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 Faceless appeal scheme Central Board of Direct Taxes under section 250 has notified faceless appeal scheme(6B) vide Notification No. 76/2020 dated 25 …
5 Must know about charitable trust
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 …
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 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 …
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: Calculation of tax on agriculture income as per Income Tax Act 1961 During previous year net agricultural income exceeds Rs.5000 andExcluding agriculture income total income income exceeds Rs.2,50,000. …
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 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 …
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 Applicability of CARO 2016  Following companies are not covered under Applicability of CARO 2016: One Company defined as per section 2(262).Insurance …
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 Interest and remuneration to partners as per …
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 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 …
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   Revise ITR filed by mistake Following are the …
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. Apply for GST cancellation   Rule for Apply for GST …
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 . GST compliance checklist Following is the GST compliance checklist : Business entities should display GST number at business premises.  Business entity should register their own …
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. 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 …