427
June 29 To July 5, 2019 u Taxmann’s Corporate Professionals Today u Vol. 45 u 15- Holding period in case of conversion
of FCEB into shares
According to the provisions of section 47(xa)
conversion of Foreign Currency Exchangeable
Bonds into shares is not regarded as transfer.
Capital gains will arise at the time of transfer
of shares received at the time of conversion.
However, there is no corresponding provision
for taking holding period of the shares from
the day of acquisition of the FCEB.
So, it is suggested that provision should be
made in section 2(42A) to provide that holding
period of such shares should be taken from
the date of acquisition of FCEB and not from
the date of allotment of shares.
- Allow payment of advance tax in
single instalment to taxpayers opting
for presumptive taxation scheme under
Section 44AE
Section 211 of the Income-tax Act, 1961 pro-
vides due dates and the amount of advance-tax
payable in instalments by the taxpayers. This
provision provides that a taxpayer is required
to pay the advance tax in four instalments
during the financial year on the specified
due dates. However, this provision allows the
taxpayers, who have opted for presumptive
taxation scheme under Section 44AD and
Section 44ADA, to pay 100% of advance tax
by 15th March of the financial year.As there are more presumptive taxation
scheme allowed under Section 44AE, 44B,
44BB, etc. but this option to pay advance
tax in single instalment is allowed only for
those tax payers who have opted for Section
44AD and 44ADA presumptive scheme. If
the analogy behind such provision was to
extend this option to only resident taxpay-
ers, then this option should be allowed to
those resident taxpayers as well who have
opted for Section 44AE presumptive scheme.
Thus, it is recommended that the forthcoming
budget should extend the choice of payment
of entire advance tax in single instalment to
those assessees as well who have opted for
section 44AE presumptive scheme.
lllEXPECTATIONS FROM AND RECOMMENDATIONS FOR UNION BUDGET 2019