[Mohit Agarwal and Vibhore Batwara are fourth-year law students from the Institute of Law, Nirma University (ILNU), Ahmedabad, India] An expanded version of equalization levy (EL) has come into force in India from 1 April 2020. EL found no reference when the Finance Bill was initially introduced in the Parliament in February, nor was there any anticipation or any consultation with the impacted...
OECD’s Relief Measures and the Indian Tax Regime
[Vishal Rajvansh is a 3rd year BA.LLB student at the National University of Study and Research in Law, Ranchi] The effect of the fight against Covid-19 has compelled several countries to implement unprecedented measures, such as restrictions on the free movement of people and goods, shutting down large parts of the economy and isolating a significant proportion of the population. Notably, the...
Mitigating Coronavirus Crisis: Income Tax Policy Response from an Indian Perspective
[Hardeep Singh Chawla is an LL.M. candidate in International Taxation (Class of 2020) at NYU School of Law. This post seeks to propose various substantive changes that may be introduced into India’s tax regime to provide some succor to individuals and other entities, so as to aid them in navigating through these challenging times and rebuilding the economy] The Indian government recently...
Carry Back Losses: A Liquidity Booster in the Current Pandemic
[Kailash Nath P S S is an Advocate practising at Hyderabad and is a Chartered Accountant by qualification] Following the outbreak of COVID-19 in India, the Central Government declared it as an epidemic and declared a lockdown from 21 March 2020 by invoking the provisions of the Disaster Management Act, 2005 and the Epidemic Diseases Act, 1897. Accordingly, the overall economic activity has...
OECD’s Unified Approach Proposal for Taxation in the Digital Economy
[Dibya Prakash Behera is a 5th Year BA. LLB (Corporate Law Hons.) student at National University of Study and Research in Law, Ranchi] The Organisation for Economic Co-operation (“OECD”) on 9 October 2019 released its Secretariat Proposal for a “Unified Approach” under Pillar One (“Proposal”) for public consultation. The Proposal, inter alia, introduces the concept of a nexus largely based on...
Supreme Court on Enlarged Scope of Leniency for Mistakes in Filing Income Tax Returns
[Amar Tandon is a IV year student and Mansi Mishra a III year student at the National Law Institute University, Bhopal] In Rajasthan State Electricity Board v. Dy. Commissioner of Income Tax (decided on 19 March 2020), the Supreme Court set a precedent for expanding the scope of leniency under section 143(1-A) of the Income Tax Act, 1961. In this post, the authors seek to discuss the details of...
Vivad se Vishwas Scheme: Will the Tax Payer Express Trust?
[Venkat Maithreya is a Counsel at the Telangana High Court] The Vivad Se Vishwas Scheme (now the Direct Tax Vivad Se Vishwas Act, 2020) (the “Scheme”) was introduced by the Finance Minister, Ms. Nirmala Sitaraman, in her Budget speech for the year 2020-21 in the Lok Sabha on 1 February 2020. The Scheme seems to be an equivalent of the Indirect Tax Sabka Vishwas (Legacy Dispute Resolution) Scheme...
Budget 2020: What’s there for the Real Estate Sector?
[Akash Kumar Prasad is a fourth-year student at NALSAR University of Law, Hyderabad] The Union Budget 2020-21 was presented on February 1, 2020 by the Finance Minister Nirmala Sitharaman. Amidst sharp decline in the economy, the Union Budget was awaited with great expectations to foster growth in the real estate sector. However, with no major announcement for catalysing the same, the Budget fell...
Delhi ITAT Ruling on Liaison Office and Permanent Establishment
[Dibya Prakash Behera is a 5th Year BA. LLB (Corporate Law Hons.) student at National University of Study and Research in Law, Ranchi] In September this year, the Income Tax Appellate Tribunal, Delhi delivered a landmark judgement in Hitachi High Technologies Ltd v. The Dy. Commissioner of Income Tax. The Tribunal held that the liaison office (LO) of Hitachi High Technologies Singapore Pte Ltd...
Expenses Incurred by the Assessee: Penal or Compensatory in Nature?
[Amrit Singh is a fourth-year B.A., LL.B. (Hons.) student at Institute of Law, Nirma University] Section 37 of the Income Tax Act, 1961 states that any expenditure laid out or expended wholly and exclusively for the purposes of the business or profession shall be allowed for deduction. However, this provision excludes the nature of expenditure mentioned in sections 30 to 36, capital expenditures...
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