Dear Friends, We are going to analyse a problem in which a company has paid upfront interest on option exercised by debentures holders  and claim whole payment as expenditure in same previous year. But the AO has disallowed the same and spread the expenditure over a period of five years due to different treatment given in the books of accounts of assessee. PROBLEM: M/s. ABC Ltd., has issued......

Dear Friends, In today’s article we are going to discuss the tax implications on self generated Goodwill when a proprietorship firm converts itself into a partnership firm. PROBLEM: Mr. A ( Chartered Accountant) is running a proprietorship firm and his firm is converted into a partnership by inducting his son as new partner on 31.03.2021 with 50% share. All assets and liabilities of the er......

Dear Friends, Today we are going to consider problem  based on provisions of Section 17(2)(vi) of the Income Tax Act, 1961, whether medical expenses held by company on treatment of its Managing Director outside India will be treated as perquisite. PROBLEM :-  An amount of Rs. 12,50,000/- paid by XYZ Limited, after approval by the Board on medical surgery of its Managing Director and s......

1. MAIN OBJECTS OF NBFC COMPANY 1. To carry on the business or businesses of a holding and investment company, and to buy, underwrite and to invest in and acquire and hold shares, stocks, debentures, debenture stock, bonds, obligation or securities of companies or partnership firms or body corporate or any other entities whether in India or elsewhere either singly or jointly with any ot......

Dear Friends, You know that a company is a legal entity under provisions of the Companies Act,2013 separate from its promoters, members and other stakeholders. Being a corporate person an an artificial person a company does has its own mind to perform its business. It depends on humans and a collective body of natural persons to manage its day to day business. Persons collectively managing affair......

Dear Friends, It is our duty to pay our taxes to the government for development of country and the society. A person is required to file return if his income from all sources increase threshold limit as prescribed during preceding financial year. In some circumstances a person even though his total income does not exceed threshold limit is required to file income tax return and pay the taxes. W......

Dear Friends, Today we are going to consider problem  based on provisions of Sections 40(b)(v) & 40A(2)(a)  of the Income Tax Act, 1961. PROBLEM :-  M/s. X & Co., a partnership firm consisting of three partners enhanced working partners salary from Rs. 25,000/- to Rs. 50,000/- per month for each partner. The increase was in accordance with terms and conditions of Partnersh......

Dear Friends, Today we are going to consider problem  based on provisions of Sections Sections,154,264 & 263  of the Income Tax Act, 1961. PROBLEM :-  Assessment of X Ltd., is completed under Section 143(3) with an addition of Rs. 15.00 Lakhs to the returned income. The assesses-company goes in an appeal before CIT( Appeals). Which is pending In this backdrop, your advice i......

Dear Friends, The GST regime is the biggest change in history of Indian taxation since its independence. The government has committed to provide all facilities of ease of doing business.  Being one of the biggest economics of the world, India will be a superpower by end of 2030. We are preparing ourselves to lead the world in two fronts on economic and social. The new decade will be decade o......

Dear Friends, Today we are going to consider problem  based on provisions of Sections 2(22)( e) of the Income Tax Act, 1961. PROBLEM :- Mr. X holds 25% voting power in ABC (P)Ltd., he permits his own land to be mortgaged to a bank for enabling the company to obtain a loan. Mr. X requests the company to release the property from the mortgage. The company fails to do so , but for remaining b......

Dear Friends, Today we are going to consider two problems  based on provisions of Sections 28(va) and Section 40(a)(ia) of the Income Tax Act, 1961 respectively. PROBLEM :- A Ltd., transfers a building worth of Rs. 25.00 lakhs to CEO, Mr X a residential individual on his retirement under an agreement for not carrying any activity elated to its business for a period of five years. In the co......

Dear Friends, It is our duty to pay our taxes on time and disclosing all our income in our returns properly. The income of an assessee is governed by the provisions of Income Tax Act, 1961. The Act, 1961 provides various types of exemptions, deductions and rebates to the assessees to reduce their tax liability. We have to declare all our incomes in India as well as from abroad and pay the tax on ......

Dear Friends, Today we are going to consider two problems  based on provisions of Section 115QA and Section 115F of the Income Tax Act, 1961 respectively. PROBLEM 1:- Mr. X, a resident individual held 25% equity shares of MNC Limited, an Indian company. The Company’s paid up share capital as on March 31, 2021 was Rs. 10,00,000/- divided into 1,00,000 Equity Shares of Rs. 10/-each and......

Dear Friends, Today we are going to consider a problem  based on provisions of Section 50C of the Income Tax Act, 1961. PROBLEM:- Mr. X intends to sell a piece of urban residential plot ( belt for 48 months) to Mr. Y for a consideration of Rs. 2.00 Crores, in February, 2021. This assets has been held as an investment by Mr. X. Both parties are willing to enter into a written agreement in t......

Dear Friends, We are starting a series of questions and their answers on Income Tax Matters, for information and knowledge of our readers and students. This would be helpful for those aspiring students of our profession. Let’s us consider first question  related to right to claim depreciation in case of lease of motor vehicles. You know that as per Motor Vehicle Act, 1988 the registr......

Dear Friends, You are aware that our Constitution has given some fundamental rights  to all citizen residing in India. The Constitution of India does not discriminate citizen on the basis of gender, caste, creed, Color ,religions, etc. Every citizen of India has equal rights under Constitution. Due to our religion or customs a son in the family is preferred than a daughter. It is believed to......

