Yes, the interest earned on amounts deposited in a Capital Gains Account under the Capital Gains Account Scheme (CGAS) is taxable. This interest income is subject to tax in the year it accrues, irrespective of whether the funds are withdrawn. Tax Deducted at Source (TDS) is applicable to this interRead more
Yes, the interest earned on amounts deposited in a Capital Gains Account under the Capital Gains Account Scheme (CGAS) is taxable.This interest income is subject to tax in the year it accrues, irrespective of whether the funds are withdrawn.Tax Deducted at Source (TDS) is applicable to this interest, and the depositor receives a TDS certificate for the amount deducted
When you deposit your capital gains into a Capital Gains Account Scheme (CGAS) to claim an exemption under sections like 54, 54F, or 54EC, you may later need to withdraw funds from this account when you actually make the required investment. Key Point:There is no distinct, numbered form prescribed iRead more
When you deposit your capital gains into a Capital Gains Account Scheme (CGAS) to claim an exemption under sections like 54, 54F, or 54EC, you may later need to withdraw funds from this account when you actually make the required investment.
Key Point: There is no distinct, numbered form prescribed in the Income Tax Act specifically for the withdrawal of funds from a Capital Gains Account. Instead, the process is carried out online.
How It Works:
Online Application: You are required to log in to the official Income Tax e-filing portal where the Capital Gains Account Scheme is managed.
Within this online module, you will find an option to submit a withdrawal request.
You need to furnish the necessary details, such as the amount you intend to withdraw and the purpose of the withdrawal (for example, for acquiring a new asset to claim an exemption).
Supporting Documents: Along with your online request, you must upload or submit the relevant documents, such as evidence of the intended investment. This ensures that the withdrawal is used in accordance with the provisions of the Act.
Approval Process: Once your request is submitted, the authorities will process it. On approval, the funds will be released from the Capital Gains Account and can be used to make the qualifying investment.
Bottom Line:
There isn’t a separate “Form 10D” or similar for withdrawing funds. Instead, you complete a withdrawal application through the online Capital Gains Account Scheme portal on the Income Tax e-filing website. This streamlined process is designed to facilitate the smooth utilization of your capital gains for eligible investments.
TDS is NOT applicable on Demat account opening charges because they are in the nature of bank charges or service charges, which do not fall under any specific TDS provision. Such charges are generally considered as a payment for services, and TDS is applicable only if the payment falls under a speciRead more
TDS is NOT applicable on Demat account opening charges because they are in the nature of bank charges or service charges, which do not fall under any specific TDS provision.
Such charges are generally considered as a payment for services, and TDS is applicable only if the payment falls under a specific section of the Income Tax Act.
Since Demat account opening charges are generally not categorized as professional fees, commission, or contractual payment, TDS is NOT required to be deducted under the Income Tax Act.
As per Rule 138 of the CGST Rules, 2017, an E-Way Bill is NOT required in the following cases: Goods Value Below ₹50,000 (Rule 138(1)) If the value of goods (excluding GST) being transported is less than ₹50,000. Transport by Non-Motorized Vehicles (Rule 138(14)(a)) No E-Way Bill is required if goodRead more
As per Rule 138 of the CGST Rules, 2017, an E-Way Bill is NOT required in the following cases:
Goods Value Below ₹50,000 (Rule 138(1))
If the value of goods (excluding GST) being transported is less than ₹50,000.
Transport by Non-Motorized Vehicles (Rule 138(14)(a))
No E-Way Bill is required if goods are transported using bicycles, rickshaws, bullock carts, hand carts, etc.
Transport Within 10 km (Rule 138(3))
When goods are moved within 10 km from a consignor’s place to a transporter for further transport, and a delivery challan is issued.
Transport of GST-Exempted Goods (Rule 138(14)(d) & Notification No. 12/2017-Central Tax (Rate))
E-Way Bill is not required for goods that are fully exempt from GST, such as:
Fresh fruits & vegetables
Live animals
Milk & dairy products (unprocessed)
Newspapers & books
Raw silk, wool, khadi, etc.
Movement Under Customs Control (Rule 138(14)(g))
When goods are moved under customs supervision, including:
From a customs port/airport/ICD to another customs station.
From ICD/CFS to customs port for export clearance.
If goods are being transported to or from Nepal/Bhutan, an E-Way Bill is not required.
