Latest news with #IncomeTaxAct
Mint
an hour ago
- Business
- Mint
Will money crowdfunded from relatives, friends to pay medical bills be taxed?
Any amount received without consideration from a relative would not be taxable and is specifically exempt under section 56(2)(x) of the Income Tax Act, 1961. In respect of your mother, amounts received from her brother would be considered as those received from a relative and would, therefore, not be taxable. In your case, the amount received from your maternal grandmother, as well as the wife of your mother's brother, would also be considered as received from relatives and would therefore not be taxable. In respect of the amounts received from your friends and your mother's friends, these could be considered as taxable in your hands as they are not received from relatives. While one could have taken a view that amount received with a clear condition for spending for a particular purpose should not constitute income in the hands of the receiver, a recent ITAT decision has held that such crowdfunded amount received is taxable in the hands of the recipient under section 56(2)(x). The ITAT decision was primarily based on the fact that there was a mixing of the funds raised from crowdfunding with personal funds, and that the funds were not fully utilised for the purpose for which they were raised. Accordingly, if you have received the funds in a separate bank account, which is then used to incur the hospital and rehabilitation expenditure, or if you can clearly substantiate the link between the funds received and the amounts incurred, you may be able to distinguish your case from the facts in this ITAT case. It may be possible to argue that the funds were received for spending for a specific purpose, were spent for that purpose, and that you were merely a channel for paying the funds on behalf of the contributors. Alternatively, one can also consider claiming a deduction for the hospital expenses incurred out of the amounts received, on the ground that incurring these expenses was the condition for receiving the crowdfunding amounts. However, the matter is highly debatable. Therefore, it would be necessary for you to maintain documents to substantiate that the amounts were received with the obligation to spend on hospitalisation and rehabilitation. Mahesh Nayak, chartered accountant, CNK & Associates.
Hans India
a day ago
- Business
- Hans India
Noted CA awarded PhD for research on capital gains taxation
Hyderabad: Noted Charted Accountant Dr Vemulapati Sridhar was awarded PhD in Law by the Symbiosis International (Deemed University) for his research on 'Capital Gains Taxation in India – Issues, Challenges and a Blueprint for the Future.' The research was carried out under the guidance of Dr Bindu S Ronald, Vice-Chancellor, Maharashtra National Law University, Chatrapati Sambhaji Nagar (formerly Aurangabad), (formerly Professor Symbiosis Law School Pune). The research thesis clearly points out the issues and challenges in the present law relating to taxation of capital gains under the Income Tax Act, 1961 and suggests reforms and remedial measures. A native of Nizamabad, Sridhar qualified as Chartered Accountant in 1993 and is in practice since then. He has over 30 years of experience as a practicing CA and was elected as a member of Managing Committee of Hyderabad Branch of SIRC of ICAI thrice and was the Chairman of the Managing Committee in 2007-2008.
Yahoo
2 days ago
- Business
- Yahoo
Galway Metals Announces Closing of Oversubscribed Private Placement
TORONTO, May 30, 2025 (GLOBE NEWSWIRE) -- Galway Metals Inc. (TSXV: GWM) ('Galway' or the 'Corporation') is pleased to announce that it has closed a non-brokered private placement (the 'Private Placement') consisting of an aggregate of 7,350,000 flow-through shares of the Corporation ('FT Shares') at a price of $0.36 per FT Share and 4,635,000 units of the Corporation ('Units') at a price of $0.33 per Unit for aggregate gross proceeds to the Corporation of $4,175,550. The original offering was increased as the amount surpassed the Corporation's previous target of $4,000,000. Each Unit consists of one common share of the Corporation, and one common share purchase warrant (a 'Warrant'). Each Warrant will entitle the holder to acquire one non-flow-through common share of the Corporation for an exercise price of $0.50 per share for a period of 3 years from the closing date of the Private Placement. Each FT Share qualifies as 'flow-through shares' within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the 'Tax Act'). The gross proceeds of the Private Placement will be used for 'Canadian exploration expenses' (within the meaning of the Tax Act), which will qualify, once renounced, as 'flow-through mining expenditures', as defined in the Tax Act, which will be renounced with an effective date of no later than December 31, 2025 (provided the subscriber deals at arm's length with the Corporation at all relevant times) to the subscribers of FT Shares in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares. In connection with the closing of the Private Placement, arm's-length finders, Eskar Capital Corporation, Devon Capital Inc., and Generic Capital Corporation will receive an aggregate of $116,640 as cash finders' commissions. Pursuant to applicable Canadian securities laws, all securities issued in connection with the Private Placement are subject to a hold period of four months and one day, expiring on October 1, 2025. The Private Placement remains subject to the final approval of the