Taxation Times

June 2023

UJA | Taxation Times June -2023
3Case Laws 
4Circulars & Notifications June 2023
5Tax Compliance July 2023
6Tax News from around the World
by Neha Raheja
by Neha Raheja

Partner, Direct Tax

It is a period of rushing for everyone to file his or her  Income Tax Return (ITR) for AY 2023-2024 (FY 2022-2023) and get the compliance done within the due date. For non-audit cases, the due date for filing an ITR is July 31, 2023.
In this edition of Taxation Times, we will answer the most common questions asked regarding the filing of an ITR.
If you are eligible to file an ITR, ensure that it is filed by the due date.
In this month’s Taxation Times, we cover:

  1. An article encompassing common questions asked regarding the filing of ITR
  2. Case Laws from various courts and jurisdictions;
  3. Tax Compliance Calendar –  July 2023;
  4. Circulars and Notifications, June 2023;
  5. Tax News from around the world

We hope that you find this month’s edition of the Taxation Times useful. In case you have any feedback or need us to include any information to make this issue more informative, please feel free to write to us at

Happy Reading!
Best Regards,
UJA Tax Team

Income Tax Return Filing

As you all know, income tax return (ITR) Filing season has started for ITRs’ to be filed for AY 2023-2024, i.e., FY 2022-2023.

Let us go through some important aspects of ITR through the following Questions:

  • Which form should a taxpayer use to file his income-tax return for the AY 2023–2024?

Nature of incomeITR 1*ITR 2ITR 3ITR 4*
Salary Income
Income from salary or pension (for an ordinarily resident person)
Income from salary or pension (for not ordinarily resident and non-resident persons)  
Any individual who is a Director in any company  
If payment of tax in respect of ESOPs allotted by an eligible start-up has been deferred  
Income from House Property
Income or loss from one house property (excluding brought forward losses and losses to be carried forward)
An individual has brought forward a loss or losses to be carried forward under the heading House Property.  
Income or loss from more than one house property  
Income from Business or Profession
Income from business or profession   
Income from a presumptive business or profession covered under sections 44AD, 44ADA, and 44AE (for a person resident in India)   
Income from a presumptive business or profession covered under Sections 44AD, 44ADA, and 44AE (for not ordinarily resident and non-resident persons)   
Interest, salary, bonus, commission, or share of profit received by a partner from a partnership firm   
Capital Gains
Taxpayer has held unlisted equity shares at any time during the previous year.  
Capital gains or losses on the sale of investments or property  
Income from Other Sources
Family Pension (for an ordinarily resident person)
Family Pension (for not ordinarily resident and non-resident persons)  
Income from other sources (other than income chargeable to tax at special rates, including winnings from the lottery and race horses or losses under this head)
Income from other sources (including income chargeable to tax at special rates, including winnings from the lottery and race horses or losses under this head)  
Total Income
Agricultural income exceeding Rs. 5,000  
Total income exceeding Rs. 50 lakhs  
The assessee has any brought forward losses or losses to be carried forward under any head of income.  

* An ITR-1 can be filed by an individual who is ordinarily resident in India.

* ITR-4 can be filed only by an Individual or HUF who is ordinarily resident in India and by a firm (other than an LLP) resident in India. 

