INCOME TAX

Applicability of Section 194Q TDS on Purchase of Goods

In the Budget 2021-22, a new section 194Q introduced which will be effective from 1st July 2021. In order to broaden and deepen the tax base, it is proposed to levy a TDS of 0.1% on purchase transactions exceeding INR 50 lacs in a year. In order to minimize the compliance burden, it is also proposed to endow that the responsibility of deduction shall lie only on the persons whose… Read More »Applicability of Section 194Q TDS on Purchase of Goods

Analysis of Section 206AB and Section 206CCA

Section 206AB and section 206CCA were proposed in the Finance Bill 2021. These sections provide for a higher deduction of TDS and TCS respectively, if certain conditions are met. Let us discuss details about Section 206AB & section 206CCA. Introduction of Section 206AB  According to the Section 206AB, tax shall be deducted on any income or amount paid or payable or credited by a person to a specified person, at… Read More »Analysis of Section 206AB and Section 206CCA

Old Tax Regime V/S New Tax Regime

The Finance Ministry has brought a ‘New Taxation Regime’ to simplify the Income Tax Act. There is prevailing confusion as to ‘which tax regime is better? and the only answer that is definitely correct is ‘it depends!!’ On one hand, the new tax regime offers lucrative slab rates to lower the effect of taxation, while it increases the total income by removing several sorts of deductions from the income like… Read More »Old Tax Regime V/S New Tax Regime

Presumptive Taxation- Section 44AD, 44ADA, 44AE

According to the Income-tax Act, a person engaged in business or profession is needed to maintain regular books of account and further, he/she has to get his/her accounts audited. The Income-tax Act has created the presumptive taxation scheme under these sections which are 44AD, 44ADA & 44AE to provide relief to small taxpayers. What is the Meaning of Presumptive Taxation Scheme? For small taxpayers the IT Act has created presumptive… Read More »Presumptive Taxation- Section 44AD, 44ADA, 44AE

Income Tax Savings Tips To Help In Tax Planning

Tax planning comes under financial planning. It is difficult to avoid taxes, you can strategies to lower the tax outgo efficiently. Two Important Steps comes under:- To choose between the old tax and new tax regime An individual needs to carefully analyze & comparison of tax outgo and other factors in choosing between the two 2. Inform it to your employer (So they need to deduct TDS on basis your… Read More »Income Tax Savings Tips To Help In Tax Planning

Section 80C – Investment cum Deduction

Chapter VI-A of section 80C clarify about complete information about deductions from Gross Total Income. It is important to note that if there is no Gross total Income than no deduction will be permitted. The chapter comprise deductions in respect of some payments, deductions in respect of some incomes, deductions in respect of other incomes and other deductions. Let’s discuss on Section 80C which include certain Investment which can be… Read More »Section 80C – Investment cum Deduction

What are the Similarities and Differences in Section 54 and 54F

The Government of India has provided certain exemptions on purchase or construction of house property which are inducted in the section of 54 & 54F of Income Tax Act 1961. As we know that both Section 54 & Section 54F deal in house property investment on sale of residential house or any asset other capital asset. There are few similarities and differences between these sections of income tax which are… Read More »What are the Similarities and Differences in Section 54 and 54F

Alternative Tax Regime for Individuals/HUFs u/s. 115BAC

As we are aware that income of Individuals/HUFs are taxable according to the progressive tax slabs. The maximum rate of tax payable is @30%, when income of Individual/HUF exceeds INR 10.00 Lacs in relevant previous year. The Central Government has inserted Section 115BAC w.e.f. AY 2021-22 to endow Optional Tax Regime to HUFs/individuals. Income Tax Rate under Alternative Tax Regime [As per Section115BAC]; Total Income      Rate of Tax Up to… Read More »Alternative Tax Regime for Individuals/HUFs u/s. 115BAC

Taxability Of Interest On Excess PF Contribution-New Threshold Limit & Manner Of Tax Computation

The Government has increased the deposit threshold limit to INR 5 lacs per annum in the provident fund for which interest would continue to be tax-exempt if there is no employer contribution. This announcement by the Finance minister Mrs. Nirmala Sitharaman was part of the amendments which was made to the Finance Bill, 2021 at the time of passing of the Bill on 23 March. Provident Funds Where Employer Do… Read More »Taxability Of Interest On Excess PF Contribution-New Threshold Limit & Manner Of Tax Computation

Why Revised Return Concept Under Income Tax Law

Under Income tax law the concept of Revised Return is dealt in section 139(5). Now the question is what is Revised Return and why there is concept called revised return exist? In the simple word, revised return can be termed as return which is filed for error correction or mistake correction i.e. correct return. While filing income tax return whether original return i.e. return filing for the first time for… Read More »Why Revised Return Concept Under Income Tax Law