9911796707
TMI BlogDeemed profits and gains of business or profession: Clause 38 of Income Tax Bill, 2025 vs. Section 41 of Income Tax Act, 1961X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax Bill, 2025, introduces several amendments and new provisions aimed at modernizing and streamlining the taxation framework in India. Among these changes is Clause 38, which pertains to profits and gains of business or profession. This clause is poised to replace the existing Section 41 of the Income Tax Act, 1961. Both provisions address the taxation of sums that are deemed profits and gains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y benefit from cessation or remission of trading liabilities as income, including unilateral write-offs. * Sub-section (1)(b): Addresses the sale or disposal of tangible assets, taxing the excess of proceeds over the written down value. * Sub-section (1)(c): Pertains to the sale of assets representing capital expenditure on scientific research, taxing the excess proceeds over capital expenditu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion of liabilities. * Sub-section (2): Deals with the taxation of excess proceeds over the written down value of assets, akin to Clause 38(1)(b). * Sub-section (3): Concerns the sale of scientific research assets, similar to Clause 38(1)(c). * Sub-section (4): Addresses recovery of bad debts, in line with Clause 38(1)(d). * Sub-section (4A): Pertains to withdrawals from special reserves, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... initions, potentially reducing ambiguities. The inclusion of provisions for successors in business and the applicability of provisions even after business cessation are notable enhancements. These changes reflect a more comprehensive approach to capturing income that escapes taxation under the guise of previous deductions or allowances. Conclusion Clause 38 of the Income Tax Bill, 2025, represen ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