TSX Venture Exchange (the 'TSXV'). About Galway Metals Inc. Galway Metals is focused on creating significant per share value through the exploration and sustainable development of its two 100%-owned projects in Canada. Galway's flagship project, Clarence Stream, is one of the most important gold districts in Atlantic Canada as it hosts a large, high-grade gold resource in SW New Brunswick. Also important is Estrades, the former-producing, high-grade, gold- and zinc-rich polymetallic VMS mine in the northern Abitibi of western Quebec as it hosts significant resources in the middle of a major gold camp. After its successful spinout to existing shareholders from Galway Resources following the completion of the US$340 million sale of that company. The company is looking to replicate the same success in Canada with our two highly perspective projects. Should you have any questions and for further information, please contact (toll free): Galway Metals Inc. Robert Hinchcliffe President & Chief Executive Officer 1-800-771-0680 Website: Email: info@ us up on Facebook, Twitter or LinkedIn NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS press release contains forward-looking statements, which reflect the Corporation's current expectations regarding future events, including with respect to the Corporation's business, operations and condition, management's objectives, strategies, beliefs and intentions, and the use of proceeds from the Private Placement. The forward-looking statements involve risks and uncertainties. Actual events and future results, performance or achievements expressed or implied by such forward-looking statements could differ materially from those projected herein including as a result of a change in the trading price of the common shares of the Corporation, the TSXV not providing its final approval for the Private Placement, the interpretation and actual results of current exploration activities, changes in project parameters as plans continue to be refined, future prices of gold and/or other metals, possible variations in grade or recovery rates, failure of equipment or processes to operate as anticipated, the failure of contracted parties to perform, labor disputes and other risks of the mining industry, delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the Corporation's publicly filed documents. Investors should consult the Corporation's ongoing quarterly and annual filings, as well as any other additional documentation comprising the Corporation's public disclosure record, for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. Subject to applicable law, the Corporation disclaims any obligation to update these forward-looking in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Galway Metals Announces Closing of Oversubscribed Private Placement
TORONTO, May 30, 2025 (GLOBE NEWSWIRE) -- Galway Metals Inc. (TSXV: GWM) ('Galway' or the 'Corporation') is pleased to announce that it has closed a non-brokered private placement (the 'Private Placement') consisting of an aggregate of 7,350,000 flow-through shares of the Corporation ('FT Shares') at a price of $0.36 per FT Share and 4,635,000 units of the Corporation ('Units') at a price of $0.33 per Unit for aggregate gross proceeds to the Corporation of $4,175,550. The original offering was increased as the amount surpassed the Corporation's previous target of $4,000,000. Each Unit consists of one common share of the Corporation, and one common share purchase warrant (a 'Warrant'). Each Warrant will entitle the holder to acquire one non-flow-through common share of the Corporation for an exercise price of $0.50 per share for a period of 3 years from the closing date of the Private Placement. Each FT Share qualifies as 'flow-through shares' within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the 'Tax Act'). The gross proceeds of the Private Placement will be used for 'Canadian exploration expenses' (within the meaning of the Tax Act), which will qualify, once renounced, as 'flow-through mining expenditures', as defined in the Tax Act, which will be renounced with an effective date of no later than December 31, 2025 (provided the subscriber deals at arm's length with the Corporation at all relevant times) to the subscribers of FT Shares in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares. In connection with the closing of the Private Placement, arm's-length finders, Eskar Capital Corporation, Devon Capital Inc., and Generic Capital Corporation will receive an aggregate of $116,640 as cash finders' commissions. Pursuant to applicable Canadian securities laws, all securities issued in connection with the Private Placement are subject to a hold period of four months and one day, expiring on October 1, 2025. The Private Placement remains subject to the final approval of the TSX Venture Exchange (the 'TSXV'). About Galway Metals Inc. Galway Metals is focused on creating significant per share value through the exploration and sustainable development of its two 100%-owned projects in Canada. Galway's flagship project, Clarence Stream, is one of the most important gold districts in Atlantic Canada as it hosts a large, high-grade gold resource in SW New Brunswick. Also important is Estrades, the former-producing, high-grade, gold- and zinc-rich polymetallic VMS mine in the northern Abitibi of western Quebec as it hosts significant resources in the middle of a major gold camp. After its successful spinout to existing shareholders from Galway Resources following the completion of the US$340 million sale