Dear Friends, We have witnessed various scams and frauds during regime of previous Congress Governments. The businessmen were in collaborations with political leaders have looted public money and many bank officials are also involved in those scams.  Some businessmen had settled abroad after plundering public money from banks. They are still residing like king on various parts of World. Thos......

Dear Friends, The Preamble of Prohibition of Benami Property Transactions Act, 1988 provides that ; An Act to prohibit benami transactions and the right to recover property held benami and for matters connected therewith or incidental thereto. “BENAMI” the word is combination of a Persian Words, as “be” means without and “nam” means name, i.e. “Benami&rd......

The Specific Relief Act, 1963 is an act to provide specific Relief in deserving cases. It extend whole of India. The act came into force on 1st March, 1964. In Civil Law, legal remedies are for enforcing primary rights or for enforcing secondary rights. When there is a breach of contract, if the court orders specific performance in favor of innocent party, this is in nature of enforcement of a......

WHAT IS EXCHANGE; SECTION 118 OF TRANSFER OF PROPERTY ACT, 1882 defines as “when two persons mutually transfer ownership of one thing for the ownership of another, neither thing or both things being money only, the transaction is called an “Exchange”. From above we understand that for being an “Exchange”; i) There must be two person transferring ownership of o......

Dear Friends, We are living in modern world, where some degree of nuisances is tolerable relating to noise, dust, pollution, smell, smoke and escape of effluents etc. We are daily facing various types of nuisances and we ignore to some extent. Nuisance may come from your neighbors, your locality, and your state or even from various other authorities. The term “Nuisance” is made of F......

Dear Friends, We are living in a democratic and republic state of India. Here our Constitution has given us some fundamental rights, which cannot be taken by the government. We are free to live with grace and dignity. The right of reputation is recognized as personal right of every human being and should be protected same as protection of fundamental rights.  The damage of reputation is more......

Dear Friends, Financial Statements are written records of a company that shows, its financial status on a particular date and for a financial year. It conveys financial performance of the company. Generally, in India Financial Year is a period starting from 1st April and end 31st March next year. A company has to prepare its financial statements according to the provisions of the Comp......

Dear Friends, We know in private limited and closely held public limited companies, there are restrictions on transfer of shares. When an entrepreneur starts a venture or business with new ideas or new invention, he needs finance and financial support. Finance will be provided by Banks, Financial Institutions, Government sponsored institutions and Venture Capital Funds. The Venture Capital Fund......

Dear Friends, You are aware that our world is full of uncertainties and risks. Some of these are man-made and some made by All Mighty. In the meantime, whole world is facing unprecedented risk of life due to man-made COVID-19 pandemic. This virus has changed our lives and forced us to stay in our homes. This a product of greed and inhuman activities by Chinese Government. We have lost more than ......

Dear Friends, You are aware that Insurance is a contract of upmost good faith. Both insured and insurance companies have to play their part properly and according to the policy document and agreed terms and conditions mentioned therein. But in some cases disputes arises on the basis of non compliance of terms and conditions of the policy or wrong interpretation of those by the insurer or the in......

Dear Friends, You know that in a contract of insurance ,the payment of premium is to be considered “” as “Consideration”. The provisions of Section 64VB of the Insurance Act, 138 provides that an insurance company will not resume/accept risk unless insurance premium received in advance or before the date of assumption of risk.But the government has Given exemption to some ......

Dear Friends, As you know that every person who intends to make any transfer or any arrangement or agreement to transfer 1% or more but less than 5% of the paid up Equity Share Capital of the concerned insurer, may do so subject to compliance of “ Fit and Proper”, criteria. A self certification for “ Fit and Proper” shall be filed with the respective insurance company . S......

Dear Friends, As you know a body corporate being a legal entity run by its management and management of body corporates consist of human beings called directors. The directors as combined force called Board of Directors. The BOD of a company os the mind behind all decisions ,acts and transactions. They act according to the instructions of members /shareholders of the company, who are the true own......

Dear Friends, The machines have changed our way of living and they are technologically improving each day. We are living in a modern technological world, where new technology has provided us various means and machines to ease our day to day lives. The transportation sector has also developed a lot and there are continuous improvements in the means of transport, such as sophisticated modern cars, ......

Dear Friends, As you know that on the date of admission of application for Fresh Start by DRT  , moratorium period   Commences  in respect of all debts of an Individual Debtor, the moratorium period commences at the time of submission of application and end at the time of its disposal under provisions of Section 81 of the IBC,2016. The moratorium period provides some benefits ......

Dear Friends, We know that Fire Insurance Policies are designed to provide protection in respect of loss of or damage to buildings, machine rides, furniture & fixtures ,goods and merchandise, etc., against fire and other specified perils or risks mentioned in the policy documents. The fire insurance affords cover for “ Material Damage”, but it does not cover losses suffered by the......

Decision: Madras High Court in Greenwood (Greenwood Owners Association v. UOI), the RWAs are required to pay GST only on the differential amount collected from the member where the charges exceed Rs. 7,500. After Decision: Resident Welfare Associations  collecting monthly maintenance amount above Rs 7500 per member would be able to save Rs 1350 per member per month, which hitherto was paid t......

The General Insurance Business Nationalisation (Amendment) Bill, 2021, was passed by the Rajya Sabha on August 11 amid an uproar by the Opposition, which wanted the Bill to be sent to a select committee of the Cabinet. The Bill had been passed by the Lok Sabha on August 2,2021. The legislation allows the Central government to dilute its stake in state-owned general insurers below 51 percent . T......

