Section 169 of the Finance Act, 2016 (Chapter VIII) governs the rectification of mistakes in the context of the Equalisation Levy in India. This section provides a mechanism to correct errors or omissions in the statements furnished under Section 167 or in the intimations issued after processing under Section 168 for both the 6% levy […]
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Here’s a detailed explanation of Section 170 (Interest on Delayed Payment of Equalisation Levy) under the Finance Act, 2016: 1. Overview of Section 170 Section 170 imposes simple interest at 1% per month (or part of a month) on delayed payments of Equalisation Levy (EL) by assessees or e-commerce operators who fail to deposit the levy within the due
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Here’s a detailed breakdown of the penalties for failure to deduct or pay Equalisation Levy (EL) under Section 171 of the Finance Act, 2016, along with key compliance requirements and consequences: 1. Overview of Section 171 Section 171 imposes penalties on assessees (Indian residents or non-residents with a Permanent Establishment in India) and e-commerce operators who fail to comply
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Here’s a detailed explanation of the penalty for failure to furnish the Equalisation Levy (EL) statement under Section 172 of the Finance Act, 2016: 1. Overview of Section 172 Section 172 imposes penalties for failing to file the annual Equalisation Levy statement (Form 1) as required under Section 167. This ensures compliance with reporting obligations for both: Assesseesdeducting EL (6%
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Here’s a detailed explanation of Section 173 (Penalty Not to Be Imposed in Certain Cases) under the Equalisation Levy (EL) provisions of the Finance Act, 2016: 1. Overview of Section 173 Section 173 provides safeguards against penalties under Sections 171 (failure to deduct/pay EL) and 172 (failure to furnish EL statements) if the assessee or e-commerce operator can demonstrate reasonable
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Here’s a detailed explanation of Section 40(a)(ib) of the Income Tax Act, 1961, which deals with the disallowance of expenses for failure to comply with Equalisation Levy (EL) provisions: 1. Overview of Section 40(a)(ib) This provision disallows certain expenses from being deducted when computing business income if: The payment is subject to Equalisation Levyunder the Finance Act, 2016, and The taxpayer fails to
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The Tonnage Tax Scheme is a special taxation regime introduced under Chapter XII-G (Sections 115V to 115VZC) of the Income Tax Act, 1961, to provide a simplified and globally competitive tax framework for Indian shipping companies. Instead of taxing actual profits, this scheme calculates tax based on the net tonnage of ships operated by the company, ensuring a stable and predictable
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Section 230 of the Income Tax Act, 1961 mandates certain individuals to obtain a Tax Clearance Certificate (TCC) before departing India. This requirement aims to ensure tax compliance and prevent tax evasion by individuals with outstanding liabilities. The provisions distinguish between Indian residents and non-residents, with different rules applying to each category. 1. Understanding Section
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Section 245MA of the Income Tax Act, 1961, introduces a faceless dispute resolution mechanism for small and medium taxpayers to reduce litigation and provide faster resolution of tax disputes. Below is a detailed breakdown of its provisions: 1. Objective of DRC To provide early tax certaintyto small taxpayers by resolving disputes at the initial stage. To reduce pendencyin appellate
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Section 293D empowers the Central Government to implement a faceless (digital) scheme for granting approvals or registrations under the Income Tax Act, aiming to enhance efficiency, transparency, and accountability. Here’s a detailed breakdown: 1. Key Features of the Scheme The faceless approval/registration scheme is designed to: Eliminate Physical Interface: Minimize direct interaction between taxpayers and tax authorities through digital
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