Transport by Government or Defence Agencies (Rule 138(14)(ii))
Goods transported by Defence Ministry, government agencies, or law enforcement authorities do not need an E-Way Bill.
Movement of Empty Cargo Containers (Rule 138(14)(m))
If empty containers are being transported, no E-Way Bill is required.
Movement of Goods for Job Work (Notification No. 12/2018-Central Tax, Rule 138(14)(n))
When goods are sent for job work from a registered person to an unregistered job worker, an E-Way Bill is not required within the same state.
Transport by Rail (Certain Cases) (Rule 138(2A))
If goods are transported by rail, an E-Way Bill is not required if the railway authorities issue a transport receipt and the supplier/buyer complies with GST documentation.
These provisions ensure that small-value shipments, government-regulated goods, and special cases like customs and defense-related movements are exempt from the E-Way Bill requirement.
Ind AS applies based on company size and listing status. 1. Mandatory Applicability: From April 1, 2016 → Listed & unlisted companies with net worth ₹500 crore+. From April 1, 2017 → All listed companies & unlisted companies with net worth ₹250 crore+. From April 1, 2018 → Banks, NBFCs &Read more
Ind AS applies based on company size and listing status.
1. Mandatory Applicability:
From April 1, 2016 → Listed & unlisted companies with net worth ₹500 crore+.
From April 1, 2017 → All listed companies & unlisted companies with net worth ₹250 crore+.
From April 1, 2018 → Banks, NBFCs & insurance companies with net worth ₹500 crore+.
From April 1, 2019 → NBFCs with net worth ₹250 crore+.
2. Voluntary Adoption:
Any company can opt for Ind AS but cannot switch back to old standards.
3. Not Required for:
Small companies not meeting the above criteria.
Some banks & insurance companies (Ind AS implementation under discussion).
Net Worth = (Paid-up Share Capital) + (Reserves & Surplus) – (Accumulated Losses) – (Deferred Expenditure Not Written Off)
TDS shall be deducted under section 194J@10% if the payment exceeds the threshold limit i.e. INR 30000 on certification charges like ISO, Great Place of Work, Best Coach, etc. Here is the detailed analysis of sec 194 J TDS under section 194J is deducted on payments exceeding the threshold limRead more
TDS shall be deducted under section 194J@10% if the payment exceeds the threshold limit i.e. INR 30000 on certification charges like ISO, Great Place of Work, Best Coach, etc.
Here is the detailed analysis of sec 194 J
TDS under section 194J is deducted on payments exceeding the threshold limit for below payments.
Type of Payments
Rate of tax deduction
Threshold Limit
Technical service
2%
Rs. 30,000
Payment of royalty for sale, distribution or exhibition of cinematographic films.
2%
Rs. 30,000
Other Royalty
10%
Rs. 30,000
Professional Services
10%
Rs. 30,000
Non-compete fees or fees paid not to share any technical knowledge or know-how
10%
Rs. 30,000
Payments made by the company to directors by way of fees, commissions or remuneration
10%
Nil
Professional services include following services:
Legal
Medical
Engineering
Architectural
Accountancy
Technical consultancy
Interior decoration
Advertising
Film artist
Company secretary
Authorised representatives
Profession of information technology
Sportspersons
Commentators
Event managers
Anchors
Umpires and referees
Physiotherapists
Coaches and trainers, team physicians, and sports columnists
Fees for technical services include the following payments:
Services that involve technical expertise or expertise in technology.
Managerial services and management of the client’s business.
Consultancy services and business advisory services.
Note: Technical service does not include services provided by machines or robots.
Royalty means the payment made for:
Transfer of rights or usage of an invention, model, design, trademark, patent, etc.
Use of patents, inventions, designs, etc.
Provide any information related to using an invention, patent, formula, etc.
Transfer of rights related to scientific findings, literary work, films or videotapes for radio broadcasting but does not include consideration for the sale, exhibition, or distribution of cinematographic films.
Providing any information related to technical, industrial, commercial or scientific knowledge, experience or skill
Non-compete fees include the payment made for an agreement for not sharing any license, patent, trademark, franchise, know-how, commercial or business rights, or information to any other person for processing, manufacture, or provisional service.
