Section 194 P – A relief to Senior Citizen from filing ITR

Section 194P is recently introduced in Budget 2021 to provide a relief to senior citizens above the age of 75 years from filing the income tax return. It helps an individual to provide relief in terms of burden compliances from filing income tax returns.

SECTION 194 P

 

Description

Section 194P is recently introduced in Budget 2021 to provide a relief to senior citizens above the age of 75 years from filing the income tax return. It helps an individual to provide relief in terms of burden compliances from filing income tax returns.

Conditions for exemption under section 194 P

An individual is required to fulfil the following conditions to claim for the exemption under section 194P:

  • Person should be above the age of 75 years or above;
  • Individual should be resident individual in the previous year;
  • The source of income should be in the form of pension and interest only;
  • The senior citizen is required to file a declaration containing some details to the specified bank;

‘Specified bank’ here means the bank notified by the Central Government. Such banks will be responsible for TDS deduction of senior citizen. After the deduction of the TDS by the bank the senior citizens are not required to file an income tax return.

Content of Declaration

The bank shall deduct TDS on the basis of declaration submitted by the senior citizen to the bank, the declaration shall contain the following information:

  • Total income of the senior citizen;
  • Deductions availed under section 80C to 80U;
  • Rebate available under section 87A;
  • Confirmation from the senior citizen of having only pension and interest income.

 

Benefit of section 194P

When the specified bank deduct tax on the basis of declaration submitted by the senior citizen, the provision of section 139 (filing of Income tax return) shall not be applicable, i.e. the senior citizen above the age of 75 years or above shall not be required to file Income Tax Return.

 

Disclaimer: The above-mentioned cases are illustrative and not exhaustive. This article is only for discussing general issues and hereby we do not express any opinion or give any consultation in whatsoever manner understood. The cases may differ from assessee to assessee. We recommend you to take expert advice depending upon your particular case.

 

Process to Pay TDS Online

TDS is deducted from the specified types of payments like rent, commission, salary, etc. at the specifies rates. The person who is deducting tax at source has to submit tax amount to the government on or before the specified due dates.

Process to Pay TDS Online

 

Description

TDS is deducted from the specified types of payments like rent, commission, salary, etc. at the specifies rates. The person who is deducting tax at source has to submit tax amount to the government on or before the specified due dates.

Steps to make TDS payment online

 

The following steps will help you to submit your TDS amount on or before due dates:

STEP – 1

To pay your tax online, go to NSDL’s website

https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

STEP – 2 

Select ‘CHALLAN NO./ITNS 281’under TDS/TCS section.

 

 

STEP – 3

After completing the 2nd step, you have to enter the following details on the page:

  • Under ‘Tax Applicable’ select ‘Company Deductees’ if the TDS deducted by you is while making payment to a company. In any other case select ‘Non-Company Deductees’.
  • Enter the TAN and Assessment Year for which the payment is made.
  • Enter the ‘Pin Code’ and select ‘State’ from the drop down.
  • Select whether the payment is made for TDS deducted and payable by you or TDS on regular assessment.
  • Select the ‘Nature of Payment’ and ‘Mode of Payment’ from the drop-down.
  • Click on ‘Submit’ button.

 

STEP – 4

After entering the details, a confirmation screen will appear which includes the full name of the taxpayer.

 

 STEP – 5

After confirming the entered information, you will be directed to the net banking site of your bank. You can log in to the net banking and make payment.

STEP – 6 

After making the payment successfully, a receipt will be generated containing the bank name, payment details, this will act as a proof of your payment.

 

Disclaimer: The above-mentioned cases are illustrative and not exhaustive. This article is only for discussing general issues and hereby we do not express any opinion or give any consultation in whatsoever manner understood. The cases may differ from assessee to assessee. We recommend you to take expert advice depending upon your particular case.

How to Register your PAN on new Income Tax Portal?

Income tax department launched a new website ‘www.incometax.gov.in’ for the easy access to the e-filing portal. The following steps is the procedure of registering your PAN on the new website of the income tax department.

Procedure To Register PAN with New Income Tax Website

 

Description

Income tax department launched a new website ‘www.incometax.gov.in’ for the easy access to the e-filing portal. The following steps is the procedure of registering your PAN on the new website of the income tax department.

 

Steps to register PAN

 

STEP – 1

Go to the new income tax portal by following the link, ‘www.incometax.gov.in’.

