May 2023

section 54A of Income Tax act 1961

Income Tax / /
section 54A of Income Tax act 1961

Relief of tax on capital gains in certain cases [Omitted by the Finance (No. 2) Act, 1971, w.e.f. 1-4-1972. Original section was inserted by the Finance Act, 1965, w.e.f. 1-4-1965. The Direct Tax Laws (Amendment) Act, 1989 has deleted section 54A, dealing with relief of tax on capital gains on transfer of property held under trust for charitable or religious purposes or by certain institution, earlier inserted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]

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section 54B of Income Tax act 1961

Income Tax / /
section 54B of Income Tax act 1961

Capital gain on transfer of land used for agricultural purposes not to be charged in certain cases (1) Subject to the provisions of sub-section (2), where the capital gain arises from the transfer of a capital asset being land which, in the two years immediately preceding the date on which the transfer took place, was being used by the assessee being an individual or his parent, or a Hindu undivided family for agricultural purposes (hereinafter referred to as the original asset), and the assessee has, within a period of two years after that date, purchased any other land for being used for agricultural purposes, then, instead of the capital gain being charged to income-tax as income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to say,— (i) if the amount of the capital gain is greater than the cost of the land so purchased (hereinafter referred to as the new asset), the difference between the amount of the capital gain and the cost of the new asset shall be charged under section 45 as the income of the previous year; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase, the cost shall be nil; or (ii) if the amount of the capital gain is equal to or less than the cost of the new asset, the capital gain shall not be charged under section 45; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase, the cost shall be reduced, by the amount of the capital gain. (2) The amount of the capital gain which is not utilised by the assessee for the purchase of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139] in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset: Provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase of the new asset within the period specified in sub-section (1), then,— (i) the amount not so utilised shall be charged under section 45 as the income of the previous year in which the period of two years from the date of the transfer of the original asset expires; and (ii) the assessee shall be entitled to withdraw such amount in accordance with the scheme aforesaid. Explanation.—[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]

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section 54D of Income Tax act 1961

Income Tax / /
section 54D of Income Tax act 1961

Capital gain on compulsory acquisition of lands and buildings not to be charged in certain cases (1) Subject to the provisions of sub-section (2), where the capital gain arises from the transfer by way of compulsory acquisition under any law of a capital asset, being land or building or any right in land or building, forming part of an industrial undertaking belonging to the assessee which, in the two years immediately preceding the date on which the transfer took place, was being used by the assessee for the purposes of the business of the said undertaking (hereafter in this section referred to as the original asset), and the assessee has within a period of three years after that date purchased any other land or building or any right in any other land or building or constructed any other building for the purposes of shifting or re-establishing the said undertaking or setting up another industrial undertaking, then, instead of the capital gain being charged to income-tax as the income of the previous year in which the transfer took place, it shall be dealt with in accordance with the following provisions of this section, that is to say,— (i) if the amount of the capital gain is greater than the cost of the land, building or right so purchased or the building so constructed (such land, building or right being hereafter in this section referred to as the new asset), the difference between the amount of the capital gain and the cost of the new asset shall be charged under section 45 as the income of the previous year; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase or construction, as the case may be, the cost shall be nil; or (ii) if the amount of the capital gain is equal to or less than the cost of the new asset, the capital gain shall not be charged under section 45; and for the purpose of computing in respect of the new asset any capital gain arising from its transfer within a period of three years of its purchase or construction, as the case may be, the cost shall be reduced by the amount of the capital gain. (2) The amount of the capital gain which is not utilised by the assessee for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return of income under sub-section (1) of section 139] in an account in any such bank or institution as may be specified in, and utilised in accordance with, any scheme which the Central Government may, by notification in the Official Gazette, frame in this behalf and such return shall be accompanied by proof of such deposit; and, for the purposes of sub-section (1), the amount, if any, already utilised by the assessee for the purchase or construction of the new asset together with the amount so deposited shall be deemed to be the cost of the new asset: Provided that if the amount deposited under this sub-section is not utilised wholly or partly for the purchase or construction of the new asset within the period specified in sub-section (1), then,— (i) the amount not so utilised shall be charged under section 45 as the income of the previous year in which the period of three years from the date of the transfer of the original asset expires; and (ii) the assessee shall be entitled to withdraw such amount in accordance with the scheme aforesaid. Explanation.—[Omitted by the Finance Act, 1992, w.e.f. 1-4-1993.]