Yes, ITC is allowed in the Air conditioner subject to the condition that it is not accounted as Land & Building and used in the course or furtherance of the business. Assessee should disclose it as Plant and Machinery. ITC is not allowed on immovable property as per section 17(5)(d).
Yes,
ITC is allowed in the Air conditioner subject to the condition that it is not accounted as Land & Building and used in the course or furtherance of the business. Assessee should disclose it as Plant and Machinery.
ITC is not allowed on immovable property as per section 17(5)(d).
Hi, An elevator is treated as a part of the building. An elevator is an integral part of the building and doesn't have a separate identity i.e it cannot be sold as individual peace. It is designed and assembled as per the requirement of a building which makes it an integral part of the building. WeRead more
Hi,
An elevator is treated as a part of the building.
An elevator is an integral part of the building and doesn’t have a separate identity i.e it cannot be sold as individual peace. It is designed and assembled as per the requirement of a building which makes it an integral part of the building.
We can refer to the explanation of section 17 (5) of the CGST Act as the expression “plant and machinery” means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes-
(i) land, building or any other civil structures;
(ii) telecommunication towers; and
(iii) pipelines laid outside the factory premises.
Section 17(5)(d) does not allow to take ITC on goods or services or both received by a taxable person for the construction of an immovable property.
Yes, an E-invoice can be generated for backdated invoices and there is no time limit for businesses with a turnover of less than 100 crore. GST portal is allowing it. But rule 48 says that every business having a turnover of more than 5 Cr must issue an E-invoice and section 31 says that a Tax invoiRead more
Yes, an E-invoice can be generated for backdated invoices and there is no time limit for businesses with a turnover of less than 100 crore. GST portal is allowing it.
But rule 48 says that every business having a turnover of more than 5 Cr must issue an E-invoice and section 31 says that a Tax invoice should be issued before or at the time of supply of service or delivery of goods.
Accordingly, in my opinion, in your case, E-invoice is mandatory and it must be issued as per the normal timeline. GST portal is allowing you to generate the e-invoice on a later date but that does not mean that you are allowed to violate Rule 48 and section 31.
in the best scenario, an E-invoice should be generated before the filing of GSTR-1 so that it can be auto-populated.
Hi, As per Section 2(76) read with Rule 3 of the Companies (Specification of definitions, details) Rules, 2014 of the Act, Related party with reference to a company means: 1. A director or key managerial personnel or relative thereof; 2. A firm, in which a director, manager, or his relative is a parRead more
Hi,
As per Section 2(76) read with Rule 3 of the Companies (Specification of definitions, details) Rules, 2014 of the Act, Related party with reference to a company means:
1. A director or key managerial personnel or relative thereof;
2. A firm, in which a director, manager, or his relative is a partner;
3. A private company in which a director or manager or his relative is a member or director;
4. A public company in which a director or manager is a director AND holds along with his relatives, more than two percent of its paid-up share capital;
5. Any Body Corporate whose Board of Directors, managing director, or manager is accustomed to act in accordance with the advice, directions or instructions of a director or manager.
(b) Any person on whose advice, directions, or instructions a director or manager is accustomed to act.
Note: nothing contained in clauses (a) and (b) shall apply to the advice, directions or instructions given in a professional capacity.
6. Holding, subsidiary, or an associate company of such a company.
7. Subsidiary of a holding company to which it is also a subsidiary.
8. Investing company or the venturer of the company.
Explanation—” investing company or the venturer of a company” means a body corporate whose investment in the company would result in the company becoming an associate company of the body corporate
Note: Term relative in relation to a person means and includes Father, Mother, Son, Son’s wife, Daughter, Daughter’s husband, Brother, Sister, members of a HUF, Husband and wife
Whether interest received on amount deposited in capital gain account under capital gain account scheme is taxable?
Yes, the interest earned on amounts deposited in a Capital Gains Account under the Capital Gains Account Scheme (CGAS) is taxable. This interest income is subject to tax in the year it accrues, irrespective of whether the funds are withdrawn. Tax Deducted at Source (TDS) is applicable to this interRead more
Yes, the interest earned on amounts deposited in a Capital Gains Account under the Capital Gains Account Scheme (CGAS) is taxable. This interest income is subject to tax in the year it accrues, irrespective of whether the funds are withdrawn. Tax Deducted at Source (TDS) is applicable to this interest, and the depositor receives a TDS certificate for the amount deducted
See lessWhich Form is to be filed for withdrawal from Capital Gain Account?
