LKS Expert Insights

Capital gains taxation under Section 45 of the Income Tax Act becomes complex when part of the sale consideration is retained in escrow. Key cases, including Caborandum Universal Ltd. and Dinesh Vazirani, highlight differing judicial views on whether such amounts are taxable in the year of transfer or upon release to the seller.   This insightful piece, authored by Tanmay Bhatnagar, Principal Associate, Snehal Ranjan Shukla, Senior Associate, and Avar Lamba, Associate from the Direct Tax Practice at Lakshmikumaran & Sridharan Attorneys, delves into the legal quandaries and judicial perspectives surrounding escrowed sums in capital gains.   #DirectTax #Escrow #Taxation #LakshmikumaranSridharan  

Recently, the apex court, taking cognizance of misleading advertisements and lack of action by ministries issued a direction under Article 32 and 141 of the Indian constitution for all advertisers to issue a self-declaration certificate on compliance with all laws before publishing advertisements. The Ministry of Broadcasting has issued an advisory in pursuance to the same. Our Partner, Mr. Asish Abraham and Principal Associate, Ms. Astha Sinha, have analysed the Supreme Court judgment and recent advisory by MIB and provided their thoughts on the same. #misleadingadvertisement #ASCI #advertisement #SRO #influencers #ads #advisory

Our Partner, Mr. Asish Abraham, and Principal Associate, Ms. Astha Sinha have shared their insights on the Reserve Bank of India's recently launched Fintech Repository for unregulated fintech entities, and the EmTech repository for regulated fintech entities. These are committed towards the consolidation of details with respect to the the technology, products, activities, and other financial information. In parallel, RBI introduced the Framework for Self-Regulatory Organisation (SRO) in the Fintech Sector. #Fintech #RBI #ReservebankofIndia #Regulation #SRO #Selfregulatoryorganisation #Emergingtechnologies #Repository

Following extensive discussions with stakeholders, the Ministry of Information and Broadcasting has issued a crucial advisory dated July 3, 2024, superseding previous directives. Effective immediately, advertisers and advertising agencies in the "Food and Health Sector" are mandated to submit an annual self-declaration for their advertisements. Our Partner, Mr. Asish Abraham and Principal Associate, Ms. Astha Sinha, have analysed the recent advisory by MIB and provided their thoughts on the same. #Advertisements #foodandhealthsector #advertisers #advisory #ads

The Reserve Bank of India ("RBI") has recently issued a circular bearing reference no. RBI/2024-25/90 A.P. (DIR Series) Circular No. 19 dated 11 November 2024, prescribing the operational framework under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 ("NDI Rules") for reclassification of foreign portfolio investment into foreign direct investment which is effective from 11 November 2024.  This framework is a welcome step from the RBI which will aid foreign portfolio investors in undertaking investments beyond the threshold prescribed under the NDI Rules. Our partner, Mr. Sushrut Biswal, along with Principal Associate, Rohan Verma and Senior Associate, Yashraj Chauhan, have summarised the key takeaways and shared their insights on the matter.

The Biological Diversity Act, 2002 (BDA, 2002), was enacted with the objective of conservation and sustainable use of biological resources. Over the years, several concerns were raised by stakeholders with respect to the stringency of compliance imposed by BDA 2002. To address these concerns, the Biological Diversity (Amendment) Act, 2023 (BDA, 2023) came into force on April 01, 2024. Our Practice Head, Dr. Malathi Lakshmikumaran, Executive Director for IPR and Life Sciences, and Ms. Aashmeen Kaur, Senior Patent Analyst have put together the key takeaways and shared their insights on the matter. **This presentation is for informational purposes only and should not be construed as legal advice.** #BiodiversityIndia #BiologicalDiversityAct #IndiaBiodiversityAct #BiodiversityAmendment

On 7th November 2024, the Insolvency and Bankruptcy Board of India (‘IBBI’) released its discussion paper addressing seven issues related to Real Estate and invited public comments on proposed amendments pertaining to the same. The implications of these proposals are mainly aimed at protecting the interests and rights of buyers in insolvent real estate projects.    Our Partner Yogendra Aldak, and Senior Associate Ms. Tamanna Sharma shared their insights on the matter.    **This presentation is for informational purposes only and should not be construed as legal advice.** #IBBI #Bankruptcy #RealEstate #Interests