Introduction: Salaried individuals may receive advance salary or arrears, necessitating taxes to be paid on the total amount received. However, the Income Tax Department safeguards employees from additional tax liabilities arising from delayed income under Section 89(1). In essence, if you receive a portion of your salary as arrears, you can claim tax relief under […]
Introduction: The Finance Act 2020 introduces a number of measures and reforms aimed at promoting economic growth and improving tax efficiency. These initiatives include the addition of Section 80M to reduce the tax and compliance burden on companies. Section 80M: Section 80M of the Income Tax Act, 1961 outlines provisions for the deduction of inter-corporate […]
Introduction: The Income Tax Act, 1961 mandates professionals and traders to maintain books of account and file income tax returns at the end of the financial year, where audit of their accounts is required To facilitate this process and reduce compliance burden upon which the government instituted Presumptive Tax Scheme under Section44ADA of the Income […]
Introduction: When filing income tax, the right form choose is essential for successful tax filing. If this is not done he may be subject to a tax department rejection and may incur penalty payments for late submission. As a consequence, the majority of the individual tax payers face confusion when identifying between ITR 1 and […]
Introduction: Section 194H of the Income Tax Act includes tax deduction at source on commission or brokerage payments. This provision applies to any person or entity paying a commission or brokerage fee to a resident. It outlines the prescribed rate for TDS deduction and delineates the procedures for filing returns and obtaining refunds. The category […]
Introduction: Forms 15CA and 15CB are very important in the dynamics of financial transactions, especially for businesses involved in international transactions. Recent research on these documents highlights the important role they play in ensuring compliance and facilitating communication. This comprehensive guide explores the intricacies of how they have been updated for Forms 15CA and 15CB, […]
Introduction: Section 115BAA of the Income Tax Act, 1961, which came into force through the Taxation (Amendment) Act, 2019, the Government of India enacted tax breaks for domestic corporations. Under this scheme, domestic businesses are entitled to a maximum tax rate of 22% with 10% plus 4% cess. The section 115 BAA option exempts companies […]
Introduction: Section 148 of the Tax Act deals with the provision of information in cases where any unreported income is found requiring reassessment. Understanding the nuances of this section is important for taxpayers to comply with the tax law. This guide provides a comprehensive overview of Section 148, including its scope, implications, notification justifications, statutory […]
Introduction: While filing income tax returns, it is important to note Section 44AB which deals with computation of tax audit under the Income Tax Act. To provide context, an audit requires an independent team to scrutinize an organization’s data and business processes. Alternatively, it can be called a systematic review or survey.. In contrast, a […]
Introduction: The Finance Bill 2022 introduced a new concept: a revised tax refund that allows taxpayers to amend their ITR within less than two years of filing, provided taxes have been paid. Recently, the Central Board of Direct Taxes (CBDT) issued a new ITR Form U for filing updated income tax returns. When using this […]