STEP – 2

After entering the portal click on ‘Register’.

STEP – 3

In this step you have to enter your PAN. Enter the PAN under the ‘Taxpayer’ tab, and click on ‘Validate’, select ‘Yes’, and click on ‘Continue’.

STEP – 4  

Now, you are required to enter your basic details, like first name, middle name, last name, residential status, and then click ‘Continue’.

5th character of your PAN represents the initial of your last name, if this combination does not match then an error message is shown like this ‘Name entered is not entered as per PAN records. Please retry’. After correcting this issue click on ‘continue’.

STEP – 5  

In this step you have to enter your contact details for the purpose of OTP. Enter the following details:

  • Mobile number;
  • Email ID;
  • Postal address.

STEP – 6

Enter OTP, to complete the process of registration enter the OTP received on your contact details. After entering the OTP, you must verify the details entered by you.

STEP – 7

After completion of verification you have to set a password for your account. The password needs to be a combination of lowercase letters, uppercase letters, and special characters.

STEP – 8

After setting the password the next step is to click on ‘Register’. After registering the you can log in to your account and make tax compliances by using your PAN and password.

 

Disclaimer: The above-mentioned cases are illustrative and not exhaustive. This article is only for discussing general issues and hereby we do not express any opinion or give any consultation in whatsoever manner understood. The cases may differ from assessee to assessee. We recommend you to take expert advice depending upon your particular case.

INCOME TAX SLAB RATES FOR FY 2020-21

Individuals have to pay taxes according to their income, the rates at which an individual pay taxes are called income tax slab rates. The article explains the slab rates for different income slabs.

INCOME TAX SLAB RATES FOR FY 2020-21

 

Description

Every person has to pay tax on the income earned by them in a particular financial period. Some of the rates are fixed by the income tax department but individuals have to pay taxes according to their income, the rates at which an individual pay taxes are called income tax slab rates. These rates are fixed according to the amount of income earned by an individual. Tax rates may increase as the income of the person increases.

 

Slab Rates

The following table shows the slab rate at which a person pays taxes according to the income earned by them. The following tax rates are issued under new tax regime, (F.Y. 2020-21):

 

INCOME TAX SLAB INCOME TAX SLAB RATES (Applicable for all individuals and HUF)
Up to Rs. 2.5Lakhs NIL
Rs. 2.5 Lakhs to Rs. 3 Lakhs 5% (tax rebate under section 87A is available)
Rs. 3 Lakhs to Rs. 5 Lakhs 5% (tax rebate under section 87A is available)
Rs. 5 Lakhs to Rs. 7.5 Lakhs 10%
Rs. 7.5 Lakhs to Rs. 10 Lakhs 15%
Rs. 10 Lakhs to Rs. 12.5 Lakhs 20%
Rs. 12.5 Lakhs to Rs. 15 Lakhs 25%
Income above Rs. 15 Lakhs 30%

 

  • These rates under new tax regimes are same for all age groups of individuals.
  • Individual whose total income is up to Rs. 2.5 Lakhs, is exempt from income tax, and individuals with total income less than or equal to Rs. 5 Lakhs are eligible for tax rebate under section 87A and the tax liability will be nil for them.
  • Health and education cess shall be applicable at the rate of 4% on the amount of income tax.
  • Surcharge is an extra tax payable on the amount of income tax, for having a higher earning of income. Surcharge is also applicable as per the following rates:

 

INCOME RATE OF SURCHARGE
Total income greater than Rs. 50 Lakhs 10% of income tax
Total income greater than Rs. 1 Crore 15% of income tax
Total income greater than Rs. 2 Crore 25% of income tax
Total income greater than Rs. 5 Crore 37% of income tax

 

Tax Rates as per Old Regime

The tax rates as per the old regime are different for different age groups of individuals. This is the main difference between new and old tax slab rates. The old slab rates are as follows:

  • Rates for individuals aged below the age of 60 years

 

INCOME SLAB RATE
Up to Rs. 2.5 Lakhs NIL
Rs. 2.5 Lakhs to Rs. 5 Lakhs  5%
Rs. 5 Lakhs to Rs. 10 Lakhs 20%
Income above Rs. 10 Lakhs 30%

 

  • Rates for individuals aged above 60 years but below 80 years (Senior Citizens)

 

