Introduction: The implementation of Tax Deducted at Source (TDS) has significantly facilitated tax collection in the country by directly targeting the income sources. TDS not only lightens the taxpayer’s burden during the filing of income tax returns but also allows them to claim credit for the deducted taxes. Among the various types of payments made […]
Introduction: The Employees Provident Fund has contributions of 12% per month from employees and employers. Withdrawals are subject to PF rules, TDS is applied if withdrawals exceed Rs. 50,000 per annum under Section 192A of the Income Tax Act. However, if your income falls below the taxable limit, you can ensure that no TDS is […]
Introduction: To safeguard their financial well-being during challenging times, individuals often opt for insurance coverage for themselves and their families. However, when these policies mature and disburse funds, they serve as a vital income source. Consequently, Section 194DA of the Income Tax Act mandates a tax deduction at the source. Explore its applicability, rates, and […]
Introduction: Authors share in the profits publishers make from the sale of their books, which is royalty. The Tax Office taxes this royalty under the headings ‘profits and gains from trade or business’ or ‘income from other sources’. However, under Section 80QQB of the Income Tax Act, individuals can claim tax deductions on this income. […]
Introduction: New provisions were incorporated into the Finance Bill of 2021, mandating higher rates of TDS (tax deducted at source) or TCS (tax collected at source) for payments to specified individuals who have not filed their income tax returns. Section 206AB of the Finance Act 2021 was introduced as a new provision aimed at enhancing […]
Introduction: The income tax department treats tax filings with utmost seriousness, demonstrating its commitment through swift and decisive actions against any misconduct. In July 2023 alone, the department issued over 100,000 notices to taxpayers suspected of underreporting or misreporting their income. These notices, authorized under Section 133 (6) of the Income Tax Act, are dispatched […]
Introduction: A Nil GST return can be filed when there are no outward supplies during the respective month or quarter. This form primarily enables taxpayers to claim input tax credit on their returns. According to GST law, filing a return for the period, even with no transactions, is mandatory for every taxpayer. Under GST regulations, […]
Introduction: All individuals with taxable income are required to file an income tax return each financial year. After filing, the income tax department processes the return to check for errors. If errors are minor, a summary assessment under Section 143(1) can be completed without contacting the assessee. Hence, notices under Section 143(1) are the most […]
Introduction: On July 1, 2017, India instituted the Goods and Services Tax (GST), a comprehensive indirect tax overhaul aimed at streamlining previous levies such as service tax, Value Added Tax (VAT), excise duty, among others. GST applies to the supply of both goods and services, with charges imposed at each transaction point. All businesses and […]
Introduction: When a resident taxpayer receives income from another state, the foreign state generally withholds the tax. In such cases, the taxpayer still pays taxes in the state of residence. Residents can, however, apply for relief by applying for withheld foreign tax credits. This can be done by filing Form 67 with the Income Tax […]