Dear Friends, As you know that Insurance Company falls under definition of Financial Institutions and it is treated as custodian of money of policyholders. An insurance company collects premium as consideration for providing financial assistance to the insured at the time of happening of insured perils. A substantial portion of the assets of an insurance company is created out of its liabilitie......

Dear Friends, Once “ Milton Friedman” said- “There is one and only one social responsibility of business- to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.” The Supreme Court of the state of Michigan, USA in case ......

Dear Friends, You know that Employees Provident Fund and Miscellaneous Provisions Act, 1952 are applicable to specified employers. Under EPF Schme,1952 it is liability of an employer to deposit specified amount of salary of the employee along with his share with the Provident Fund Commissioner. The contribution deposited during the service term of an employee will be available to him/her by way o......

Dear Friends, The Hon’ble Gujarat High Court  ,Ahmedabad Bench in Civil Appeal No. 7388/2021 dated 24/06/2021 in case of Yasho Industries Ltd. v. UOI has upheld the validity of summons issued by Director General of Goods and Services Tax Intelligence Officer (DGGI Officer) under the Central Goods and Services Tax Act, 2017 (CGST Act). FACTS: The petitioners by the present petition fi......

Dear Friends, You know that introduction of Insolvency & Bankruptcy Code 2016 is a landmark judgment of government of India. Being a landmark piece of legislation that looks to entirely overhaul India’s insolvency and bankruptcy laws, and consolidate   them under one umbrella. The Code,2016 has brought paradigms shift in process by a slew of legislative amendments, establishme......

Dear Friends, We know that insurance is become an essential part of our healthy and safety lives. You have to ensure yourselves in this uncertain world by choosing appropriate insurance cover for yourself and your family. We are going through COVID-19 pandemic ,which is teaching us the importance of insurance cover. An insurance will provide you financial stability against insured perils. You nee......

Dear Friends, The Budget 2019 has brought various changes in the Income Tax Act, 1961 and insertion of provisions of Section 194M is one of them. The Central Government has introduced provisions of Section 194M with effect from September 1, 2019. Through introduction of this section the central government has brought under obligation for deduction of tax at source by some individuals and HUFs. ......

The MCA has notified the Companies (Incorporation)Fifth Amendment Rules,2021 , thereby amending the Companies ( Incorporation ) Rules,2014 by inserting Section 33A after Rule 33 of the Companies ( Incorporation ) Rules ,2014. LET’S CONSIDER PROVISIONS OF SECTION 16 OF THE COMPANIES ACT,2013 16. (1) If, through inadvertence or otherwise, a company on its first registration or on its registr......

Dear Friends, As you are aware of that Soft Market generally refer to that market in which there are many sellers or suppliers of goods and services and les buyers. In this market the buyers have more bargaining power and negotiation power. The competition is high and buyers will get standard of products or services. On the other hand when bargaining or negotiation power of buyers are less and th......

Dear Friends, We know that Fire Insurance Policies are designed to provide protection in respect of loss of or damage to buildings, machine rides, furniture & fixtures ,goods and merchandise, etc., against fire and other specified perils or risks mentioned in the policy documents. The fire insurance affords cover for “ Material Damage”, but it does not cover losses suffered by the......

Dear Friends, we purchase insurance policies for our safety and investment. The insurance policies are of various types and provide by various types of insurance companies. There are life insurance, general insurance and health insurance companies with their products in market. Through Insurance, we reduce our risk or transfer our risk to insurers by paying a small amount of premium. The insurance......

Dear Friends, We know that nomination is mandatory in insurance policies. A person ,who is trying to secure his and his family financial security through investing his hard earned monies in Insurance have right to ensure that after his demise invested or insurance proceeds  will be available to his family members. A nomination in insurance policy will ensure that the person nominated have ri......

In Case of Contribution By Employer in Excess of RS. 7.50 Lakhs Payment in EPF/NPS/SF of Employees The Finance Act 2020 introduced a new provision under the Income-tax Act, 1961 (the Act) by virtue of which employer contribution to Employers Provident Fund (EPF), National Pension System (NPS) or any other superannuation fund (‘SF’), exceeding Rs 7,50,000 per annum in aggregat......

Uttar Pradesh State Road Transport Corporation———————-Appellant(s) Vs. National Insurance Co. Ltd. & Others —————-——————-Respondent(s) Order date : 14th July, 2021 Motor Vehicles Act - Third Party Insurance Deemed To Be Transferred Along With Effective Control Over Vehicle In A Hire ......

Dear Friends, A CRYPTOCURRENCY is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of cryptocurrencies is that they are general......

  Unit Linked Insurance Plans (ULIPs) are investment vehicles wrapped with insurance coverage.   WIKIPEDIA;  A Unit Linked Insurance Plan (ULIP) is a product offered by insurance companies that, unlike a pure insurance policy, gives investors both insurance and investment under a single integrated plan. A Unit-Linked Insurance Plan is essentially a combination of......

Dear Friends, You Know that we are still in COVID-19 pandemic effect. We have crossed two COVID-19 waves and waiting for third one. Even after availabilities of vaccines , we are still vulnerable to this COVID-19. During current senecio , offices have been closed and people are working from home for their safety and safety of the their loves one. Many people have started freelancing services base......

