• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 8/21/2013

India - Tax deductions for building, infrastructure projects 

August 21:  The KPMG member firm in India prepared reports on the following developments (read the August 2013 reports by clicking on the hyperlinks provided below):
  • Section 80-IB(10) deduction is available for “housing project” even when commercial building is constructed as a separate project on same plot of land - The Mumbai Bench of the Income-tax Appellate Tribunal held that the deduction under section 80-IB(10) (which is based on the square footage or percentage of commercial build-out) cannot be denied with respect to an approved and eligible “housing project” that satisfies all other conditions for the deduction even when a commercial building—considered a separate project—is approved and constructed on the same plot of land.

    The case is: Kamdhenu Builders & Developers. Read an August 2013 report [PDF 477 KB]

  • Decisions of non-jurisdictional high court not binding on other high courts or tribunals - The Hyderabad Bench of the Income-tax Appellate Tribunal, in a case addressing an infrastructure developer’s claim for a deduction under section 80-IA held that the decision of one high court is not binding on other high courts or tribunals in other jurisdictions.

    The case is: Sushee Infra Pvt. Ltd. Read an August 2013 report [PDF 211 KB]

  • Employees’ Provident Fund Organisation directs field offices to expedite exemption applications of private PF trusts - India’s government allows employers to establish and manage their own private PF trusts, subject to certain conditions. Private PF trusts generally promise quicker settlement of employee claims and greater transparency of PF accumulations.

    Private PF trusts must qualify and be recognized under both the Income Tax Act, 1961, for employees to recognize tax benefits, and Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act). Those without EPF Act approval were required by the Finance Act, 2013 to obtain such approval by 31 March 2014.

    India’s Employees’ Provident Fund Organisation has directed its field offices to expedite the disposal of pending applications by 15 November, 2013.

    Read an August 2013 report [PDF 433 KB]

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