Answer: Budget 2022-23 introduced a new section in the Income Tax Act - 194R, which has been made applicable w.e.f. 1.7.2022. The benefit or perquisite referred to in this new section 194R is not the perquisite u/s 17(2), under the head salary income, paid or payable by the employer to employees, as for that perquisite u/s 17(2), another TDS section 192 is already there. Refer Post :
Section 194R TDS on benefits or perquisite provided
Answer: Section 194R shall apply to sellers giving incentives, other than discounts or rebates, which are in cash or kind e.g., car, TV, sponsored trips, free tickets, medicine samples to medical practitioners. Section 194R shall apply because the benefit in the course of business/ profession. Refer Post :
Section 194R TDS on benefits or perquisite provided
Answer: Provisions of section 206AB are not applicable on (Section 192,Section 192A,Section 194B,Section 194BB,Section 194LBC,Section 194N) or Non-resident not having permanent establishment in India. Refer Post :
Section 206AB TDS for non-filers of Income Tax Return
Answer: In case the buyer fails to comply with the tax deduction provisions covered under section 194Q. Then, as per the provision of section 40A (IA), there would be disallowance of expenditure up to 30% of the value of the transaction. Refer Post :
Section 194Q-TDS on Purchase of Goods
Answer: Under section 194-O, TDS to be deducted by E-Commerce operator at the rate of 1% (0.75% up to 31.03.2021) at the time of gross amount of sale of goods/services, whether paid or credited to the account of an E-Commerce participant, whichever is earlier, exceeds threshold limit of Rs. 5,00,000 in the financial year. Refer Post :
Section 194O-TDS on Payments made to E-Commerce Participants
Answer: Resident Buyer for purchase of all goods of the value or aggregate value exceeding Rs.50 lakhs in a Financial Year, whose total sales, gross receipts or turnover from the business carried on by him exceeded Rs. 10 crores during the financial year preceding the financial year in which the purchase of goods is carried out. Refer Post :
Section 194Q-TDS on Purchase of Goods
Answer: The person responsible for deducting tax shall deposit the TDS amount within 7 days from the last day of the month in which the tax was deducted. Refer Post :
Section 194Q-TDS on Purchase of Goods
Answer: This section is applicable from 01.07.2021 and provides for deduction of tax at source on the payment made by the assessee towards the purchase of goods. It is similar to section 206C(1H) which is applicable for collection of tax at source. Refer Post :
Section 194Q-TDS on Purchase of Goods
Answer: The new section 206C(1H) of the Income Tax Act,1961 has been introduced by The Finance Act, 2020 for Tax Collected at Source (TCS) on sale of goods. The provision of this section has been notified & applicable w.e.f. 01.10.2020. Refer Post :
Section 206C(1H)-TCS on sale of goods
Answer: The sum equal to 0.1% of the sale consideration exceeding fifty lakh rupees as income-tax. The rate of 0.1% is reduced to 0.075% up to 31.03.2021. Refer Post :
Section 206C(1H)-TCS on sale of goods
Answer: All sellers of goods whose turnover for the preceding financial year exceeds Rs. 10 Crores, then every seller who has received any amount as sale consideration during the financial year exceeds Rs. 50 Lakhs then amount over and above 50 lakhs have to collect additional 0.1% (reduced rate is 075% up to 31.03.2021) of bill value, will be value for collection of tax. Refer Post :
Section 206C(1H)-TCS on sale of goods
Answer: The person responsible for collecting tax shall deposit the TCS amount within 7 days from the last day of the month in which the tax was collected. Refer Post :
Section 206C(1H)-TCS on sale of goods
Answer: Every tax collector shall submit quarterly TCS return i.e., Form 27EQ in respect of the tax collected by him in a particular quarter. Refer Post :
Section 206C(1H)-TCS on sale of goods
Answer: Union Budget 2019, the Finance Minister has introduced new Section 194N which relates to deduct TDS on cash withdrawal in excess of 1 crore @ 2% by a banking company or cooperative bank or post office. Refer Post :
Section 194N TDS on cash withdrawals
Answer: Union Budget 2019, the Finance Minister has proposed a new Section 194M, which requires an individual or an HUF, to deduct TDS @ 5%, where they make payment exceeding Rs. 50 Lakh in a year to a contractor or to a professional even for personal work w.e.f. 01.09.2019. Refer Post :
Section 194M-TDS on payments to contractors and professionals
Answer: Any person (other than an Individual or HUF) who is responsible for paying to a resident any sum (referred to in Section 194J) shall deduct tax -Either at the time of payment Or at the time of credit (in any account of payee) Whichever is earlier. Refer Post :
Section 194J TDS on Professional Fees or Technical Services
Answer: M/s X & Co. has liable to deduct TDS @ 10% on Rs. 35,000 i.e. Rs. 3,500 on 28.12.2018, because at the time of payment of Rs. 15,000 the threshold limit has exceeded and the firm is liable to deduct TDS on total payment. Refer Post :
Section 194J TDS on Professional Fees or Technical Services
Answer: TDS on Rent under Section 194-IB:- Any person, being an individual or a Hindu undivided family (other than those referred under section 194-I), responsible for paying to a resident any income by way of rent exceeding Rs. 50,000 for a month or part of a month during the previous year, shall deduct an amount equal to 5% of such income as income-tax thereon w.e.f. 01.06.2017. Refer Post :
TDS on Rent under Section 194-IB
Answer: Tenants do not need to apply for TAN. CBDT has notified form 26QC for filling return under section 194-IBd and this is PAN based. Refer Post :
TDS on Rent under Section 194-IB
Answer: Non-compete fees refers to the amount received either in cash or kind, in return for an agreement which restricts the person from sharing any license, patent, franchise, trademark, know-how, commercial or business rights etc. Refer Post :
Section 194J TDS on Professional Fees or Technical Services
Answer: M/s Shyam & Company is required to deduct TDS under 194C @ 1% because Mr. Ram is an Individual, so the amount will be deducted of Rs. 1,100 (i.e. 1% of Rs. 1,10,000). Refer Post :
TDS on Payment to contractor under section 194C
Answer: Budget, 1 June 2016, Finance Minister in his Budget Speech has used the word ” Luxury Cars ” but , having regard to the language used in provision of Section 206C (1F) , it is not limited to the sale of luxury cars and are applicable on sale of any Motor vehicles of the value exceeding Rs 10 Lakh. Refer Post :
Section 206C (1F) TCS on Sale of motor Vehicle above Rs 10 Lakh
Answer: Tax is not required to be deducted on maturity amount if the maturity amount is less than Rs. 1,00,000/-. In this case, proceeds are Rs. 1,00,000/- hence TDS at 1% i.e. Rs. 1,000/- will be deducted under section 194DA. Refer Post :
TDS on Insurance Policy Payments under Section 194DA