Dear Friends, We know that “ Grandfather Clause” in any law or rule or regulation is a provision ,which allow people or entities to follow old rules ,laws or provisions ,which they are accustoms to follows in previous years instead of new rules ,laws or provisions. This will be applicable for a short span of time. This “Grandfather Clause” may be temporary, permanent or fo......

Dear Friends Startup is a small or medium organisation of recent origin , generally deals in information technology industry. A startup business generally started by young, energetic and enthusiastic individuals ,who have innovative ideas, new products ,new business lines , new way of doing same things. These young entrepreneurs is starting their own business concern with their own finances and f......

With a rise in the Covid -19 cases in India especially during the 2nd wave, there has been a growing awareness and demand for health insurance plans in India. In fact, only in March 2021, there has been a phenomenal 41% rise in the health insurance industry. There has been a constant rise in demand for high sum insured health insurance plans in India. More people started opting for health insuranc......

Dear Friends, Health insurance plan become necessity for every house hold and for every individuals. This COVID-19 pandemic has done a lot to spread importance of insurance and educate people ,what are the benefits of insurance. A health insurance policy comes with various riders and exclusions and understanding those riders and exclusions are important for a person opting for health insurance pl......

Dear Friends, The government has introduced in year 1976 Employees' Deposit Linked Insurance Scheme 1976 (EDLI Scheme) with Employees’ Provident Fund Scheme ,1952. This scheme is running along with EPF Scheme. These schemes provides financial security to some extent to the nominees or legal heirs of the deceased employee. In EDLI an employee is not required to contribute from his/her salary......

Dear Friends, We have once dreamed that there should be one tax for one nation and implementation of GST Act,2017 from 1st July,2017 has fulfilled our dream. GST has implemented whole of India and number indirect and direct taxes have been submerged into GST. In earlier tax regime ,there were cascading affect of taxes and each sate government has their own rules and regulations to tax transaction......

Dear Friends, We know that before Finance Act, 2020 a dividend received from a domestic company is exempt in the hands of shareholders. Because company declaring dividend is required to pay Dividend Distribution Tax (DDT) under provisions of Section 115O of the Income Tax Act,1961 before crediting amount of dividend into account of shareholders. Many business houses are raising concern on payment......

Whatever is practiced in west easily find its way to India. Motor insurance and health insurance are more susceptible to insurance frauds, followed by life insurance and property insurance. A recent survey has shown that more than 50% of the third party (TP) claims in India are bogus. There are several claims that are based on bogus accidents carried out with the support of legal professionals. Th......

Whether ITC on Goods Services Used in the Construction of Mall Can Be Used Against GST Payable on Rental Income?Dear Friends , We know that ITC is not available on works contract services when supplied for construction of an immovable property except plant and machinery. However, ITC for works contract can be availed only by person who is in the same line of business and is using such services fo......

Compliance Risk is a risk that the Company’s actions or inactions might result into potential regulatory interventions or regulatory actions, which could adversely affect the Company’s reputation. This one of the important risks in Insurance Sector. The Regulator of Insurance IRDAI has penalised many Insurance Companies, Insurance Intermediaries, TPAs, Insurance Brokers etc., for non-c......

Wikipedia Defines : An actuary is a business professional who deals with the measurement and management of risk and uncertainty. The name of the corresponding field is actuarial science. These risks can affect both sides of the balance sheet and require asset management, liability management, and valuation skills. Actuaries provide assess......

Section 44ADA of the Income Tax Act,1961 As you know income tax in India is on higher side as comparable to other countries , but when you consider and analyse your tax liabilities after considering and applying all rebates, deductions and allowances available in the four corners of Income Tax Act,1961 you will realise that your tax liabilities are not on higher side. The government has considere......

Dear Friends, We have learnt a lot during previous two years. We have seen deadly COVID-19 pandemic in our life and still this is going on. This pandemic has affected all over the world and claimed lives of more that 30.00 Lakhs people. A lot of said and written on this pandemic, we are not going to discuss the same here. But this pandemic teaches us financial discipline and this is most and valu......

Dear Friends, As you know that having your own home and permanent residence on your name is a dream of every human being. Home is the primary necessity of a person. Being a home /residence in Mumbai and other metropolitan cities is one of the major achievements of a person. It is also important to protect to dream home against types of perils or risks such as fire, earthquake, flood, riots etc. ......

Dear Friends,We are going through most turbulent phase of our lives. During previous two years , we have seen world most deadly and furious pandemic “ COVID-19”. This pandemic has shaken the whole world and claimed more than 25.00 Lakhs people. Till date we are under threat of this Pandemic. The economies of various countries have shaken , the people have lost their jobs and lives. Eve......

SECTION 29 provides that ;(1) No insurer shall grant loans or temporary advances either on hypothecation of property or on personal security or otherwise ,except loans on life insurance policies issued by him within their surrender value , to any director, manager, actuary, auditor, manager or any officers of the insurance company, or to any company or firm, in which any such director, manager, of......

Geographical Indication indicates in relation to particular goods that they originate from a country, region or locality and have some special characteristics, qualities or reputation, which is attributable to its place of origin. It means that Geographical Indication depicts the quality, special character related to particular goods, which cannot be find in any other place. The goods become recog......

RESIDENTIAL STATUS OF AN INDIVIDUAL -UNDER INCOME TAX ACT, 1961 Dear Friends, we know that, no tax can be levied or collected in India except the authority of law. Section 4 of Income Tax Act, 1961 is the charging section gives such Authority to charge income tax. Where any central Act enacts that income shall be charge for assessment year at any rate or rates, income tax at such rate or rates sh......

