INCOME TAX

Section 194LBA | TDS on Certain Income from Units of a Business Trust

Who is responsible to deduct tax under section 194LBA? An individual who makes payment of income according to the section 115UA which is payable by a business trust to their unit holder is needed to deduct tax at source. This kind of unit holder can be a non-resident or resident (but not a company). When to Deduct TDS under Section 194LBA? The time of TDS deduction is earlier of, the… Read More »Section 194LBA | TDS on Certain Income from Units of a Business Trust

Capital Gain Exemption Under Section 54 of Income Tax Act, 1961

The Income Tax Act- section 54 endows exemption for ‘Long Term Capital Gain’ arising on sale of residential property. Let’s understand the basis of ‘Capital Assets’ & ‘Capital Gain’ The term ‘capital asset’ is defined under the Income Tax Act, 1961- section 2 (14) which includes any kind of property (movable or immovable property, tangible or intangible property etc.) held by an assessee. These kind of properties may be connected… Read More »Capital Gain Exemption Under Section 54 of Income Tax Act, 1961

Section 43B- Deductions Allowable On Payment

As a taxpayer, you might be claiming different expenses & exemptions to lesser your income tax liability, but do you know that there are some deductions that you cannot claim unless you have actually paid for them. Let’s discuss the income tax provisions laid out under Section 43B of the Income Tax Act. Section 43B prescribes that specific statutory expenses could be claimed only in the year of actual payment.… Read More »Section 43B- Deductions Allowable On Payment

ITR Filing Exemption To Senior Citizen Above Age Of 75

As we know that the union budget comes into effect recently, Union budget of 2021-22 highlights that senior citizen above the age of 75 now need not file their Income Tax Return. In the Union Budget 2021-22, senior citizens who are the age above 75 are exempted from filing income tax return of income subject to few conditions. The banks on the other side, is needed to deduct the requisite… Read More »ITR Filing Exemption To Senior Citizen Above Age Of 75

Deferred Tax Asset and Deferred Tax Liability

Deferred Tax Liability (DTL) and Deferred Tax Asset (DTA) forms an essential part of Financial Statements. This adjustment made at end of year closing of Books of Accounts affects the Income-tax outgo of the Business for that year as well as the years ahead. What Is a Deferred Tax Asset? Items on a balance sheet of company that may be used to reduce taxable income in the future are called… Read More »Deferred Tax Asset and Deferred Tax Liability

Section 194E | TDS on Payments to Non-Resident Sportsmen or Sports Association

Section 194E deals with the provisions of TDS deduction on payment to a non-resident sportsmen or sports association. According to the section 194E of the Income Tax Act, 1961, any person making payment of income referred to in section 115BBA of the Income Tax Act, 1961 to the following persons will be liable to deduct TDS – A non-resident sportsman (including an athlete); or An entertainer who do not have… Read More »Section 194E | TDS on Payments to Non-Resident Sportsmen or Sports Association

E-Proceeding of Income Tax – Easy Guide

Income tax return filing is a scheduled procedure of every taxpayer and has to be filed every year. The income tax return filing is also an essential process to be followed for various reasons including financial and record maintenance while beneficial for the future loan perspective. What is an ‘e-Proceeding’? It is an electronic platform made by the Income Tax department. The main purpose of this platform is to conduct… Read More »E-Proceeding of Income Tax – Easy Guide

International Taxation: Relief From Double Taxation

When the same income of yours is taxed more than once, it creates double taxation. This can be done when a person is taxed in more than one country for the same income which he had earned, leads to double taxation. Countries have started introducing Double Taxation Avoidance Agreements (DTAA) with other countries to resolve the issues of double taxation so as to ease out the tax burden of their… Read More »International Taxation: Relief From Double Taxation

Special Financial Transaction (SFT) Reporting Parameters Under Income Tax Act

SFT is also known as Special Financial Transaction which is a report of specified financial transactions by specified persons including prescribed reporting financial institution. Such specified persons who register, maintain such specified financial transaction are under a mandate to submit SFT to the income tax authority or such other specified authority or agency. Income Tax Department is broadening its scope of disclosers and reporting day by day, there are some… Read More »Special Financial Transaction (SFT) Reporting Parameters Under Income Tax Act

Alternate Tax Regime for Individuals u/s 115BAC from AY 2021-22

This article is only meant for salaried class employees and not meant for individuals who are having business Income. As there are few differences in the scheme for the salaried class of persons and non-salaried class of persons. The Budget 2020 introduces a new system under section 115BAC giving an option to individuals and HUF taxpayers to pay income tax at lower rates. The new system is applicable for income… Read More »Alternate Tax Regime for Individuals u/s 115BAC from AY 2021-22