CA IPCC Income Tax Amendments Nov 2017

As per ICAI Official Syllabus, We have provided CA IPCC Tax Amendments for Nov 2017 exams. The Amendments in Direct Tax and also CA IPCC Indirect Tax (Including Service Tax, VAT etc) were provided. We have also listed out the Amendments in Law and Accounts in our other posts. What we learned from the Toppers is that, ICAI will ask around 30-35% questions from these amendments only for Nov 2017 exams.

IPCC Income Tax Amendments Nov 2017

There are high number of Amendments in CA IPCC Income Tax Syllabus applicable for Nov 2017 and Nov 2017 Exams. The following topics were amended for Nov 2017:

  • Government grant or subsidy
  • Set-off of losses not permissible against unexplained
    income
  • Increase in quantum of rebate under section 87A
  • Deferral of applicability of POEM
  • Special Taxation Regime for offshore funds
  • Exemption under section 10(34)
  • Exemption of income accruing or arising to a foreign company
  • Exemption of interest on deposit certificates
  • Exemption of long-term capital gains and concessional tax
  • Extension of period for completion of construction
  • Non-compete fee
  • Assessees engaged in the business of transmission of
    power eligible for additional depreciation
  • Tax treatment for spectrum fee
  • NBFCs eligible for claim of deduction for provision for bad
    and doubtful debts
  • Period of holding of unlisted shares
  • Transfer of units by unit holders
  • Redemption by an individual of sovereign gold bonds
  • Stamp duty value
  • Filing of return of loss on or before the due date under
    section 139(1) mandatory for carry forward of loss from
    specified business under section 73A
  • Monetary limit for maximum deduction under section 80GG
    increased
  • Tax incentives for new start-ups
  • Advance tax payment scheme to be the same for
    companies and other assessees
  • Requirement to furnish PAN for avoiding higher tax
    deduction not to apply to non-corporate non-residents and
    foreign companies subject to certain conditions
  • Rationalisation of provisions relating to filing of return of
    income

 

All the above Amendments were explained in detail below

Detailed Income Tax Amendments

Amendment in Residential Status of a Ship Crew Member

For Indian Citizen being a crew member of foreign bound ship leaving / coming to India the day he joins the ship and the day he leaves by signing off shall be excluded in computing the number of days he stays in India.Amendment in Residential Status of a Ship Crew Member

What the Tax Provision Actually Says:

As per the Income Tax Act, A crew member of a ship outbound is considered to be a Resident, if he is in India in the Previous Year for atleast 182 days. In other words, if a person is not in India for atleast 182 days, he shall be considered a Non-Resident as per the Income Tax Act. If a particular crew member is decided and assessed to be a Resident in India, their entire income is chargeable to Income Tax as it is accrued in India.

Amendment in Transport Allowance

The Income Tax Department has now allowed Transport Allowance Exemption of Rs 3,200 per month to the ‘Deaf & Dumb’.

Amendment in Transport Allowance Tax for CA IPCC

Earlier this exemption was allowed to an Employee ‘who is blind or orthopaedically handicapped with disability of lower extremities’. (This Amendments might be asked as a 1 Mark Question).

“Apart from these two, there are no other amendments in Income tax part. However, there are significant amendments in Indirect Taxes part, which will be updated soon.”

 

Income Tax Important Topics:

# Calculation of Income From House Property incorporating Interest from Borrowed Capital (8 Marks)

# Salary Calculation based on Allowances.

# Clubbing of Income (5 Marks)

# Incidence of Income (Residential Status) (5 Marks)

 

Important from PGBP:

-Section 32 (Depreciation Calculation) (8 Marks)

-Section 35AD

-Section 35(i)(iia) 

-43B

-44AE

-Income from Manufacture of Coffee

Capital Gains:

-Conversion of Company to LLP

-Stock in Trade

-54EC

-50B,C

Updated: April 20, 2018 — 5:42 pm

7 Comments

Add a Comment
  1. Thank u sir it’s very helpful.

Leave a Reply

CA Exam © 2017