CONCEPT OF CONTRIBUTION AND AVERAGE CLAUSE UNDER INSURANCE POLICY Dear friends, we know that a man, who ensures his interest in property against loss by any risk, whether that interest be that of a proprietor or creditor, cannot recover from the insurance companies, a greater amount than he lost by the contingency insured against. So, in case of double insurance of the same interest with the diff......

CONCEPT OF “DAYS OF GRACE” UNDER INSURANCE POLICY Dear Friends, we know that insurance has become one of the essential needs of people during their trying times. Insurance provides us financial safety against insured perils or risks. The risks may be man made or natural. We are facing today one of the greatest and dangerous pandemic COVID-19. This is man made and emerges from CHINA. T......

WHETHER LOOSE SHEETS FOUND IN SEARCH WITH THIRD PARTY WILL CONSIDERED AS BOOKS OF ACCOUNTS. Dear friends, we know that where any sum is found credited in the books of an assesses, maintained for any previous year and the assesses offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory the sum so......

Sl. No. Circular/Notification/Press Release Number Particulars Description 1. IRDAI/HLT/REG/CIR/119/05/2021 dated 5th May,2021. Guidelines on Standard Domestic Travel Insurance Product. The IRDAI through Circular No. IRDAI/HLT/REG/CIR/119/05/2021 dated 5th May,2021 issued “Guidelines on Standard Domestic Travel Insurance Product.” The I......

Dear Friends, we know that income of Individuals/HUFs are taxable as per progressive tax slabs. The maximum rate of tax payable is @30%, when income of Individual/HUF exceeds Rs. 10.00 Lakhs in relevant previous year. The Central Government has inserted Section 115BAC with effect from AY 2021-22 to provide Optional Tax Regime to Individuals /HUFs. RATE OF INCOME TAX UNDER ALTERNATIVE TAX REGIME[......

The IRDAI and Insurance Law updates provides synopsis of the introduction, amendments and   changes brought by the Government the previous month ( April 2021) is being published in this bulletin. Sr. No. Particulars Page No. 1. IRDAI through Circular No. IRDAI/ACT/CIR/MISC/070/04/2021 dated 1st April,2021 has instructed the insurers to submit Technical No......

Dear Friends, we know that, no tax can be levied or collected in India except the authority of law. Section 4 of Income Tax Act, 1961 is the charging section gives such Authority to charge income tax. Where any central Act enacts that income shall be charge for assessment year at any rate or rates, income tax at such rate or rates shall be charged accordingly on total income of any assessee earned......

“VENTURE CAPITAL” word consists of two parts one” Venture” means taking any action or undertaking a decision in which risk, uncertainty involve. Venture also means “to proceed especially in the face of danger” or to undertake risks and dangers of.  A person who is investing on risky projects for sake of gaining high returns is called Venture Capitalist. A......

Dear Friends, We know that actual Sale Consideration of Capital Assets forms the basis for computation of Capital Gain Tax and calculated as per provisions of Section 48. But in some cases, the legislature has provided the adoption of the “Fair Market Value (FMV), as Full Value of Consideration. There was dispute in calculation of Capital Gain Tax earlier in cases where capital Assets tran......

OMBUDSMAN:An Ombudsman is an officer ,appointed by the Government , who investigate complaints ,lodged by citizen against Government, Universities, Colleges , Municipalities, Companies, Financial Institutions etc., and attempt to resolve the complaint with mediation or marking recommendations. “Ombudsman” is taken from a Swedish word it means “ Legal Representative”, appoi......

The IRDAI and Insurance Law updates provides synopsis of the introduction, amendments and changes brought by the Government and IRDAI in  the previous quarter ended on (31st March  2021) is being published in this bulletin. Sr. No. Particulars Page No. 1. IRDAI has issued Circular No. IRDA/ACT/CIR/MISC/001/01/2021 dated 1st January,2021 for providing clar......

OMBUDSMAN:An Ombudsman is an officer, appointed by the Government, who investigate complaints, lodged by citizen against Government, Universities, Colleges, Municipalities, Companies, Financial Institutions etc., and attempt to resolve the complaint with mediation or marking recommendations. “Ombudsman” is taken from a Swedish word it means “ Legal Representative”, appoint......

Arbitration provides an efficient and alternative mechanism for quick dispute resolution. It is one of the important aspects of Alternate Dispute Resolution Process. It is now days one of the most preferred course of dispute resolution process because it involves mediation and conciliation process and encourage parties to solve their disputes out of court and within a short time period. “A......

Dear Friends, We know that insurance has became one of the basis requirements for living a safe and secure life. An insurance provides us safety and financial stability in testing time. Through proper insurance, whether it is on your health, home, or life you can secure future of your beloved in case you are not present in future. The calculation of exact amount of insurance policy or sub assure......

Evaluation is a process through which a company access performance , ability ,virtues and eligibility of its Board of members. Evolution is a process based on some fixed parameters on which performance of Board members are accessed. Performance evaluation is the process of evaluating how effectively employees are fulfilling their job responsibilities and contributing to the accomplishment of&nbs......

Goods and Services Tax Act, 2017 (GST) has brought concept of “One Nation, One Tax”, and has simplified method of collecting and calculating Indirect taxes all over India. There is no cascading affects and ambiguities, while dealing with provisions of GST Act, 2017. We know that for Sale Goods or Supply of Services, the most important concept is the “Consideration”, and S......

