• Tax benefits on purchase of Electric Vehicle in India
    Introduction: Over the past decades, the growing concern over climate change, energy independence, and securities of energy supply have accelerated the path to the decarbonization of the transport sector. this article aims to present an overview of the Tax benefits on the purchase of electric vehicles in India. Looking to accelerate the use of electric vehicles in India, the Indian government has recently added a new section to give tax benefits to Electric vehicle buyers. […]
  • Residential Status as per Income Tax Act, 1961
    Taxation of individuals in India is primarily based on their residential status in the relevant tax year. The taxability of an individual in India depends upon his residential status in India for any particular financial year. The residential status of different types of persons is determined differently. Similarly, the residential status of the taxpayer is to be determined each year concerning the “previous year.” The residential status of the taxpayer may change from year to […]
  • All about dissolution or closure of Partnership Firm
    Dissolution of a Partnership Firm: Dissolution of the partnership firm refers to the situation where all the relation between a firm and its partners comes to an end. It is the discontinuation of a business due to the dissolving of a firm. Closing a partnership Firm is a little complex. For dissolving a partnership, we need to check the dissolution clause mentioned in the partnership Firm. In this article, we will discuss all about dissolution […]
  • All about the Resolution of Company Act, 2013
    In simple terms, A resolution is a decision of a firm for doing an Act. The company’s decisions are made by passing a resolution. A resolution is just an agreement passed by all the members of the company in a meeting in a written resolution with significant decisions. A company’s resolutions are simply passed by both, members of the company as well as its directors of the company.in this article, we will discuss “All about […]
  • All about the rectification of ITR u/s 154
    Section 154 of the Income Tax Act, 1961, Section 154 provides a possibility for the assessing officer to rectify any mistakes or errors in the income tax records that were done by him. Under section 154, an assessing officer has a provision to correct or amend such mistakes done by him. Section 154 of the Income Tax Act, 1961, deals with the rectification of any mismatch or errors that have occurred in the income tax […]
  • All about defective ITR u/s 139(9)
    Defective ITR U/S 139(9) A defective return u/s 139(9) reveals that a taxpayer has made any mistakes or found any incomplete or inconsistent information in ITR (Income Tax Return). If your return is found defective, the Income Tax Department will send you a defective notice under section 139(9) of the Income Tax Act via an email on your registered email id or post and the same can be viewed by logging in on the e-filing […]
  • How to correct mistakes in GSTR 3B
    Introduction Due to unawareness, many taxpayers commit mistakes in GSTR 3B and GSTR 1 while filing the GST Return. In this article, we will discuss “how to correct mistakes in GSTR 3B”. The government has proposed several amendments to the GST law to make it more business-friendly and allow tax credits that will help lower the burden. Several genuine business transactions will now be eligible for the input tax credit, which was not eligible till […]
  • How to correct mistakes in GSTR 1
    Filing of GST returns is compulsory for every taxpayer. Despite the passing of almost 3 years since the enactment of GST laws, many mistakes are still being committed by GST taxpayers while filing GST returns particularly GSTR 3B and GSTR 1. In this article, we have discussed “how to correct mistakes in GSTR 1 “. These mistakes are generally committed either due to negligence, oversight, or due to lack of conceptual clarity on various provisions […]
  • Business compliance requirements for e-commerce business in India
    Introduction India has the second-largest internet user base in the world. India’s e-commerce market after “India Goes Digital” has the fastest-growing country in the world. The rapid popularity and acceptance of e-commerce across the world have changed the whole economy of the country. In this article, we have discussed all about ‘business compliance requirements for e-commerce business in India’. With common people having easy access to the internet, E-commerce offered the easiest and most convenient […]
  • How to claim foreign tax credit in India
    Foreign Tax Credit (‘FTC’) According to a Ministry of External Affairs report, there are 32 million NRIs and OCIs residing outside India. Many Indian residents migrated abroad to countries like USA, UK, etc., for  a higher level of education purpose, for business or for employment purpose. Also, some companies may have global business operations and the global income may be taxed in two countries i.e., in source country as well as residence country. This envisaged […]
  •  Taxability of agricultural income in India
    Agriculture is the primary source of livelihood and source of income for about 58% of India’s population. As we all know that income which is received from agricultural activities know as agricultural income. In this article we have discussed all about the ‘Taxability of Agricultural Income in India‘. Agricultural income is fully exempted from taxation and not included in total income. The Central Government can’t impose or levy tax on agricultural income under Section 10 […]
