Category of supply of service—Services supplied by a director of a company or a body corporate to the said company or the body corporate. The panel, while recommending status quo in GST rates on 113 goods and 102 services, also made a case for reduction in taxes on Ostomy Appliances to 5 per cent, from 12 per cent. Rules of DTAAs differ from country to country and DTAA with a specific country may have a separate rule regarding taxability of income discussed above.

  • Where maintenances and running expenses including remuneration of the chauffeur are met or reimbursed by the employer.
  • needs to review the security of your connection before proceeding.
  • Any expenditure incurred by a company on scientific research on in-house scientific research and development facilities as approved by the prescribed authorities shall be allowed as deduction .
  • Computation of capital gain depends upon the nature of the capital asset transferred during the previous year, vis-à-vis, short-term capital asset, long-term capital asset or depreciable asset.
  • It includes expenses of capital nature incurred in connection with such purchase or for completing the title of the property.

The committee gives its recommendation regarding tax rates, after analysing demands from stakeholders, in every meeting of the Council. Where previous owner has also acquired the property in the aforesaid manner the ‘previous owner’ of the property shall be construed as the last previous owner who acquired the property by means other than those stated above. The full value of consideration received or accruing as a result of transfer of such asset. Transfer of a capital asset (being work of art, manuscript, painting, etc.) to Government, University, National museum, etc. E) The period of holding shall be determined on the basis of the first-in-first-out method.

GST dept may soon clarify on exemptions to IVF, ART and tax on honorariums

Normally in a DTAA, the clause of IPS applies in respect of a service provider who is an individual (or in some cases firm of individuals-other than a company) and for the services which are in the nature of “professional services or other independent activities of a similar character”. “Professional services” here includes independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, surgeons, lawyers, engineers, architects, dentists and accountants. J) From any person, in respect of any expenditure actually incurred by individual on his medical treatment or treatment of any member of his family, for any illness related to COVID-19 (subject to such conditions as prescribed by Govt.).

Any transfer of a capital asset by the predecessor co-operative bank to the successor co-operative bank in a business reorganization. A) Provided that this section is not applicable to the person, who opts for presumptive taxation Scheme under Section 44AD and his total sales or turnover does not exceed Rs 2 crores. Interest, salary, bonus, commission or remuneration paid by Association of Persons or Body of Individuals to its members shall not be allowed as deduction . Tax paid by the employer on non-monetary perquisites provided to employees is not deductible if the tax so paid is not taxable in the hands of employees by virtue ofSection 10.

21A.43CBThe profits and gains arising from construction contract or a contract for providing service is to be determined on the basis of percentage completion method, in accordance with the notified ICDS. A person who acquires any rights in or with respect to any building or part thereof, by virtue of any such transaction as is referred to insection 269UA, shall be deemed to be the owner of that building or part thereof. D) The taxpayer has taken all reasonable steps to institute legal proceedings for the recovery of the unpaid rent or satisfies the Assessing Officer that legal proceedings would be useless. For taxability of contribution made to various employee’s provident fund and interest arising thereon see Note 3. Expenditure incurred on travelling of patient and one attendant- exempt, if Gross Total Income of the employee, does not exceed Rs. 2,00,000. Taxable value of perquisite shall be computed on the basis of cost to the employer (under an arm’s length transaction) less amount recovered from the employee.

is honorarium taxable in india

If equity shares in company or new asset acquired by company is sold or transferred within a period of 5 years from date of acquisition. K) Consequent to transfer of share(in a scheme of amalgamation as referred to in Section 47 of a foreign company which derives, directly or indirectly, its value substantially from the share or shares of an Indian company held by amalgamating foreign company to the amalgamated foreign company. 5A.Conversion of preference shares into equity sharesThe part of the cost of preference shares in relation to which such asset is acquired by the assessee.6. Capital Asset that held for more than 36 months or 24 months or 12 months, as the case may be, immediately preceding the date of transfer is treated as long-term capital asset. Provision for payment of gratuity to employees, other than a provision for contribution to approved gratuity fund, shall not be allowed as deduction .

Here are nine incomes you need not pay tax on

Such services are covered under the definition of healthcare services for the purpose of above exemption notification, the fitment committee said adding a clarification may accordingly be issued by way of a circular. We are engaging the services of US citizen for marketing in USA and paying on per day basis. As he is a US citizen and providing personal services, we need not deduct tax. If a payment gets classified as Fees for Technical Services, almost all DTAAs of India allows the taxability of income in India, requiring thereby a TDS by the payer entity. However, if it is a payment for Independent Personal services, then it is taxable in India only in very limited cases and as such in majority of cases, payer does not have a liability of TDS.

is honorarium taxable in india

The fitment committee said the selling of space for advertisement in print media attracts tax at 5 per cent. The activities carried out by different institutions/ organizations towards selling of space for advertisement in souvenirs would attract 5 per cent tax and the stated position in GST law be clarified accordingly, it said. The recommendations of the committee which will be placed before the GST Council meeting on June also include a clarification on the issue of applicability of GST on payment of honorarium to the guest anchors. 195 requires determination about taxability of income in the hands of NR recipient- not only from the angle of the act but also from the perspective of Double Taxation Avoidance Agreement .

Hospital approved by the Chief Commissioner having regard to the prescribed guidelines for treatment of the prescribed diseases. B) Such accommodation in hotel is provided on employee’s transfer from one place to another place. 3) The value so determined shall be reduced by the amount of rent, if any, recovered from the employee. C) Leave salary paid abroad in respect of leave earned in India shall be deemed to accrue or arise in India.

GST dept may soon clarify on exemptions to IVF, tax on honorarium paid to guest anchors

Company should enter into an agreement with the prescribed authority for co-operation in such research and development and fulfils conditions with regard to maintenance of accounts and audit thereof and furnishing of reports in such manner as may be prescribed. Deposit Taking NBFC’ means a NBFC which is accepting or holding public deposits and is registered with the RBI. Amount withdrawn from special reserves created and maintained underSection 36 shall be chargeable as income in the previous year in which the amount is withdrawn. However, it shall be deemed to be distinct and separate from any other business. The house will be taken as let-out property and no concession shall be available for the duration during which the property was self-occupied. Deduction for interest on borrowed capital is allowed up to Rs. 30,000 or Rs. 2,00,000, as the case may be.

is honorarium taxable in india

Entire capital expenditure incurred on scientific research is allowed as deduction. Actual expenditure incurred by the employer minus Rs. 2400 per month and Rs. 900 per month if chauffer is also provided minus amount recovered from employee shall be taxable value of perquisite. Actual expenditure incurred by the employer minus Rs. 1800 per month and Rs. 900 per month if chauffer is also provided minus amount recovered from employee shall be taxable value of perquisite. The GST department may soon issue is honorarium taxable in india a host of clarification on certain vexed issues in tax rates, including exemptions to assisted reproductive technology or in vitro fertilization as well as applicability of GST on payment of honorarium to guest anchors. Thus, if the payment is being made to a non resident individual and services of NR are in the nature of Independent Personal Services, then (subject to compliance with the requirements of DTAA and of Sec. 90 of the Act) such income is not taxable in India and as such no TDS u/s.


D) Long-term capital gains arising from transfer of listed equity share, or a unit of an equity oriented fund or a unit of a business trust as referred to in Section 112A shall be chargeable to tax at the rate of 10% in excess of Rs. 1 Lakh. If letting out of building along with movable assets i.e., machinery, plan, furniture or fixtures, etc. forms part of a single transaction and are inseparable, the composite rent shall be taxable under the head “Profits and gains from business or profession” or “Income from other sources”, as the case may be. Further, it shall be deemed that the company has misreported the said income and, consequently, a penalty of an amount equal to 200% of tax payable on the underreported income (i.e., difference between issue price and fair market value of shares) shall be levied as per section 270A. If a closely held public company receives any consideration for issue of shares which exceed the fair market value of such shares, the aggregate consideration received for such shares as reduced by its fair market value shall be chargeable to tax. C) In respect of self-occupied residential house property, interest incurred on capital borrowed for the purpose of reconstruction, repairs or renewals of a house property shall be allowed as deduction up to Rs. 30,000.

Income of a non-resident engaged in the business of providing services or facilities in connection with, or supplying plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils shall be computed on presumptive basis . Any sum paid as an employer for setting up or as contribution to any fund, trust, company, AOP, BOI, Society or other institution shall not be allowed as deduction if such contribution or payment is not required by any law. Qualifying expenditure incurred by resident persons on prospecting for the minerals or on the development of mine or other natural deposit of such minerals shall be allowed as deduction . Capital expenditure incurred for acquiring any license or right to operate telecommunication services shall be allowed as deduction over the term of the license.

L) Consequent to transfer of capital asset by the demerged company to the resulting Indian company. 44ADAIncome from eligible profession u/s 44AA can be computed on presumptive basis if the total gross receipts from such profession do not exceed fifty lakh rupees in a previous year. Gratuity actually paid during the year and contribution to approved gratuity fund is allowed as deduction. Payments to provident fund or other funds for employees’ benefit shall not be deductible if no effective arrangements have been made to ensure deduction of at source from payments made from such funds to employees which shall be chargeable to tax as ‘salaries’.

The government has agreed to convert Vodafone Idea’s accrued interest worth over ₹16,000 crore on deferred adjusted gross revenue dues into equity at ₹10 a share. Not many people are aware that there exists certain types of income for which your liability is zero and they are not added to taxable income. Also, a clarification would be issued on GST rates on electric vehicles, to state that EVs, whether fitted with battery or not, would attract 5 per cent tax. GST law defines healthcare services as any service by way of diagnosis or treatment or care for illness, injury, deformity, abnormality or pregnancy in any recognised system of medicines in India.