Answer: The amount of deduction would be restricted to 10% of sum assured i.e. Rs. 50,000 (10% of Rs. 5,00,000). Hence, out of Rs. 1,00,000 premium paid by him, he would be eligible for deduction for only Rs. 50,000 & balance Rs. 50,000 is not eligible for deduction. Refer Post :
TDS on Insurance Policy Payments under Section 194DA
Answer: Premium paid towards a life insurance cover taken on life of your family which includes you, your spouse or your child (child may be dependent or not, minor or major, married or unmarried), such amount of premium paid is eligible for deduction under section 80C. Refer Post :
TDS on Insurance Policy Payments under Section 194DA
Answer: Section 194DA Inserted on 01.10.2014 according to the new section tax will be deducted at source (TDS) at below rates on payouts to Indian Resident, if the cumulative payout across all policies which are not exempted under section 10(10D) equals or exceeds Rs. 1 lakh in a financial year. Refer Post :
TDS on Insurance Policy Payments under Section 194DA
Answer: Any Resident Individual, with the age of 60 years or more, can submit form No. 15H provided his tax liability on the basis of his estimated income is nil. Unlike form No. 15G, this form can be submitted by the Senior Citizens even though the aggregate amount of interest income may exceed Rs. 3,00,000 which is the basic exemption limit for the A.Y 2019-20 and for Super Senior Citizens the basic exemption limit is Rs 5,00,000 for A.Y 2019-20. Refer Post :
Form 15G & 15H: Save TDS on Interest on Deposits whether Fixed or Recurring.
Answer: A person, Resident in India below the age of 60 years, to be eligible to furnish Form 15G, if they fulfill the following two conditions:
- The tax liability on the basis of his estimated income is nil; and
- The aggregate amount of interest income etc. received during the financial year should not exceed the basic exemption limit of Rs. 2,50,000 for the A.Y. 2019-20.
Refer Post :
Form 15G & 15H: Save TDS on Interest on Deposits whether Fixed or Recurring.
Answer: Payment to any profession should be deducted under section 194J @ 10%. The amount of Rs. 4,000 should be deducted. The amount should be deducted at the time of credit or payment which ever is earlier. Refer Post :
TDS Rate Chart.
Answer: TDS on commission is charged under section 194H, if the amount of commission exceeds Rs. 15,000 during the year, it will charged @ of 5% . Refer Post :
TDS Rate Chart.
Answer: TDS on payment of Rent of Building should be deducted, when the rent exceed Rs. 1,80,000 during the year. it will be deducted @ 10% under section 194-I. Refer Post :
TDS Rate Chart.
Answer: Yes, if you have not filled your TDS return on due date as prescribed under Income tax act, the penalty under section 234E will be charged @ 200/- per day till the defaults continue. Refer Post :
Due date for Payment of TDS and TDS Return.
Answer: Under Section 271H, an Assessee has not filled return within one year from the due date or incorrect filling of TDS return, the penalty should not be less than 10,000 or more than Rs. 1,00,000. Refer Post :
Due date for Payment of TDS and TDS Return.
Answer: Form 16 will be issued against TDS deducted on salary. Refer Post :
TDS Rate Chart.
Answer: Senior Citizens are not required to file Income Tax Return under section 139(1) means– The provisions pertaining to submission of return of income under section 139, shall not apply to the specified senior citizen for the assessment year relevant to the previous year in which tax is deducted under section 194P. Refer Post :
Section 194P-Exemption for ITR filing for Senior Citizen
Answer: No. Once the declaration is furnished by the specified senior citizen, the specified bank would be required to compute the income of such person after giving the effect of deduction available under section 80C to section 80U and rebate admissible under section 87A of the Income Tax Act (if any), and deduct appropriate income tax on such total income of the specified senior citizen. Refer Post :
Section 194P-Exemption for ITR filing for Senior Citizen
Answer: The Statement of Deduction of Tax from contributions paid by the trustees of an approved superannuation fund for the Financial Year 2020-21, required to be sent on or before 31st May, 2021 under Rule 33 of the Rules, may be sent on or before 30th June, 2021. Refer Post :
Government extends certain timelines in light of severe pandemic
Answer: There are two ways through which we can link PAN and Aadhaar. 1. Through the Income Tax e-filing website, 2. Through Sending an SMS. Refer Post :
Link PAN with Aadhaar
Answer: The due date of furnishing Report from an Accountant by persons entering into international transaction or specified domestic transaction under section 92E of the Act for the Previous Year 2020-21, which is 31st October, 2021, is extended to 30th November, 2021. Refer Post :
Government extends certain timelines in light of severe pandemic
Answer: The Statement of Income paid or credited by an investment fund to its unit holder in Form No 64C for the Previous Year 2020-21, required to be furnished on or before 30th June, 2021 under Rule 12CB of the Rules, may be furnished on or before 15th July, 2021. Refer Post :
Government extends certain timelines in light of severe pandemic
Answer: The Statement of Income paid or credited by an investment fund to its unit holder in Form No 64D for the Previous Year 2020-21, required to be furnished on or before 15th June, 2021 under Rule 12CB of the Rules, may be furnished on or before 30th June, 2021. Refer Post :
Government extends certain timelines in light of severe pandemic
Answer: TDS Certificate is for Sale of Property. It contains the tax deducted at source on the income earned from the sale of immovable property (Land/building) other than agricultural land. The buyer of the property would be required to issue Form 16B to the seller of the property in respect of the TDS deducted and deposited with the government. For depositing TDS, the buyer does not require a TAN number, furnish only their PAN number. Refer Post :
Difference between Form 16, Form 16A and Form 16B
Answer: The salaried taxpayers have an option to change new income tax regime every year.An individual or HUF is also having income from business then this selection is not allowed to be changed every year. Refer Post :
Income Tax Slab Financial Year 2020-21
Answer: Section 13A of Income-tax Act, deals with tax provisions relating to political parties. It confers tax-exemption to recognized political parties for income from house property, income by way of voluntary contributions, income from capital gains and income from other sources or says, only income under the head salaries and income from business or profession are chargeable to tax in the hands of political parties in India. Refer Post :
Income Tax Exemption for Political Parties
Answer: In India Political parties are governed by The Representation of the People Act, 1951 (RPA) i.e. BJP, Congress, AIDMK, AAP etc, all are registered with Election Commission under RPA as political party. Refer Post :
Income Tax Exemption for Political Parties
