Blog

Mere non-performance of an Agreement to Sell by itself does not amount to the offences of cheating and criminal breach of trust.

Judgement attached

CBDT issues clarification in respect of Income-tax clearance certificate (ITCC)

It is being erroneously reported that all Indian citizens must obtain income-tax clearance certificate (ITCC) before leaving the country- a position that is factually incorrect

Section 230 (1A) of the Income-tax Act, 1961(the ‘Act’) relates to obtaining of a tax clearance certificate, in certain circumstances, by persons domiciled in India. The said provision, as it stands, came on the statute through the Finance Act, 2003 w.e.f. 1.6.2003.

The Finance (No.2) Act, 2024 has made only an amendment in Section 230(1A) of the Act, vide which, reference of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (the ‘Black Money Act’) has been inserted in the said Section. This insertion has been made to also cover the liabilities under the Black Money Act in the same manner as the liabilities under the Income-tax Act,1961 and other Acts dealing with direct taxes for the purpose of Section 230(1A) of the Income-tax Act,1961.

There appears to be a mis-information about the said amendment emanating from incorrect interpretation of the amendment. It is being erroneously reported that all Indian citizens must obtain income-tax clearance certificate (ITCC) before leaving the country. This position is factually incorrect.

As per section 230 of the Act, every person is not required to obtain a tax clearance certificate. Only certain persons, in respect of whom circumstances exist which make it necessary to obtain a tax clearance certificate, are required to obtain the said certificate. This position has been in the statute since 2003 and remains unchanged even with the amendments vide Finance (No. 2) Act, 2024.

In this context, the CBDT, vide its Instruction No. 1/2004, dated 05.02.2004, has specified that the tax clearance certificate under Section 230(1A) of the Act, may be required to be obtained by persons domiciled in India only in the following circumstances:

i. where the person is involved in serious financial irregularities and his presence is necessary in investigation of cases under the Income-tax Act or the Wealth-tax Act and it is likely that a tax demand will be raised against him, or
ii. where the person has direct tax arrears exceeding Rs.10 lakh outstanding against him which have not been stayed by any authority.

Further, a person can be asked to obtain a tax clearance certificate only after recording the reasons for the same and after taking approval from the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax.

In view thereof, it is reiterated that the ITCC under Section 230(1A) of the Act, is needed by residents domiciled in India, only in rare cases, such as (a) where a person is involved in serious financial irregularities or (b) where a tax demand of more than Rs.10 lakh is pending which is not stayed by any authority.

Doctrine of proportionality cannot be invoked in cases where the root of the employment itself is based upon a forged document.

Judgement attached

If Payments are made to employees in relation to the ESOPs, it would have been necessary to deduct the value thereof to arrive at the value of the perquisite.

Judgement attached.

NSSHO Ranchi organises “E Tendering Program and Facilitation on Credit Support” for SC-ST

NSSHO Ranchi recently organised “E Tendering Program and Facilitation on Credit Support” for SC-ST units of Tupudana Industrial Area, in association with Tupudana Industrial Association, GEM and HDFC Bank, at Common Facility Centre, Tupudana Industrial Area, Ranchi, Jharkhand.

Addressing the participants Smt. Kiran Maria Tiru, SBM NSSHO Ranchi, briefed the schemes of NSSH. Sh. S.K. Choudhary, Banking Professional, NSSHO Ranchi briefed the paper requirements and process of getting credit facilitations from the bank. Sh. Vivekanand, E Tendering Professional, NSSHO Ranchi, explained the benefits of registration under GEM and the procedure for registration. He also invited participants to get vendor registration for Meccon, NTPC etc.

Other Deligates who addressed the participants were Sh. Subodhkant, GEM Trainer, Jharkhand, Sh Manitesh, Branch Head HDFC Bank Lalpur, Ranchi, Sh. Mayank, SME Head, HDFC Bank, Ranchi.

The question Answer session was addressed by all delegates. Approx 39 number of participants, attended the program.

The Karnataka HC has held that an employee cannot seek a change in the recorded date of birth after a considerable lapse of time.

Copy of judgement attached.

Indian Institute of Foreign Trade improves 12 ranks in NIRF ranking

From 27th rank in 2023 to 15th this year, the Indian Institute of Foreign Trade (IIFT) under Ministry of Commerce and Industry, Government of India has made a steep jump of 12 spots in its NIRF (National Institutional Ranking Framework) ranking released by Ministry of Education. This has been a record improvement in the institute’s ranking since beginning of NIRF ranking in 2016.

Congratulating IIFT on this remarkable feat Union Minister of Commerce and Industry, Shri Piyush Goyal expressed his confidence that the institute would soon transform into a world class institute that would greatly contribute to India’s impressive growth in trade and investments. From 27th rank in 2023 to 15th rank this year, the Indian Institute of Foreign Trade (IIFT) Delhi has made a remarkable progress. With India’s growing influence in global trade this achievement highlights IIFT’s crucial role in nurturing future leaders in international business, he said.

Shri Sunil Barthwal, Secretary, Department of Commerce and Chancellor, IIFT, also congratulated on this remarkable achievement and expressed full support from Department of Commerce to conduct cutting-edge research on contemporary issues in international trade including bilateral and multilateral trade engagements, exports promotion and institutional development.

In the recent months, various measures of the institute have been recognised. The institute has taken a host of holistic initiatives to improve its teaching, learning and resources, research and professional practices, graduation outcomes, outreach and inclusivity and perception.

IIFT is on the path of rapid transformation into a world class B-School of global repute with special focus on international trade and business making it a unique institute that conducts highly sought after educational programmes such as Ph.D., MBA (International Business), MBA (Business Analytics) and MA Economics specialising in International Trade and Finance.

As a part of new initiatives, the institute is in the process of establishing a state of art Centre for International Negotiations (CIN) to provide training to corporates and policy makers on international negotiations. Besides, IIFT is also establishing Foreign Trade Case Study Centre (FTCSC) to work closely with exporters, governments and businesses and develop world class case studies on the lines of Harvard and share Indian experiences on International Trade with the rest of the world.

The institute plans to work closely with the governments, central and states and carry out insightful research on issues of contemporary importance besides high-end capacity building programmes. Various export promotion organisations such as APEDA have evinced keen interest to sponsor PhD students on the area of contemporary research interest.

IIFT is also contemplating to commence an offshore campus in Dubai with an active support from Department of Commerce, Ministry of Commerce and Industry.

Mah publishes Draft notification inviting suggestions for revision of minimum wages in Employment in shop or commercial establishment not being an employment in any bank or an employment which is included under any other entries in the Schedule.

Copy of notification attached.

EPFO has announced the launch of its New Online Module to simplify surrender of Exemption.

Text of Press Release attached.