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  • Prevention of Money Laundering Act, 2002: An Overview

    Introduction The Financial Action Task Force (FATF) has defined “money laundering” as the processing of criminal proceeds to disguise their illegal origin in order to legitimise the ill-gotten gains of crime.[1] The process of Money laundering takes place in three different stages.[2] In stage one, the crime money is injected into the formal financial system.…

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  • Right to Property: From 1st amendment to 44th

    Right to Property in 1950 As the Indian Constitution stood on January 26, 1950, right to property was derived from Articles 14, 19(1)(f), 19(5), 31, 32, 39(b) and (c), 226 and 265. The gist of the aforementioned provisions shall be stated as[1]: Every citizen has the right to acquire, hold and dispose of property, however,…

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  • Related Party Transactions

    Introduction The Directors have the Company collectively manage the affairs of the Company as a Board, but they are all individually obligated to perform their duties of good faith and fair dealing. It is often seen the companies indulge in business transactions with third parties with whom they have pre-existing relations. This also, often leads…

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  • Secondary Adjustment

    Introduction In 2017 OECD issued “Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations” where it introduced the concept of secondary adjustment to prevent erosion of tax. This has been incorporated in the Income Tax Act, 1961 under Section 92CE. It defines secondary adjustment as: “Secondary adjustment means an adjustment in the books of account…

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