Navigating Tax Law Changes: Key Judicial and Regulatory Updates from April 2024
The CNK & Associates LLP April 2024 Domestic Tax Newsletter delivers essential updates on recent judicial decisions and government notifications impacting the Indian tax landscape. This month’s edition covers landmark rulings and clarifications on capital gains, tax exemptions, slump sales, and TDS relief for IFSC units—offering valuable insights for corporate taxpayers, investors, and legal professionals navigating the complex world of income tax compliance.
Key highlights include:
- Sales tax subsidies ruled as capital receipts, not taxable under income tax provisions.
- Capital gains treatment clarified for cross-border investments and foreign currency indexation.
- Slump sale exclusions, emphasizing that partial transfers without immovable property do not qualify.
- Section 54 exemptions upheld even when a new property is registered in a spouse’s name.
- Zero consideration on share cancellation recognized as a valid capital loss.
- TDS exemption notification issued for certain payments to International Financial Services Centres (IFSCs) under Section 80LA.
These updates reflect evolving interpretations of tax laws and emphasize the importance of understanding the nuances behind legislative intent and judicial reasoning.
