The report by the Task Force on Goods and Services Tax (GST) for the Thirteenth Finance Commission outlines the need to replace India's existing indirect tax system with a comprehensive GST. The proposed GST aims to eliminate tax distortions, foster cooperative federalism, and create a unified market. Key recommendations include a dual GST model with Central and State components, a uniform tax base, and a single tax rate for all goods and services. The report emphasizes the importance of a consumption-based tax system, full input tax credit, and minimal exemptions. It also suggests a phased approach for implementation, a compensation fund for states, and a constitutional amendment to facilitate GST adoption. The report argues that GST will enhance economic growth, improve tax compliance, and reduce poverty by lowering prices of essential goods.

The AAR's order dated March 26, 2020, was quashed by the Court due to manifest and patent illegalities. The Court determined that the transaction was not designed for tax avoidance, granting the petitioners all consequential reliefs. The decision underscored the significance of the Tax Residency Certificate (TRC), the Limitation of Benefits (LOB) provisions in the DTAA, and emphasized that the Revenue must meet a high standard of proof when alleging tax avoidance and abuse.

The Supreme Court held that the assessee was not immune from taxation under international law post January 26, 1950, and was liable to tax. The Court rejected the claim for total exemption under the Taxation Concessions Order, stating it only scaled down tax rates. The interest from Hyderabad State securities was exempt from tax, borne by the State Government. Income from family and miscellaneous trusts was exempt from income tax but not super-tax. The Court did not address the accrual location of interest on Government of India securities. The High Court's decision was modified accordingly, with each party bearing its own costs.

The Commissioner validly assumed jurisdiction under section 25(2) due to errors in the assessment orders by the Wealth-tax Officer (WTO) regarding the exemption claimed for Umed Bhavan Palace. The exemption under section 5(1)(iii) applies to the palace building and the land necessary for proper use, not the entire surrounding land. The assessment orders were found to be erroneous and prejudicial to revenue interests. The appeals were allowed, and the Commissioner's orders were vacated, directing the WTO to re-assess the wealth, considering the correct exemption criteria for Umed Bhavan Palace.

The Government of India proposes a draft common Income-tax Return (ITR) to simplify the filing process by merging existing ITR forms, except ITR-7, while retaining ITR-1 and ITR-4 for convenience. This initiative aims to ease filing and reduce the time required by customizing the ITR based on taxpayer responses to specific questions, showing only relevant schedules. The draft includes a smart design for user-friendliness and better data reconciliation with the Income-tax Department. Stakeholders and the public are invited to provide feedback by December 15, 2022. The finalized form will be available online post-notification.

The SC held that taxes simpliciter do not infringe Part XIII of the Indian Constitution, and only discriminatory taxes are prohibited by Article 304(a). The compensatory tax theory lacks juristic basis and is rejected. Entry tax validity requires statute-specific examination under Articles 301 and 304. Clauses (a) and (b) of Article 304 are read disjunctively, and a levy violating Article 304(a) cannot be saved by Article 304(b) compliance. States can design fiscal legislation to ensure equal tax burdens on imported and locally produced goods. Discrimination under Article 304(a) refers to hostile protectionism, not mere differentiation.

The High Court decision quashing the assessments was affirmed, and the cases were remanded to the Sales Tax Officer for fresh assessments. The judgment clarified the exemption under Article 286(1)(b) for sales by export and purchases by import, emphasizing the distinction between transactions directly related to export/import and preparatory or subsequent local transactions. Each party was ordered to bear its own costs, with a detailed interpretation of Article 286 provided.

The Tribunal partly allowed the assessee's appeals for statistical purposes and dismissed the revenue's appeals. It directed the AO to re-examine issues such as depreciation on UPS, long-term capital loss, and disallowance under Sections 40(a)(i) and 14A, among others, in light of relevant judicial precedents. The Tribunal upheld the reopening of assessment under Section 147 and allowed depreciation on electrical installations and non-compete fees. It restored several issues to the AO for further adjudication, ensuring the assessee could present necessary information and evidence. The deferred income from advance received from members was upheld, aligning with prior decisions.

The court held that Section 341 of the City of Madras Municipal Act I of 1884 applies to Government timber, rejecting arguments for exemptions under Sections 338 and 174. It emphasized that the Crown is bound by statutory provisions unless expressly exempted, as per Indian legislative principles. Consequently, the Government was found liable to pay the duty under Section 341, affirming the conviction and fine imposed on the Superintendent of the Government Gun Carriage Factory for importing timber without the necessary license.

The circular issued by the Central Board of Direct Taxes outlines the guidelines for income tax deduction from salaries for the financial year 2020-21 under Section 192 of the Income Tax Act, 1961. It specifies the rates of tax deduction applicable to different income brackets, including special rates for senior citizens. It also introduces Section 115BAC, offering concessional tax rates subject to certain conditions. The document details the responsibilities of employers in deducting tax at source, including the issuance of Form 16 and the requirement to obtain evidence for various deductions and exemptions claimed by employees. Additionally, it covers the procedural aspects of filing tax deduction statements and the penalties for non-compliance.

The Finance Act, 2017 introduces various amendments to the Income-tax Act, 1961, aimed at clarifying, rationalizing, and expanding tax provisions. Key changes include adjustments to tax rates and exemptions, measures to promote digital payments, and restrictions on cash transactions. The Act also introduces new sections to address specific tax scenarios, such as tax-neutral conversions of preference shares to equity shares and the inclusion of co-operative banks under certain provisions. Additionally, the Act emphasizes transparency in electoral funding and streamlines procedures for filing returns and assessments. These amendments are designed to enhance compliance, reduce litigation, and align with international tax practices.

Circular No. 24/2022 issued by the Central Board of Direct Taxes outlines the guidelines for income tax deduction from salaries under Section 192 of the Income-tax Act, 1961 for the financial year 2022-23. It specifies the rates of tax deduction, the definition of salary, perquisites, and profits in lieu of salary, and the method for tax calculation. The circular also details the responsibilities of employers in deducting and depositing tax, issuing TDS certificates, and the consequences of non-compliance. Additionally, it provides information on exemptions, deductions under Chapter VI-A, and procedures for filing TDS statements.

The circular issued by the Government of India outlines the guidelines for income-tax deduction from salaries under Section 192 of the Income-tax Act, 1961, for the financial year 2021-22. It details the tax deduction process, rates of tax applicable as per the Finance Act, 2021, and the responsibilities of employers in deducting and remitting tax to the government. The document includes definitions of salary components, perquisites, and profits in lieu of salary, along with exemptions and deductions available under various sections of the Income-tax Act. It also provides information on the calculation of tax liabilities, procedures for filing TDS statements, and penalties for non-compliance.

The Finance (No. 2) Bill, 2019, proposes amendments to the Income-tax Act, 1961, focusing on broadening the tax base, reducing corporate tax rates for small enterprises, and enhancing tax administration. Key changes include adjustments in income tax rates, introduction of new TDS provisions, mandatory filing of returns for high-value transactions, and interchangeability of PAN and Aadhaar. The Bill also promotes a cashless economy through electronic payment mandates and TDS on cash withdrawals. Tax incentives are introduced for electric vehicles, affordable housing, and startups. The Bill addresses anti-abuse measures, facilitates distressed company resolutions, and enhances tax administration effectiveness. Additionally, amendments to customs and excise duties are proposed, affecting various commodities and sectors.

The Finance (No. 2) Bill, 2019 proposes amendments to the Income-tax Act, 1961 to enhance the effectiveness of tax administration, widen the tax base, and promote a less cash economy. Key proposals include reducing corporate tax rates for small enterprises, introducing tax incentives, and strengthening anti-abuse measures. The Bill also suggests changes in tax rates, such as surcharges on income tax for high-income individuals and companies, and the introduction of a Health and Education Cess. Additionally, it proposes measures to facilitate the resolution of distressed companies and improve the efficiency of tax administration. The Bill aims to ensure compliance and reduce tax evasion.

The court held that the President lacks the power to abolish Rulership under Article 366(22). Article 291 guarantees privy purses as a legal right, and Article 362 imposes a duty to respect Rulers' guarantees. The jurisdictional bar under Article 363 was inapplicable, and petitions under Article 32 were deemed maintainable. The court declared the President's orders derecognizing Rulers as illegal, reinstating their rights and privileges, including privy purses. The Union of India was directed to continue payments and recognize the Rulership and privileges of the petitioners.

The circular issued by the Government of India's Ministry of Finance outlines the procedures and rates for income tax deductions from salaries for the financial year 2019-20 under Section 192 of the Income-tax Act, 1961. It specifies the tax rates applicable to different income brackets, including special rates for senior citizens. It also details the surcharges and health and education cess applicable to the tax. The document provides guidelines on the calculation of tax deductions, including the treatment of perquisites, salary from multiple employers, and relief for arrears. Employers are instructed on their responsibilities for deducting and depositing taxes, issuing certificates, and filing quarterly statements. The circular also explains various deductions under Chapter VI-A and the conditions for claiming them.

The court held that credit for income tax paid in a foreign country in relation to income under Section 10A is not available under Section 90(1)(a). Unavailed MODVAT credit cannot be considered as income under Section 2(24). Commission paid to directors should be allocated to the units they head. AMC profits related to computers manufactured by the assessee are eligible for deduction under Section 80IB. VAT and GST collected in foreign jurisdictions should be included in export turnover. Capital gains on stock-in-trade conversion should be recognized when sold. Deduction under Section 10A for foreign exchange yet to be received is allowed. Software sales to STP units should be excluded from export turnover. Corporate expenses allocated at 20%. Expenses allocation based on actual expenditure. Units approved by STPI are eligible for deduction under Section 10A. Losses of 10A units carried forward. Various incomes included under Section 80HHC. Certain incomes exempted under Section 10A. Provision for warranty claims allowable. Non-deduction of TDS for software imports not disallowed. Excise duty and sales tax included in total turnover under Section 80HHC. Telecommunication expenses exclusion remanded. Prior period items question deleted. Interest levy under Section 234D remanded. Termination expenses not substantial question of law. Taxability of interest under Section 244A remanded for calculation.

The circular outlines the tax and TDS rates for the assessment year 2001-2002, maintaining the same rates as the previous year, with a reduction in tax rates for winnings from lotteries and horse races. It introduces amendments to the Income-tax Act, including defining electronic records as 'books of account' and 'documents,' clarifying definitions of 'lottery' and 'card games,' and expanding the definition of 'royalty.' It extends tax exemptions to voluntary retirement scheme amounts for government employees and introduces a sunset clause for external commercial borrowings. The circular also addresses the rationalization of tax rates, exemptions, and deductions for various sectors, including infrastructure, power, and telecommunications, and introduces measures to curb tax avoidance through transfer pricing regulations and short-term loss creation in securities.

The Tribunal ruled in favor of the assessee, a Netherlands-based company, in a case involving the taxability of capital gains on the sale of shares. The Tribunal held that the gains were not taxable in India under the India-Netherlands Double Taxation Avoidance Agreement (DTAA) provisions, as the shares did not constitute immovable property and were used in the company's business. Additionally, the assessee was eligible for exemption under section 10(23G) of the Income-tax Act due to the Indian company being an approved infrastructure facility. The Tribunal's decision rendered other issues such as interest taxability, reassessment proceedings, and penalty proceedings moot.