4 and 10) of the ITAT order case reveals that the ITAT allowed deduction of “provision for standard-assets.”Ģ. That a careful reading of the Nagaur Urban Co-operative Bank Ltd.( Para No. case, deduction was allowed for NPA and not for standard-assets.Īrguments advanced in rejoinder on behalf of the assessee:ġ. that in the Nagaur Urban Co-operative Bank Ltd. That the Standard assets” are those assets which are adequately serviced by the borrowers and cannot be considered as “bad debts.” Therefore, the assessee has wrongly characterized them as “bad debt” and claimed deduction.Ģ. 240/Jodh/2013 wherein the “provision for standard assets” was held to be a provision for bad debts allowable u/s 36(1)(viia).ġ. That the issue is covered in favour of the assessee by the decision of ITAT, Jodhpur in Nagaur Urban Co-operative Bank Ltd. 5 crores qua standard assets) is entitled for deduction.Ĥ. 10 crores (including the provision of Rs. That Section 36(1)(viia) allows deduction of the “provision for bad-debts” made as per RBI guidelines, hence the entire provision of Rs. 5 crores on account of standard-assets, though made under two nomenclatures, is a provision for bad-debts in terms of RBI guidelines.ģ. The provision made for bad-debts i.e., Rs. That the assessee is engaged in banking business and it is bound to follow the guidelines issued by Reserve Bank of India (RBI).Ģ. AO after analysing section 36(1)(viia) of the income tax framed a view that: “Provision for NPA” is a provision for bad-debt and therefore allowable as deduction but “Provision for standard assets” is not a provision for bad-debt and therefore not allowable.Īrguments advanced on behalf of the assessee:ġ. Provision for Non-Performing Assets – Rs. The assessee had claimed a total deduction of Rs.ITAT Indore holds Provision for Standard Assets as Allowable Deduction under Section 36(1)(viia) of Income Tax Act, 1961 “ Retirement Savings Contributions Credit (Saver’s Credit).ACIT Vs Jila Sahakari Kendriya Bank (ITAT Indore)
" Retirement Savings Contributions Credit (Saver's Credit)."
“ Amount of Roth IRA Contributions That You Can Make for 2022.” “ IRS Announces 401(k) Limit Increases to $20,500.” “ Retirement Topics - IRA Contribution Limits.” “ Retirement Topics - Catch-Up Contributions.” " IRS: Expanded Credits for Families Highlight Tax Changes for 2021 Many People Who Don’t Normally File Should File This Year." " The “Childless” EITC: Temporary Expansion for 2021 Under the American Rescue Plan Act of 2021 (ARPA P.L. “ H.R.1319 - American Rescue Plan Act of 2021.”Ĭongressional Research Service. “ IRS Provides Tax Inflation Adjustments for Tax Year 2022.” The child tax credit for tax years 2022 and onward reverts back to pre-2021 rules. The credit was fully refundable for that amount in 2021. The maximum refundable portion of the child credit for each child under age 17 was limited to $1,400 per child. President Biden’s American Rescue Plan made changes to the Child Tax Credit for 2021, increasing the credit to as much as $3,000 per child ($3,600 for ages 6 and younger) and raising the age limit for qualifying children to 17 (from 16). Child Tax Credit: Reverts to Pre-2021 Rules for 2022 The upper age limit of 65 is eliminated.įor single filers, the phaseout percentage rises to 15.3%, and phaseouts increase to $11,610.
The age range expanded so people without children can claim the EITC as of age 19, instead of 25, with the exception of certain full-time students (students ages 19 to 24 with at least half a full-time course load are ineligible). The American Rescue Plan, signed by President Biden on March 11, 2021, includes generous tax breaks for people whose self-reported incomes were in the lowest income bracket.
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