Answer: An Indian company is always resident in India. Even if an Indian company is controlled from a place located outside India (or even if shareholders of an Indian company controlling more than 51 per cent voting power are non-resident and/or located outside India), the Indian company is resident in India. An Indian company can never be non-resident. Refer Post :
Residential Status of Firm or Association of Person or Company
Answer: Provisions of section 6(3)(ii) shall not apply to a foreign company having turnover or gross receipts of Rs. 50 crore or less in a financial year – Circular No. 8/2017, dated February 23, 2017. A Foreign Company (whose turnover/gross receipt in the previous year is Rs. 50 crore or less) - is always non-resident in India. Refer Post :
Residential Status of Firm or Association of Person or Company
Answer: Deferred Tax Liability arises due to timing difference in the value of Assets as per Books of Accounts and as per Income Tax Act. Deferred Tax is purely an accounting Concept. AS 22 - "Accounting for Taxes on Income deals with Deferred Tax. Refer Post :
Deferred Tax Liability and Deferred Tax Assets
Answer: Deferred Tax Assets is similar to Deferred Tax Liability, which also arises due to timing difference in the value of Assets as per Books of Accounts and as per Income Tax Act. Refer Post :
Deferred Tax Liability and Deferred Tax Assets
Answer: If an individual satisfies any one of the following conditions, if—(1) He is in India for a period or periods amounting in all to 182 days or more in the relevant previous year; or (2) He is in India for 60 days or more during the relevant previous year and has been in India for 365 days or more during 4 previous years immediately preceding the relevant previous year. Refer Post :
Residential Status of an Individual or an HUF
Answer: if he satisfies both the following conditions i.e. - He has been a resident of India in at least 2 out of 10 years immediately previous years and He has stayed in India for at least 730 days in 7 immediately preceding years. Refer Post :
Residential Status of an Individual or an HUF
Answer: If none of the conditions is satisfied i.e.(1) He is in India for a period or periods amounting in all to 182 days or more in the relevant previous year; or (2) He is in India for 60 days or more during the relevant previous year and has been in India for 365 days or more during 4 previous years immediately preceding the relevant previous year. Refer Post :
Residential Status of an Individual or an HUF
Answer: Angel tax is the tax levied on funds raised by Indian start-ups through issue of shares to Indian residents. The Income Tax department has held that when these investments are made at a premium to the fair market value (FMV), the amount raised in excess to the FMV is taxable. The excess amount is taxed as income from other sources and taxed under Section 56 (2) (viib) of the Income Tax Act, 1961. Refer Post :
Angel Tax Relief the latest DIPP Notification for Startups and Investors
Answer: Audit report in Form no. 3CB is required to be furnished in case where books of account of assessee aren’t required to be audited under any other law (i.e. law other than income tax law). Refer Post :
Tax Audit under section 44AB
Answer: Form No. 3CD is the format in which the statement of particulars of tax audit is required to be furnished. This form has a total of 44 clauses where the auditor has to report on various matters contained therein. Refer Post :
Tax Audit under section 44AB
Answer: Due date for filing Tax Audit report under section 44AB is 30th September of Assessment Year of the relevant Previous Year. However, if the assessee is required to submit report pertaining to international or specified domestic transactions under section 92E, then due date of filing Tax Audit Report is 30th November of the relevant Assessment Year. Refer Post :
Tax Audit under section 44AB
Answer: Tax Audit under section 44AB is required to be conducted by a Chartered Accountant holding full time Certificate of Practice. Tax Audit ensures the correctness of Books of Account maintained by taxpayer and income is computed as per the provisions of the Income-tax Act. Tax audit report is furnished in Form no. 3CA/3CB & Form no. 3CD. Refer Post :
Tax Audit under section 44AB
Answer: Form no. 3CA is required to be furnished when the assessee is required to get its accounts audited under any law other than Income-tax law. Refer Post :
Tax Audit under section 44AB
Answer: When an assesse pays Advance tax or TDS deducted from their income which is excess from the income tax liability due at the end of any financial year is called excess of income tax deposited/deducted over his income tax liability called income tax refund. The income tax department always charged interest for late payment or pay interest on income tax refund. Refer Post :
How to check Income Tax refund status
Answer: Permanent Account Number (PAN) is the tax identification number, which can be applied through online or offline at NSDL center with the prescribed fee. Refer Post :
Uses of Permanent Account Number (PAN)
Answer: In case of salaries/ wages, the professional tax is to be deducted by the employer from the salary/wages of employee every month, and to be deposited with the state government with in the time limit as prescribed. If an employer has employed more than 20 employees, he is required to make the payment within 15 days from the end of the month. However, if an employer has less than 20 employees, he is required to pay quarterly (i.e. by the 15th of next month from the end of the quarter). In case of others, the professional tax is liable to pay by the person himself individually. Refer Post :
Professional Tax slab and their applicability
Answer: Professional tax levied under section 276(2) of Indian Constitution. The professionals earning an income from salary or other practices such as a lawyer, teacher, doctor, chartered accountant, etc. are required to pay professional tax. Refer Post :
Professional Tax slab and their applicability
Answer: These states/union territories where professional tax payment is applicable the employer should apply for registration within 30 days of employing worker/staff in a business or in case of professionals (non-employed), 30 days from start of the practice. Refer Post :
Professional Tax slab and their applicability
Answer: There is different kind of sodexo coupons available, but mainly Sodexo Meal Pass coupons are given by employer to its employees on monthly, quarterly basis, if the value of the coupon exceeds Rs. 50 per meal then the excess value is taxable in hands of an employee. Refer Post :
Sodexo Meal Coupon
Answer: Sodexo Meal Pass coupons are given by employer to its employees on monthly, quarterly basis, if the value of the coupon exceeds Rs. 50 per meal then the excess value is taxable in hands of an employee. Refer Post :
Sodexo Meal Coupon
Answer: Inherited property is that property which is passes titles, debts, rights, and obligations to another person upon the death of an individual or by way of will. Or say property received by son from his father under a will or by inheritance is called inherited property. Refer Post :
Tax on Inherited Property.
