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.

Misc. Provisions

Miscellaneous Provisions under Income Tax Act. for the Assessment Year 2020-21

Taxation In Companies – Company Taxation

1.   [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)           Anybody corporate incorporated by or under the laws of a country outside India, or (iii)          Any institution, association or body which …

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Interest Payable By / To Assessee under Income Tax Act

1.   [Section 234A]- Interest Payable by the Assessee for default in furnishing Return of Income U/s 139(1) The assessee is liable to pay interest in the following cases: (a)        where the return of income is furnished after the due date. (b)        where the return of income is not furnished by the assessee. Rate …

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Person [Section 2(31)] – Under Income Tax Act.

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 …

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In which Cases Income of Previous Year is Assessed in the Same Year

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 …

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[Section 2(24)] – ‘Income’ Under Income Tax Act.– Concept & Definition

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 …

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‘Residential Status’ under Income Tax Act. 1956

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 …

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Exempted Incomes or Incomes which do not form part of Total Income [Section 10, 10AA, and 11 to 13A]

    10(1) Agricultural income 10(2) Sum received by a member from HUF 10(2A) Share of profit of a partner from a firm 10(4) Interest on securities or bonds held by a non-resident/interest on Non-resident  (External) Account 10(5) Travel concession or assistance received by an individual from his employer 10(6) Remuneration to certain persons who …

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Rates for TDS ( Deduction of Tax at Source) in case of a Person other than a Company for Financial Year 2020-21 (Assessment Year 2021-22)

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 …

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Rates for TDS ( Deduction of Tax at Source) in case of a Company for Financial Year 2020-21 (Assessment Year 2021-22)

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 …

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