We are living in modern world, where some degree of nuisance is tolerable relating to noise, dust, pollution, smell, smoke and escape of effluents etc. We are daily facing various types of nuisances and we ignore to some extent. Nuisance may come from your neighbors, your locality, and your state or even from various other authorities. The term “Nuisance” is made of French word &ldqu......

We Indians have charity inherited in our heart, we have grown by seeing that our fathers' and forefathers are donating in various temples, mosques, gurudwaras and churches.  We are donating or doing philanthropic works without knowing that, who is the true beneficiary of our donation or charity. The fact if also highlighted in Bain & Company's India Philanthropy Report, 2013 which focuse......

We are living in a democratic and republic state. Here our constitution has given us some fundamental rights, which cannot be taken by the government. We are free to live with grace and dignity. The right of reputation is recognized as personal right of every human being and should be protected same as protection of other fundamental rights.  The damage of reputation is more dangerous than da......

The insurance companies being a financial institution prone to various types of risks. They treated as custodian to the funds of general public and hence to serve its policyholders properly they have to manage and mitigate various types of risk. These companies are taking risks of general public in lieu of payment of small amount of premium. Unless insurance companies manage their risks, they will......

The insurance companies being a financial institution prone to various types of risks. They treated as custodian to the funds of general public and hence to serve its policyholders properly they have to manage and mitigate various types of risk. These companies are taking risks of general public in lieu of payment of small amount of premium. Unless insurance companies manage their risks, they will......

Real Estate/ Construction Industry is one of most developed industries in India. Real Estate industry is also most unorganized sector in India. It is developing day to day and provided crores of people employment. Real Estate industry has its say in GDP of India. Retention Amount & Withhold Amount are general words in construction industry, we find theses words in every construction contract,......

Dear Friends,As you are aware that we are a republic state and government is a representative of people of India. We Indians choose our government every five years and government will work for the welfare of the all Indians. The main sources of income of government is collection and levying of various types of taxes. The Government after collecting taxes expend amount on welfare, security, scienti......

WHAT IS EXCHANGE; SECTION 118 OF TRANSFER OF PROPERTY ACT, 1882 defines as “when two persons mutually transfer ownership of one thing for the ownership of another, neither thing or both things being money only, the transaction is called an “Exchange”. From above we understand that for being an “Exchange”;  i)There must be two person transferring ownership of o......

Dear Friends , as we are aware that any profits arising from transfer of a Capital Assets effected in the previous year, shall be chargeable to income tax under the head “ Capital Gain,” and shall be deemed to be the income of the previous year in which the transfer took place unless such capital gain is exempted under Sections 54,54B,54D,54EC,54EE,54F,54G,54GA or 54GB.The essential co......

Dear friends, As we are aware that under normal circumstances, tax is levied upon the person, who has earned income. The income tax considers him/her as assessee and income tax will be levied on all income he has earned in previous year. There are three types of assessees such as Resident and Ordinary Resident, Resident but not ordinary resident and non-resident. The income tax will be calculated ......

Dear Friends, payment of taxes is the duty of every citizen of this country. The Governments utilises taxes paid by us into different types of economic and socio works. Non payment or avoidance of taxes shall be punishable monetarily as well as confinement into prison. The Corporates uses various tactics to avoid payment of taxes to the government. Any profit distributed by a corporate body is cal......

A piece of land, carry various rights with it. An owner of a land has right to possess, right to easement, right to sale, right to rent, right to develop, right to sub-let, right to occupy and many. Right to develop a land if called “Developmental Rights”, in which owner of a land authorises a person to develop a structure of land. Developmental Right is simply a document granting pe......

Insurance is playing a vital role in our life now days. After this COVID-19 pandemic, we have realised the importance of insurance and government has also provided various facilities to general public to secure their lives and properties from various types of risks. Through insurance we shall reduce the impact of risk insured. The risk may be on our lives such as accidental, due to diseases, injur......

Section 105 of the Transfer of Property Act, 1882 define Lease as:- “A lease of immovable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised , or of money , a share of crops, service or any other thing of value , to be rendered periodically or on a specified occasions to transfe......

Actionable Claim:  is a claim to any debt, other than secured by mortgage of immovable property or pledge or hypothecation of some movable property, or to any beneficial interest in movable property, not in possession either actual or constructive of the claimant. Section 3 of Transfer of Property Act, 1882 defines ;  “ actionable claim means a claim to any debt , other than a de......

The Goods and Services Tax, 2017 has been implemented in the year 2017. This is a path breaking decision taken by Indian Government. Through implementation of GST, we have introduced One Tax One Nation theory. The GST has removed cascading effect of taxes and provide much needed relief to the business community. But since its implementation in Real Estate Sector, various disputes have come t......

In this article, we discuss the legal actions which can be taken up by the insurance companies against fraudulent insurance claims. 1. What is an Insurance Fraud? The Indian Insurance Act does not contain definition for ‘insurance fraud’. Neither have any specific laws connected to insurance fraud been spelled out in the Indian Penal Code,1860(IPC). The Indian Contract Act,......

Once Mahatma Gandhi had said “Customer is like a God”. In early time also the concept was “the customer is the king” but this concept has been changed by passing of time. We know that for success of any organisation the end users play a very important role. The end users are the main decision making for successes of products of companies. The companies are also developing o......