  • List of Items on which GST ITC is not available
    In this article, we have listed as such items, which are not eligible for the input tax credit under GST. But first, we need to understand the term ‘ITC’. ITC stands for Input Tax Credit, which means, at the time of paying tax on output, you can reduce the tax you have already paid on inputs. It is a process of claiming the credit which is paid at the time of purchase of Goods and […]
  • How to revise income tax return
    This is common in human to make mistakes likewise we may have made mistakes while filing an Income tax return. It is quite common question, how to revise the income tax return while original income tax return has e filed by the asessee. people want to know the process. In this article We have summersied the process and FAQ about the revise income tax return. Revision of e filed income tax return is as simple […]
  • All about TDS and TCS under GST
    In this article we have discussed all about TDS and TCS under GST.The concept of Tax Deduction at Source (TDS) was there in the former VAT Laws. GST Law also mandates Tax Deduction at Source (TDS) vide Section 51 of the CGST/SGST Act 2017, Section 20 of the IGST Act, 2017 and Section 21 of the UTGST Act, 2017. GST Council in its 28th meeting held on 21.07.2018 recommended the introduction of TDS from 01.10.2018. […]
  •  Deductions Under 80C and Tax Planning
    Section 80C is an income tax deduction that helps you to reduce the tax. Each financial year, we look for ways to save our taxes at the time of filing of income tax returns. But first, we need to know about the tax Deductions under 80C after that you can claim as a taxpayer. It covers specified investment and payment options which can reduce your taxable income up to Rs 1.5 lakhs. Here are some […]
  • Mandatory Filings of LLP
    In this article, we have discussed about mandatory Filings of Limited Liability of Partnership. In India, for all purposes of taxation, An LLP is treated like any other partnership firm. In this era of accounting and taxation, LLP has a separate legal entity with a required minimum of 2 partners. However, there is no limit on the maximum no. of partners & no requirement for minimum capital contribution. LLPs are quite common due to the […]
  • Tax on Freelancers income in India
    In this article, we have discussed about tax on freelancers income in India . India is the second-largest freelancing Market. freelancing has taken off quite a bit in the past few years now. It has become a sustenance for the people. freelancers are the self-made folks who work at the comfort places for different sectors. they are from different fields like social, marketing, corporate so on. but now when freelancing has come a long way […]
  • LOWER DEDUCTION CERTIFICATE OF TDS
     As per the Income Tax Act of 1961, income tax must be deducted at source as per provision of the Income Tax Act, 1961.TDS stands for Tax Deducted at Source. The purpose of making the lower deduction certificate of TDS is that it enables the government to collect tax as and when income arises. Often, there is a situation when the actual tax liability is less than that deducted. the TDS is first deducted and […]
  • CAPITAL GAIN ACCOUNT SCHEME
    Why Capital Gain Account Scheme? To encourage the reinvestment of capital gains/net consideration the Indian government introduced the capital gain account scheme in 1988. the Indian government provided tax relief if the capital gains are re-invested. What is Capital Gain Account Scheme 1988? In this scheme, the taxpayer is given an option of depositing underutilized capital gains /net consideration in a specified bank account to be known as “capital gain account.” Which can be opened […]
  • GST on rental income from commercial property
    GST on Rental income ­: – In this article we will discuss about GST on rental income from commercial property. Any person/ individuals receiving income from the residential property like shop/factory in a building or other that income from commercial property is taxable under the section 24 of Income tax Act. In other word, any payment receive from the occupation of the property is also known as rental income which is taxable under the good and […]
  • All about HUF in India
    In this article we have discussed all about HUF in India.The business carried out by the members of a Hindu undivided family as joint Hindu family business. HUF is a separate legal entity; it has a separate taxable entity. HUF has its own PAN. Any Indian Hindu male with another member of family can form an HUF to either run his own HUF or to execute Proceeds of divided HUF from his father or ancestors. […]
  • How to claim exemptions from Long Term Capital Gains
    How to claim exemptions from Long Term Capital Gains Long Term Capital Gains are defined as profits on sale of assets (movable or immovable) which have been held for: 3 years or 36 months (or more) in case of movable assets. Movable assets include: Jewelry, Debt-oriented mutual funds. 2 years or 24 months (and more) in case of immovable assets such as: House, Building (commercial), And all other types of real estate (except for inherited […]
  • TDS on purchase of goods u/s 194Q
    TDS on purchase of goods u/s 194Q
  • Situations of GST refund and process
    GST refund is a procedure in which a taxpayer wants to get the amount, which is in excess of the GST liability, refunded to his/her account.
