Updates

The Government of Gujarat has rolled out the Electronics Policy 2022-2028 on 29 October 2022. The Policy is very promising and provides a lot of fiscal / non-fiscal benefits for existing units in the electronics space, which includes incentives for capital expenditures, reimbursement of freight charges and relocation of manufacturing operations to Gujarat, interest subsidies on loans availed, reimbursement of power tariff and electricity duty, etc. Please find attached our publication that provides an overview on the Policy.

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.

On 8 February 2022, the Government of Gujarat unveiled its new IT / ITeS Policy 2022-27, replacing the old IT / ITeS Policy 2016-2021. The Policy intends to transform Gujarat’s IT landscape by acting as a catalyst in the growth of the IT/ITeS ecosystem, enabling to create world-class IT infrastructure, attracting highly skilled IT human resources, and promoting innovation in emerging technologies. The Policy is very promising and provides a lot of fiscal / non-fiscal benefits for units in the IT/ITeS space. Our publication provides a brief overview on the Policy.

Section 80JJAA was introduced by Finance Act (No. 2) Act, 1998 with the intent of providing fiscal incentives to employers and encouraging them to create more employment opportunities. Section 80JJAA provides tax deduction from income from business of a company for the employment of new employees subject to fulfilment of certain conditions prescribed. Our publication providing brief overview of deduction under Section 80JJAA and conditions to be complied thereto.

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.