FAQs – Withdrawal of Rs.500 and Rs.1000 notes

Frequently Asked Questions (FAQs) on Withdrawal of Legal Tender Character of the Old High Denomination Bank Notes 1. Why is this scheme? The incidence of fake Indian currency notes in higher denomination has increased. For ordinary persons, the fake notes look similar to genuine notes, even though no security feature has been copied. The fake notes are used for antinational and illegal...

Cheering news for start ups – CBDT abolishes tax on start ups issuing shares above market value

Closely held companies used to issues shares at substantial premium to convert black money into white money without providing any valuation justifying the premium. Thus, the Finance Act, 2012 inserted Section 56(2)(viib) to impose tax on closely held companies receiving consideration for shares in excess of fair market value.   Valuations of start ups have fallen sharply, recently, on worries over profitability,...

CBDT clarifies on taxability of income from the transfer of unlisted shares

The Central Board of Direct Taxes has issued a clarification that the income arising from transfer of unlisted shares would be considered under the head ‘capital gain’, irrespective of period of holding, subject to certain exceptions. Income from sale of unlisted shares deemed as capital gains irrespective of holding period: CBDT  May 3, 2016 SECTION 45, READ WITH SECTION 28(i), OF THE INCOME-TAX...

Major impetus to job creation and infrastructure: Radical changes in FDI policy regime; Most sectors on automatic route for FDI

The Union Government has radically liberalized the FDI regime today, with the objective of providing major impetus to employment and job creation in India. The decision was taken at a high-level meeting chaired by Prime Minister Narendra Modi today. This is the second major reform after the last radical changes announced in November 2015.  Now most of the sectors would be under...