  • Tax on property sale in India
    Tax on property sale in India attract various taxes such as Gains, Cess and TDS which is to be calculated and paid while selling the property. These taxes are to be paid in the same financial year as the sale of property. There are several factors that a person needs to understand to completely know the effects on tax that the seller must pay on sale of property. Some of them save the seller significant […]
  • House Rent Deduction in Income Tax
    House Rent Deduction in Income tax House is one of the basic needs of any individual. Thus, the Government of India has made an allocation for deduction of rent paid by an individual for a house that he/she is living in. Here we will understand the various aspects that apply to house rent deduction for individuals (salaries or businessmen). The house rent deduction in income tax is known as HRA (house rent allowance) under Section […]
  • Mandatory compliance for Private Limited Company
    Mandatory compliance for Private Limited Company    In this article we have discussed about Mandatory compliance for Private Limited Company.       Mandatory compliance for Private Limited Company The compliances are according to “The Companies Act, 2013”   Disclosure of “Directors’ Interests” by Directors (Form MBP-1)  When: – First Board Meeting   All the directors must file MBP-1 form whenever there is a change in “Directors’ Interest” from the earlier given MBP-1, otherwise it is not needed.  The MBP-1 is […]
  • Taxation for NRI in India
    Taxation for NRI in India In this article we have covered taxation for NRI in india which includes definitions of NRI, taxation rules for NRI, Income tax deductions for NRI.NRI are usually confused about deductions and their taxability in India. NRI are mostly worried about taxation for NRi in India. Taxation for NRI in India To under taxation for NRI in india we need to understand When is a person considered NRI?  Any person who has […]
  • Cash deposit limit in bank account in a year as per income tax
    Cash deposit limit in bank account in a year as per income tax Cash deposit limit in bank account in a year as per income tax I this article we have discussed Cash deposit limit in bank account in a year as per income tax.The Cash Deposit limit as per income tax in a year in Savings Account for an Individual is Rs 10 lakh. The Income Tax Department may send income tax notice if […]
  • 6 top benefits of filing ITR|Who is required to do compulsory filing of ITR?
    In this article we will discuss about benefits of filing itr and Who is required to do compulsory filing of ITR?  In following cases filing of ITR is mandatory.Thus in following case compulsory filing of ITR id required. Compulsory filing of ITR As per income tax act exemption limit for a normal taxpayer is Rs.2,50,000, For senior citizen it is Rs.3,00,000, and for super senior citizen it is Rs.5,00,000. ITR filing is mandatory if income exceeds basic […]
  • Faceless appeal scheme
    In the union budget 2020 finance minister extended faceless assessment proceedings to the CIT appeals also. Hence this also led to amendments in section 250 of the income tax act 1961 to enable notification of faceless appeal scheme. In this article we have discussed new era of faceless appeal scheme. Faceless appeal scheme Central Board of Direct Taxes under section 250 has notified faceless appeal scheme(6B) vide Notification No. 76/2020 dated 25 September 2020. Following […]
  • 5 Must know about charitable trust
    Section 11 and section 12 of Income Tax Act 1961 deal with taxation of charitable and religious trust. Today we have discussed few important points which are 5 must know about charitable trust relating to taxation of religious and charitable trust. Below we have highlighted points which are 5 must know about charitable trust. 1) Return filing is mandatory as per section 139(4A). Trust are compulsory required to file Income Tax Return as per section 139(4A) […]
  • Taxation of gifts under Income Tax Act 1961
    Today we have explained taxation of gifts under Income Tax Act 1961 from relative. People are usually unaware of the taxation of the gifts which is most popular topic for many people. Taxation of gifts under Income Tax Act 1961 Immovable property as gift: Received for inadequate consideration: When any person received from any person or persons any immovable property for consideration ,difference of the consideration and fair market value of the property is taxable […]
  • Calculation of tax on agriculture income as per Income Tax Act 1961
    We all know that under Income Tax Act 1961 agriculture income is exempt. Though if below two conditions are cumulatively satisfied then it is required to be included in computation of tax liability,we have detailed Calculation of tax on agriculture income as per Income Tax Act 1961: During previous year net agricultural income exceeds Rs.5000 and Excluding agriculture income total income income exceeds Rs.2,50,000. In case assessee who is individual and age if between 60 […]
