Taxation of Dividend, Business Re-organization, Set-Off & Carry Forward of Losses

(Includes New Perquisite Rules)

Taxation of Dividends

· Section 10(34) – Dividend Income Exempt from Tax

· Section 115-O(1) – Tax on Distributed Profits of Domestic Companies

· Section 115-O(1A)

· Section 115P – Interest Payable for Non-payment of Tax by Domestic Companies

· Section 115Q – When Companies is Deemed to be in Default

· Section 271C – Penalty

· Section 276B – Prosecution

· Section 2(22)(e) – Loans and Advances by Closely Held Company Deemed as Dividend

· Section 2(22) – Dividend Shall Not Include

· Section 2(22)(a) – Distribution of Asset deemed as Dividend

· Section 2(22)(b) – Distribution of Debentures etc. Deemed as Dividend

· Section 2(22)(c) – Distribution of Asset Deemed as Dividend

· Section 2(22)(d) – Distribution on Reduction of Share Capital Deemed as Dividend

· Section 2(22) – Dividend Shall Not Include

· Section 46 – Capital Gains on Distribution of Assets by Companies in Liquidation

· Section55 – Sale of Assets Received on Liquidation

· Section 46A – Capital Gains on Purchase by Company of its Own Shares or Other Specified Securities

New Pension Scheme

Section 10 – Income of New Pension Scheme Trust Exempt From Tax
Section 115-O(1A) – Reduction in Dividend Distribution Tax
Section 80CCD – Deduction in Respect of Contribution to Pension Scheme of Central Government
Section 197(1E) – No Deduction of Tax at Source to be Made in Certain Cases

Taxation of Income on Units

· Section 10 – Income not Included in Total Income

- Section 10 (33)

- Section 10 (35)

Section 115R – Tax on Distributed Income to Unit Holders
Section 115S – Interest Payable for Non-Payment of Tax
Section 115T – Specified Company or Mutual Fund to be Assessee in Default

Dividend Stripping

Section 94(7) – Measures to Curb Dividend Stripping

Bonus Stripping

Section 94(8) – Measures to Curb Bonus Stripping

Taxability of Deep Discount Bonds

Circular No. 2/2002 – Clarification Regarding Tax Treatment of Deep Discount Bonds and STRIPS
Press Note Dated 20.03.2002 – Further Clarification on Tax Treatment of Deep Discount Bonds and STRIPS
Circular No. 4/2004 – Tax Deduction at Source on Income From Deep Discount Bonds

Zero Coupon Bonds Related Sections

· Section 2(48)

· Section 2(47)

· Section 2(42A)

· Section 112

· Section 194A

· Section 36(iiia)

Annual Information Return

Section 285BA – Obligation to furnish Annual Information Return
Section 271FA – Penalty for Failure to Furnish Annual Information Return
Rule 114E – Furnishing of Annual Information Return

Amalgamation And Its Tax Implications

Section 2(1B)– Definition Of Amalgamation
Taxation Of Shareholders

- Section 47

- Section 49(2)

- Section 2(42A)

Taxation Of Amalgamating Company

- Section 47

Taxation Of Amalgamated Company

- Section 49(1)

- Section 55

- Section 2(42A)

- Section 35

- Section 35A

- Section 35ABB

- Section 35D

- Section 35DD

- Section 36(1)(ix)

- Section 35DDA

- Section 41(1)

- Section 42

- Section 43C

- Section 32

- Explanation 7 to Section 43(1)

- Explanation 13 to Section 43(1)

- Explanation to Section 43(6)

- Section 10A/ 10B/ 10AA/ 80-IA/ 80-IB/ 80-IC/ 80-IE

Section 72A– Provisions Relating To Carry Forward And Set Off Of Accumulated Losses And Unabsorbed Depreciation Allowance In Amalgamation Or Demerger, Etc.
Section 72AA– Provisions Relating To Carry Forward And Set-Off Of Accumulated Loss And Unabsorbed Depreciation Allowance In Scheme Of Amalgamation Of Banking Company In Certain Cases
Section 47– Certain Transactions Not Regarded As Transfer

Demerger And Its Tax Implication

Amendments Made In The Chapter Of Capital Gains

- Section 2(22)

- Section 47

- Section 2(42A)

- Section 49

Amendments Made In The Chapter Of Profits And Gains Of Business Or Profession

- Explanation 7A to Section 43(1)

- Explanation 2A to Section 43(6)

- Explanation 2B to Section 43(6)