Answer: TDS amount will be deducted at the time of distribution of prize, if it is the kind of cash, it will be deducted from the amount of prize/gift, or if gift is the any kind, the tds will be paid by winner or prize sponsor at the time of distribution of gift. Refer Post :
Income Tax on winning from Lottery, Crossword Puzzle, etc.
Answer: TDS of Rs. 1,50,000 (i.e. 30% of Rs. 5,00,000) + Ed. Cess of Rs. 6,000 (i.e. 4% of Rs. 1,50,000) total of Rs. 1,56,000 will be deducted from prize amount and balance amount will be paid to the winner. Refer Post :
Income Tax on winning from Lottery, Crossword Puzzle, etc.
Answer: TDS of RS.2,10,000 (i.e. 30% of Rs.7,00,000) + Ed. Cess of Rs.8,400 (i.e. 4% of Rs. 2,10,000) total of Rs. 2,18,400 will be paid either by Mr. X or sponsor of Gift. Refer Post :
Income Tax on winning from Lottery, Crossword Puzzle, etc.
Answer: Due date means the last date to which the Income Tax Return should be filed without levy of penalty & Interest. Every assessee whether Individual/Hindu Undivided Family (HUF)/Body of Individuals (BOI)/Association of Person (AOP)/Firms/Companies etc. has to file their return within the time limit as prescribed. Refer Post :
Due date of filling Income Tax Returns under Income Tax Act.
Answer: Applicability of provisions relating to Dividend Stripping-
- Buying or acquiring any securities or units within a period of three months prior to the record date.
- Selling or transferring such securities within a period of three months after such date, or such units within a period of nine months after such date;
- The dividend or income on such securities or unit received or receivable by such person during the intervening period is exempt from tax.
Refer Post :
Know about Dividend Stripping and tax liability.
Answer: the capital loss arises due to sale of securities or units will not be allowed for set off to the extent of dividend earned. Or
If the capital gain arises, it will be taxable under “Income from Other Sources”. Refer Post :
Know about Dividend Stripping and tax liability.
Answer: Mr. X earns dividend of Rs. 1,00,000 (i.e. 2000 shares @ 50/- per share) and earns capital loss of Rs. 1,10,000 [i.e. 2000 shares @ 55/- (200–145= 55)].
After applicability of this section 94 (7), Mr. X will be allowed to set off loss of Rs. 10,000 (i.e. Capital loss of Rs. 1,10,000 – Dividend Income Rs. 1,00,000), because securities purchased within a period of 3 months and also sold within 3 months of record date (i.e. 31.03.2018). Refer Post :
Know about Dividend Stripping and tax liability.
Answer: Mr. X earns dividend of Rs. 1,00,000 (i.e. 2000 shares @ 50/- per share) and earns capital loss of Rs. 1,10,000 [i.e. 2000 shares @ 55/- (200–145= 55)].
After applicability of this section 94 (7), Mr. X will be allowed to set off loss of Rs. 10,000 (i.e. Capital loss of Rs. 1,10,000 – Dividend Income Rs. 1,00,000), because securities purchased before a period of 3 months but sold within 3 months of record date (i.e. 31.03.2018). Refer Post :
Know about Dividend Stripping and tax liability.
Answer: Mr. X earns dividend of Rs. 1,00,000 (i.e. 2000 shares @ 50/- per share) and earns capital loss of Rs. 1,10,000 [i.e. 2000 shares @ 55/- (200–145= 55)].
After applicability of this section 94 (7), Mr. X will be allowed to set off loss of Rs. 50,000, because securities purchased before 3 months and sold after 3 months of record date (i.e. 31.03.2018). Refer Post :
Know about Dividend Stripping and tax liability.
Answer: First Gross the value of Dividend = 1,00,000 x 0.85% comes to Rs. = 1,17,647/-
Tax amount comes to Rs. 1,17,647 – 1,00,000 = 17,647
Surcharge @ 12% of Rs. 17,647 =2,118
Ed. Cess @ 3% of (17,647+2,118) = 593
Total Dividend distribution tax paid by company = 17647+2118+593 = 20,358/-
Or (Says 20.36% of Rs. 1,00,000/-). Refer Post :
Dividend Distribution Tax u/s 115-O, paid by the Domestic Company.
Answer: Dividend stripping was a strategy to reduce the tax burden, by which an investor gets dividend which is tax free, by investing in shares/ mutual fund units, just before the declaration of dividend and then selling it off right after the receipt of dividend at a lower price, thereby incurring a short-term capital loss. This short-term capital loss is compensated with the tax free dividend. Further the investor can set off such loss against capital gains whether short-term or long-term. The balance amount of loss will be set off in next year under the same head of income. Refer Post :
Know about Dividend Stripping and tax liability.
Answer: Mr. X earns dividend of Rs. 1,00,000 (i.e. 2000 shares @ 50/- per share) and earns capital loss of Rs. 1,10,000 [i.e. 2000 shares @ 55/- (200–145= 55)].
Mr. X earns Rs. 1,00,000 as dividend which is exempt from Tax and also earns short term capital loss of Rs. 1,10,000 which will be set off against capital gains income and also save tax on that income. This is called dividend stripping. The government suffers a loss of income tax on dividend income and also on short term capital loss which will be set off against capital gains.
