Direct Tax
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Mumbai Tribunal rules DDT not applicable on issuance of shares by ‘resulting company’ to shareholders of ‘demerged company’ in a tax neutral demerger
In the case of Grasim Industries Ltd. v. DCIT and others (ITA No.
Supreme Court lays down important interpretational principles in relation to charitable educational institutions
In the case of New Noble Educational Society v. CCIT and Another, 2022 SCC OnLine SC 1458, a three-judge bench of the Hon’ble Supreme Court of India (SC) inter alia (a) laid down important interpretational principles in relation to the scope of exemption provided to charitable educational institutions under Section 10(23C) of the Income-tax Act, 1961 (IT Act), and (b) made certain important observations as to what can be regarded as an ‘incidental’ activity in relation to education.
SEBI addresses the ‘fastest finger first’ issue in allocation of listed debt securities
Securities and Exchange Board of India (SEBI) has by its circular bearing reference no. SEBI/HO/DDHS/DDHS_Div1/P/CIR/2022/00139 dated 10 October 2022 (2022 EBP Circular) amended and replaced Chapter VI (Electronic Book Provider platform) of the Operational Circular dated 10 August 2021 (Operational Circular).
High Court rules that seconded employees’ salary cost reimbursed by Flipkart to Walmart Inc will not be subject to withholding tax in India
In the case of Flipkart Internet Private Limited v DCIT (International Taxation) and Others [Writ Petition Number 3619/2021 (T-IT)], the Hon’ble Karnataka High Court (HC) has provided a major relief to taxpayers in the context of secondment arrangements wherein the salary cost of seconded employees is reimbursed by the Indian entity to the foreign entity on a cost-to-cost basis (Judgment).
CBDT clarifies the scope of VDAs: loyalty points, NFTs etc
The Finance Act, 2022 amended the Income-tax Act, 1961 (“IT Act”) by introducing a new taxation regime in relation to Virtual Digital Assets (“VDAs”) wherein: (i) a 30% tax has been levied on income from transfer of VDAs in the hands of the transferor; (ii) receipt of VDAs for nil or inadequate consideration has been made taxable in the hands of the recipient; and (iii) an obligation has been imposed (under Section 194S of the IT Act) on the persons responsible for paying any consideration to ‘Indian residents’ for transfer of VDAs to deduct tax at source (“TDS”) at 1% (with effect from 1
CBDT clarifies TDS mechanism for P2P (Peer-to-Peer) VDA transactions
The Finance Act, 2022 (FA 2022) amended the Income-tax Act, 1961 (IT Act) by introducing a new taxation regime in relation to Virtual Digital Assets (VDAs) wherein: (i) a 30% tax has been levied on income from transfer of VDAs in the hands of the transferor; (ii) receipt of VDAs for nil or inadequate consideration has been made taxable in the hands of the recipient; and (iii) an obligation has been imposed (under Section 194S of the IT Act) on the persons responsible for paying any consideration to ‘Indian residents’ for transfer of VDAs to deduct tax at source (TDS) at 1% (with effect fro
CBDT provides much awaited guidelines in relation to TDS on payments for Virtual Digital Assets
The Finance Act, 2022 (FA 2022) amended the Income-tax Act, 1961 (IT Act) by introducing a new taxation regime in relation to Virtual Digital Assets (VDAs) wherein: (i) a 30% tax has been levied on income from transfer of VDAs in the hands of the transferor; (ii) receipt of VDAs for nil or inadequate consideration has been made taxable in the hands of the recipient; and (iii) an obligation has been imposed (under Section 194S of the IT Act) on the persons responsible for paying any consideration to ‘Indian residents’ for transfer of VDAs to deduct tax at source (TDS) at 1% (with effect fro