SBI issues Guide to NRI Taxation and FEMA Matters [Read Order]

Clipped from: https://www.taxscan.in/sbi-issues-guide-to-nri-taxation-and-fema-matters-read-order/383604/

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SBI has NRI customers through 434 dedicated specialised NRIbranches/NRI Intensive branches in India and foreign offices in 29 countries.

By Navasree A.M – On March 15, 2024 3:55 pm – 2 mins read

The State Bank of India ( SBI ) has released a guide to Non-Resident of India ( NRI ) taxation and Foreign Exchange Management Act ( FEMA ) matters in the month of January, 2024.

According to Dinesh Khara, Chairman of SBI, “This handbook will serve as a reference guide and help you to take informed decision while investing in India. We hope that this handbook will enrich you with the necessary and relevant information you may need while investing your hard-earned money”

With regards to the taxation, the following are covered:

1. Scope of total income and its taxability
2. Residential status under Income Tax Act,1961
3. Income of NRI and its Taxability
4. Capital Gains and Taxability
5. Taxation of Gifts
6. Deductions from total income available to NRIs
7. Income not to be included in total Income (Exempt Income)
8. Miscellaneous matters
9. Filing of Income Tax Returns
10. Non -Resident Indians and PAN Card
11. NRIs and DTAA (Tax Treaty)
12. Form 15CA and Form 15 CB
13. Returning India -Taxation

With regards to the FEMA matters, the following are covered:

1. FEMA – Important definition
2. FEMA – Non-Residents -Bank Accounts in India -NRE
3. FEMA -Non -Residents -Bank Accounts in India -NRO
4. FEMA -Non -Residents-Bank Accounts in India -FCNR (B)
5. FEMA -Non-Residents -Deposits in India (Other than bank deposits)
6. FEMA -Non -Residents – Borrowing & Lending
7. FEMA -Non-Residents-Immovable property in India
8. FEMA -Non -Residents-Investments in India
9. FEMA -Non-Residents -Remittances
10. FEMA-Residents -Foreign currency bank account
11. FEMA -Residents – Borrowing & Lending
12. FEMA -Residents-Immovable property abroad
13. FEMA -Resident-Overseas Investment
14. FEMA-Residents-Liberalised Remittance Scheme (LRS)
15. FEMA-Miscellaneous

To Read the full text of the Order CLICK HERE

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DTAAForeign Exchange Management ActIncome Tax returnsPAN CardState Bank of India

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Disallowance of Income Tax Deduction u/s 10AA on Audit objection grounds lack Independent View: ITAT quashes Revision Order [Read Order]

Income Tax Deduction under Section 10AA was denied on sole audit objection ground, eithout presenting an independent view of PCIT

By Aiswarya Krishnadas – On March 15, 2024 3:26 pm – 2 mins read

The Jaipur bench of the Income Tax Appellate Tribunal ( ITAT ) overturned the revision order issued by the Principal Commissioner of Income Tax ( PCIT ), which had disallowed Income Tax Deduction under Section 10AA of the Income Tax Act, 1961. It was also lacked independent view of the PCIT.

The bench noted that “There is no bar that deduction u/s. 10AA will not be permitted if the management of two companies is similar. Items were not transferred from its Mahapura Unit to Sitapura SEZ unit, even otherwise, some raw-materials (gemstones) were sold which were used for manufacturing by SEZ unit, even otherwise there is no bar under the Act in order to claim deduction u/s. 10AA.”

The company had claimed a deduction of Rs. 3,90,12,873/- under Section 10AA. The assessment under Section 143(1) was completed on August 5, 2016, with a total income of Rs. 4,68,02,540/-. Subsequently, a survey under Section 133A was conducted at the business premises of the assessee on August 17th and 18th, 2017.

During the proceedings, it was discovered that another group concern of the assessee, M/s. Pinkcity Colorstone Pvt. Ltd., had strong profits but was later closed, with its assets rented to M/s. Pinkcity Jewel House Pvt. Ltd., the assessed company, sharing the same management and shareholders. The case was then reopened under Section 147/148 of the Income Tax Act, alleging tax avoidance.

The counsel for the assessee argued that the PCIT did not consider the fact that assessments for A.Y. 2011-12 to 2015-16 were reopened based on the survey. Furthermore, it was noted that in the reopened assessment, the assessing officer had examined the claims of the assessee, rendering the invocation of Section 263 by the PCIT redundant based solely on an audit objection.

According to the bench, the PCIT without dealing with the contention summarily passed an order by holding that the assessee is not eligible to claim benefit under Section 10AA of the Income Tax Act and also hold that there is lack of enquiry by the AO on the points upon which the assessment was reopened.

The ITAT bench, comprising Dr. S. Seetha Lakshmi ( Judicial Member ) and Rathod Kamlesh Jayantbhai ( Accountant Member ), observed that the revisionary proceeding under Section 263 was solely based on an audit objection, lacking independent judgment from the PCIT. Moreover, considering that the claim had been accepted upon reopening the case after the survey, the tribunal quashed the PCIT’s order.To Read the full text of the Order CLICK HERE

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ITAT JaipurRathod Kamlesh JayantbhaiSection 10AA of the Income Tax Act