Category: Tax Analysis

Recently, pursuant to “Clean Note Policy”, the Reserve Bank of India (RBI) has decided to withdraw the ₹ 2,000 denomination banknotes from circulation. While ₹ 2000 banknotes continue to be legal tender till 30 September 2023, RBI has directed banks to provide deposit / exchange facilities for ₹ 2000 notes until 30 September 2023. Depositing ₹ 2000 banknotes in Banks or adopting innovative strategies to get away from ₹ 2000 banknotes may invite tax implications and attention of the income-tax authorities. This brief note on key tax considerations on adopting workarounds for ₹ 2000 banknotes.

The issue of dual tax residency becomes a critical in the year when an individual relocates to another country. The issue complicates when such relocation happens in the middle of the year, resulting into split of dual residency period. This article published on Taxsutra examines the controversy considering treaty analysis and judicial views.

Section 270AA was introduced by Finance Act, 2016 to authorize the Revenue to grant immunity to the taxpayers against penalty under Section 270A and initiation of prosecution under Sections 276C and 276CC upon fulfilment of certain conditions. This article originally published on Taxsutra is an attempt to throw light on the pre-requisites for initiating penalty proceedings by the tax authorities and attempting immunity therefrom.

Income-tax law is one of the most complex pieces of legislation in India and regular amendments with conflicting judicial views only add to the complexities. This article published on Taxmann delves into the controversy surrounding inclusion of current year profits in computing ‘accumulated profits’ under dividend provisions.