form 49A/ 49AA)?

​The applicant has to provide signature at three places in form 49A/ 49AA. If the applicant cannot sign, then the Left Hand Thumb impression of the applicant should be affixed at the place meant for signatures and should be attested by a Magistrate or a Notary Public or a Gazetted Officer, under official seal and …

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Who Has To Sign PAN Application?

​Application in Form 49A/ 49AA must be signed (left thumb impression in case of persons unable to sing) by : The applicant; or Karta in case of HUF; or Director of a Company; or Authorised Signaturee in case of Association of Persons, Body of Individuals, Local Authority and Artificial Juridical Person; or Partner in case …

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Disallowance Under Rule 8D is Not Compulsory Or Mandatory: ITAT Mumbai

In the case of Shapoorji Pallonji & Co. Ltd vs. DCIT, ITAT Mumbai has held that: Thus, Rule 8D is not attracted and applicable to assessee who have exempt income and it is not compulsory and necessary that an assessee must voluntarily compute disallowance as per Rule 8D of the Rules. Where the disallowance or …

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Who Can Apply For PAN On Behalf Of Non-Resident, Minor, Lunatic, Idiot And Court Of Wards?

Section ​160 of Income-tax Act, 1961 provides that a non-resident, minor, lunatic, idiot, mentally retarded, deceased, wards of court and such other persons may be represented through a Representative Assessee. In such cases, In the application for PAN, details of the non-resident, minor, lunatic, idiot, mentally retarded, deceased, wards of court, etc. should be provided. …

Who Can Apply For PAN On Behalf Of Non-Resident, Minor, Lunatic, Idiot And Court Of Wards? Read More »

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What Documents Will Serve As Proof Of Date Of Birth For Individual Applicants?

​​​Copy of any of the following document will serve as proof of date of birth in case of individual applicants being Indian citizens (including those located outside India): Birth Certificate issued by the Municipal Authority or any office authorized to issue Birth and Death Certificate by the Registrar of Birth and Death or the Indian …

What Documents Will Serve As Proof Of Date Of Birth For Individual Applicants? Read More »

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What Documents Will Serve As Proof Of Identity In Case Of Individual/ HUF Applicants?

Any of the following document will serve as proof of identity in case of individual applicants being Indian citizens (including those located outside India) :  (1.) Copy of following : Aadhaar Card issued by the Unique Identification Authority of India; Elector’s photo identity card; or Driving License; or Passport; or Ration card having photograph of …

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What Documents And Information To Be Submitted Along-with PAN Application in Form 49A/ 49AA?

​The documents required to be submitted with the PAN application are specified in Rule 114 of the Income-tax Rules. The details of the documents required are also provided in the application form. Individual applicants have to provide document pertaining to proof of identity, proof of address and proof of date of birth. The name of …

What Documents And Information To Be Submitted Along-with PAN Application in Form 49A/ 49AA? Read More »

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Can Application For PAN Be Made On Plain Paper?

​​​​​Application for PAN cannot be made on plain paper. The application for PAN is to be made in the prescribed form i.e. Form No. 49A/ Form No. 49AA as the case may be. Form No. 49A is to be used by Indian Citizen/ Indian Companies/ Entities incorporated in India/Unincorporated entities formed in India and Form …

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Are There Any Charges To Be Paid For Obtaining PAN?

The applicant has to pay a fee of Rs. 93 + GST as applicable, per PAN application. In case, the PAN card is to be dispatched outside India then the fee for processing PAN application is Rs. 864 (Rs. 93 application fees and Rs. 771 dispatch charges)/- will have to be paid by applicant.(plus GST …

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How To Link Aadhaar With PAN Using SMS Facility?

Taxpayer who wants to link their Aadhaar number with PAN is required to send SMS to 567678 or 56161 in following format: UIDPAN<space><12 digit Aadhaar><space><10 digit PAN> Example of SMS to 567678 or 56161: UIDPAN 111122223333 AAAPA9999Q Aadhaar number will be linked with PAN if name and date of birth of taxpayer is identical to …

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What is Fees For Default Relating To Intimation Of Aadhaar Number?

The Finance Act, 2021 has inserted a new Section 234H to levy a fee for default in intimating the Aadhaar Number. If a person is required to intimate his Aadhaar under Section 139AA and such person fails to do so, he shall be liable to pay a fee, as may be prescribed, not exceeding Rs. …

What is Fees For Default Relating To Intimation Of Aadhaar Number? Read More »