Introduction: The Income Tax Act has prescribed specific deadlines for filing of income tax returns each year in section 139. Failure to comply with these deadlines may result in legal consequences Failure to comply with income tax laws may incur penalties, including the obligation to pay interest as mentioned in section 234 of the Income […]
Introduction: Section 17 of the Income Tax Act delineates the comprehensive classification of employee benefits offered by an employer into three distinct components: salary, perquisites, and profits in lieu of salary. This section acquaints you with the intricacies of each of these segments. In this article, we will examine the complexities of Section 17 of […]
Introduction: The income tax department implemented the TDS tax deduction system for efficient and expedient tax collection. According to the Finance Act of 2013, any Hindu Undivided Family (HUF) or individual buying real estate valued at Rs 50 lakh or more is obligated to deduct TDS during the transaction with the seller. This deducted TDS […]
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, […]