INCOME SLAB RATE
Up to Rs. 3 Lakhs NIL
Rs. 3 Lakhs to Rs. 5 Lakhs  5%
Rs. 5 Lakhs to Rs. 10 Lakhs 20%
Income above Rs. 10 Lakhs 30%

 

  • Rates for individuals aged above 80 years (Super Senior Citizens)

 

INCOME SLAB RATE
Up to Rs. 5 Lakhs NIL
Rs. 5 Lakhs to Rs. 10 Lakhs 20%
Income above Rs. 10 Lakhs 30%

 

Difference between Old tax regime and New tax regime

New tax regime is an optional scheme an individual can choose to pay taxes as per the new rates but there are certain exemptions and deductions that are not allowed under new tax regime. So, when a person pays taxes as per the new rates the following are some deduction or exemptions which are not allowed:

  • Leave travel allowances
  • House rent allowances
  • Conveyance allowances
  • Relocation allowances
  • Helper allowances
  • Standard deduction on salary
  • Professional tax and etc.

 

Disclaimer: The above-mentioned cases are illustrative and not exhaustive. This article is only for discussing general issues and hereby we do not express any opinion or give any consultation in whatsoever manner understood. The cases may differ from assessee to assessee. We recommend you to take expert advice depending upon your particular case.

Section 194Q & Section 206C (1H)

Section 194Q Deduction of TDS on payment of certain sum for purchase of goods

 

The Government of India has come up with a new section which is going to be effective from 1st July 2021 in relation to deduction of tax at source on transactions involving purchase of goods. The tax to be deducted at source at the rate of 0.1% on purchase of goods, if the transaction fulfills the following conditions:

 

  • The purchase value exceeds the aggregate of Rs. 50 lakhs in the previous year from the said vendor
  • Payment is made to a resident
  • The turnover or gross receipts of the buyer exceeds Rs. 10 crores in the previous year in which such purchase is made.

 

Further, there will be no deduction in the following cases:

 

  • When payment is made to a non-resident
  • Where TDS is deductible under any other provision of the Income Tax Act, 1961
  • Where TCS is collectible under any other provision of the Income Tax Act, 1961 other than Section 206C (1H)

 

Now, let us have a look on what Section 206C (1H) says:

 

Section 206C (1H) deals with collection of TCS on receipt of payment of certain sum for sales of goods

 

The tax to be collected at source at the rate of 0.1% on sales of goods, if the transactions fulfill the following conditions:

 

  • The sales value exceeds the aggregate of Rs. 50 lakhs in the previous year
  • Goods should not be exported
  • The turnover or gross receipts of the seller exceeds Rs. 10 crores in the previous year in which such sales are made.

 

No TCS will be collected in the following cases:

  • When goods are being exported outside India
  • Where TDS is deductible under any other provision of the Income Tax Act, 1961
  • Where TCS is collectible under any other provision of the Income Tax Act, 1961
  • When goods are sold to Central government, state government, embassy, high commission, local authority, etc.
  • The goods are imported by the buyer

 

Note: Wherever both 194Q and 206C (1H) are applicable in that case only one section can be applied. The priority should be given to Section 194Q and if the same is not complied with, the section 206C (1H) can be looked to comply with the requirements.

 

Disclaimer: The above-mentioned cases are illustrative and not exhaustive. This article is only for discussing general issues and hereby we do not express any opinion or give any consultation in whatsoever manner understood. The cases may differ from assessee to assessee. We recommend you to take expert advice depending upon your particular case.

 

 

 

Section 112 – Rate of Tax on Long-Term Capital Gain

 Section 112 – Rate of Tax on Long-Term Capital Gain

 

  • Section 112 – Tax on long-term capital gains

The general rule says, when a capital asset which qualifies to be a long-term capital asset is sold, it is taxed @20% on the capital gains arising on such sale.

 

The treatment of long-term capital gains (LTCG) in the hands of different types of assessee are as follows:

A. Resident Individual of Hindu undivided Family

  • Benefit of slab rate is available when a person’s total income contains LTCG, then LTCG is reduced from the total income and then taxed on normal rate.

[Total Income- LTCG] * Normal (slab) rate.

  • Plus 20% tax rate is applied on LTCG.

ADJUSTMENT: If a person’s normal income (without LTCG) is less than the basic exemption limit, then the difference between the two is known as DEFICIENCY and it will be first adjusted from your long-term capital gain. The left out LTCG will be taxed @20%.

 

B. Domestic company

Long-term capital gain will be charged @20%.

 

C. Foreign Company

  • Long-term capital gains arising from the transfer of unlisted securities, shares of a private company will be charged @10% without giving any benefit of indexation.
  • For other long term capital gains except the one mentioned above will be charged @20%

 

D. Residents (other than those included above)

Long-term capital gain will be charged @20%.

 

E. Lower rate of tax for transfer of listed securities and zero-coupon bonds

  • In this case, capital gain arising from the transfer of:
  • listed securities, shares, zero-coupon bonds,
  • the assessee has the option to pay a lower tax:
    • at the rate of 20% with indexation benefit or
    • 10% without indexation benefit.

 

F. No chapter VI-A (Section 80C- 80U) deductions available against LTCG

It says no deductions will be allowed under chapter VI-A in respect of long-term capital gains included in total income of the assessee.

 

Disclaimer: The above-mentioned cases are illustrative and not exhaustive. This article is only for discussing general issues and hereby we do not express any opinion or give any consultation in whatsoever manner understood. The cases may differ from assessee to assessee. We recommend you to take expert advice depending upon your particular case.

Section 92D

Maintenance, keeping and furnishing of information and document by certain persons.

 

The Section 92D of the Income Tax Act, 1961, requires that every person who has entered into an international transaction or specified domestic transaction shall keep and maintain such information and document in respect of such transactions which are prescribed by the department of income tax. Refer Rule 10D below.

 

Threshold limit for maintenance of prescribed information and documents

 

However, this requirement is not applicable where the aggregate value of international transactions in a financial year does not exceed Rs. 1 crore as per the books of account of the assessee.

 

Time for which the records are to be kept

All the information in relation to such international transactions shall be kept for a period of 8 years from the end of the relevant assessment year, i.e., for Financial Year 2020-21 the relevant assessment year is AY 2021-22, the records to be kept for 8 years i.e., up to FY 2029-30.

 

Power of Assessing Office or Commissioner Income Tax (Appeals) to ask for the information and documents 

The Assessing Office or Commissioner Income Tax (Appeals) may require any assessee to furnish information and documents maintained by the assessee within a period of 30 days from the date of receipt of the notice in this regard. However, a further extension of 30 days can be provided on application of the assessee.

 

Rule 10D – Information and documents to be kept and maintained under section 92D

Every person who has entered into an international transaction or a specified domestic transaction shall keep and maintain the following information and documents, namely:

  • a description of the ownership structure of the assessee enterprise with details of shares or other ownership interest held therein by other enterprises
  • a profile of the multinational group of which the assessee enterprise is a part along with the name, address, legal status and country of tax residence of each of the enterprises comprised in the group with whom international transactions or specified domestic transactions, as the case may be, have been entered into by the assessee, and ownership linkages among them
    • a broad description of the business of the assessee and the industry in which the assessee operates, and of the business of the associated enterprises with whom the assessee has transacted

 

  • the nature and terms (including prices) of international transactions or specified domestic transactions entered into with each associated enterprise, details of property transferred or services provided and the quantum and the value of each such transaction or class of such transaction
  • a description of the functions performed, risks assumed and assets employed or to be employed by the assessee and by the associated enterprises involved in the international transaction or the specified domestic transaction
  • a record of the economic and market analyses, forecasts, budgets or any other financial estimates prepared by the assessee for the business as a whole and for each division or product separately, which may have a bearing on the international transactions or the specified domestic transactions entered into by the assessee
    • a record of uncontrolled transactions considered for analyzing their comparability with the international transactions or the specified domestic transactions entered into, including a record of the nature, terms and conditions relating to any uncontrolled transaction with third parties which may be of relevance to the pricing of the international transactions or specified domestic transactions, as the case may be
    • a record of the analysis performed to evaluate comparability of uncontrolled transactions with the relevant international transaction or specified domestic transaction

 

  • a description of the methods considered for determining the arm’s length price in relation to each international transaction or specified domestic transaction or class of transaction, the method selected as the most appropriate method along with explanations as to why such method was so selected, and how such method was applied in each case
  • a record of the actual working carried out for determining the arm’s length price, including details of the comparable data and financial information used in applying the most appropriate method, and adjustments, if any, which were made to account for differences between the international transaction or the specified domestic transaction and the comparable uncontrolled transactions, or between the enterprises entering into such transactions
  • the assumptions, policies and price negotiations, if any, which have critically affected the determination of the arm’s length price
    • details of the adjustments, if any, made to transfer prices to align them with arm’s length prices determined under these rules and consequent adjustment made to the total income for tax purposes
    • any other information, data or document, including information or data relating to the associated enterprise, which may be relevant for determination of the arm’s length price

