We all know that an individual’s income from salary, rental income & business income is subject to tax. But what about an individual who get income from sale or buy of shares? Many people spend their lot of time in share market to purchase and sell shares but are not sure of how this income is taxed? Income/Loss from sale of equity shares is comes under the head ‘Capital Gains’.… Read More »Income Tax on Share Trading
Section 206AA has been introduced to endow that any person whose receipts are subject to deduction of tax at source i.e. the deductee, shall essentially furnish his/her PAN to the deductor failing which the deductor shall deduct tax at source at higher of the these rates – Applicable rate of TDS or At the rate of Twenty Percent Additional Points Related To Section 206AA No certificate u/s 197 will be… Read More »Section 206AA Mandatory Requirement of Furnishing PAN-TDS
What is the applicability? With effect from 1st July, 2021; On aggregate value of purchase exceeding INR 50 lacs from a single seller in a financial year. To buyer whose turnover from business exceeds INR 10 Crore during preceding financial year i.e. excluding GST; and Only on purchase of Goods What is the Non-Applicability? TDS is deductible under any other provisions of Income Tax Act; TCS is collectible under any… Read More »TDS on Goods (Section 194Q) Ready Reference Guide
Section-194Q (Tax Deducted at Source (TDS) On Purchase of Goods)-In this article we will know what clarification CBDT provide on the same? 1) Clarification on TDS under section-194Q on GST Component involved in Purchases TCS under section -206C (1H) was collected on Consideration received inclusive of GST since TCS Collection event under this section is “Receipt of Payment”. However for TDS under section -194Q TDS Deduction event is Credit of… Read More »Section-194Q | TDS on Purchase of Goods | CBDT Clarification
The Finance Act 2021 has introduced two new changes in rules relating to TDS (Tax deducted at source) or TCS (Tax collected at source). A. Higher TDS/TCS rate for non-filer of IT returns Till now, a higher TDS rate was deducted only for those who did not have PAN. But from July 1st, a higher rate would be deducted if you have not filed IT returns in the last 2… Read More »New Rules in TDS/TCS, Effective from 01 July 2021
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
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
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
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
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