  • Apply online for cancellation or surrender of extra/additional pan
    Apply online for cancellation or surrender of extra/additional pan In this article we have provided method to apply online for cancellation or surrender of extra/additional pan.Any person may be alloted multiple pan numbers.There can be numerous reasons for which a person may be alloted multiple pan numbers i.e. Any person may have applied multiple times pan and he may also be alloted pan multiple times or inadvertently may be alloted multiple pan by income tax […]
  • Internal audit as per Companies Act 2013
    Below we have described requirement of the Internal audit as per Companies Act 2013. Extract of the rule 13 of Companies Act 2013 of section 138 is as follows: Internal audit as per Companies Act 2013 (1) The following class of companies shall be required to appoint an internal auditor or a firm of internal auditors, namely:-         (a) Every listed company; Always applicable         (b) Every unlisted public company having– (i)Paid up share capital of fifty […]
  • Trust registration as per Income Tax Act 1961
    Today we have discussed details of Trust registration as per Income Tax Act 1961.Section 12A of income tax act 1961 relates to Trust registration as per Income Tax Act 1961 and section 80G is related to application of trust for getting exemption certificate. Both applications can be applied together or if any entity wants to apply differently application for 12A need to be applied first and than application for 80G can be made.Application for 12A […]
  • Applicability of CARO 2016
    In this article we have discussed Applicability of CARO 2016.Companies Auditor’s Report Order is applicable as per subsection of section 143 of companies act 2013.This statement is required to be accompanied with auditor report as per section 143(11) to applicable companies.CARO 2016 will not be applicable for consolidated financial statements. Applicability of CARO 2016  Following companies are not covered under Applicability of CARO 2016: One Company defined as per section 2(262). Insurance Companies as defined […]
  • Interest and remuneration to partners as per Income Tax Act 1961
    In this article we have discussed Interest and remuneration to partners as per Income Tax Act 1961.People are usually confused regarding income tax provision relating to payment of remuneration and interest to partner in partnership and LLP. Today we have discussed Interest and remuneration to partners as per Income Tax Act 1961 of partnership firm or LLP. Interest and remuneration to partners as per Income Tax Act 1961 Applicable provisions of Income Tax Act 1961 […]
  • TDS u/s 194C on payment to transporter
    Huge amount of payment is made regularly by business to transporters. Due to huge payment there are chances of mistakes. Non deduction of TDS u/s 194C on payment to transporter attracts 30% dis allowance of the expense and attracts other penalties and interest.Earlier there was provision that where transporter owned less than two goods carriage TDS was not deductible,after that TDS was not applicable if PAN is provided by the person carrying business of goods […]
  • Accounting for Income tax provision
    Financial year has ended but yet due to COVID some accounting entries may be pending.Today we are covering important entries covering accounting for income tax provision, TDS and Advance tax. These are entries relating to income tax. Accounting for Income tax provision   1) Accounting entries relating to TDS TDS may be deducted in many incomes like commission,interest or any other incomes. Below we have shown accounting entry for TDS deducted on bank interest as […]
  • Revise ITR filed by mistake
    Assessee who filed Income Tax Return by mistake can file revise revise ITR filed by mistake under section 139(5) by the end of relevant assessment year or before the assessment is made by assessing officer. Assessee can make amendments such as additions or such changes as may be found later.However filing false return deliberately will be liable to penalty and imprisonment.   Revise ITR filed by mistake Following are the conditions for filing revise ITR […]
  • Apply for GST cancellation
    GST is most trending tax topic.Many business users might have taken voluntary registration though not liable for GST.After taking registration people are worried apply for GST cancellation and to surrender their GST registration as they are not liable for GST. It is important to note that application for cancellation of voluntarily applied GST registration can be done only after completion of one year of registration.   Rule for Apply for GST cancellation “A registered person, […]
  • Income Tax deduction for house rent
    Huge amount of house rent are paid by many employees.Due to lack of knowledge about deduction people fail to take benefit of deductions available under Income Tax Act 1961. Deduction can be claimed under section 80GG even if employees dont get HRA under section 80GG. Individual employees paying rent of house for his own residence can claim Income Tax deduction for house rent benefit under section 80GG subject to following conditions: Income Tax deduction for […]