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section 50D of Income Tax act 1961

Income Tax / /
section 50D of Income Tax act 1961

Fair market value deemed to be full value of consideration in certain cases Where the consideration received or accruing as a result of the transfer of a capital asset by an assessee is not ascertainable or cannot be determined, then, for the purpose of computing income chargeable to tax as capital gains, the fair market value of the said asset on the date of transfer shall be deemed to be the full value of the consideration received or accruing as a result of such transfer.

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Special provision for full value of consideration for transfer of share other than quoted share under section 50CA of Income Tax act 1961

Income Tax / /
Special provision for full value of consideration for transfer of share other than quoted share under section 50CA of Income Tax act 1961

Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being share of a company other than a quoted share, is less than the fair market value of such share determined in such manner as may be prescribed8, the value so determined shall, for the purposes of section 48, be deemed to be the full value of consideration received or accruing as a result of such transfer: Provided that the provisions of this section shall not apply to any consideration received or accruing as a result of transfer by such class of persons and subject to such conditions as may be prescribed9-10. Explanation.—For the purposes of this section, “quoted share” means the share quoted on any recognised stock exchange with regularity from time to time, where the quotation of such share is based on current transaction made in the ordinary course of business.

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resignation letter format

Legal Documents and Agreements / /
Resignation Letter Format

Introduction Resigning from a job can be a tough decision. It can be even tougher to express that decision to your employer in writing. Writing a resignation letter may seem like a daunting task, but it doesn’t have to be. A resignation letter is an official document that is required to inform your employer of your decision to leave the company. It should be well-written, concise, and professional. In this blog post, we will discuss everything you need to know about the resignation letter format. Check Resignation Letter Format Online Before we dive into the details, let’s talk about the importance of checking the resignation letter format online. There are various templates available online that can help you create a resignation letter that is professional and polished. These templates are a great starting point, but keep in mind that they should be customized to reflect your personal situation. How to Create Resignation Letter When creating a resignation letter, there are several points to keep in mind. 1. Be Clear and Concise The resignation letter should clearly state that you are resigning from your position. Make sure to include the date of your resignation and the reason for your departure (optional). Keep your letter concise and to the point. 2. Be Professional A resignation letter is an official document, so it should be written in a professional tone. Avoid being negative or critical about the company or your colleagues. Thank your employer for the opportunities you were given and express gratitude for the experience gained during your tenure. 3. Provide Notice Make sure to provide adequate notice to your employer. The standard notice period is two weeks, but this can vary depending on your employment contract. It is important to check your contract or with HR to ensure you are providing the required notice. 4. Follow Up After submitting your resignation letter, follow up with your employer to ensure they received it. This will help to avoid any miscommunication or misunderstandings. Points to Remember When creating your resignation letter, keep these points in mind: Be clear and concise Be professional Provide notice Follow up How to Submit Resignation Letter Now that you have created your resignation letter, it’s time to submit it to your employer. Here are the steps to follow: 1. Schedule a Meeting with Your Employer Schedule a meeting with your employer to discuss your resignation. This meeting can be in person or over the phone, depending on your preference. 2. Submit Your Resignation Letter During the meeting, hand over your resignation letter to your employer. Make sure to thank them for the opportunities given to you and express your willingness to help with the transition. 3. Discuss Transition During the meeting, discuss the transition process with your employer. Offer to help train your replacement or to tie up any loose ends before you leave. 4. Ask for a Reference If you had a positive experience with your employer, it is appropriate to ask for a reference letter. This can be a valuable asset when job hunting in the future. FAQs Q1. Can I resign via email? A1. It is generally recommended to resign in person or over the phone, followed up by a written resignation letter. However, if resigning in person or over the phone is not possible, then an email resignation letter may be accepted. Make sure to follow the same guidelines for professionalism and clarity as you would for a written letter. Q2. Do I need to give a reason for my resignation? A2. You do not need to provide a reason for your resignation, but it can be helpful to explain your decision if you have a good relationship with your employer. Q3. How much notice should I provide? A3. The standard notice period is two weeks, but this can vary depending on your employment contract. Check your contract or with HR to ensure you are providing the required notice. Q4. Can I retract my resignation? A4. It depends on the situation and the employer’s policies. If you have not yet signed a termination agreement, it may be possible to retract your resignation. However, if you have already signed the agreement, it may be too late to change your mind.   Q5. What happens after resignation? A5. The employer company go through the resignation letter. In case the employee is valuable to the company then the company may try to negotiate, understand the reason for resignation and resolve the issue to retain the employee. If the employer thinks that the employee should be relieved from the duty then the employer will issue relieving letter to the employee. The employer may also conduct an exit interview in this regard. Conclusion Writing a resignation letter can be a difficult task, but it is an essential part of leaving a job. By following the guidelines outlined in this blog post, you can create a resignation letter that is professional, clear, and effective. Remember to be concise and professional, provide adequate notice, and follow up with your employer. And don’t forget to check the resignation letter format online for templates and examples to guide you. Good luck with your next chapter! Practice area’s of B K Goyal & Co Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC

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Appointment Letter Format

Income Tax / /

Introduction Congratulations! You’ve found the perfect candidate for your organization. But before you welcome them on board, there’s one critical step you need to complete: providing them with an appointment letter. An appointment letter is a formal document that outlines the terms and conditions of employment between you and your employee. It is an essential communication tool that sets expectations and ensures clarity on both sides. In this blog post, we’ll take a deep dive into everything you need to know about creating an effective appointment letter format. We’ll cover the following topics: When an appointment letter is provided The components of an appointment letter format How to create an appointment letter Frequently asked questions about appointment letters When Appointment Letter is Provided? An appointment letter is typically provided once the candidate has accepted the job offer. The letter should be provided before the employee’s start date to allow them enough time to review the terms and conditions of employment and seek clarification if required. The Components of an Appointment Letter Format An appointment letter should contain the following components: Company Details: Include your company’s name, address, and contact details. Employee Details: This section should include the employee’s name, position, and start date. Job Description: Provide a brief overview of the job responsibilities and expectations. Terms and Conditions: This section should include details about the employee’s compensation, benefits, working hours, and leave policy. Probationary Period: If there is a probationary period, mention it in this section and outline the terms and conditions of employment during this period. Confidentiality and Non-Disclosure: If applicable, include a confidentiality and non-disclosure agreement in the appointment letter. Termination Clause: This section should outline the terms and conditions of termination of employment. Signatures: The appointment letter should be signed by the employer and the employee to indicate their acceptance of the terms and conditions of employment. How to Create an Appointment Letter? Creating an appointment letter is not as complicated as it may seem. Here’s a step-by-step guide to help you create an effective appointment letter: Step 1: Start with a template The easiest way to create an appointment letter is by using a template. There are several templates available online that you can use as a starting point. Make sure the template you choose is professional and includes all the essential components. Step 2: Customize the template Once you have a template, customize it to suit your organization’s needs. Include your company’s name, address, and contact details. Make sure the employee’s details are accurate, and the job description is specific and clear. Step 3: Include the terms and conditions of employment The terms and conditions of employment should be outlined clearly in the appointment letter. This includes details about the employee’s compensation, benefits, working hours, and leave policy. Make sure you include all the relevant details to avoid confusion. Step 4: Include a probationary period clause If there is a probationary period, include it in the appointment letter. Outline the terms and conditions of employment during this period, including the duration of the probationary period and the criteria for the employee to become a permanent employee. Step 5: Include a termination clause It’s essential to include a termination clause in the appointment letter. This outlines the terms and conditions of termination of employment, including notice period and reasons for termination. Step 6: Proofread and edit Before you send the appointment letter to the employee, make sure you proofread and edit it thoroughly Check for spelling and grammatical errors, and ensure that the letter is clear, concise, and easy to read. Step 7: Get it signed Once you have created the appointment letter, send it to the employee for their review and signature. Ensure that they understand the terms and conditions of employment before they sign the letter. You should also sign the letter to indicate your acceptance of the terms and conditions. Frequently Asked Questions About Appointment Letters Q: Is an appointment letter legally binding? A: Yes, an appointment letter is a legally binding document that outlines the terms and conditions of employment between you and your employee. Q: Can an appointment letter be revised? A: Yes, an appointment letter can be revised, but any changes should be communicated to the employee in writing and agreed upon by both parties. Q: What should I do if an employee refuses to sign the appointment letter? A: If an employee refuses to sign the appointment letter, you should have a conversation with them to understand their concerns. If the concerns are valid, you may need to revise the terms and conditions of employment. If the employee is unwilling to sign the letter without a valid reason, you may need to consider rescinding the job offer. Q: Do I need to provide an appointment letter for part-time employees? A: Yes, you should provide an appointment letter for all employees, regardless of their employment status. Conclusion Creating an effective appointment letter format is critical to ensure that both you and your employee have a clear understanding of the terms and conditions of employment. By following the steps outlined in this blog post, you can create an appointment letter that is professional, effective, and legally sound. Remember, an appointment letter is a legally binding document, so ensure that you provide accurate and complete information to avoid any confusion or misunderstandings.

