Income Tax Compliance Applicable to Company 

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

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

The start of a tax year marks the beginning of many timelines with the filing of return of income occupying a prime spot. As much as tax return filing is the bounden duty of every taxpayer, it is also pertinent to use the correct Form so that the requisite disclosures are made and penal consequences not triggered. Selecting the appropriate Form is only the starting

CASE ANALYSIS

PILCOM v. COMMISSIONER OF INCOME TAX (C.I.T.)

A.I.R. 2020 S.C. 204

Bench:

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

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

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

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

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

Every Income Tax Return Filled by Asseessee will be Processed by Income Tax Department at Centralised Processing Centre (CPC) Bangalore without calling Asseessee.

During Processing of Income Tax Return Income Tax Department will Compute Income of Asseessee after Making Certain Adjustments.

Following Adjustments will be made in Income of Asseessee During Processing of Income Tax Return: -

Any Arithmetic Error in Income

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

ITR -1

ITR -1 is simple Return for Resident Individual

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

What is Income Tax?
Income tax is a portion of your income that you pay to the government. This tax is collected on an annual basis. The authorities use this money to perform administrative tasks.

Guide To Save Income Tax In India:
There are two ways to save tax in India:

By Claiming Expenses:
You will have to claim the expenses you have made to save income tax.

By Investing in Tax-Saving

ax Rates DTAA v. Income-tax Act

Certain income of non-resident, inter-alia, dividend, interest, royalty or fees for technical services shall be taxable as per the rates prescribed under the Income-tax Act or as per the rates prescribed under the DTAAs, whichever is more

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

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

Income Exempted from Income Tax of Political Party

As per sec 13A of Income Tax Act following Incomes are Exempted from Income Tax upon satisfaction of Certain Conditions : -

Income Chargeable under Heqd Income from House Property

Income Chargeable under Head Income from Capital Gains

Income Chargeable under Head Income from Other Sources including Donation Received.

But any Income which is Chargeable

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

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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