Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.
Income Tax Basic and Fundamentals
Under Section 2(31), A ‘Person’ is An Association Of Persons (AOP) or a Body Of Individuals (BOI) or a Local Authority or an Artificial Juridical Person, whether or not, such Person or Body or Authority or Juridical Person, was formed or established or incorporated with the object of deriving income, profits or gains. In other …
As a normal rule, the income earned during any previous year is assessed or charged to tax in the immediately succeeding assessment year. However, in the following circumstances the income is taxed in the same year in which it is earned. Therefore, the assessment year and the previous year in these exceptional circumstances will be …
In which Cases Income of Previous Year is Assessed in the Same Year Read More »
The word ‘Income’ covers receipts in the shape of money or money’s worth which arise with certain regularity or expected regularity from a definite source. However, all receipts do not form the basis of taxation under the Act. Broadly, an analogy is drawn of a tree and the fruits of that tree. The tree symbolises …
[Section 2(24)] – ‘Income’ Under Income Tax Act.– Concept & Definition Read More »
1. In case of Individual (A) For an individual (man or woman), resident in India who is of the age of 80 years or more at any time during the previous year: I – Old Regime Total Income Rate of Tax Upto ₹5,00,000 Nil ₹5,00,001 to ₹10,00,000 20% Above ₹10,00,000 30% II – New Regime …
1. Residential Status of an Individual [Section 6(1)] According to the residential status, the assessee can either be: (i) Resident in India; or (ii) Non-Resident in India. However, individual and HUF cannot be simply called resident in India. If individual is a resident in India he will be either: (a) Resident and Ordinarily resident in …
1. Rates of TDS Where the Person is Resident in India Rates of TDS 1 on income by way of interest other than “Interest on securities” 10% 2 on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort 30% 3 on income by way of winnings from …
1. Rates of TDS in case of Domestic Company Rates of TDS 1 On income by way of interest other than “Interest on Securities” 10% 2 on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort 30% 3 on income by way of winnings from horse races …
Rates of TDS 1 192A — Payment of accumulated balance due to an employee participating in a recognised provident fund 10% 2 194 — Payment of dividend by a Domestic Company 10% 3 194C — Payment to Contractor/Sub-contractor 1% where payment made to individual/HUF. 2% in other cases 4 194DA Payment made to a resident …
1. Advance Tax Advance Tax All assessees other than covered under section 44AD or 44ADA Section Nature of Compliance by Assessee, Assessing Authority, etc. Limitation 211(1) Payment of advance income-tax in specified instalments: (i) 15% On or before 15th June of the relevant Financial Year (ii) 45% – already paid on or before 15th June …
Relevant Rule of IT Rules Relevant section of IT Act Prescribed Audit Report Relevant Form No.. if any 5AC 33AB(2) Audit report in case of Tea / Coffee / Rubber Development Account 3AC 5AD 33ABA(2) Audit report in case of Site Restoration Fund 3AD 6(7)(e) 35(2AA) Audit of accounts annually maintained separately for each approved …
Prescribed Audit Reports under the Income-Tax Rules/Act Read More »