  • Short term capital gain on sale of equity shares
    Short term capital gain on sale of equity shares means gain arising on sale of equity shares held for less than one year is taxable at 15% under section 111A of Income Tax Act 1961. On sale of equity shares listed on recognized sock exchange,units of business trust and units of business trust short term capital gain arising on this is taxable under section 111A. Equity shares listed on recognized sock exchange,units of business trust […]
  • TDS on sale of property
    TDS on sale of property is required to be paid at 1% on amount of consideration payable on sale of property(Other than agriculture land) worth Rs.50 lakh or more to a resident transferor as per section 194-IA of Income Tax Act 1961.Form 26QB is online based challan which contains details including details of buyer,property being sold,seller,tax details,etc. If any mistake is done in form 26QB tax credit will not be available in form 26AS hence […]
  • NIL TDS return declaration
    When tax is not deducted declaration may be to be filed on Traces website and thus no TDS return is required to file under section 200(3) of Income Tax Act 1961.But for those who is not required to file TDS return it is advisable to submit NIL TDS return declaration status.In this article we have guided you to how to submit NIL declaration on traces.Nil filing of declaration is not compulsory but advisable.If the business […]
  • GST compliance checklist
    People are usually worried about GST compliance. For running business GST compliant today we have provided GST compliance checklist for business to avoid any mistake in GST.We have tried to cover all major things to avoid mistake by business entities and thus to avoid penalty,interest or late fees in . Following is the GST compliance checklist : Business entities should display GST number at business premises.  Business entity should register their own contact details like […]
  • Acceptance or repayment of loan in cash
    People are usually taking loans or deposits to run their business but should take care in acceptance or repayment of loan in cash.Hence many a times loans or deposits are also taken from relatives but one should be careful while taking loans or deposits from relatives as Income Tax department imposes several restrictions for taking loans or deposit.To prevent black money and for proper accounting of income section 269SS and 269T are enacted so that […]
  • 7 Reasons for Income Tax notices
    Income Tax notices can be received due to number of reasons.In this article we will discuss common 7 Reasons for Income Tax notices.People as a responsible taxpayer always try to file ITR with utmost care.Following are the common 7 reasons for Income Tax notices. 7 Reasons for Income Tax notices Mismatch with form 26AS: 26AS shows details of Tax deducted,Name of deductor,type of Income and amount of Income.Hence if there is mismatch in the above […]
  • Udyam Registration
    For facilitating smoothness in doing of business goverment has come up with new initiative of Udyam Registration in place of existing Udhyog aadhar MSME registration. This initiative is believed to benefit number of  companies as major entities will come under MSME.It is specified by ministry that no other agency is authorized to do registration under offline or online system under this new regime.There are several benefits announced by government for MSME units. One important benefit […]
  • Taxation of professional fees of doctors
    Doctors are most busiest professional.They are believed to be top 10 earner in the economy.As doctors are busy so they don’t get time for referring Income Tax provisions.Hence in this article we have detailed taxation of professional fees of doctors and thus we will guide you for tax planning and its compliance if you are a doctor. Taxation of professional fees of doctors Books of account and documents to be maintained for professional whose gross […]
  • School Fees Deduction Under Income Tax Act 1961
    Huge amount is incurred tuition fees expenses of the children by parents. Tax deduction is available under income tax for amount paid of tuition fees under Income Tax Act 1961 even though if amount is paid monthly,quarterly or annually.For promoting education Government of India allows deduction of tuition and School Fees Deduction Under Income Tax Act 1961 paid subject to certain conditions as listed below: School Fees Deduction Under Income Tax Act 1961 Deduction amount […]
  • Process for 15CA and 15CB
    When payment is being made to non resident tax is required to be deducted under section 195 of the Income Tax Act 1961.Below i have described important Process for 15CA and 15CB and its compliance method.Person making foreign remittance for him most important thing is 15CA and 15CB which appears difficult and tiresome work as bank/Authorised dealers checks that whether tax is paid or not on said remittance as it is not possible to collect […]