Refer Post :
Know about Dividend Stripping and tax liability.
Answer: The New Section 94(7) was introduced to evoke this type of dividend stripping which incurs a great loss to the government. Under this scheme capital loss will not be allowed for set off to the extent of dividend earned or under capital gain it will be taxable under “Income from Other Sources”. Dividend is exempted under section 10 (34). Refer Post :
Know about Dividend Stripping and tax liability.
Answer: The domestic companies has to pay Dividend Distribution Tax on amount of dividend declared to shareholders as per section 115-O. the dividend is taxed in the hands of the company @15% + Surcharge 12% +Ed. Cess 3% (called Dividend Distribution Tax) it comes to charge @ 20.36% of dividend amount. Refer Post :
Dividend Distribution Tax u/s 115-O, paid by the Domestic Company.
Answer: The Dividend received on shares of a domestic company is exempted from tax up to Rs. 10,00,000 provided the dividend distribution tax is paid by the Indian companies. It is not payable in case of foreign companies.The domestic companies has to pay Dividend Distribution Tax on amount of dividend declared to shareholders as per section 115-O. Refer Post :
Dividend Distribution Tax u/s 115-O, paid by the Domestic Company.
Answer: Under Section 115BBD, dividend received by domestic company will be charged at a concessional rate of tax @ 15% + Surcharge + Ed. Cess etc., provided the domestic company holds 26% of the normal equity capital of the said foreign company. There is no deduction in respect of expenses will be allowed, the tax will be charged on gross dividend income. Refer Post :
Section 10 (34): Income Tax Exemption on Dividend Income.
Answer: Dividend received from Foreign Company is taxable. It comes under the head of
“Income from Other Sources” and taxable @ 20% + Ed. Cess etc. the amount paid as commission or remuneration to a banker or any other person for the purpose of realizing such dividend on behalf of the assessee shall be allowed as a deduction. Then this commission paid will be allowed as a deduction (u/s 57) from your dividend income taxable under the head income from other sources. Refer Post :
Section 10 (34): Income Tax Exemption on Dividend Income.
Answer: However, as per section 115BBDA of the Income Tax Act, w.e.f. 01.04.2017 when the shareholders received dividend in aggregate of more than Rs. 10,00,000 during the year from domestic companies, then such shareholder have to pay Income Tax.
In case of Resident Individual/HUF/Firm, the dividend shall be chargeable to tax @ 10%, if the aggregate amount of dividend received from domestic company during the year exceeds Rs. 10,00,000 (Section 115BBDA). There is no deduction in respect of expenses will be allowed, the tax will be charged on gross dividend income. Refer Post :
Section 10 (34): Income Tax Exemption on Dividend Income.
Answer: Dividend received from an Indian company under section 10 (34) is exempt from tax provided dividend distribution tax has already charged under section 115-O. Dividend received above Rs. 10,00,000 will be taxed. Refer Post :
Section 10 (34): Income Tax Exemption on Dividend Income.
Answer: You have to file ITR-2 because agricultural income exceeding Rs. 5,000 will comes under form ITR-2 along with salary income. Refer Post :
Which Income Tax Form Should I File.
Answer: Yes, penalty will be charged as under-
- If the taxable income is below Rs. 5,00,000 Penalty will be Rs. 1,000
- If the taxable income is above Rs. 5,00,000:-
- -filed before 31st December Penalty will be Rs. 5,000.
- -filled after 31st December Penalty will be Rs. 10,000.
Refer Post :
Filing of Belated Return u/s 139 (4) of Income Tax Act.
Answer: Mr. X has not filled his return before the due date i.e. 31.07.2018, he has filed his return later on 12.11.2018. His liability is as under-
- Tax Amount = 8,840
- Interest u/s 234A = 442 i.e.(Rs. 8,840 x 1% x 5 months)
- Penalty for Belated Return = 1,000 (Taxable income below Rs. 5,00,000)
Refer Post :
Filing of Belated Return u/s 139 (4) of Income Tax Act.
Answer: When you have file your income tax return, which have arises any discrepancy or mistake or any information is missing, that return will be called as defective return. The department also compares and cross verified the details provided by you or the information is available with him, if they find any doubt the department issues a Defective Return notice u/s 139(9). Refer Post :
Defective Return under section 139 (9) of the Income Tax Act.
Answer: You have to revise your return, mentioned with defects pointed out by the Income Tax Department, within 15 days from the receipt of intimation order under section 139(9). You can seek an extension by writing to your local Assessing Officer if you fail to revise your income tax return within 15 days. Refer Post :
Defective Return under section 139 (9) of the Income Tax Act.
Answer: If an assessee fail to respond within the time mentioned in notice issued u/s 139(9), then the assessing officer may treat your return as invalid. Or says, it will be treated as you have not filed your income tax return for the year. Refer Post :
Defective Return under section 139 (9) of the Income Tax Act.
Answer: Resident Indian individuals having total income not exceeding Rs. 50 lakhs during the year –
- Income from Salary/ Pension; or
- Income from One House Property (excluding brought forward and carry forward losses); or
- Income from Other Sources (Other than Winning from Lottery and Race Horses, Dividend received from Indian company exceeding Rs. 10 lakhs, Unexplained income taxable u/s 115BBE). Refer Post : Which Income Tax Form Should I File.
Answer: Assessment order passed under section 143 (1) shall not be treated as completion, for revision of return, i.e. return can be revised after order passed under section 143(1). Assessment order under section 143(3) or section 144 is considered as completion of assessment. Refer Post :
Filing Revised Return u/s 139 (5) of Income Tax Act.
Answer: If a person fails to file the return of income before the due date as prescribed under section 139 (1), or fails to file return within the time prescribed under notice 142(1) issued by assessing authority. He can still file his return even after the due date is called belated return u/s 139 (4). Refer Post :
Filing of Belated Return u/s 139 (4) of Income Tax Act.
