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🔔 Compliance-Cum-Awareness Drive for Disclosure of Foreign Assets 🔔 The Income Tax Department is actively sending SMS and email notifications to individuals flagged for potential non-disclosure of foreign assets or foreign-sourced income in their Income Tax Returns (ITR) for AY 2024-25. Purpose: The goal is to encourage Indian residents to correct any missed reporting in Schedule Foreign Assets (Schedule FA) and Schedule Foreign Sources of Income (Schedule FSI) before the deadline of 31st December 2024. Disclosures Required in Schedule FA: 1. Income from any source outside India 2. Assets held outside India, including shares, debentures, immovable property, or other capital assets 3. Financial or beneficial interest in any overseas entity 4. Signing authority in any bank or trading account located outside India Note: Disclosure is mandatory, regardless of whether ownership is legal or beneficial. Consequences of Non-Disclosure: 1. Proceedings under the Prevention of Money Laundering Act, 2002 (PMLA), risking asset seizure and prosecution for financial crimes. 2. Penalty of INR 10 lakhs under the Black Money Act, 2015. 3. In serious cases, rigorous imprisonment of 6 months to 7 years, along with additional fines. 4. Revocation of Double Taxation Avoidance Agreement benefits. Ensure compliance and avoid penalties! Update your ITR and disclose any foreign assets or income before the deadline. Have questions or need more information? Drop them in the comments below, and we'll be happy to assist! Contributor: CA Chetna Choudhary, Manager, Advisory & Tax #TaxCompliance #ForeignAssets #IncomeTaxReturns #ITR #FinancialAwareness #Taxation #PMLA #ForeignIncome #IndiaTax #AKMGlobal

My views on the changes expected in the Safe Harbour Clause were recently published in the Financial Express. #AQUILAW #TAXQUOTES #FINANCIALEXPRESS #TAXPRACTISE

Under the safe harbour clause, a fund and its manager can be exempt from taxation in India if they do not have a business connection in the country. Our Executive Director, Head of Tax, Mr. Rajarshi Dasgupta shared his views, suggesting a re-evaluation of the safe harbour provisions.  Financial Express (India) Follow the link to read more: https://lnkd.in/gpcsCzUc #SafeHarbourClause #TaxExemptionIndia #InternationalTaxation #BusinessConnection

Under Reporting and Misreporting of Income The penalties are now triggered at 50% and 200% of the tax computed on the under-reported and misreported income respectively. Section 270A excludes Transfer Pricing addition from the scope of under-reporting subject to the conditions that the Assessee had maintained all documentations, declared the transaction and disclosed material facts pertaining to the transaction. The below article by Taxmann elaborates the under reporting and misreporting of income and the transfer pricing adjustments. Source: Taxmann - M.S. Venu Gopal #transferpricing #transferpricingadjustments #india #underreporting #misreporting #penalty #global #transferpricingdocumentation #mnc #mne #multinationals #TPverse

Taxman's Eye on Foreign Assets: Declare or Face the Consequences The CBDT urged Indian resident taxpayers to accurately report foreign income and assets in their Income Tax Returns (ITRs), including real estate, bank accounts, and investments. Commissioner Shashi Bhushan Shukla explained that resident taxpayers must disclose all foreign assets, even without income, and clarified reporting rules for NRIs and foreign citizens transitioning to Indian residency. He emphasized penalties for non-compliance and highlighted tax credits under DTAAs and global tax transparency efforts. For more Detailed Information, Contact us 📲 : +91-8424061633 Email us 📧: capgk.in@gmail.com Visit us : https://rb.gy/4k2jdz #CBDT #TaxCompliance #ForeignAssets #IncomeTax #TaxFiling #FinancialCompliance #TaxTips #TaxProfessional #FinancialAdvisor #TaxNews #gstconsultant #canearme #charteredaccountant #taxfiling #taxation #NRI #audit #ROC #Companyformation #cafirm #taxconsultant #consultant #15cacb  #netwoth #investments #sip #insurance #terminsurance #GSTregistration #accounting #booksofaccounts #gumastha #udyam #PF #pan #cainandheriwest #GST

New Capital Gains Taxation regime ✅An issue has been raised as to what would be the Cost of Acquisition as on 1.4.2001 for properties purchased prior to 2001. ✅For properties (land or building or both) purchased prior to 1.4.2001, the cost of acquisition as on 1.4.2001 shall be:- ✅Cost of Acquisition of the asset to the assesse; or ✅the Fair Market Value (not exceeding the stamp duty value, wherever available) of such asset as on 1.4.2001.  ✅Taxpayers can choose either option as per section 55(2)(b) of the Income-tax Act, 1961. An illustration to explain the same: #icai #incometax #UnionBudget2024 #BudgetForViksitBharat The Institute of Chartered Accountants of India (ICAI)

