« Top Headlines » Open DEMAT Account in 24 hrs  New Income Tax Act: ITR forms to be issued prior to FY28, says govt  GSTR-9C Explained: Turnover Limit, Due Date, Statement Format & How to Prepare It in Tally Prime (2025 Update)  Will Income Tax Department release new ITR forms by January 2026? Finance Ministry says this  The Government of India has strengthened MSME protection through strict payment rules, ensuring that Micro & Small Enterprises receive timely payments from buyers. Under the MSME Development Act (MSMED Act), 2006, buyers must make payments within:  ITR Refund Delays in India: Why They Happen & How to FastTrack Your Refund in 2025  ITR Refund Delay: From Bank Errors To Department Checks, 5 Big Reasons Your Refund Gets Stuck  Income Tax Slabs 2025: New Vs Old Regime; Which One Is Better For You For FY2025-26?  Seamless Integration: How Tally Prime Connects Businesses to the Digital Economy  Govt to notify new ITR forms, Income Tax Act 2025 rules by January 2026: CBDT chief  Digital Efficiency for MSMEs: The Tally Prime Advantage  5 Ways Tally Prime Reduces Cost and Boosts Productivity for Startups «  FM confident indirect tax kitty to exceed Budget target... EoU tax break extension unlikely... » I-T Dept asks CBDT to clarify non-compete fee February, 25th 2008 The Income Tax Department has sought clarity from the Central Board of Direct Taxes (CBDT) on non-compete fee, which at present remains mostly outside the tax net.   Non-compete fee is a compensation for not sharing knowhow, patent, copyright, trademark, licence, franchise or any other business or commercial right or information or technique used in manufacturing or processing of goods or provision for services.   According to income tax officials, Section 55(2) of the I-T Act estimates the cost of right to carry on any business as nil.   However, non-compete compensation received by a person carrying on a reputed business is not explicitly covered in the clause right to carry on any business and is claimed as capital receipt. The department has favoured an amendment to Section 28 of the I-T Act to exclude such compensation from the list of capital transactions.   The non-compete fee is shown as capital receipt and thus gets exemption.   Besides, growth in the knowledge-based industry in India has led the department to propose taxation of new items like intellectual property and activities in e-commerce.   Officials say there has been a sudden increase in intellectual property transactions like consultation and creation of art and software, which could be taxed by including them under the purview of tax deducted at source (TDS).   A similar view has been taken for e-commerce. Most of these activities, including online booking of tickets, online trading of shares, transactions involving electronic downloading of music, films, technical knowhow, fund transfer and software are currently out of the tax net.   Sources said these could not be taxed since a suitable definition of place of control and management could not be established in such cases. Thus, these items could also be bought under TDS, sources added.   The growing garments and cloth material business also seems to have caught the attention of the tax authorities.   Officials say a large part of such materials are outsourced from small-scale industries (SSIs) and then labelled for retail sale. Tax officials have suggested that these retailers should deduct tax at source and pay these SSIs to check the problem of non-payment of dues.