of that company. The company is looking to replicate the same success in Canada with our two highly perspective projects. Should you have any questions and for further information, please contact (toll free): Galway Metals Inc. Robert Hinchcliffe President & Chief Executive Officer 1-800-771-0680 Website: Email: info@ us up on Facebook, Twitter or LinkedIn NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICE PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS press release contains forward-looking statements, which reflect the Corporation's current expectations regarding future events, including with respect to the Corporation's business, operations and condition, management's objectives, strategies, beliefs and intentions, and the use of proceeds from the Private Placement. The forward-looking statements involve risks and uncertainties. Actual events and future results, performance or achievements expressed or implied by such forward-looking statements could differ materially from those projected herein including as a result of a change in the trading price of the common shares of the Corporation, the TSXV not providing its final approval for the Private Placement, the interpretation and actual results of current exploration activities, changes in project parameters as plans continue to be refined, future prices of gold and/or other metals, possible variations in grade or recovery rates, failure of equipment or processes to operate as anticipated, the failure of contracted parties to perform, labor disputes and other risks of the mining industry, delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the Corporation's publicly filed documents. Investors should consult the Corporation's ongoing quarterly and annual filings, as well as any other additional documentation comprising the Corporation's public disclosure record, for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. Subject to applicable law, the Corporation disclaims any obligation to update these forward-looking in to access your portfolio
Time of India
2 days ago
- Business
- Time of India
Dalmia Bharat gets SC relief in ₹500 crore KKR investment tax dispute
The Supreme Court has put a hold on income tax reassessment proceedings against Dalmia Bharat and its subsidiaries. This involves a Rs 500 crore investment by KKR Mauritius Cement Investments in Dalmia Cement back in 2010-2011. The court is seeking a response from the income tax department regarding the reassessment. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Supreme Court on Friday stayed the income tax department 's decision to initiate reassessment proceedings against Dalmia Bharat and its two subsidiaries - Dalmia Cement (Bharat) and Dalmia Power - for assessment year issue relates to an investment of Rs 500 crore made by KKR Mauritius Cement Investments KKR ) in Dalmia Cement (Bharat) in financial year 2010-2011 (Assessment Year 2011-2012). KKR was allotted 37.92 million equity shares, accounting for 14.99% of the stake in the company. The shares were bought back by Dalmia Bharat (DBL) in 2016 for Rs 1218 crore.A Bench led by Chief Justice BR Gavai sought response from the income tax department on three separate appeals by Dalmia group firms challenging the Madras High Court's order upholding the income tax department's reassessment and its two subsidiaries argued that the transaction of the alleged purchase of shares by DBL from KKR is not even applicable in the relevant AY - 2011-2012 as there wasn't even a buyback. It was a simple sale transaction from KKR to DBL, senior counsel D Seshadri Naidu, appearing for the companies, submitted that even the jurisdictional requirement of Section 147 of the Income Tax Act, as to 'where income chargeable to tax has escaped assessment' is not satisfied in the Reasons for Reopening (Explanation 2 to section 147 of the IT Act).The Reasons for Reopening do not even justify reopening of the assessment after a period beyond four years, the appeals filed through counsel Mahesh Agarwal from the fact that all investments were through banking channels and RBI approvals, the investment itself was disclosed in the audited accounts with the Ministry of Corporate Affairs (compliances under Companies Act, 1956) and Reserve Bank of India for compliances under Foreign Exchange Management Act, 1999, the companies said.'Details of KKR's investments in petitioner, therefore, have been disclosed to various regulatory authorities, including the tax authorities in the relevant AY 2011-2012,' the appeals stated, adding that the Reasons for Reassessment are 'wholly vague and ambiguous.'Dalmia told the SC that no income is alleged to have escaped assessment on account of the investment KKR. On the contrary, the department had alleged that the shareholding of KKR in DCBL has been bought back by DBL from KKR at a value more than Rs 1200 crore and the whole transaction needs to be investigated properly to find out if any black money has been used and whether transaction had escaped any income tax Assessing Officer (AO) had proposed to reopen the tax assessments of the three companies as this amounted to round-tripping, the counsel the tax reassessment proposal, the companies had moved a single-judge bench of the HC, which had ruled against reopening on the grounds that Dalmia Cement (Bharat) had disclosed the investment made by KKR in their tax returns. However, the division bench ruled to the contrary relying on the AO's materials that prima facie indicated that KKR was a shell company and there was also round tripping.
