Further to introducing draft Rules and inviting public comments on the same, Central Board of Direct taxes has notified – Rule 11UA of the Income Tax Rules, 1962 for implementing the amendment made by the Finance Act, 2023 to bring consideration received from non-residents within the ambit of ‘angel tax’ provisions under Section 56(2)(viib) of the Income Tax Act, 1961. Press release is accessible here and notification here. You would recall that as a Forum we were working with the CBDT team and also joined the industry consultation sharing recommendations on the draft valuation rules. We are glad that many of our recommendations are part of the final rules.
G20 New Delhi Leaders Declaration: The G20 New Delhi declaration reaffirms commitment toward swift implementation of the two-pillar international tax package and continued cooperation towards a globally fair, sustainable and modern international tax system
OECD Secretary-General releases Tax Report to G20 leaders outlining the current status and progress on the Two-Pillar international tax reform package
CBDT issues guidelines and notifies Rule 11UACA to clarify the taxation of income received from life insurance policy
CBDT excludes fund relocation to IFSC from ambit of Sec.56(2)(x) of Income Tax Act
CBDT extends exemption from mandatory e-filing of Form 10F for non-residents up to September 30, 2023
CBDT has released a draft format for a consolidated tax return, which also seeks information from Indians residing abroad on any business connections in India, and details of significant economic presence of such businesses, if any. This could have an impact on Indian traders on crypto exchanges even if not incorporated in India. The draft can be accessed here.
The OECD has released a new global tax transparency framework (named the ‘Crypto-Asset Reporting Framework’) for the reporting and exchange of information between countries on crypto-assets. The report can be accessed here.
The Income Tax Department has published FAQs on filing of Form 27C. The FAQs can be accessed here.
The Central Board of Direct Taxes has issued further guidelines to address challenges in implementation of TDS under Section 194R of the Income Tax Act. The revised guidelines clarify many of the issues that the Tax Forum had advocated for on behalf of members.
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