Income Tax
Tax Saving for Salaried Individuals
SECTION I – Understanding Your Payslip Basic Salary This is a fixed component in your paycheck and forms the basis of other portions of your salary, hence the name. For instance, HRA is defined as a percentage (as per the company’s discretion) of ...
Tricks F&O trader should know about return filing
Lately, derivative trading (trading in future and options or F&O on stocks, currencies, and commodities) has become a hot topic amongst investors. Unfortunately, though, most people have little knowledge about how these trades are taxed. Besides, ...
Tax Exemptions Available For Startups In India
According to Section 2(40) of the Companies act, 2013, startup means (i) A private company registered under companies act, 2013 or any previous act (ii) Recognized as startup in accordance with Department of Industrial Policy and promotions (DIPP). ...
Restrictions on cash transactions under Income Tax laws
The income tax laws in India have various restrictions on payment in cash and receipt of money in cash in respect of various transactions. Some restrictions apply to those who are engaged in business or profession and some apply to all the persons. ...
Income Tax on Gifts to Relative & Friends
In this article, we look at income tax applicable on gift in detail. Currently, Section 56(2)(X) is covered the chargeability of taxes on gifts, any amount received by a person or HUF over Rs.50,000/- in a year from any unrelated person, in cash or ...
Guide to Claim Income Tax Refund Online
When it comes to an income tax refund, people in India are unaware of what it is and how to claim an income tax refund online. As a matter of fact, when you successfully file your income tax return (ITR), the tax department assesses your file, and ...
How does Royalty Works & Tax Implications
Understanding Royalties Royalties are payments to owners of property for use of that property. Royalties often deal with payments for the right to use intellectual property (IP), such as copyrights, patents, and trademarks. The payment ...
Relief u/s 89(1) of the Income Tax Act
What is Section 89(1) It is a relief provided by the income tax department in relation to the amount received in advance or in arrears in the form of salary, which is related to any other financial year. Basically, when any person receives a salary ...
Form 10-IE - Opt for the New Tax Regime
The Finance Minister, Nirmala Sitharaman had presented the Budget 2020 on February 1, 2020. The introduction of the new tax regime took place in the previous budget, and this regime is available only to individuals and HUF where they need to opt by ...
Comparison of New Income Tax Regime vs Old Income Tax Regime
With the initiation of a new Income Tax Regime comes the confusion of which one is suitable for you. You, as the taxpayer, may find it challenging to identify which one of the two regimes is better and relevant to your income. Here another question ...
Income Tax Exemption on Gratuity
Gratuity is a benefit given by the employer to employees. A recently approved amendment by the Centre has increased the maximum limit of gratuity. Now it is tax-exempt up to Rs 20 lakh from the previous ceiling of Rs 10 lakh, which comes Section ...
Return to be Filed under which Section? – Income Tax
While filing income tax returns, one of the mandatory fields that the taxpayer must complete is “Return filed under Section”. In this article, we look at the different types of returns filed under section categories and the meaning of each category. ...
Set Off and Carry Forward of Losses
Gains and losses are the two sides of a coin. Losses, of course, are hard to accept in business. However, the Income tax law in India provides taxpayers with some benefits of incurring losses too. The law contains provisions for set-off and carries ...
Interest applicability u/s 234A, 234B and 234C
Paying income tax for the income earned and filing income tax returns is the duty of every citizen of India. Your taxes are a significant source of revenue for the government, which it uses for critical public programs and services. It is an ...
Commonly asked questions or queries about income tax filing
Frequently Asked Questions about Income Tax Filing What do we mean by the filing of income tax returns or income tax filing? There are two ways by which you can file your income tax returns in India. The traditional way is offline, where you go to ...
What are the due dates for Income Tax Filing & Other Compliances for AY 2021-22?
CBDT has given the extension of time limits for certain tax compliances “to provide relief to taxpayers given the severe pandemic issues”. Various deadlines relaxations will reduce the compliance burden for regular small & medium businesses that have ...
What are sections 206AB and 206CCA and 194Q?
Finance Act 2021 introduced Sections 206AB and 206CCA, levying a double TDS rate for the non-filers of ITR of two previous years. It’s applicable when the total TDS deducted or collected exceeds Rs. 50,000. This section applies to all payments except ...
10 Reasons Why You Should File an ITR
The CBDT is constantly explaining to citizens why is it essential to file income tax returns by conducting various drives. Yet, citizens are hesitant to file income tax returns and are unaware of benefits they may procure from filing income tax ...
File a Condonation Request on the e-Filing Portal
Condonation Request The taxpayers have the option to raise a service request on the e-filing portal. The e-filing portal provides the following two options to the taxpayers with respect to filing a condonation request: Condonation of delay due to ...
Know your ITR Status on new Income Tax Portal
Manual on How to Know your ITR Status on new Income Tax Portal 1. Overview The ITR Status service is available (pre-login and post-login) to the following registered users: All taxpayers for ITRs filed against their PAN. Authorized Signatory, ERI, ...
How to determine Residential Status for Income Tax?