Starting October 1, individuals leaving India will be required to obtain a Black Money Tax Clearance Certificate. This new rule aims to curb the outflow of undisclosed income and assets. The certificate will serve as proof that the individual has no outstanding tax liabilities related to black money. To obtain the certificate, individuals must declare all foreign assets and income, ensuring compliance with tax laws. This measure is part of the government's broader initiative to tackle tax evasion and improve financial transparency. Travelers should plan ahead to secure this clearance to avoid any last-minute travel disruptions. Stay informed and ensure all financial records are up to date before making travel plans. LINKEDIN #gstupdates #gstcompliance #gstreturns #gstnews #gstindia #gst #gstmitra #capraveensharma #incometaxindia #incometaxreturn #incometax #einvoicing #einvoice #ewaybill #corporate #training #traininganddevelopment #trainings #eventmanagement #event #TaxNews #BlackMoney #India #TravelRegulations #FinancialCompliance

𝐐𝐮𝐢𝐜𝐤 𝐑𝐞𝐯𝐢𝐞𝐰 -𝐆𝐒𝐓 𝐨𝐧 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐆𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐁𝐞𝐭𝐰𝐞𝐞𝐧 𝐑𝐞𝐥𝐚𝐭𝐞𝐝 𝐏𝐞𝐫𝐬𝐨𝐧𝐬. Relevant Sections, Circulars, and Notifications • Section 7 of CGST Act, Schedule I • Rule 28 • Notification No. 52/2023 • Circulars No. 199/11/2023, 204/16/2023, 225/19/2024 • Notification 12/2024 dated 10.07.24 Key Takeaways 1. GST Applicability Before 26th October 2023: Determined by previous rules i.e. 28(1) or 30 or 31 of the CGST Act, 2017 After 26th October 2023: Determined by Rule 28(2) as amended by new notification dated 10th July 2024 2. The value of supply of services for providing a financial guarantee by a supplier to a related person located in India, to any banking company or financial institution, shall be deemed to be 1% of the guarantee amount per annum or the actual consideration, whichever is higher. 3. GST is based on the amount guaranteed, not the actual disbursed loan amount. 4. Loan Takeover: No GST on takeover unless a new or renewed guarantee is issued. 5. Multiple Guarantors: GST is payable proportionately based on the guarantee amount of each guarantor unless a specific ratio is pre-decided. 6. Export of Services: GST on corporate guarantee is not applicable for the export of the service of providing a corporate guarantee between related persons. 7. Where domestic corporates issue intra-group guarantees, GST is to be paid under forward charge mechanism. If such guarantee is provided by the foreign/overseas entity for a related entity located in India, then GST would be payable under reverse charge mechanism by the recipient of service, i.e., the related entity located in India. 8. If the related party receiving the service of Guarantee is eligible for full Input Tax Credit, then the value mentioned in the invoice shall be considered the transaction value as per valuation rules for GST purposes. Our Comment Welcome Clarifications! The following clarification by the GST Council clarifies multiple doubts related to Corporate Guarantees and aids in better clarity and compliance. Vikas Mandawewala CA Harsh Luharuka Sushil Kumar Jajodia Chinmay Kumar Das Ranju Majumder #GST #CorporateGuarantee #RelatedPersons #GSTCompliance #BusinessCompliance #GSTUpdates

Income accrued in India from guarantee charges by Indian subsidiaries and taxable. The concept of income being "earned" is tied to the right to receive the income.: The Delhi High Court examined whether guarantee charges received by an appellant from its Indian subsidiaries are taxable in India. The Tribunal found that the appellant's payments did not fall under Article 12 of the DTAA as it was not a party to loan agreements with foreign banks. The guarantee charges were deemed as remuneration for providing parent company guarantees, not interest. The income accrued in India as per the Intra Group Agreement terms. The charges were linked to services provided in India for the benefit of subsidiaries. The Court held that the guarantee fees did not qualify as interest u/s Article 12 of the DTAA. The Court ruled against the appellant, stating that the guarantee charges do not fall under the definition of interest. The issue of whether the charges constitute business income u/s Article 7 of the DTAA was left open for future consideration. http://dlvr.it/T7dR3h #IncomeTax #Taxation #DelhiHighCourt #DTAA #IncomeAccrual

🌟Foreign Assets and Income Reporting by NRI's🌟 🔍 Disclosure Requirements: Under the Income-tax Act, 1961, Indian residents must disclose foreign assets and income in their Income Tax Returns (ITR). ⚠️ Consequences of Non-Disclosure: - Heavy penalties up to ₹20 lakhs and possible prosecution under the Black Money Act, 2015. - Applies even to dormant foreign assets. 🎯 Taxpayer Focus for AY 2024-25: The Income Tax Department's campaign emphasizes preventing non-disclosure, particularly for individuals with: - ESOP shares from foreign companies. - Investments in foreign securities. - Other overseas assets. 🛡️ Actionable Steps: - Ensure foreign asset/income disclosures in ITR. - File a revised ITR by 31st Dec 2024, if necessary. - Take this chance to stay compliant at no additional cost. Let’s stay informed, act responsibly, and encourage compliance for a better future. 💼💡 #TaxCompliance #ICAI