Dear Friends, we are living in a world, where data related to business is the most valuable thing. Data may be related to your Business Secrets, Patents, Copy Rights, Industrial Designs, Customer Information etc. The success of a business depends upon its data and trade secrets. A competitor always tries to breach your data secrecy and acquire your business secrets to deal you in the market. Under......

Every person whose total income of the previous year exceeds the maximum amount, which is not chargeable to income tax, is an assessee and chargeable to income tax in India at the rate or rates as may be prescribed in Finance Act and Income Tax for the relevant assessment year.   We know that the in India, income tax will be levied on the basis of residential status of an assessee. In Income......

We know that there are five heads of income, in which income of any assessee has been taxed. There may be different types of income an assessee earned during previous year such as income from salary, House Property, Profit and gain from business or profession, Capital Gain and Income from other sources.   Section 28 is the charging section in case Profits and Gains from busines or professio......

Dear friends, We are going through a very turbulent phase in which we are facing unpresented threat of COVID-19 pandemic, declining pace of economy, lack of foreign reserves and new threat of India -China war position at our borders. The government has shown firm determination to save sovereignty and unity of India. The government has urged our industrial and business sector to take Make in Indi......

There has been inconsistencies in the provisions with respect to Related Party Transactions under The Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("LODR"). It is quite natural for companies to deal with other entity/party, who are known or familiar or having common interest between both of them to expand their business by smoothening the functi......

Dear friends and colleges, We are going through an unprecedented lockdown, due to COVID-19 Pandemic. This pandemic has killed more than 5.00 Lakhs and people and its killing spree is still going on. The whole world is facing lockdown and due to this their economies suffered a lot. The movement of people, transport, goods and services are badly affected, this leads generation of unemployment and an......

Goods or articles which are visually attractive catch attention of customers faster than other goods of same quality and make. Visual attraction enhances marketability of the articles. The manufactures of goods and articles to sale their products in the competitive market design their articles such that they become attractive and suit the eyes of customers. The companies are doing a lot to make th......

WHAT IS ASSIGNMENT AND TRANSMISSION OF TRADE MARKS ? We can trace development and use of Trade Marks from the days of industrial revolution. This was the face during which trade and commerce were at the top and world got an environment of good business practices. In industrial revolution era, various products had been developed, various innovations had been made. The industrial exploitation of va......

Section 67(1) of Companies Act, 2013 prohibits buying by a company of its own shares. Thus, unless the transaction is one in which shares are bought (for consideration), Section 67(1) would not apply (since buying contemplates payment by buyer some consideration to the seller). Section 67(1) would not apply if a company holds its own shares, if the shares so held have not been acquired by the comp......

WHAT ARE INTELLECTUAL PROPERTY RIGHTS; Intellectual property is the product of the human intellect including creativity concepts, inventions, industrial models, trademarks, songs, literature, symbols, names, brands, etc. Intellectual Property Rights do not differ from other property rights. They allow their owner to completely benefit from his/her product which was initially an idea that develop......

“There is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud”- Milton Friedman A landmark judgement pronounced in 1919 in case of Dodge Vs. Ford Motor Company in Supreme Court o......

We know that tax is a compulsory contribution to state revenue, levied by government on worker’s income and business profit, or added to the cost of some goods, services and transactions. It a portion or sum of money demanded by government to support facilities or for services provided by it to the taxpayers. The tax is demanded by the government from taxpayers in lieu of resources used by......

SECTION 139(1) requires that every person; Being a Company or a firm or; Being a person other than a Company or a firm if (i) his /her total income or (ii) the total income of any other person in respect of which he is assessable under the Income Tax Act, during the previous year, exceeded the maximum amount which is not chargeable to income tax. Shall furnish a return of his income or inc......

It is a well-known fact that, a Company is an artificial person and act through human beings, which are appointed according to provisions of the Companies Act, 2013. The person appointed to carry on business of a company are called director. A director will act as an agent of the Company and their collective authority is called Board of Directors. Board of Directors are the supreme body of a compa......

“Benami” transactions were treated as valid transactions by various courts, prior to promulgation of Ordinance in 1988. We know that word “Benami” is a Persian compound word, made up of “be” which means without and “name” which means name that is “Benami” means “Without name”. “Benami Transaction” means a transac......

One of most important decisions taken by Central Government is the implementation of Goods and Services Act, 2017 all over India. Implementation of GST has been done to remove anomalies in previous VAT/Services Tax and other taxes. In previous tax regime, end users were enforced to pay tax on taxes. The Cascading Affect of taxes has been removed through implementation of GST. Now all over India On......

A piece of land, carry various rights with it. An owner of a land has right to possess, right to easement, right to sale, right to rent, right to develop, right to sub-let, right to occupy and many. Right to develop a land if called “Developmental Rights”, in which owner of a land authorises a person to develop a structure of land. Developmental Right is simply a document granting perm......

Surrender of Insurance Policy means to cash of life insurance policy before benefits are due to be paid. The Surrender Value of an Insurance Policy is the amount given to the insured at a time, when he is unable to pay premium related to Insurance Policy. At a particular time, when insured is not able to pay further premium and he has paid earlier premiums related to surrendered insurance policy. ......

Preamble; An Act to prohibit benami transactions and the right to recover property held benami and for matters connected therewith or incidental thereto. “BENAMI” the word is combination of a Persian Words, as “be” means without and “nam” means name, i.e. “Benami” means “Without Name”. Benami, denotes any transaction made by a person wit......

