Every year, the announcement of the Union Budget is eagerly awaited as one of the key tax policy events in India. This year was no different.
Amongst various tax amendment proposals announced this year, proposal for taxing ‘cash’ benefits and perquisites is likely to have a wide-reaching impact on the taxpayers, especially in the context of waiver of debts due from a corporate debtor. More than the corporate debtor, the amendment may prove to be burdensome for the lender waiving such debts due to withholding tax liability imposed upon such lender.
This article aims to discuss the proposed amendment and its impact in the context of waiver of debt.
Link: Tax on ‘Cash’ benefits and perquisites – Applicability on waiver of debts | Lakshmikumaran & Sridharan Attorneys (lakshmisri.com)
Audio Source: An article published on the LKS website in March 2023.
Authors: Harshit Khurana, Principal Associate, LKS