Answer: The Central Board of Direct Taxes has given the powers to Income tax authorities to accept the Income tax return for a financial year even after the expiry of due date.Authorities have been empowered to direct the Jurisdictional tax officer to make such enqiury or scrutiny to ascertain the correctness of claim. Application can be accepted or rejected on the following ground-
- The claim is correct and genuine
- There is a case of genuine hardship or merits.
Refer Post :
Claim Refund when missed to file ITR of earlier years under section 119(2)(b).
Answer: Section 40A (3) (a) of the income tax act provides that any expenditure incurred in respect of which payment is made in a sum of exceeding Rs. 10,000 during a day otherwise than by way of account payee cheque drawn on a bank or bank draft or through use of electronic clearing system, shall not be allowed as deduction.Refer Post :
Expenses disallowed under section 40A (3) made in cash & their Exceptions.
Answer: As the trading of F&O are non speculative transactions, the loss arising out of these transaction can be set off as normal business against all other heads of income except “Income from Salary” in the same financial year. Or If the above loss is not set off in the same financial year from the other heads of income, it shall be carried forward to next year and set off from the income of same head only. The losses should be shown in the ITR or ITR must be filled before the due date. Refer Post :
Computation of Turnover & Income Tax Return filling under Future & Option (F&O) Trading.
Answer: Section 271E of Income Tax Act, provides that if a loan or deposit is accepted in contravention of the provisions of section 269T then a penalty equivalent to the amount of such loan or deposit may be levied by the Joint commissioner.
Penalty on contravention of Section 269T-100% of the loan or deposit amount. Refer Post :
Provisions of Section 269SS & 269T.
Answer: The total of all contracts sold would not be considered as the total turnover.
- The total of positive and negative or favorable and unfavorable differences shall be taken as turnover.
- Premium received on sale of options is to be included in turnover.
- In respect of any reverse trades entered, the difference thereon shall also form part of the turnover.
Refer Post :
Computation of Turnover & Income Tax Return filling under Future & Option (F&O) Trading
Answer: Section 269SS provides that any loan or deposit shall not be taken or accepted from any other person otherwise than by an account payee cheque or account payee bank draft if
(a) The amount of such loan or deposit or the aggregate amount of such loan and deposit, is Rs. 20,000 or more,
Or
(b) On the date of taking or accepting such loan or deposit, any loan or deposit taken or accepted earlier by such person from the depositor is remaining unpaid, is Rs. 20,000 or more,
Or
(c) The total amount arrived at, by adding the loan accepted during the year or outstanding balance is more than 20,000. Refer Post :
Provisions of Section 269SS & 269T.
Answer: Section 271D of Income Tax Act, provides that if a loan or deposit is accepted in contravention of the provisions of section 269SS then a penalty equivalent to the amount of such loan or deposit may be levied by the Joint commissioner.
Penalty on contravention of Section 269SS-100% of the loan or deposit amount. Refer Post :
Provisions of Section 269SS & 269T.
Answer: Yes, It will attract section 269SS and imposed penalty under section 271D, there is no excuse that he has received Rs. 15,000 through cheque in previous year. Refer Post :
Provisions of Section 269SS & 269T.
Answer: Section 269T of Income Tax Act provides that any branch of a banking company or a cooperative society, firm or other person shall not repay any loan or deposit otherwise than by an account payee cheque or account payee bank draft drawn in the name of the person, who has made the loan or deposit, if(1) The amount of the loan or deposit together with interest is Rs 20000 or more
Or
(2) The aggregate amount of loans or deposits held by such person, either in his own name or jointly with other person on the date of such repayment together with interest, is Rs 20,000 or more. Refer Post :
Provisions of Section 269SS & 269T.
Answer: No, Income from subletting is not charged to tax under “Income from House Property” while it is taxable under the head “Income from Other Sources” because tenant is not the owner of the said property. Refer Post :
How to compute Income from House Property.
Answer: There is no need to maintain proper books of accounts if you adopt presumptive taxation scheme. The provision of section 44AA relating to maintenance of books of accounts will not apply. You dont require to keep an accountant to maintain proper books of accounts. Refer Post :
Benefits under Presumptive Taxation Scheme.
Answer: Statutory deduction is allowed @ 30% of Net Annual Value (Gross Annual Value- Municipal Taxes if paid) on account of Repair & Maintenance. This deduction is allowed to every person who has rental income from any property. Refer post:
How to compute Income from House Property.
Answer: You can claim deduction of interest under section 24 (Subject to the conditions) of house property. There is no deduction allowed for repayment of principal under this head but you can claim deduction under section 80C up to the extent of Rs. 1,50,000 for principal repayment of housing loan. Refer post:
How to compute Income from House Property.
Answer: Yes, each joint owners can claim deduction of interest under section 24 (subject to conditions) or can claim repayment of principal under section 80C individually. Refer Post :
How to compute Income from House Property.
Answer: Yes, long term/short term capital losses can be carried forward up to 8 years from the financial year in which the loss has been incurred. Long term capital losses can be set off only against the long-term capital gains but the short-term capital losses can be set off against both the short-term as well long-term capital gains. Refer post :
Set off and Carry forward of losses.
Answer: Yes, The non speculative business losses can be set off against income of other heads except Income from salary, i.e. means it can be set off from income from house property, income from capital gain and Income from other sources. Refer post :
Set off and Carry forward of losses.
Answer: No, Speculative business losses can be set off against the profits of any other speculative Business. It cannot be set off against any other Business or Professional Income. But losses of business or profession can be set off against the profits of speculation Business. Refer post :
Set off and Carry forward of losses.
Answer: The carry forward losses can be set off only against the profit from that head of income. except the losses arising out of house property to the extent of Rs. 2,00,000 can be set off other head of income every year. Refer post:
Set off and Carry forward of losses.
Answer: 1)
For self occupied property- The maximum deduction allowed under section 24 is subject to Rs. 2, 00,000. 2)
For not self occupied property- There is no maximum limit has been prescribed under the law to claim deduction. Refer post:
How to compute Income from House Property.
Answer: No, long term capital loss can not be set off against income of other heads, it can be set of against long term gains only. Refer post:
Set off and Carry forward of losses.