 

Disclaimer: The above-mentioned cases are illustrative and not exhaustive. This article is only for discussing general issues and hereby we do not express any opinion or give any consultation in whatsoever manner understood. The cases may differ from assessee to assessee. We recommend you to take expert advice depending upon your particular case.

Concept of Indexation

Concept of Indexation

 

Changes in the value of asset according to your living cost is called indexation.

The benefit of indexation is available only to long-term capital assets. For computation of indexed cost of acquisition following factors are to be considered:

  • Cost and Year of acquisition &/or improvement
  • Year of transfer
  • Cost inflation index of the year of acquisition &/or improvement
  • Cost inflation index of the year of transfer

 

Indexation Benefits

  • Helps to bring purchase price equivalent to market inflation (This process increases the cost of purchase which comes at par with the sale consideration, a higher cost price means lesser profits, which effectively means a lower tax).
  • Align asset with current market value
  • Provides higher purchase price

 

Calculation of indexed cost of acquisition

 

Indexed Cost of Acquisition =

Cost of Acquisition   X   CII for the year in which the asset is transferred

                                       CII for the year in which the asset was first held by

                                            assessee or P.Y. 2001-02, whichever is later.

 

Calculation of indexed cost of improvement

 

Indexed Cost of Improvement =

Cost of Improvement     X   CII of the year in which the asset is transferred

                                                       CII for the financial year in which the

                                                                 improvement took place

 

Meaning of Cost Inflation Index (CII):

It is used for estimating the prices of goods which has been increased year by year due to inflation.

Let’s say a price of an item was Rs. 100 in 2001, what will be the price of the same item today?

 

Meaning of inflation: It means decrease in purchasing power. A person who used to purchase 2 chocolates for Rs. 10, now can only purchase 1 chocolate only for the said amount.

 

 

COST INFLATION INDEX TABLE FROM FY 2001-02
FINANCIAL YEAR COST OF INFLATION INDEX (CII)
2001-02 (Base Year) 100
2002-03 105
2003-04 109
2004-05 113
2005-06 117
2006-07 122
2007-08 129
2008-09 137
2009-10 148
2010-11 167
2011-12 184
2012-13 200
2013-14 220
2014-15 240
2015-16 254
2016-17 264
2017-18 272
2018-19 280
2019-20 289
2020-21 301
2021-22 317

 

 

Let us take an example to calculate indexation:

Mr. Modi purchased Land in May 2012 for Rs. 1,00,000 with unit value Rs. 10 per unit and sold in January 2019 for Rs. 1,80,000.

Solution

Cost of Acquisition = Rs. 1,00,000

Financial Year of Acquisition = FY 2012-13

Calculation of Indexed Cost of Acquisition =

Cost of Acquisition   X   CII for the year in which the asset is transferred

                                       CII for the year in which the asset was first held by

                                            assessee or P.Y. 2001-02, whichever is later.

i.e.

= 1,00,000*(280/200))

= Rs. 1,40,000

Long Term Capital Gain = 1,80,000 – 1,40,000 = Rs. 40,000

Tax on Long term capital gains = Rs. 40,000*20% = Rs. 8,000

 

Disclaimer: The above-mentioned cases are illustrative and not exhaustive. This article is only for discussing general issues and hereby we do not express any opinion or give any consultation in whatsoever manner understood. The cases may differ from assessee to assessee. We recommend you to take expert advice depending upon your particular case.

Meaning of Associate Enterprise in Transfer pricing

What is the meaning of the term Associated Enterprise (AE)?

 

The provisions of transfer pricing will apply only if the transactions happen to between the Associated Enterprises (AE). The term Associated Enterprises is specifically defined by the Income Tax act, 1961 in Section 92A. The definition explains various scenarios when an organization happens to be the Associated Enterprise, be it due to holding certain percentage of shares in the other entity or having control over it. Let us understand these various aspects in detail.

