Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Direct Tax »
Open DEMAT Account in 24 hrs
 CBDT drops small tax demands but not TCS, TDS claims
 ITR Refund: Awaiting money from Income Tax? Here's why you have not yet received your amount
 Income Tax Notice: What to do if you receive a Section 143 (1) notice from taxman?
 Average tax return processing time cut to 10 days: CBDT
 7 types of Income Tax Notice ITR filers may receive for AY 2023-24
 ITR filing: Do these advance preparations before filing your income tax return
 What are the strategies to maximize tax refunds after submitting an income tax return (ITR)?
 ITR filing: Tax rules on income from house property that your should know
 CBDT likely to issue rules on angel tax next week
 Pension Taxation: Everything you need to know for ITR filing
 Income tax guide on pension: How to file pension income in ITR?

Tax department changes rule for accommodating deductions for deferred spectrum payment
October, 08th 2016

In view of the telecom spectrum auctions that concluded on Thursday, the income tax department has suitably amended the deductions provision to accommodate deferred payments allowed to acquire airwaves.

It has allowed telecom companies to claim deductions for expenditure made in instalments.

The current rule provides that payment actually made would be taken for consideration for allowing deductions, which is given in equal instalment a year. The changed rule would accommodate deferred instalments as well, and allow deductions spread over the useful life of spectrum.

Had the change not been made and if the payments were to be made over say, three years, it would cause difficulties for taxpayers in the claiming the expenditure over the useful life of the spectrum.

The government allows operators to pay spectrum fee in instalments. In the just concluded auction telecom operators are not required to pay the full amount upfront. They have to pay only 50 per cent of the total amount of spectrum sold in bands of over 1GHz and 25 per cent for airwaves under that.

“It is interesting to note that the government has resorted to amending the Income-Tax Rules to provide for a wider definition of a phrase which is already specifically defined in the Act. Given the practical issues involved, it was probably unavoidable. The question still remains whether the law should have been drafted better, considering all practical issues involved at the outset,” said Rahul Jain, partner, Nangia and Co.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting