Section 45(1) of Income Tax Act, 1961 (Act) provides that profits or gains arising from transfer of capital asset effected during the previous year is chargeable to tax under head ‘Capital Gains’ and shall be deemed to be income of the previous year in which transfer takes place.  This section is subject to provisions of Section 54/54B ibid etc which provides for roll over of tax provided conditions mentioned there in are satisfied.

Section 54 of the Act provides for roll over of tax in case of transfer of long-term capital asset by individual or HUF, being residential property, income from which is chargeable to tax under the head house property, and the resultant gain is invested in another residential house property within in the time frame provided there in.

Read more: Sale of Multiple Flats - Rollover - Section 54 - Income Tax

The thin line of difference between the intermediary and marketing support services is fading as time progresses in the goods & services taxes era. In this write up, we analyse the line of difference between the intermediary and marketing support services (MSS) and conclude the safe way to proceed further and also give an heads up about the impact under income tax laws.

Before proceeding further, let us step back and understand the concept of ‘intermediary’ under the goods & services tax laws (GST laws) and then compare with MSS and decide upon the taxability of both the said items.

Read more: Intermediary vs Marketing Support Services - GST

Introduction:     

Transactions involving acquisition and transfer of immovable properties in India by non-residents are governed by Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2018, which were issued vide Notification No. 21(R)/2019-RB, dated March 26, 2018 (“Immovable Property in India Regulations”).   

Similarly, transactions involving acquisition and transfer of immovable properties outside India by persons resident in India are governed by Foreign Exchange Management (Acquisition and Transfer of Immovable Property outside India) Regulations, 2015 which were issued vide Notification No. 7(R) / 2015-RB, dated January 21, 2016. 

Read more: Immovable Properties vis-a-vis FEMA Regulations - FEMA

An Analysis of Section 2(22)(e)

In this piece of write-up, we aim to analyse the concept of ‘deemed dividend’, under the income tax laws right from the Income Tax Act, 1922 to current provisions. The said analysis is done with the support of various judgments at various forums on the said aspect. After a detailed deliberation, we wish to conclude with our views on the said concept.

Before understanding the said aspect in detail, a few basic concepts about taxability of dividend under the income tax laws would garner interest for the reader. The tax on any amounts which are declared, distributed or paid whether out of current or accumulated profits are to be paid by the company as per Section 115 O of Income Tax Act, 1961 (for brevity ‘Act’). This is normally known as Dividend Distribution Tax (DDT). This is in addition to the normal income tax payable by the company and not a substitute for the normal tax.

Read more: A Complete Analysis on 2(22)(e) - Income Tax