sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« News Headlines »
 5 lesser known tax saving options that can maximise your earnings
 Here's what the changes in Form 16 will mean for you
 Your guide to filing income tax returns this year
 Income Tax rules for new financial year
 How to claim income tax refunds in 2019 in India
 What Latest Form 16 Changes Mean For You
  Companies (Incorporation) Third Amendment Rule,2019
 Filling salary details in ITR-1 for FY 2018-19 gets easier for taxpayers
 All the new details required in income tax return forms for FY18-19
 Income Tax return forms for AY 2019-20 out; last date of filing July 31
  Extending the due date for furnishing of report u/s 286(4) of the Income-tax act,1961

I-T sops on income from asset firms likely
January, 05th 2007
The government may exempt investments in asset reconstruction companies (ARC) from income tax in the forthcoming Budget to boost the bad assets recovery business. 
 
At present, the Income Tax Act does not recognise the pass-through nature of the trusts set up by such companies for acquisition, management and resolution of non-performing assets in accordance with the Sarfaesi Act and RBI guidelines. 
 
The banking industry feels that ARCs play an important role in adding value to the impaired assets of banks by helping fast recovery of the non-performing assets (NPAs). 
 
It is not possible every time for the ARCs to take debt or equity route to raise funds to purchase the impaired assets. Issuing of security receipts thus becomes a logical option. 
 
Therefore the ministry may think of giving it the same status as mutual funds which are exempt from tax under Section 10 (23) (D) of the Income Tax Act, said a source. 
 
Under the Section, while computing the total income of any person, income from any mutual fund registered under the Securities and Exchange Board of India Act (Sebi Act), 1992, is not included. 
 
This income tax benefit on the individual incomes attract investment in this sector. So, investors in securities of ARCs should also be exempted to make it an attractive investment option, the source said. 
 
The ministry is also likely to consider giving tax deductions to banks on the investments made to set up ARCs, under Section 36 of the Income Tax Act. 
 
A number of deductions under Section 36 are allowed while computing income from profits and gains of business. 
 
For example, scheduled banks are given tax incentives for an amount not exceeding 5 per cent of the total income and an amount not exceeding 10 per cent of the aggregate average advance made by the rural branches of such bank computed in the prescribed manner.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Portfolio

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions