Embedded Files
18 June 2020
Form 26 AS is issued under section 203AA of the income tax act. It contains the details of tax deducted at source. Form 26AS include various details which are as follows: Form 26 AS contains the details of taxes paid tax refunds that have been received. The purchaser of immovable property deducts tax at...
Continue reading
27 May 2020
Watchdog to Settle Your Income Tax Grievances This time there is an independent Watchdog whom you can approach for seeking effective resolution of your income tax grievances and even obtain a token compensation of Rs.1000 for the loss suffered by you. The reason behind this step is the delay in getting your refund, rectification...
Continue reading
26 May 2020
Unexplained money is any money credited to a taxpayer for which the taxpayer cannot provide any explanation or information about the nature or source of the money from where he did earn. Under the IT Act, any unexplained Income to a taxpayer’s account can be held as income to the taxpayer and taxable under...
Continue reading
26 May 2020
This is a scheme relating to the import of capital goods at zero duty. The benefit of zero duty is subject to the fulfillment of export obligations and other conditions. The objective: To facilitate the import of capital goods for producing quality goods and services to enlarge India’s export competitiveness. Schemes: 1. Import capital...
Continue reading
26 May 2020
The tax planning exercise ranges from devising a model for the specific transactions as well as for systematic corporate planning. These are: (a) Short-range and Long-range Tax Planning Short-range planning refers to year to year planning to achieve some specific or limited objective. For example, an individual assessee whose income is likely to register...
Continue reading
22 May 2020
Salaried persons constitute a large portion of total taxpayers in India and their contribution to total tax collection. As there are various allowances and perquisites available to an employee, and so forth. List of benefits available to Salaried Persons House Rent Allowance, Children Education Allowance, Hostel Expenditure Allowance, Transport Allowance and other allowances Perquisites...
Continue reading
22 May 2020
What is HUF? HUF signifies Hindu Undivided Family. Save taxes by creating a family unit and pooling in assets to form a HUF. HUF is the tax charged separately from its members. A family can come together and Create a HUF. any other may form a HUF like Buddhists, Jains, and Sikhs, etc. HUF...
Continue reading
22 May 2020
RETURN OF LOSS SECTION 139(3) This section requires the assessee to file a return of loss in the same manner as in the case of return of income within the time allowed under section 139(1). Section 80 requires mandatory filing of return of loss under section 139(3) on or before the due date specified...
Continue reading
22 May 2020
Interest for Default in Furnishing Return of Income Under Section 234A Interest under section 234A is attracted to failure to file a return of income on or before the due date under section 139(1) (i.e., interest is payable where an assessee furnishes the return of income after the due date or does not furnish...
Continue reading
22 May 2020
COMPULSORY FILING OF RETURN OF INCOME UNDER SECTION 139(1) As per this section, organizations and firms must file a return of income or loss for every previous year on or before the due date in the prescribed manner. A person other than a company or a firm, filing of return of income on or...
Continue reading
20 May 2020
A rebate is one of the income tax provisions that help taxpayers reduce their tax liability. Taxpayers earning an income under a certain limit have the benefit of paying marginally lower taxes. Let’s know the rebate available under section 87A in detail: Eligibility to claim rebate u/s 87A You can claim the benefit of...
Continue reading
19 May 2020
Residential Status for Income Tax – Individuals & Residents The Income Tax Department needs to determine the residential status of an individual or company. It becomes particularly important during the tax filing season. This is one of the factors based on which a person’s taxability is decided. Let us examine the residential status and...
Continue reading
19 May 2020
Administration of income tax Ministry of Finance Department of Revenue CBDT Assessing Officers Commissioners Charging Section – Section 4 Section 4 of the Income-tax Act is the charging section which states that: The tax shall be charged at the rates prescribed, for the year, by the annual Finance Act. The charge is on every...
Continue reading
19 May 2020
Concept of Leave Encashment Every salaried person as per labor law is entitled to at least a minimum number of paid leave every year. However, an individual employee doesn’t need to utilize all the leave he is entitled to a year. In actuality, most employers allow the employees the option of carrying forward such...
Continue reading
19 May 2020
Prices of goods rise over the period resulting in a reduction in the purchasing power of money. For example -If 2 units of goods could be bought for Rs.100 today, tomorrow only 1 unit might be available for Rs. 100 due to increasing inflation. CII is used for calculating the estimated increase in the...
Continue reading
19 May 2020
Tax Deducted at Source for the non-resident people of India is governed by section 195 of the Income Tax Act, 1961. This section highlights the tax rates and deductions related to all business transactions. According to this section, the income is chargeable under the Income Tax Act and the certificate for remittance is mandatory....
Minimum Alternative Tax is payable by the companies under the Income Tax Act 1961. MAT was introduced with a view to target companies that make huge profits and pay dividends to their shareholders but at the same time pay no or minimal tax under the normal provisions of the Income Tax Act, 1961 by...
18 May 2020
Charitable trusts are the trusts which are formed charitable purposes like- to provide relief to poor, medical relief, education, preservation of environment/ monuments, the advancement of objects of general public utility, religious purpose, etc. Their taxation has always been a subject of concern. The income of such trust is taxed as per the provisions...
18 May 2020
Form 16 is a certificate issued under sec 203 of Income Tax Act for TDS (tax deduction at source) from salary. Form 16 shows a detailed record of tax deducted by the employer from the salary of the employees. Form16 includes complete details of salary, its components paid by the employer as well as...
18 May 2020
PPF Scheme is very common among the investors or financial advisors for its flexible nature. Also, the tax benefits one can avail from a Public Provident Fund scheme make the plan fruitful. To motivate small investments among the people, the Ministry of Finance, Govt. of India initiated the PPF (Public Provident Fund) in the...
16 May 2020
Section 80G Deduction for donations towards Social Causes Various donations specified under section 80G of the Income-tax Act, 1961 are eligible for deduction up to 100% or 50% with or without any restriction. From Financial Year 2017-18 any donations made in cash for more than Rs 2,000 will not be allowed as deduction. The donations for more...
16 May 2020
Section 80EE Deductions on Home Loan Interest for First Time Home Owners Deduction under section 80EE is available in Financial Year 2017-18 if the loan has been taken in the financial year 2016-17. The deduction is available only to an individual having only one house property on the date of sanction of the loan. The value...
16 May 2020
About: Form 26AS includes information regarding tax deducted at Source(TDS) on income by deductors, details of tax collected at source(TCS) by collectors, Advance tax paid by the assessee, Self-assessment tax payments, Regular assessment tax deposited by the assessee (PAN holders), Details of the refund received by the assessee during the financial year, Details of...
16 May 2020
Form 16- Basics Form 16 is a certificate of Tax Deducted at Source(TDS) from salary. It is issued by an employer and it contains the information which is required to file an Income Tax Return(ITR). An Employer shall issue Form 16 every year on or before 15th June of the next year, immediately after...
16 May 2020
Introduction The Income Tax Act,1961 classifies capital assets into two types: short-term capital asset and long-term capital asset. Section 54 of the Income Tax Act, 1961 provides an exemption in the case of Long term capital gain (LTCG) on the transfer of residential house property if certain conditions are satisfied by the assessee. It...
16 May 2020
What is TCS? TCS is an abbreviation for Tax Collection at Source. The provision of TCS is governed by section 206C. TCS is one of the Models of collecting Income-tax from the taxpayer, where the seller will collect tax from the buyer and will pay the same to the government. TCS Rate Section Particulars...
15 May 2020
What is a refund? A taxpayer who has paid higher taxes to the government in the previous financial year than their actual liability is required to file their income tax return to get eligible to claim the refund of the excess amount paid by the assessee. The excess tax paid by the assessee is...
14 May 2020
This bill is Inspired by the success of the SabkaVishwas Scheme which reduced several disputes. Its objective is to collect taxes and reduce litigation. A complete waiver of interest and penalty of the taxpayers is being offered under this scheme, who pay their taxes, in dispute, on or before March 31, 2020. Who is...
14 May 2020
Any profits or gains arising from the transfer of a capital asset effected in the previous year shall be chargeable to income-tax under the head ‘Capital Gains’. Capital asset means – Property of any kind held by an assessee whether or not connected with his business or profession. Any securities held by a Foreign...
14 May 2020
Udyog Aadhar is known as Aadhaar for Business. It’s a twelve-digit Unique Identification Number Provided by the Government of India through the Ministry of Micro, Small and Medium Enterprises, for small and medium enterprises in India. Number A recognition certificate is also provided by Government along with Unique identification Number Udyog Aadhaar scheme was launched...
14 May 2020
Every taxation system requires assessment. The assessment generally means a determination of tax or in other words, it is the process of examination of the returns by the Income Tax Department. As every person whose income is chargeable to tax has to furnish income tax return. Once a return is furnished by the assessee,...
13 May 2020
E-Tax Payment facilitates the payment of direct taxes online. If TAN/ PAN is valid, you will be allowed to fill other details of the challan like the accounting head under which payment is made, name and address of TAN, and also select the bank through which payment is to be made, etc. To pay your Income Tax dues online, first, you have...
13 May 2020
Income transferred without transfer of Assets If a person transfers income to another person, without transfer of the asset from which the income arises, then such income shall be taxable in the hands of the transferor. For example: Mr. X transferred his interest income on FD to Mr. Sharing without transferring the FD. Interest...
8 May 2020
Income Tax Return of the Deceased by his Legal Heir The Income Tax Return for a Deceased person has to be filed, If he/she has taxable income. His legal heir/representative needs to file the return on his behalf for the income earned till the date of his death. The legal heir is the person...
8 May 2020
What is ITR? Income Tax Return is a form in which the taxpayers file their details about his income earned and tax applicable to the income tax department. The Income Tax department has notified various types of forms i.e. The taxpayer should file his ITR on or before the specified due date. ITR forms...
8 May 2020
About: The ITR 3 is applicable for individuals and HUF who have income from PGBP. Persons generating income from the following sources are eligible to file ITR 3. a. Carrying on a profession or business ( both tax audit and non-audit cases). b. The return may include income from Salary/Pension, House property, and Income from other sources. Structure...
7 May 2020
About: According to Section 10 of the Income Tax Act, the salaried employees are allowed to enjoy the tax exemption. The objective of section 10 of the Income Tax Act is to minimize the burden of the different structure of the tax such as rent allowance, allowance for children education, travel allowance, gratuity and...
7 May 2020
Section 80DDB Deduction for Medical Expenditure on Self or Dependent Relative a. For individuals and HUFs below age 60 A deduction of Rs.40, 000 is available to a resident individual or a Hindu Undivided Family (HUF). A deduction is available for any expense incurred by the assessee towards the treatment of specified medical diseases...
7 May 2020
1. Section 80C Deductions on Investments An assessee can claim a deduction of Rs 1.5 lakhs under section 80C. In simple terms, an assessee can reduce up to Rs. 1.5 lakh from total taxable income and this deduction is available only for individuals and Hindu Undivided Family(HUF). 2. Section 80CCC – Deduction for Premium Paid...
5 May 2020
About: According to Section 195 of Income Tax Act 1961, every person liable for making a payment to a non-resident shall deduct withholding tax from the payment made to a non-resident if such sum is chargeable to Income Tax and form 15CA and 15CB are the declarations for the same. A person making any...
5 May 2020
About: A partnership firm is a body of more than one person who comes together to conduct business under one entity. There are two types of partnership firms- Unregistered partnership firm Registered partnership firm Those firms get certified from the Registrar of Firms, called Registered Firm. Partnership firms are required to file income tax...
1 May 2020
Introduction TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The...
1 May 2020
What is ITR? Income Tax Return (ITR) is a form in which the taxpayers file the information regarding the total income earned during the financial year and compute the tax applicable to his income computed for that financial year to the income Tax Department. The Income Tax Department notifies 7 various kinds of ITR...
30 April 2020
What is the ITR 4? Those assessees who have opted for presumptive income scheme under Section 44ADA, Section 44AD and Section 44AE of the Income Tax Act are required to file their return in ITR-4 However, if the turnover exceeds two crores, the taxpayer will have to file ITR-3. Who is required to file...
30 April 2020
Introduction TDS introduced in GST is a mechanism to track or identify the transaction of supply of goods and/or services by making the recipient of such supply deduct a percentage of the amount to be paid to the supplier of such goods and/or services and deposit the same with the Govt. When is Liable...
30 April 2020
About Saving schemes are launched by the Government of India, Banks, and financial institutions. Saving schemes help investors to achieve their financial goals over a period of time. Governments or banks decide the rate of interest in these schemes. An investor can use the savings he makes through these schemes for retirement, higher education,...
29 April 2020
About An audit committee consists of non-executive directors, it is set up by and works under the supervision of the board. The audit committee is set up under Section 177 of the companies Act, 2013, and sometimes for the adoption of best practices of good corporate governance. The member of the audit committee comes...
28 April 2020
After filing of the Income Tax Returns, the next step of the e-filing process is verification. The Income Tax Department checks the income declarations and tax paid to see whether all these details matched. Thereafter the IT Department will accept the tax return filed as per Section 143(1). On checking if IT department found...
28 April 2020
One Person Company (OPC) One Person Company (OPC) is a private company having a minimum of one Director and Member whereas a public company is required to have a minimum of Three Directors and Seven members. Earlier a single person couldn’t incorporate a Company but now as per Section 2(62) of the Company’s Act 2013,...
Page updated
Google Sites
Report abuse