 

The section 92A of the Income Tax Act, 1961 defines the word ‘Associated Enterprises’ for the purpose of following:

 

 

The conditions are:

for Examples
an enterprise which participates, directly or indirectly, or through one or more intermediaries, in:

  • the management or
  • control or
  • capital

of the other enterprise.

 

If A controls the management directly in B and B controls the management of C. This means that A has a direct control on B and an Indirect control on C. and hence B & C both are the AEs of A.

  Or  
Two enterprises are AEs if:

managed or

controlled or

Owned,

By the same persons who participate, directly or indirectly, or through one or more intermediaries in the said enterprises.

Ms. M control the management of C Pvt. Ltd. And V Pvt. Ltd. and hence C Pvt. Ltd. And V Ltd. Are AEs.

 

 

 

Apart from the above criteria, there are other parameters on which two enterprises are deemed to be the AEs. These are as follows:

 

Ownership not less than 26% of the voting power in the other enterprise, directly or indirectly
Substantial voting power by common person in 2 different entities not less than 26% of the voting power in each of such enterprises, directly or indirectly
Advancing a substantial loan amount not less than 51% of the book value of the total assets of the other enterprise
Guaranteeing the borrowings not less than 10% of the total borrowings of the other enterprise
Appointment of more than half of the Board of Directors If any enterprise has appointed more than half of the Board of Directors of any other enterprise, the both the enterprises are deemed AEs
Appointment of more than half of the Board of Directors by same person If more than half of the Board of Directors of 2 enterprises are appointed by the same person, those 2 enterprises are deemed AEs
Dependence in terms of know-how, patents, and other intangibles Where the business of one enterprise is wholly dependent on the use of know-how, patents, technical know-how, etc. of which the other enterprise is the owner or has exclusive rights, the 2 enterprises are deemed AEs
Supply of 90% or more of the raw materials 2 enterprises are deemed AEs, if 90% or more of the raw material and consumables as required by the one enterprise for manufacturing or processing of the goods or articles, is supplied by the other
Dependence on Sale the goods or articles manufactured or processed by one enterprise, are sold to the other enterprise or to persons specified by the other enterprise, and the prices and other conditions relating thereto are influenced by such other enterprise
Control by an individual and/or his relative 2 enterprises are deemed to be AEs where they are controlled severally or jointly by the individual or/ and his relative
Control by HUF and its members where one enterprise is controlled by a Hindu undivided family, the other enterprise is controlled by a member of such Hindu undivided family or by a relative of a member of such Hindu undivided family or jointly by such member and his relative
Interest in Firm, AOP or BOI Where one enterprise is a Firm, AOP or BOI and the other enterprise holds not less than 10% interest in such Firm, AOP or BOI.
Mutual Interest relationship There exists between the two enterprises, any relationship of mutual interest, as may be prescribed

 

Disclaimer: The above-mentioned cases are illustrative and not exhaustive. This article is only for discussing general issues and hereby we do not express any opinion or give any consultation in whatsoever manner understood. The cases may differ from assessee to assessee. We recommend you to take expert advice depending upon your particular case.

 

Transfer Pricing – Section 92

Transfer Pricing – Section 92

 

What is Transfer Pricing?

Transfer pricing is the related to determining the value of goods & services exchanged or transferred between two related parties or related parties situated in other countries. The purpose of transfer pricing is to ensure that the price determined in the following transaction should be at arm’s length price.

 

For what type of transactions pricing is computed under transfer pricing?

 

  • Any income arising from an international transaction
  • Allowance for any expense or interest arising from an international transaction
  • Allocation for any cost/ expense in relation to the services provided to the associated party
  • Any income, expense or interest or allocation of any cost in relation to specified domestic party

 

In case of, all of the above transaction the transfer pricing is used to determine the price of transaction at arm’s length price.

 

In what cases the provisions of Transfer pricing will not apply?

 

The provisions of transfer pricing will not apply where in the process of:

  • Computation of income
  • Determining the allowance for any expense or interest
  • Determination of any cost or expense allocated

 

Will result in reducing the income chargeable to tax (profit) or increasing the loss of the assessee to whom the transfer pricing is applied.

 

Disclaimer: The above-mentioned cases are illustrative and not exhaustive. This article is only for discussing general issues and hereby we do not express any opinion or give any consultation in whatsoever manner understood. The cases may differ from assessee to assessee. We recommend you to take expert advice depending upon your particular case.