Goods and Services Tax Act, 2017 has been implemented in India from 1st July, 2017. The GST is the biggest tax reform witnessed by the Independent India. The GST has sought to consolidate a vide varieties of Central and State Taxes. Goods and Services Tax Act, 2017 is the biggest achievement for current NDA government. It binds all Indian States into “One Nation One Tax”, theory. The ......

CORPORATE SOCIAL RESPONSIBILITY (CSR) is a self-regulating process, through which corporates link their activities with common public. The Corporates generally using resources, whether it is natural or human to amass big profits and through Corporate Social responsibility, they will take social responsibility to develop local area and people living in that area. The Corporates through Social Respo......

Historically, adverse possession is a pretty old concept of law. It is useful but often criticised concept on the ground that it protects and confers rights upon wrongdoers. The concept of adverse possession appeared in the Code of Hammurabi approximately 2000 years before Christ era. Law 30 contained a provision “If a chieftain or a man leaves his house, garden, and field …. and some......

Since last 15 years we have witnesses various scams and frauds by various political and businessmen have done. The fugitives, whether they are politicians or businessmen has run away with hard earn money of general public. Even we have saw for then the rules and regulations of our country has been amended or interpreted such to benefit those people. We saw Satyam Scam, ILFS Scam, Coal, Chopper ga......

Base Erosion and Profit Shifting (BEPS) has emerged as one of the most important challenges for governments all over the world. The Liberalisation, Privatisation and Globalisation (LPG) has resulted; Free movement of Capital and Labour; Shift of manufacturing base from high cost to lower cost locations; Gradual removal of the trade barriers, and Rise of digital economy. The digital econom......

Laser surgery is not cosmetic in nature. The case:KP Desai took a health insurance policy from the United India Insurance Company in 1990, which he renewed every year. In 1997, he underwent corrective lasik, or laser eye surgery, for one eye and the hospital bill came to Rs 50,000. However, his claim for reimbursement was rejected by the insurer, which said that the surgery was purely cosme......

WHAT IS MICRO INSURANCE Presently India is a country of opportunities, being second largest populated country in the world and continuously growing.  A number of start-ups are raising due to initiatives of government and technological development. India have largest skilled workforce in the World and whole World has recognised India calibre and strength. The insurance now a days become es......

The Goods and Service Tax Act, 2017 (GST) is the most ambitious, stronger and best decision of recent government. Through GST Legislation, we have sub-merge 17 taxation laws into one GST. The concept of One Tax One Nation to some extent fulfilled with the implementation of GST. The mute matter is that we have find some vary useful and important decision in previous tax era. Whether those Judicial......

For a salaried personal, the month of January is month of panic and February is month of pain of deduction of tax at source. We generally sleep whole year and suddenly wake up in the month of February and run here and there to invest out hard earned money to save TDS. Let’s consider how we can pay zero tax on salary of Rs. 20.00 Lakhs, by planning and using benefits of tax rebates and deduc......

Intellectual Property is the creative work of human intellect. For development of each country its human workforce plays a vital role. The level of intelligence and its protection are the key to success for every nation. The world today is running on the basis of natural resources and human intellect. For utilisation of natural resources also required human intelligence. The intellectual propertie......

DECISION OF MADRAS HIGH COURT; Madras High Court case of C. Kumaravel v. The Director General of Police and ors., has reiterated that Section 482 of Code of Criminal Procedure is not an alternate remedy to Section 156(3) of Code of Criminal Procedure, 1973 on refusal of police to register First Information Report on receipt of information regarding the commission of a Cognizable Case. In the pre......

For a salaried personal, the month of January is month of panic and February is month of pain of deduction of tax at source. We generally sleep whole year and suddenly wake up in the month of February and run here and there to invest out hard earned money to save TDS. Let’s consider how we can pay zero tax on salary of Rs. 20.00 Lakhs, by planning and using benefits of tax rebates and deduc......

We generally consider land as an immovable property, it is a part of surface of Earth not covered by water or land is an area of ground, especially one that is used for a particular purpose such as farming or building. Now we have to consider a land or an area of ground for building. A land has many rights with it, such as right to occupy, right to use, right to easement, right to sub-let, right ......

Real Estate/ Construction Industry is one of most developed industries in India. Real Estate industry is also most unorganised sector in India. It is developing day to day and provided crores of people employment. Real Estate industry has its say in GDP of India. Retention Amount & Withhold Amount are general words in construction industry, we find theses words in every construction contract,......

CASH CREDIT [SECTION 68] define as any sum is found in the books of account of an assessee in any previous year and assessee has not provided any explanation of source or explanation provided by the assessee is not, in the opinion of an Assessing Officer satisfactory, the sum so credited in the books of account of assessee may be charged to income tax as the income of the assessee of that previous......

A Whistle Blower is a person who exposes any kind of unethical activity, item or information that is deemed to be illegal, unconstitutional or not correct in an organisation. A business organisation is established for profit through business transactions. The business should be carried out according to rules and regulations of law of land. Anything which is against law of land and against Public P......

Dear Professional Colleagues,Insurance Companies are considered in the category of Financial Companies in India. Insurance industry involves public participation at large. General Public become policyholders /stakeholders in insurance companies. The are putting their hard-earned monies to secure their future from various types of risks. Insurance Development Regulatory Authority of India, establ......