Answer: Yes, House Property Losses can be set off against profits from other heads. It can be set off against salary income, Business income, Income from capital gain, and income from other sources. Refer post :
Set off and Carry forward of losses.
Answer: No, Short term capital loss can not be set off against income of other heads, it can be set of against short term capital gain as well as long term gains only. Refer post:
Set off and Carry forward of losses.
Answer: In case of a person adopting the provisions of section 44ADA, income will be computed on presumptive basis, i.e. @ 50% of the total gross receipts of the profession. Refer Post :
Presumptive Taxation Scheme for Professionals.
Answer: No, the scheme cannot be adopted by a non-resident and by any person other than an individual, a HUF or a partnership firm (not Limited Liability Partnership Firm). Refer Post :
Presumptive Taxation Scheme for Professionals.
Answer: Professionals whose Total Gross Receipts does not exceed more than Rs. 50 lakh in a financial year, can claim the benefit of this scheme.The presumptive taxation scheme of section 44ADA is designed to give relief to small taxpayers engaged in specified profession. Refer Post :
Presumptive Taxation Scheme for Professionals.
Answer: The whole amount of advance tax is to be paid on or before 15
th March of the previous year. If he fails to pay the advance tax by 15th March of previous year, he shall be liable to pay interest as per section 234C. Refer Post :
Presumptive Taxation for Business Income Section 44AD.
Answer: If a person adopting the provision of section 44AD, income is computed on presumptive basis at the rate of 6% or 8% as the case may be, of the turnover or gross receipts of the eligible business for the year. Refer Post :
Presumptive Taxation for Business Income Section 44AD.
Answer: No, If the last day for payment of any installment is a day on which the receiving bank is closed, the assessee can make the payment on the next immediately following working day, and in such cases, the mandatory interest leviable under sections 234B and 234C would not be charged. Refer Post :
Advance Tax Payments: Due Dates and Interest on Late Payment.
Answer: No, you can not claim HRA even you are residing in rental accommodation. However you can claim deduction under section 80GG for rent paid. Refer Post :
Eight ways to save Income Tax.
Answer: No, if you are self employed and living in rental accommodation you can’t claim HRA, but you can claim deduction under section 80GG for rent paid. Refer Post :
Eight ways to save Income Tax.
Answer: No, Money gifted to wife is tax free. However If she has invested this amount in saving plan and generated interest income then it is taxable in the hands of you. Refer Post :
Is Money Gifted to Wife is Taxable.
Answer: The Central Government hiked the rates of interest on various small saving schemes including Senior Citizen Savings scheme, Sukanya Samriddhi Account scheme, Monthly Income Savings scheme, National Savings Certificate, Kisan Vikas Patra and all post office time deposits for the 1st quarter of financial year 2023-24 i.e. 01.04.2023 to 30.06.2023, has been revised. However, the government has kept the interest rate for Public Provident Fund (PPF) scheme unchanged at 7.1 per cent for this period. Refer Post :
Revised Interest Rates for Small Savings Schemes 1st quarter 2023-24
Answer: Interest received on bonds will be taxable under the Income-tax Act, 1961 (applicable according to the income tax slabs applicable to bond holder/s. Refer Post :
Floating Rate Savings Bonds 2020 (Taxable)
Answer: There is no provision in the rules for purchase of a Kisan Vikas Patra by the ‘Karta’ on behalf of an HUF. Refer Post :
Kisan Vikas Patra
Answer: NRIs are not eligible to purchase KVP certificates. Refer Post :
Kisan Vikas Patra
Answer: You can invest the minimum amount of Rs. 1000 and in multiples of Rs. 1000, there is no maximum limit to invest in KVP. Refer Post :
Kisan Vikas Patra
Answer: Now the interest rate has been increased to 7.70% w.e.f 01.10.2018, earlier it was 7.30% from 01.04.18 to 30.09.2018. The interest earned on KVP is compounded annually. Refer Post :
Kisan Vikas Patra
Answer: Now, the maturity period is 112 months w.e.f. 01.10.2018, earlier it was 118 months from 01.04.2018 to 30.09.2018. Refer Post :
Kisan Vikas Patra
Answer: The investment in KVP is not eligible for income tax exemption under section 80C. Refer Post :
Kisan Vikas Patra
Answer: Minimum INR 10/- per month or any amount in multiples of INR 5/-. No maximum limit. Minimum amount that can be invested varies from bank to bank. Refer Post :
Recurring Deposit Scheme
Answer: Average rate of interest varies between 4% to 8% subject to the conditions. It can vary from bank to bank and tenure of deposits. The interest rates for senior citizens deposits are higher than the regular account. Interest is compounded on quarterly basis. Post offices are providing interest rate @ 7.3% per annum (quarterly compounded) for the 4th quarter of 2018-19, which has revised on 01.01.2019. On maturity INR 10/- account fetches INR 725.05. Refer Post :
Recurring Deposit Scheme
Answer: TDS should be deducted @ 10% if the total amount of interest exceeds Rs. 10,000 in a financial year. Refer Post :
Recurring Deposit Scheme
Answer: The investment in recurring deposit schemes is not eligible for tax deduction limit. Refer Post :
Recurring Deposit Scheme
Answer: Kisan Vikas Patra (KVP) is also fixed guaranteed income investment scheme. The KVPs can be purchased from any post office in India. These can be transferred from one person to another. Kisan Vikas Patra was reintroduced in 2014, with a number of changes including mandatory PAN Card proof for investments over Rs. 50, 000 and income source proof for investments exceeding Rs.10 lakh. Refer Post :
Kisan Vikas Patra
Answer: According to rule 6 of Kisan Vikas Patra, co-operative banks and co-operative societies are not permitted to invest in this scheme. Refer Post :
Kisan Vikas Patra
Answer: This is a special kind of medium term deposit which is offered by banks, post offices in India. Under this scheme you can invest regularly on monthly basis a fixed amount for a fixed period. You can open various recurring deposit accounts. Refer Post :
Recurring Deposit Scheme
Answer: The Groups of people like trusts, companies or Hindu Unified Families are not eligible for investment in NSC, only an Individual resident not an NRI can purchase the same. Refer Post :
National Savings Certificates