When you deposit your capital gains into a Capital Gains Account Scheme (CGAS) to claim an exemption under sections like 54, 54F, or 54EC, you may later need to withdraw funds from this account when you actually make the required investment. Key Point:There is no distinct, numbered form prescribed iRead more
When you deposit your capital gains into a Capital Gains Account Scheme (CGAS) to claim an exemption under sections like 54, 54F, or 54EC, you may later need to withdraw funds from this account when you actually make the required investment.
Key Point:
There is no distinct, numbered form prescribed in the Income Tax Act specifically for the withdrawal of funds from a Capital Gains Account. Instead, the process is carried out online.
How It Works:
Online Application:
You are required to log in to the official Income Tax e-filing portal where the Capital Gains Account Scheme is managed.
Within this online module, you will find an option to submit a withdrawal request.
You need to furnish the necessary details, such as the amount you intend to withdraw and the purpose of the withdrawal (for example, for acquiring a new asset to claim an exemption).
Supporting Documents:
Along with your online request, you must upload or submit the relevant documents, such as evidence of the intended investment. This ensures that the withdrawal is used in accordance with the provisions of the Act.
Approval Process:
Once your request is submitted, the authorities will process it. On approval, the funds will be released from the Capital Gains Account and can be used to make the qualifying investment.
Bottom Line:
There isn’t a separate “Form 10D” or similar for withdrawing funds. Instead, you complete a withdrawal application through the online Capital Gains Account Scheme portal on the Income Tax e-filing website. This streamlined process is designed to facilitate the smooth utilization of your capital gains for eligible investments.
See lessIs TDS applicable on DMATE opening Charges? What is the section and rate?
TDS is NOT applicable on Demat account opening charges because they are in the nature of bank charges or service charges, which do not fall under any specific TDS provision. Such charges are generally considered as a payment for services, and TDS is applicable only if the payment falls under a speciRead more
TDS is NOT applicable on Demat account opening charges because they are in the nature of bank charges or service charges, which do not fall under any specific TDS provision.
Such charges are generally considered as a payment for services, and TDS is applicable only if the payment falls under a specific section of the Income Tax Act.
Since Demat account opening charges are generally not categorized as professional fees, commission, or contractual payment, TDS is NOT required to be deducted under the Income Tax Act.
See lessWhen E way bill is not required?
As per Rule 138 of the CGST Rules, 2017, an E-Way Bill is NOT required in the following cases: Goods Value Below ₹50,000 (Rule 138(1)) If the value of goods (excluding GST) being transported is less than ₹50,000. Transport by Non-Motorized Vehicles (Rule 138(14)(a)) No E-Way Bill is required if goodRead more
As per Rule 138 of the CGST Rules, 2017, an E-Way Bill is NOT required in the following cases:
These provisions ensure that small-value shipments, government-regulated goods, and special cases like customs and defense-related movements are exempt from the E-Way Bill requirement.
See lessWhen Ind AS are applicable?
Ind AS applies based on company size and listing status. 1. Mandatory Applicability: From April 1, 2016 → Listed & unlisted companies with net worth ₹500 crore+. From April 1, 2017 → All listed companies & unlisted companies with net worth ₹250 crore+. From April 1, 2018 → Banks, NBFCs &Read more
Ind AS applies based on company size and listing status.
1. Mandatory Applicability:
2. Voluntary Adoption:
3. Not Required for:
Net Worth = (Paid-up Share Capital) + (Reserves & Surplus) – (Accumulated Losses) – (Deferred Expenditure Not Written Off)
See lessIs TDs deductible on Certification charges?
TDS shall be deducted under section 194J@10% if the payment exceeds the threshold limit i.e. INR 30000 on certification charges like ISO, Great Place of Work, Best Coach, etc. Here is the detailed analysis of sec 194 J TDS under section 194J is deducted on payments exceeding the threshold limRead more
TDS shall be deducted under section 194J@10% if the payment exceeds the threshold limit i.e. INR 30000 on certification charges like ISO, Great Place of Work, Best Coach, etc.
Here is the detailed analysis of sec 194 J
TDS under section 194J is deducted on payments exceeding the threshold limit for below payments.
Professional services include following services:
Fees for technical services include the following payments:
Note: Technical service does not include services provided by machines or robots.