  • Which ITR Form is to be used to report income from Crypto?
    If you have income from transferring cryptocurrencies (Virtual Digital Assets), you should report such income in ‘Schedule VDA’ in ITR-2 or ITR-3. It is important to note that you cannot use ITR-1 or ITR-4 to report this income.
  • What is the time limit for sending a signed copy of ITR-V to CPC or verifying the return furnished online?
    The time limit for e-verification or submission of the ITR-V is 30 days from the date of filing the return of income electronically. Earlier, the time limit was 120 days, which has been reduced to 30 days.
  • What are the consequences if a taxpayer fails to verify a return within 30 days?
    If a person fails to verify a return of income within 30 days from the date of submission on the e-filing portal, the return will be considered invalid. The same consequences that apply to taxpayers upon non-filing a return will apply to those who do not verify the return within 30 days.
  • When is it mandatory for a non-resident to file a return of income?
    If a non-resident person has income that is taxable in India, the filing of an income tax return shall be done in accordance with the provisions applicable in the case of the corresponding resident assessee.
  • Can a standard deduction of Rs. 50,000 be claimed against the salary from both employers?
    If the employee has earned during the year a salary from two different employers, A Standard Deduction of Rs. 50,000 is an absolute and unconditional deduction allowed to an employee, and it does not require any supporting evidence or investment. This deduction can be claimed only once per year, regardless of the number of job changes during that period. Therefore, one cannot claim the deduction of Rs. 50,000 twice for the salary received from both employers.
  • Profit from intra-day trading is taxable as business profit or capital gain.
    Intra-day trading is considered a speculative business, and the resultant gain or loss would be a speculative gain or loss. Speculative gain is taxed at normal rates, and speculative losses can only be set off against speculative profit.
  • Is a change in the ITR form permitted while filing the revised ITR?
    Yes, the revised return can be in a different form. The Income Tax Act does not prohibit the filing of a revised return in a new form.
  • When is it mandatory to file the return of income for an individual?
    • Income exceeds the basic exemption limit.
    • If an individual has an asset located outside India,
    • The filing of a return of income is mandatory, irrespective of gross total income, in the following cases:

      (a)He has deposited more than Rs. 1 crore in one or more current accounts maintained with a bank or a cooperative bank;
      (b)He has incurred more than Rs. 2 lakh for himself or any other person for travel to a foreign country; or
      (c)He has incurred more than Rs. 1 lakh towards the payment of his electricity bill.
      (d)If total sales, turnover, or gross receipts of the business exceed Rs. 60 lakh during the previous year,
      (e)If total gross receipts in the profession exceed Rs. 10 lakh during the previous year,
      (f)If the total tax deducted and collected during the previous year was Rs. 25,000 or more. The threshold limit shall be Rs. 50,000 in the case of a resident individual of the age of 60 years or more; or
      (g)If the aggregate deposit in one or more savings bank accounts of the person was Rs. 50 lakh or more during the previous year.

Case Laws

ADCC Infocom (P.) Ltd. V/s Principal Chief Commissioner of Income Tax [2023] 150 529 (Bombay)
Section: Section 119, read with Section 139 of the Income Tax Act, 1961

Facts: The assessee company for the relevant year filed its return of income belatedly, by 36 days. Thereafter, the assessee company filed an application seeking condonation of delay before the Principal Chief Commissioner of Income Tax (PCCIT), but the PCCIT rejected the application seeking condonation filed by the assessee company. 
Against the rejection of the application by the Ld. PCCIT, the assessee company filed a writ in the Hon. High Court.

Held: Central Board of Direct Taxes: Instructions to Subordinate Authorities (Condonation of Delay): Assessment Year 2020-21 The assessee filed a loss return on 23-3-2021 after a 36-day delay and sought condonation of the delay. The Principal Chief Commissioner rejected the application for condonation of delay. Whether, since the Chartered Accountant of the assessee had filed an affidavit before the Principal Chief Commissioner stating that there was a marriage of her elder sister on February 16, 2021, and she was discharging her family obligations and had taken responsibility, mentioning that there was failure on her part to file return before the due date, the case fell within the sweep of the phrase ‘genuine hardship’ used in Section 119(2)(b) and, thus, delay in filing return deserved to be condoned.

In Favour of: The Assessee.

Inter Continental Hotels Group [Asia Pacific] PTE Ltd. V/s Deputy Commissioner of Income Tax [2023] 151 416 (Delhi -TTrib.)
Section: Section 9 of the Income-tax Act, 1961, read with article 12 of Double Taxation Avoidance Agreement between India and Singapore

Facts: The assessee is a private limited company incorporated in Singapore and is a part of Inter Continental Hotels (IHG). It is a tax resident of Singapore as per the provisions of Article 4 of the India-Singapore Double Taxation Avoidance Agreement (‘DTAA’ or ‘tax treaty’).

