central board of direct taxes

The income tax department on Friday invited comments from stakeholders on rules for valuing non-resident investment in unlisted startups. The Central Board of Direct Taxes (CBDT) has issued a draft notification inviting comments on the draft rule 11UA of Income-tax Rules, 1962, pertaining to the method of computation of fair market value (FMV) of unquoted equity shares for the purposes of section 56(2)(viib) of Income-tax Act, 1961. — IncomeTaxIndia (@IncomeTaxIndia) The rules would be effective from April 1, 2023. The…

India on Friday announced draft valuation rules for overseas investments into startups under the ‘angel tax’ regime, providing foreign investors greater flexibility in determining the fair market value of unquoted equity shares. The rules released for public feedback offer investors the choice of five valuation methods for determining angel tax incidence under Section 56(2)(vii)(b) of the Income Tax Act 1961, which should help reduce valuation disputes common under the cash flow method and net asset value method allowed…

Online gaming companies will be required to deduct taxes at source if players claim their net winnings, including bonuses or incentives, according to guidelines issued by the Central Board of Direct Taxes.However, bonuses or incentives will not be taxed if they are not claimed or withdrawn, the agency said.Net winnings will be calculated by subtracting the amount withdrawn by a customer from the sum total of deposits in the account and opening balance at the beginning of the year.The net winnings of a player on online…

The government has decided to make the tax deducted at source (TDS) on winnings from online games applicable from April 1, instead of July 1 — a move that gaming companies have welcomed, saying it would reduce compliance burdens and potential tax disputes.“It would have been problematic if the TDS would have been applicable from July as the financial year starts from April 1 and the period from April-June would have been an exposure, and even potentially open to dispute with tax authorities,” Saumya Singh, CEO of online…

The Central Board of Direct Taxes Chairperson Sangeeta Singh on Tuesday said that an issue relating to the search functionality and non-accessibility of the e-filing website has come to its notice. "The Income Tax Department is seized of the matter. Infosys has been directed to look into it and Infosys has confirmed that they are resolving the issue on priority," assured CBDT Chairperson Sangeeta Singh while adding that there no breach of data happened."Her remarks came on the sidelines of the release of an e-book titled…