Residential Status for Income Tax Section 6 of Income Tax Act, 1961 contains provision relating to Residence in India. The taxability of an assessee is dependent on the Residential status during any Previous Year. Individual Income tax Act classifies ...
Grandfathering Concept in Relation to Long Term Capital Gain
Introduction Gains arising on transfer of a capital asset is charged to tax under the head 'Capital Gains'. Income from capital gains is classified as 'Short Term Capital Gains' and 'Long Term Capital Gains'. In this article, we will be understanding ...
Search Engine Optimisation & SMO Tricks
SEO stands for “Search engine Optimisation.” It is the process of getting traffic from the “free,” “organic,” “editorial” or “natural” search results on search engines. All major search engines such as Google, Bing and Yahoo have primary search ...
Form 10BD - Statement and Certificate of Donation
Form 10BD As we are aware, section 80G of the Income Tax Act,1961 provides for deduction on payment of donations. Until the last financial year there was no way to counter check the accuracy of the donations paid. The Income Tax department allowed ...
Income Tax & Deductions for Corporates in India
Direct Tax levied on the income of a corporate can be a considerable amount of money that has to be paid by the assessee to the government every year. But if the business is conducted keeping in mind various exemptions and deductions available for ...
Old VS New Tax Regime: Which one you should opt for?
The ITR filing season has set in. This is the first year to choose, between the old tax regime with deductions and exemption and new tax regime without deductions and exemption but with lower slab rates, while filing your ITR. And if you are ...
Why is Public Relations or Social Media Engagement gaining importance these days ?
Social media marketing has a significant influence on modern-day public relations. In the good old days, PR professionals would spread the news via traditional outlets such as newspapers, television or radio. With the rise of social media marketing, ...
What is Tax-To-GDP ratio of India?
What is tax-to-GDP ratio and where does India fare on this indicator? 1. Tax-to-GDP ratio Tax-to-GDP ratio represents the size of a country's tax kitty relative to its GDP. It is the representation of the size of the government's tax revenue ...
Difference between TDS Return Forms 24Q and 26Q
Form 24Q - Statement for TDS from Salaries Form 26Q - Statement for TDS from all payments other than Salaries It is used for preparing eTDS returns for the TDS deducted on salary under Section 192 of the Income Tax Act, 1961. It is to be submitted ...
How to Pay Your Income Tax Online with Challan 280
Challan 280 is one way to pay your advance tax, regular assessment tax, self-assessment tax, additional charges etc. online. Let’s discuss how. 1. Steps to Pay Income Tax Due INCOME TAX PAYMENT Step 1: Select Challan 280 Go to the tax information ...
What type of remittances require filing of Form 15CA-CB ?
The remittance is of the nature specified in the list below: Rule 37BB Sl. No. Nature of Payment 1 Indian investment abroad -in equity capital (shares) 2 Indian investment abroad -in debt securities 3 Indian investment abroad-in branches and wholly ...
What is income tax slab rate for FY 2020-21?
» Points to remember while opting for the new tax regime: Option to be exercised on or before the due date of filing return of income for AY 2021-22. In case a taxpayer has a business income and exercised the option, he/she can withdraw from the ...
How to determine that an Individual is NRI?
'Non-resident Indian' is an individual who is a citizen of India or a person of Indian origin and who is not a resident of India. Thus, in order to determine whether an Individual is a non-resident Indian or not, his residential status is required to ...
Frequently Asked Questions on Income Tax
FAQs 1. How much penalties for not filing ITR? The Penalties for not filing ITR are given in the table below: - E-filing date Income below Rs 5,00,000 Income above Rs 5,00,000 Up to 31st July 2020 0 0 Between 31st July to 31st December 2020 Rs ...
What action the tax authorities may take after the special audit?
Based on the findings/observations of the special audit, action can be initiated under Section 73 or Section 74 of the CGST/SGST Act. Section 73: Covers determination of tax not paid or short paid or erroneously refunded or ITC availed wrongly or ...
Who will bear the cost of special audit?
The expenses for examination and audit including the remuneration payable to the auditor will be determined and borne by the Commissioner. For more information on this visit https://www.taxaj.com/
What is the period within which the audit is to be completed?
The audit is required to be completed within 3 months from the date of commencement of audit. The period is extendable for a further period of a maximum of 6 months by the Commissioner. For more information on this visit https://www.taxaj.com/
How to register on Traces as a taxpayer ?
How to Register on TRACES as a Taxpayer? In order to use the various online services accessible through TRACES (TDS Reconciliation, Analysis and Correction Enabling System), tax payers/PAO/Deductor are required to register on the TDS TRACES website. ...
What if there is a mismatch in 26AS with TDS statement ?
What to do if TDS credit is not reflected in Form 26AS? If tax has been deducted at source but the credit in Form 26AS is absent, then it may be due to one of two reasons: The payer may not have deposited the tax collected The payer may not have ...
PAO regn and its key Services
TDS TRACES Services offered to PAO PAO stands for Pay and Account Office which is responsible for maintaining the payment records of various government employees. Drawing and Disbursing Officer (DDO) functioning under a ministry or department is a ...
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