 The primary business of the assessee is to franchise or licence hotels operating under different hotel brands of IHG in the Asia-Pacific region. The assessee, being the regional headquarters for the Asia Pacific region of the IHG Group, is the economic and beneficial owner of various hotel brands, including ‘InterContinental’, ‘Holiday Inn, and ‘Crowne Plaza’. The assessee was in receipt of royalty fees from various hotels within the Asia-Pacific region, including India, from the licencing of the various hotel brands. 

The assessee received for the relevant year management fees from one of its group companies situated in India, and the same was not treated as Fees for Technical Services (FTS) by the assessee when it filed its return of income. During the assessment proceedings, the Ld. Assessing Officer (Ld. AO), treating the management fees as FTS, added the same to the income.

Aggrieved by the order passed by the Ld. AO, the assessee filed an appeal before CIT (A), which upheld the order of the Ld. AO.

The assessee filed an appeal before the Hon. ITAT against the appellate order passed by the Ld. CIT (A).

Held: Assessee, a Singapore-based company, entered into a management support service agreement with its Indian group company (IHG India), for providing operational, accounting, training, and recruitment services, etc. and received a certain amount of consideration. Assessing Officer added Management Services Cost (MSC) to income of assessee, treating same as FTS. Commissioner (Appeals)  upheld additions of MSC as FTS under article 12(4)(a) of DTAA, treating receipts against MSC as ancillary and subsidiary to Licence Fee received from Indian Hotels, as against addition made by Assessing Officer under article 12(4)(b) of DTAA. – It was discovered that the co-ordinate bench had categorically held that the services provided by assessee did not make available any technical knowledge, skill, or know-how to the recipient, and thus the amount received by assessee could not be regarded as FTS under Article 12(4)(b). – Furthermore, in assessment years 2013-14 and 2014-15, the co-ordinate bench had also held that the amount received by assessee could not be regarded as FTS under Article 12(4)(b).

In Favour of: The Assessee

Circulars & Notifications May 2023


CBDT notifies certain amendments in the Income Tax Rules for applications for Advance Ruling.

CBDT notifies E-Advance Ruling (Amendment) Scheme, 2023

CBDT notifies Form 10-IEA to opt for the old tax regime from AY 2024–2025.


Revision of exceptions to monetary limits for filing appeals deferred under the provisions of Section 158AB
CBDT Released Guidelines to Remove Difficulties in Implementation of TCS on LRS and Overseas Tour Packages
CBDT extends the due date for filing TDS and TCS Statements for Q1 FY 2023-2024.

Press Release:

Gross Direct Tax collections for Fiscal Year (FY) 2023–24 register a growth of 12.73%.

Tax Compliance: June 2023

July 7, 2023

  • Due date for deposit of Tax deducted or collected for the month of June, 2023 However, all sums deducted or collected by an office of the government shall be paid to the credit of the Central Government on the same day that tax is paid without the production of an Income-tax Challan.

July 15, 2023 

  • The due date for the issue of a TDS Certificate for tax deducted under Section 194-IA/194-IB/194M/194S is May 20, 2023. 

July 30, 2023

  • The due date for furnishing a challan-cum statement in respect of tax deducted under Section 194-IA, Section 194-IB, and Section 194M is June 20, 2023. 

July 31, 2023

  • Return of income for the assessment year 2023–24 for all assessees other than (a) a corporate assessee or (b) a non-corporate assessee (whose books of account are required to be audited) or (c) a partner of a firm whose accounts are required to be audited or the spouse of such a partner if the provisions of Section 5A apply, or (d) an assessee who is required to furnish a report under Section 92E.

Tax News from Around the World

Spain offers an income tax rebate for electric car buyers. 

Egypt’s cabinet approves a draught law lifting tax exemptions for state bodies. 

Russia and Oman sign an agreement to avoid double taxation. 

Brazil’s lawmakers propose reforms combining consumption taxes.

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