TERMINATION OF TREATY ARTICLE 31 OF THE INDIA – US TREATY This Convention shall remain in force indefinitely but either of the Contracting States may, on or before the thirtieth day of June in any calendar year beginning after the expiration of a period of five years from the date of the entry into force … Read more
Double Taxation – Introduction, Meaning and Concept Introduction to Double Taxation Consider the following diagram in which an Indian company (ICO) earns some income from a foreign company (FCO1). In this example there are two taxing jurisdiction which are involved, jurisdiction of FCO1, which is outside India, and jurisdiction of ICO, which is India. In … Read more
There are two types of relief from Double Taxation Relief – Unilateral Relief and Bilateral Relief , which are available to a non-resident who is a resident of one country (say USA) and operates in another country (say India) . In certain cases of international trade and commerce, income earned by a resident of one … Read more
Article 4 – Concept of Residence in Tax Treaties – Double Taxation Avoidance Agreement Article 4 – General Structure Importance of concept of residence This Article provides the criteria as to who shall be considered a resident of a Contracting State. In case the application of such a criteria results in dual residency, the rules … Read more
Capital Gains to Non Residents Tax in India – Article 13 – Double Taxation Avoidance Agreement Article 13 – Capital Gains – Double Taxation Avoidance Agreement This is the most commonly used Article. It provides for the taxation of income arising from transfer of a capital asset, including transfer of shares. The right to tax … Read more
Offences and Prosecution under Income tax act – Chapter V Provisions of Chapter V not in derogation of any other law [Section 48] The provisions relating to offences and prosecution are in addition to, and not in derogation of, the provisions of any other law providing for prosecution for offences thereunder. Let us understand this … Read more
PENALTY IN RELATION TO UNDISCLOSED FOREIGN INCOME AND ASSET – SECTION 41 The Assessing Officer may levy penalty where tax has been computed in respect of undisclosed foreign income and undisclosed foreign asset. The amount of penalty, shall be equal to three times the tax so computed, in addition to tax. EXAMPLE : – PENALTY … Read more
PAYMENT OF TAX DURING PENDING APPEAL Where any tax is due as per assessment made under the Black Money Act, such tax has to be paid , irrespective of the fact that any appeal is being preferred to the High Court or the Supreme Court. For example, where any assessment order has been passed by … Read more
REVISION OF ORDERS PREJUDICIAL TO REVENUE – SECTION 23 There are instances where the Assessing Officer may pass orders which are prejudicial to the interest of revenue. The Assessing Officer may have interpreted certain provision of the Black Money Act in a manner which leads to lesser tax liability on the assesse, than what is … Read more
APPEAL TO HIGH COURT – SECTION 19 Where any case under the Black Money Act is related to a question of fact, it cannot be appealed to the High Court. The Appellate Tribunal is final fact-finding authority. The appeal can be filed before the High Court only if the subject matter involves substantial question of … Read more