The term ‘income’ defined under Section 2(24) of Income Tax Act, 1961 (ITA/Act) is inclusive one. Charge of tax on income is subject to exemptions provided in Section 10 of ITA, 1961. The receipts mentioned in various clauses of Section 10 are not included in computing gross total income there by not part of taxable income for computing tax liability. 

First receipt mentioned in Section 10, is income from agriculture. Sec 2(1A) has defined term ‘agricultural income’.Explanation 1 of this section provides that transfer of rural agricultural land is agriculture income. 

Section 45 of Act provides that transfer of capital asset as defined under Section 2(14) is chargeable to tax in the year in which year in which transfer takes place. The definition of term ‘capital asset’ excludes rural agricultural land from its scope. Hence transfer of rural agricultural land is not subject to tax under Section 45 of Act. 

Full value consideration arising from transfer of capital asset must be considered for the purpose of computing capital gain under Section 48 of Act. Sec 50C of Act provides that for the purpose of computing capital gains the value adopted or assessed or assessable by the Stamp Duty Authority or higher amount is deemed to be full value consideration for computing capital gains. 

Read more: Different Treatment of Receipt - Assessment of Income and Levy of Penalty

1. Background 

In keeping with India’s commitment to implement the recommendations of Action Plan 13 of Base Erosion and Profit Shifting (BEPS), the Finance Act, 2016 introduced Section 286 of Income-tax Act, 1961 (the Act) providing for furnishing of Country-by-Country Report (CbCR) in respect of an International Group. 

Section 92D of the Act which contained provisions for preparing TP documentation was also amended to provide for keeping and maintaining of Master File. 

In continuation with the amendment, the Central Board of Direct Taxes (CBDT) on 6 October 2017, released the draft rules and forms in relation to manner of preparation and furnishing of Master File and CbCR. It is commendable, on part of CBDT, to consistently follow an inclusive approach and seeking public comments when introducing a new and important regulation. 

Read more: MF and CBCR - Final Rules and Practical Challenges

Brief about GST

Applicability of Goods and Services Tax

Types of GST

Understanding of GST

Payment of Goods and Services Tax

Reverse Charge for Specified Services

Requirement of Registration

Composition Scheme

Valuation of GST

Returns under GST

Credits under GST

This article is contributed by Partners of SBS and Company LLP - Chartered Accountant Company. You can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it.

1. What is Advance Ruling?

Advance ruling a mechanism prescribed under a taxing statute to seek clarity on applicability of respective tax. Such rulings or decisions are obtained in advance prior to undertaking a transaction by making suitable applications before the prescribed authorities. Under GST, advance ruling can be sought on any of the following matters;

1. Classification of goods or services or both
2. Applicability of a notification issued under the provisions of GST Law
3. Determination of time and value of supply of goods or services or both
4. Admissibility of Input Tax Credit of tax paid or deemed to have been paid
5. Determination of liability to pay tax on any goods or services or both
6. Whether registration is required
7. Whether anything done with respect to goods or services or both amounts to or results in supply of goods or services or both. 

   Read more: Advance Ruling Under GST

   Tags: one page, news