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Section 281B of Income Tax Act, 1961

Income Tax / /
Section 281B of Income Tax Act, 1961

Provisional attachment to protect revenue in certain cases (1) Where, during the pendency of any proceeding for the assessment of any income or for the assessment or reassessment of any income which has escaped assessment 72[or for imposition of penalty under section 271AAD where the amount or aggregate of amounts of penalty likely to be imposed under the said section exceeds two crore rupees], the Assessing Officer is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, he may, with the previous approval of the Principal Chief Commissioner or Chief Commissioner, Principal Commissioner or Commissioner, Principal Director General or Director General or Principal Director or Director, by order in writing, attach provisionally any property belonging to the assessee in the manner provided in the Second Schedule. Explanation.—[***] (2) Every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1) : Provided that the Principal Chief Commissioner or Chief Commissioner, Principal Commissioner or Commissioner, Principal Director General or Director General or Principal Director or Director may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as he thinks fit, so, however, that the total period of extension shall not in any case exceed two years or sixty days after the date of order of assessment or reassessment, whichever is later. (3) Where the assessee furnishes a guarantee from a scheduled bank for an amount not less than the fair market value of the property provisionally attached under sub-section (1), the Assessing Officer shall, by an order in writing, revoke such attachment: Provided that where the Assessing Officer is satisfied that a guarantee from a scheduled bank for an amount lower than the fair market value of the property is sufficient to protect the interests of the revenue, he may accept such guarantee and revoke the attachment. (4) The Assessing Officer may, for the purposes of determining the value of the property provisionally attached under sub-section (1), make a reference to the Valuation Officer referred to in section 142A, who shall estimate the fair market value of the property in the manner provided under that section and submit a report of the estimate to the Assessing Officer within a period of thirty days from the date of receipt of such reference. (5) An order revoking the provisional attachment under sub-section (3) shall be made—  (i)  within forty-five days from the date of receipt of the guarantee, where a reference to the Valuation Officer has been made under sub-section (4); or (ii)  within fifteen days from the date of receipt of guarantee in any other case. (6) Where a notice of demand specifying a sum payable is served upon the assessee and the assessee fails to pay that sum within the time specified in the notice of demand, the Assessing Officer may invoke the guarantee furnished under sub-section (3), wholly or in part, to recover the amount. (7) The Assessing Officer shall, in the interests of the revenue, invoke the bank guarantee, if the assessee fails to renew the guarantee referred to in sub-section (3), or fails to furnish a new guarantee from a scheduled bank for an equal amount, fifteen days before the expiry of the guarantee referred to in sub-section (3). (8) The amount realised by invoking the guarantee referred to in sub-section (3) shall be adjusted against the existing demand which is payable by the assessee and the balance amount, if any, shall be deposited in the Personal Deposit Account of the Principal Commissioner or Commissioner in the branch of the Reserve Bank of India or the State Bank of India or of its subsidiaries or any bank as may be appointed by the Reserve Bank of India as its agent under the provisions of sub-section (1) of section 45 of the Reserve Bank of India Act, 1934 (2 of 1934) at the place where the office of the Principal Commissioner or Commissioner is situate. (9) Where the Assessing Officer is satisfied that the guarantee referred to in sub-section (3) is not required any more to protect the interests of the revenue, he shall release that guarantee forthwith. Explanation.—For the purposes of this section, the expression “scheduled bank” shall mean a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).

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