Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Assessment

Assessment of Business with its Procedure under Income Tax Act.

Assessment of Charitable Trusts and Institutions

1.   Exemption Under Section 11 to 13 in case of Public Trusts for Charitable or Religious Purposes The income derived from a property held under charitable or religious trusts is exempt from tax under section 11 subject to the fulfillment of certain conditions. However, any profit or gain of a business carried on by such …

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Income Tax Assessment Procedure in details

1.   Self-Assessment [Section 140A] before Submitting Return of Income Every person, before submitting a return of income under: (i)         Section 139 or (ii)        Section 142(1) or (iii)       Section 148 or (iv)       Section 153A, is under an obligation to make a self-assessment of his income and after taking in account the amount of tax, …

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Assessment of HUF (Hindu Undivided Family)

1.   Important Points towards Assessment of HUF (1)          HUF is a separate and a distinct tax entity. The income of a HUF can be assessed in the hands of the HUF alone and not in the hands of any of its members, unless specifically provided by law. (2)          However, any sum received by an individual …

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Assessment of ‘Firm’

1.   Salient Features of the Assessment of a Firm: (1)          A firm (including LLP) is treated as a separate tax entity and its total income should be computed under four heads of income. (2)          While computing the income of the firm under the head ‘Profits and gains of business or profession’, besides the deductions which …

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Assessment of Limited Liability Partnership (LLP)

1. Taxation of Limited Liability Partnership (LLP) The Limited Liability Partnership Act, 2008 has come into effect in 2009. Taxation of Limited Liability Partnership (LLP) shall be on the same lines as the taxation scheme  currently prevalent for general partnerships, i.e. taxation in the hands of the entity and exemption from  tax in the hands …

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Assessment of Association of Persons (AOP) / Body of Individual (BOI)

The income of AOP or BOI shall be computed under the heads of income by applying the normal provisions of the Income-tax Act. The business income of AOP / BOI shall be computed after allowing all expenses referred to in sections 28 to 44D. However, as per section 40(ba), while computing the income of AOP/BOI …

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Alternate Minimum Tax (AMT) on all Persons other than Companies [Section 115JC to 115JF Chapter XII-BA]

AMT. which was hitherto applicable to LLP only. has been made applicable to all assessees other than a company. (1)          ‘Alternate Minimum Tax (AMT)” means the amount of tax computed on adjusted total income,— (i)            in case of an assessee being a unit referred to in sub-section (4) of section 115JC, at a …

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[Section 6(3)]- Definitions & Types of Companies with Residential Status

1.   Definition and Types of Companies (1). Company: As per section 2(17), company means: (i)            Any Indian company, or (ii)           Any body corporate incorporated by or under the laws of a country outside India, or (iii)          Any institution, association or body which was assessed as a company for any assessment year under …

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Special Provisions applicable to Closely-held Company (in which Public are Not Substantially Interested)

The following are the special provisions under the Income-tax Act which are applicable to a company in which public are not substantially interested Le. a closely held company: (A) [Section 79]- Carry Forward and Set Off of Losses in case of Certain Companies The Finance (No. 2) Act, 2019 has substituted the existing section 79 …

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