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Business Income

  • Presumptive Incomes Under Income Tax Act

    Presumptive Income means Calculation of Incomes on Basis predefined Percentage of Receipt  i.e Certain Portion of Receipt is Treated as Income and Rest of Receipt Treated as Demeed Expenditure irrespective of Expenditure is done or not. Assessee may declare Income more then Income as per Calculation based presumptive Income. When assessee declare Income equal to or more then Income defined as Presumptive

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  • Taxability of Investment in Shares and Mutual Funds

    Tax Treatment on Income from Investment in Shares: -

    Investment in Shares gives two

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  • Income Computation and Disclosure Standards - ICDS

    Income Computation and Disclosure Standards (ICDS) are Applicable on Income from Profits and Gains of Business and Profession and Income from other Source for Computation of Income, not for maintaining books of Accounts. Income Computation and Disclosure Standards are Applicable to all asseessee's who follow mercantile system of Accounting even in case of assessee covered under

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  • Common Mistakes Done by Assessee while Filing Income Tax Return

    Wrong Calculation of Exemption of House Rent Allowance (HRA)

    So, Many times claim exemption of whole amount House Rent Allowance (HRA) Received even if Some portion of HRA is Taxable. Asseessee must take exemption of minimum of - 

    Actual HRA Received

    40% Of Salary or Incase of Metro Cities 50% of Salary

    Excess of Rent Paid over 10% Salary

    Note: - Here Salary means Basic plus Dearness Allowance (DA) if

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  • Residential Status and Equalisation Levy in Income Tax Act

    Equalisation Levy in Income Tax Act

    As per sec 165 of Finance Act 2016 any Resident Person carrying Business or Profession or Non - Resident having Permanent Establishment in India have to deduct 6 % of Payment made for Online Advertisement or any provision of digital Advertisement space or any other facility or services for Online Advertisement purpose. Deduction of

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  • Penalties under Income Tax Act

    Sec 140A(3): - When assessee fails to pay wholly or partially of Self Assessment Tax or Interest or penalty or less than, in such a case Assessing Officer may impose any amount of fine subject to Maximum of Tax in arrears.

    Sec 158BFA(2): - Minimum 100% of Tax leviable subject maximum of 300% of Tax liable on determination of Undisclosed Income.

    Sec 221 (1): - Any amount may be imposed by Assessing Officer as penalty on

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  • Explanation to Different Income Tax Return Forms  

     

    ITR -1

    ITR -1 is simple Return for Resident Individual

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  • Amendments or Changes in Income Tax for Financial Year 2018-19 (Assessment Year 2019-20)

    Standard Allowance to Salaried Employees in Place of Medical Allowance or Reimbursement, and Transportation Allowances

     

    Treatment up to Financial Year 2017-18 ( Assessment Year 2018 - 19 ): -

     

    Medical Allowance: - Any Fixed amount of Money Received by Employee from Employer every Month i.e. Medical Allowance is Fully Taxable in Hands of Employee irrespective of amount

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  • Income Exempted from Income Tax

    Agriculture Income: - Any Income earned by any Asseessee on sale of Agriculture produce or Income derived from renting Agriculture Land for Agricultural Activities shall be fully Exempted from Income Tax. However agriculture Income is included in Total Income of Asseessee for ascertaining slab Applicable to Assessee if Agriculture Income exceeds Rs. 5000 and Non - Agriculture Income doesn't

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  • Implication of Securities Transaction Tax (STT)

     

    Securities Transaction Tax (STT): -Securities Transaction Tax is type of Tax levied on Purchase or Sale of Securities (Equity Shares, Equity Oriented Mutual Fund, and Option Contracts in Securities and Futures in Securities etc.)  through recognized stock exchange. Any Assesse

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  • Income Tax Return Processing- An Analysis

    Income tax return filing
    The taxpayers should file their income tax returns by the due date to avoid any late fees and the penalty. The ITR processing starts only with the filing of the return; it can be on time or after the due date. However, it is also advisable to file the

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  • Dividend Distribution Tax- An Analysis

    Who is required to pay Dividend Distribution Tax(DDT) and at what rate
    Any domestic company which is declaring/distributing dividend is required to pay DDT at the rate of 15% on the gross amount of dividend as mandated under Section 115O. Therefore the effective rate of DDT is

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  • All About Tax dispute resolution Coverage, Scope, Problems, Challenges, Suggestions & Motive

    Tax dispute resolution in the Indian context hasn’t particularly been an encouraging experience. While a portion of this taint could be attributed to complexity of tax laws and efficiency levels of the administrative process, a material reason is delay in seeking resolution due to multiple layers of appeals, which currently is four.

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  • Article on Section 194A – TDS on Interest other than Interest on Securities

    What is Section 194A?
    This section is only applicable to a resident. Thus, the provisions of section 194A are not applicable in case of payment of interest to a non-resident.
    Payments made

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  • Set Off and Carry Forward of Losses

    Intra Head Set off of Losses (Set Off of Loss against Income of Same Head)

    Any losses arises under any Head of Income can be set off from any Income from any other Source under same head for that assessment year or any subsequent year, except few cases where losses can not set off to any other Income under same head for that assessment year or any subsequent year.

     

    Cases or

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  • Income Tax and Goods and Service Tax Compliance Applicable to Company

    Income Tax Compliance Applicable to Company 

    TDS Return for Q1: - Every Deductor who Deducted TDS in Q1 shall require to

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  • Charitable Trusts and NGO – Income Tax Benefits

    1. Charitable Trusts – A brief Introduction

    “The word ‘Charity’ connotes altruism in thought and action. It involves an idea of benefiting others rather than oneself” Supreme Court in the case Andhra Chamber of Commerce [1965] 55 ITR 722 (SC). It is a voluntary help either in money/kind to the needy. Collective efforts are always more fruitful and hence there are various Non-Governmental

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  • Documents or Information Required for Income Tax Return Filing

    Classification of Income : - Income of Asseessee first needs to be Classified into following Five heads or Source of Income : -

    Income from Salary : - Any Amount Received by Employee from Employer in form of Cash (Basic, Dearness Allowance, House Rent Allowance or any Other Allowances, Commission on Sale and Bonus etc.) or any Non Cash Facility shall be treated as Income from Salary of Asseessee. Primary Condition of Income from

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  • TDS Liability on Rent Payment 

    Sec 194I:- TDS on Payment made for Rent to Resident Person for use of Land, Building, Plant and Machinery and Furniture 

    Any person other than Individual or Hindu Undivided Family (HUF) and Individual or Hindu Undivided Family (HUF) whose Gross Receipts or Sales or Turnover exceeding the Monetary Limit prescribed under sec 44AB of Income Tax Act shall required to deduct TDS on Payment made to

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  • A Full Guide On Filling ITR-2 Online AY 2020-21

    Read Full Details on ITR-2

    What is the ITR 2 Form?
    The ITR-2 is filed by the individuals or HUFs not having income from profit or gains of business or profession and to whom ITR-1 is not applicable. It includes income from capital gains, foreign income or any agricultural income more than Rs 5,000.

    What is ITR 2 Form
    Changes in ITR 2 for AY 2020-21
    Eligibility

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