Royalty means the payment made for:
Non-compete fees include the payment made for an agreement for not sharing any license, patent, trademark, franchise, know-how, commercial or business rights, or information to any other person for processing, manufacture, or provisional service.
Thanks
See lessIs ITC allowed on air conditioner?
Yes, ITC is allowed in the Air conditioner subject to the condition that it is not accounted as Land & Building and used in the course or furtherance of the business. Assessee should disclose it as Plant and Machinery. ITC is not allowed on immovable property as per section 17(5)(d).
Yes,
ITC is allowed in the Air conditioner subject to the condition that it is not accounted as Land & Building and used in the course or furtherance of the business. Assessee should disclose it as Plant and Machinery.
ITC is not allowed on immovable property as per section 17(5)(d).
See lessWill an elevator qualify as plant and machinery or land and building under GST
Hi, An elevator is treated as a part of the building. An elevator is an integral part of the building and doesn't have a separate identity i.e it cannot be sold as individual peace. It is designed and assembled as per the requirement of a building which makes it an integral part of the building. WeRead more
Hi,
An elevator is treated as a part of the building.
An elevator is an integral part of the building and doesn’t have a separate identity i.e it cannot be sold as individual peace. It is designed and assembled as per the requirement of a building which makes it an integral part of the building.
We can refer to the explanation of section 17 (5) of the CGST Act as the expression “plant and machinery” means apparatus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and structural supports but excludes-
(i) land, building or any other civil structures;
(ii) telecommunication towers; and
(iii) pipelines laid outside the factory premises.
Section 17(5)(d) does not allow to take ITC on goods or services or both received by a taxable person for the construction of an immovable property.
See lessIs E Invoicing can be generated after the end of financial year for back dated invoice having turnover less than 100 crore?
Yes, an E-invoice can be generated for backdated invoices and there is no time limit for businesses with a turnover of less than 100 crore. GST portal is allowing it. But rule 48 says that every business having a turnover of more than 5 Cr must issue an E-invoice and section 31 says that a Tax invoiRead more
Yes, an E-invoice can be generated for backdated invoices and there is no time limit for businesses with a turnover of less than 100 crore. GST portal is allowing it.
But rule 48 says that every business having a turnover of more than 5 Cr must issue an E-invoice and section 31 says that a Tax invoice should be issued before or at the time of supply of service or delivery of goods.
Accordingly, in my opinion, in your case, E-invoice is mandatory and it must be issued as per the normal timeline. GST portal is allowing you to generate the e-invoice on a later date but that does not mean that you are allowed to violate Rule 48 and section 31.
in the best scenario, an E-invoice should be generated before the filing of GSTR-1 so that it can be auto-populated.
Thanks
See lessWhat is the meaning of related party?
Hi, As per Section 2(76) read with Rule 3 of the Companies (Specification of definitions, details) Rules, 2014 of the Act, Related party with reference to a company means: 1. A director or key managerial personnel or relative thereof; 2. A firm, in which a director, manager, or his relative is a parRead more
Hi,
As per Section 2(76) read with Rule 3 of the Companies (Specification of definitions, details) Rules, 2014 of the Act, Related party with reference to a company means:
1. A director or key managerial personnel or relative thereof;
2. A firm, in which a director, manager, or his relative is a partner;
3. A private company in which a director or manager or his relative is a member or director;
4. A public company in which a director or manager is a director AND holds along with his relatives, more than two percent of its paid-up share capital;
5. Any Body Corporate whose Board of Directors, managing director, or manager is accustomed to act in accordance with the advice, directions or instructions of a director or manager.
(b) Any person on whose advice, directions, or instructions a director or manager is accustomed to act.
Note: nothing contained in clauses (a) and (b) shall apply to the advice, directions or instructions given in a professional capacity.
6. Holding, subsidiary, or an associate company of such a company.
7. Subsidiary of a holding company to which it is also a subsidiary.
8. Investing company or the venturer of the company.
Explanation—” investing company or the venturer of a company” means a body corporate whose investment in the company would result in the company becoming an associate company of the body corporate
Note: Term relative in relation to a person means and includes Father, Mother, Son, Son’s wife, Daughter, Daughter’s husband, Brother, Sister, members of a HUF, Husband and wife
Thanks
See less