Mar 17, 2025 CBDT clarifies exemptions from principal purpose test in double taxation avoidance agreements
India's Central Board of Direct Taxes (CBDT) has clarified that exemptions from the Principal Purpose Test (PPT) under Double Taxation Avoidance Agreements (DTAAs) with countries like Mauritius, Cyprus, and Singapore won't interfere with domestic anti-abuse rules. This clarification is significant, especially since India and Mauritius amended their tax treaty in April 2024 to include the PPT. The PPT aims to prevent large companies from avoiding taxes by scrutinizing business arrangements made purely for tax benefits . In January, the CBDT had announced that the PPT wouldn't apply to past investments made under certain tax treaties with countries like Mauritius, Cyprus, and Singapore.
Read More →Mar 11, 2025 Social media accounts accessed only in search, survey ops: I-T official
The new Income Tax Bill prescribes the existing process for tax authorities to gain access to the digital space or a computer device only during search and survey operations, and it is not aimed to breach the online privacy of common taxpayers even if their case lands into scrutiny, a top I-T department official said Monday. The powers for such a coercive action "already existed" in the 1961 Act, and these have only been reiterated in the Income Tax Bill of 2025, he said. The official rejected claims made in some reports and opinion pieces that the tax authorities have been granted "additional" powers to breach the passwords of electronic records, including email, social media handles and Cloud storage space of the taxpayers.
Read More →Mar 11, 2025 Mauritius seeks amendment in double taxation avoidance convention with India: Foreign Minister Dhananjay Ramful
Mauritius is pressing for amendments to its trade agreement, including Double Taxation Avoidance Convention (DTAC) with India, Foreign and Trade Minister Dhananjay Ramful said. In an interview with PTI Videos at his office in Port Louis, he underscored the need to revisit the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) to restore Mauritius' position as a preferred investment conduit, as foreign direct investment (FDI) inflows from the island nation to India have declined sharply since the treaty's revision in 2016. "Amendment in DTAC is still under discussion. Two issues, I think, need to be sorted out. From what I've been told, once this is sorted out, then they will sign the protocol," he explained, hinting at unresolved sticking points in the negotiations.
Read More →Mar 07, 2025 Over 30k taxpayers declare foreign assets worth Rs 29k cr in CBDT's campaign
Over 30,000 taxpayers have revised their I-T returns or filed belated returns and declared additional foreign assets and income of more than Rs 30,000 crore, Government sources said on Thursday. In line with its 'trust-first' approach, the Central Board of Direct Taxes (CBDT) had on November 16 last year, launched an awareness campaign under which messages were sent to taxpayers who had not disclosed high-value foreign income or assets in their ITRs for AY 2024-25. SMSes and emails were sent to 19,501 taxpayers with high foreign account balances or significant foreign income from interest or dividends above a specified threshold.
Read More →Mar 06, 2025 Major changes in TDS and TCS rules from April 1: Here’s all you need to know
The Centre in the Budget announced many important changes related to tax, especially to make TDS and TCS easy and simple. The purpose of these changes – which will be effective from April 1, 2025 – is to make tax compliance easier for common taxpayers and traders and eliminate unnecessary complexities. These changes will ensure taxpayers do not face the hassles of tax deduction and collection like before on sending money abroad, making big purchases or business transactions. Let us know what special changes have been made in the budget this time. New limits of TDS When you earn interest from the bank, pay rent or make any big payment, TDS is deducted after a certain limit.
Read More →Mar 03, 2025 I-T Dept investigates unlisted share transactions, tax evasion in OFS deals
The Income Tax (I-T) Department is investigating transactions where promoters, their associates and anchor investors bought unlisted stocks of companies and offloaded them during offers for sale (OFS) when the entities went for listing. Over the past 10 days, the department's investigation wing has sent out many notices, questioning such investors in multiple cities on how they computed the 'cost' of acquisition of unlisted shares and the subsequent capital gains on their sale. The tax office suspects several investors pegged the stock purchase cost at an unacceptably high fair market value (FMV) - instead of the actual outgo for acquisition- to lower capital gains and tax numbers, said people in the know.
Read More →Mar 01, 2025 Form 16 and 24Q formats revised! New tax deduction rules you must know
The Central Board of Direct Taxes (CBDT) has issued a new circular, which states the new rules for tax deduction from salary under section 192 of the Income Tax Act, 1961. It also includes the changes made in the Finance Act 2024 and 2023. “The Form No. 16 has been amended vide the Income-tax (Fifth Amendment) Rules, 2023, w.e.f. 1-7-2023 and shall be applicable for the assessment year 2024-25 and subsequent assessment years. Form No. 16 (has been further modified vide the Income-Tax (Eighth Amendment) Rules, 2024, w.e.f. 15- 10-2024,” the CBDT circular said. This circular has been issued on 20 February 2025 and it will be applicable to the tax returns of the financial year 2024-25 (i.e. assessment year 2025-26).
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