- Section 32

Taxation Of Shareholders Of Demerged Company And The Resulting Company

- Section 47(vid)

- Section 2(22)(v)

- Section 2(42A)

- Section 49(2C)

- Section 49(2D)

Taxation Of Resulting Company

- Explanation 7A to Section 43(1)

- Explanation 13 to Section 43(1)

- Explanation 2B to Section 43(6)

- Section 32

- Section 72A

- Section 35A

- Section 35ABB

- Section 35D

- Section 35DD

- Section 35DDA

- Section 42

- Section 41(1)

- Section 10A/ 10B/ 10AA/ 80-IA/ 80-IB/ 80-IC/ 80-IE

Taxation Of Demerged Company

- Section 47(vib)

- Section 47 (vic)

- Explanation 2A to Section 43(6)

- Section 32

- Section 72A

Business Reorganisation Of Co-Operative Banks

Section 47– Transactions Not Regarded As Transfer.
Section 49– Cost Of Acquisition
Section 2(42A)– Period Of Holding
Section 55– Cost Of Acquisition
Section 72AB– Provisions Relating To Carry Forward And Set Off Of Accumulated Loss And Unabsorbed Depreciation Allowance In Business Reorganisation Of Co-Operative Banks
Section 44DB– Special Provision For Computing Deductions In The Case Of Business Reorganization Of Co-Operative Banks

Demerger Of Co-Operative Bank

Section 47– Transactions Not Regarded As Transfer.
Section 49– Cost Of Acquisition
Section 2(42A) – Period of Holding
Section 55 – Cost of Acquisition
Section 72AB– Provisions Relating To Carry Forward And Set Off Of Accumulated Loss And Unabsorbed Depreciation Allowance In Business Reorganisation Of Co-Operative Banks
Section 44DB– Special Provision For Computing Deductions In The Case Of Business Reorganization Of Co-Operative Banks

Set-Off, Or Set-Off And Carry Forward Of Losses

Section 70– Set-Off Of Loss From One Source Against Income From Other Source Under The Same Head Of Income

Section 71– Set-Off Of Loss From One Head Against Income From Another Head
Section 71B – Carry Forward And Set-Off Of Loss From House Property
Section 72 – Carry Forward & Set-Off Of Business Losses
Section 73 – Losses In Speculation Business
Section 73A – Carry Forward and Set-off of Losses by Specified Business Referred in Section 35AD
Section 74 – Losses Under The Head Capital Gains
Section 74A – Loss From The Activity Of Owning And Maintaining Race-Horses
Section 78 – Carry Forward And Set Off Of Losses In Case Of Change In Constitution Of Firm Or On Succession
Section 79 – Carry Forward And Set-Off Of Losses In The Case Of Certain Companies

Stock Options

· Section 17(2)(vi) – Perquisite in respect of Stock Options

· Rule 3(8) – Valuation of Perquisites in Respect of Equity Shares Allotted or Transferred under Employee Stock Option Plan

· Rule 3(9) – Valuation of Perquisites in respect of Securities Other Than Equity Shares Allotted or Transferred under Employee Stock Option Plan

· Section 2(42A) – Period of Holding

· Section 49(2AA) – Cost of Acquisition

Valuation of Perquisite

· Section 17(2) – Definition of Perquisite

· Rule 3 – Valuation of Perquisite

Fema Forms - Forms on Details of Remittances, Currency Declaration form, Issue of Shares, FTD Statement, Trade Credits and more...
Excise Forms - GAR Challan, Form A-1, A-2, A-3, Declaration FORM, Personal Ledger Account, Form ER – 7 and more...
Partnership Form - Model Partnership Deed , Modifying the Partnership Deed, Admitting New Partner, Retirement Deed, Forms required for Formation / Dissolution and Change in Constitution of Partnership Firm and more...
Wealth Tax Forms - Return of Net Wealth, Warrant of authorisation under section 37A, Report of valuation of forests,Statement of Valuation of jewellery, Report of valuation of works of art and more...
Service Tax Forms- Service Tax Payment Challan, Application for registration Service Tax Return, Application for Advance Ruling, Application for Permission to file ST3 Returns Electronically, Memorandum for provisional Deposit & more...
Income Tax Forms - Declaration to be filed by the assessee claiming deduction under section 80GG , Claim for refund of tax, Challan form for depositing Income Tax, New amended Form No. 27D - TCS certificate and more...
ITR Forms - ITR 1, 2, 3, 4, 5, 6, 7, 8, 9, Income Tax Return Utility , Income Tax Return Word Format, Income Tax Return more...