• Income Tax Circulars

Income Tax Circulars

Number Date Issued By Subject
Circular No. 2/2015 10-02-2015 Central Board of Direct Taxes (CBDT) CBDT, based on the Dehi High Court Decision in the case of CIT vs Prannoy Roy, 309 ITR 231 (2009) has clarified that interest under section 234A of the Act on default in furnishing return of income shall be payable only on the amount of tax that has not been deposited before the due date of filing of the income-tax return for the relevant assessment year. Therefore no interest under section 234A would be leviable if the entire self assessment tax is paid before the due date of the return. 
Circular No.13/2014 28-07-14 Central Board of Direct Taxes, DoR, MoF, GoI Clarification regarding taxation of Alternate Investment Funds having status of non-charitable trusts under the Income-tax Act, 1961
Circular No. 08/2014 31-03-2014 CBDT – Dy. Secretary, MoF, Govt. of India Provisions of Section 10(2A) interpreted: Income of a Firm is to be taxed in the hands of the Firm only. Share of income from Partnership Firm is exempt in the hands of the Partner even if the income chargeable to tax is NIL in the hands of the Firm due to exemption or deduction.
Circular No. 09/2014 23-04-2014 Dy. Secretary to the Government of India CBDT clarifies that the cost of construction on development of infrastructure facility of roads/highways under BOT projects is entitled to amortization and deduction is allowable as business expenditure instead of depreciation.
05/2014 11-02-2014 CBDT The CBDT has issued Circular No. 5 of 2014 dated 11.02.2014 in which the issue as to whether disallowance under section 14A and Rule 8D can be made in cases where the corresponding exempt income has not been earned during the financial year.

CLARIFICATION

The CBDT in the above  Circular has clarified that any expenditure incurred in relation to earning any exempt income shall be disallowed while computing the total income of the year in which such expenditure has been incurred irrespective of the fact whether such income has been earned in that particular financial year.

The inference that can be drawn from the above clarification is that expenditure incurred for earning exempt income would be inadmissible in the year it is incurred even if the correspnding exempt income is earned in an earlier year or a subsequent year.
Circular No. 09/2013 19-11-2013 Central Board of Direct Taxes, Ministry of Finance, Govt. of India Section 144C – Reference to Dispute Resolution Panel: CBDT has clarified that Section 144C (forwarding of draft assessment order by the AO to DRP) is effective on or after 1 October 2009 irrespective of the assessment year to which it pertains. Earlier, section 144C was applicable only to AY 2010-11 and subsequent assessment years.
CIRCULAR NO. 03 /2014 24-01-2014 Central Board of Direct Taxes, Ministry of Finance, Govt. of India Explanatory Notes to the provisions of Finance Act, 2013.
CIRCULAR NO. 1/2014 [F.NO.275/59/2012-IT(B)], DATED 13-1-2014 13-01-2014 Central Board of Direct Taxes, DoR, MoF, GoI CBDT, following the judgement of Honourable Rajasthan High Court which held that no TDS is required to be made on service tax component u/s 194J of the Act, has issued Circular 1/2014, clarifying that wherever in terms of the agreement between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source on the amount paid/payable without including the service tax component.
Circular No. No 10/DV/2013 F. No. 279/Misc./M-61/2012-ITJ (Vol.-II) 02-09-2013 Central Board of Direct Taxes, DoR, MoF, GoI Provides departmental view on conflicting legal decisions on the applicability of section 40(ia)  of the Income-tax Act, 1961 for determining inadmissibility of amounts ‘paid’ during the year (as opposed to amounts ‘payable’ at the end of the year) on which TDS was not deducted or not deposited.