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 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
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
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
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
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
Amortization of preliminary expenditure is allowed as deduction under the Income Tax Act- section 35D. Section 35D of Income Tax Act provides for Amortization of preliminary expenses. According to the Section 35D, any capital expenditure did before the commencement of operation of specified business then such expenditure is allowable as a deduction under the income tax in five equal annual instalments subject to the fulfilment of different conditions given under… Read More »Section 35D Amortization Of Preliminary Expenditure
The fake invoices are those invoices where the GST invoices are raised by an entity without payment of GST or actual supply of goods/services. Fake invoices are raised for these purposes: Claiming undue excess ITC For showing excess turnover Without any actual supply, transfer of credit from one registration to another Other reasons. These are some ways in which such fake invoices could be misused in the GST Regime: I.… Read More »Tax Evasion Through Fake Invoices & Actions by Government
Most Common Deductions are categorized in the following Categories for better and easy understanding- Income Based Deductions Standard Amount of Deductions Investment Based Deductions Expenses Based Deductions Let us see the Basic Rules for claiming Deductions under ITR:- Section 80A– Basic Rules of Deductions Deductions has to be claimed from Gross Total Income after giving effect to Set off & Clubbing Provisions Deductions cannot exceed Gross Total Income Any Unabsorbed… Read More »Allowable Deductions from Income while Filing Return of Income