Answer: You can invest the minimum amount of Rs. 100 and in multiples of Rs. 100/-, there is no maximum limit to invest in NSC. Refer Post :
National Savings Certificates
Answer: Now the interest rate has been increased to 8.00% w.e.f 01.10.2018, earlier it was 7.60% from 01.04.18 to 30.09.2018. The interest is compounded annually but payable at maturity. The interest earned thereon is fully taxable. Refer Post :
National Savings Certificates
Answer: The maximum amount for deduction under section 80C is allowable up to Rs. 1, 50,000. The interest accrued on NSCs every year is also eligible within tax deduction limit of Rs. 1,50,000. Refer Post :
National Savings Certificates
Answer: The Maturity period is of 5 years. Upon maturity, you will receive the entire maturity value. Since there is no TDS on NSC payouts. Refer Post :
National Savings Certificates
Answer: In case of certificate is lost/stolen/destroyed the owner of such certificate can apply for issuance of a duplicate certificate to the post master at such post office from where it has purchased on prescribed form with a small amount of charges. Once a duplicate certificate is issued, it will be redeemable only at the post office where it was issued. Refer Post :
National Savings Certificates
Answer: On September 23, 2018, the Prime Minister Narendra Modi launched Ayushman Bharat, worlds largest government-funded healthcare scheme. Every person listed in the Socio Economic Caste Census (SECC) database will automatically be enrolled in the scheme. Refer Post :
Ayushman Bharat health insurance scheme
Answer: NPS offers two kinds of accounts: tier 1 and tier 2. The tier 1 account is non-withdrawable till the person reaches the age of 60. The Tier II NPS account works like a savings account from where the subscriber is free to withdraw money as and when required. Refer Post :
Benefits of National Pension System (NPS)
Answer: Gold ETF is traded on the stock exchange (NSE & BSE) where we can buy or sell gold in real time during the trading session. All investment in ETF can be made through demat account .There is no risk factor for theft or burglary because all gold ETF investment will safely get deposited in your demat account. Refer Post :
Comparison between Physical Gold and Sovereign Gold Bonds and Gold ETF
Answer: The Government has raised interest rate on General Provident Fund (GPF) and other related schemes in third quarter of 2018 by 0.4 per cent to 8 per cent (earlier it was 7.6%). Refer Post :
General Provident Fund (GPF)
Answer: Employees can withdraw GPF for select purposes after completing 10 years of service (earlier it was 15 years of service). Refer Post :
General Provident Fund (GPF)
Answer: Government has permitted GPF withdrawal of up to twelve months pay or three-fourth (75 per cent) of the outstanding money in the General Provident Fund, whichever is less, In some cases, such as for illness, the withdrawal may be allowed up to 90 per cent of the amount standing at credit of the subscriber. Refer Post :
General Provident Fund (GPF)
Answer: Yes, The contributions made by the employee can be claimed as tax deductions under section 80C. Refer Post :
General Provident Fund (GPF)
Answer: General Provident Fund (GPF) is a provident fund account which is available for government employee’s (i.e. central government employees, railways and defence forces), Semi Govt. bodies, Universities or local authorities etc. Refer Post :
General Provident Fund (GPF)
Answer: The investment limit has been increased to 15 lakhs under the Pradhan Mantri Vaya Vandana Yojana (PMVVY). The limit on maximum investment has now revised to per senior citizen (and not per family). Refer Post :
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Answer: In specific cases like critical medical emergency of policy holder or spouse, the policy can be surrendered before completion of 10-year term. The surrender value will be 98% of purchase price means 2% will be deducted of the investment amount. Refer Post :
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Answer: The Interest rate is revised from 3rd quarter @ 7.7% per annum (earlier in 1st or 2nd quarter of 2018 it was 7.3%). Refer Post :
Monthly Income Scheme (MIS)
Answer: The investment can be start with a minimum amount of Rs. 1,500 & Maximum investment limit is Rs. 4, 50,000/- in single account and Rs. 9, 00,000/- in joint account. Refer Post :
Monthly Income Scheme (MIS)
Answer: Premature withdrawal can be made after one year or before 3 years at a discount of 2% of deposit amount and after 3 years at a discount of 1% of deposit amount. Refer Post :
Monthly Income Scheme (MIS)
Answer: The maximum limit for investment is Rs. 15 lakhs irrespective of number of accounts, individually or jointly (in multiple of Rs. 1,000). Refer Post :
Senior Citizen Savings Scheme (SCSS)
Answer: The said account can be opened with a minimum amount of Rs. 250/- (earlier it was Rs. 1,000/-) and maximum of Rs. 1,50,000 per annum." Refer Post :
Sukanya Samriddhi Yojana Account (SSYA)
Answer: Public Provident Fund is one of the best, trustworthy and popular investment scheme. It offers guaranteed, risk free returns. Refer Post :
Public Provident Fund Account (PPF)
Answer: Sukanya Samriddhi Yojana is a good option. Its aim is to help parents of a girl child when she attains maturity for her education and marriage, through this way every parent and guardian of a girl child in India can secure their daughter’s future. Refer Post :
Sukanya Samriddhi Yojana Account (SSYA)
Answer: Union Budget 2019, the Finance Minister has proposed an additional deduction for interest paid on home loan taken during the financial year 2019-20 for residential house property. This additional deduction of interest will qualify under the newly introduced section 80EEA. Refer Post :
Section 80EEA-Deduction for Interest paid on home loan
Answer: Deduction under section 80G for donations to certain notified funds, charitable institutions or other institutions/ funds set up by the Government of India. Refer Post :
Deduction under Section 80G for Donation
Answer: No deduction under this section is allowable in case the amount of donation exceeds Rs 2000/- unless the amount is paid by any mode other than cash. Refer Post :
Deduction under Section 80G for Donation
Answer: Contributions/ Donations to certain Funds as set up and notified by the Government are eligible for 100% or 50% deduction from Gross Total Income of the assessee. Refer Post :
Deduction under Section 80G for Donation
Answer: The provisions of Section 80C apply only to individuals or a Hindu Undivided Family (HUF). Hence, a company or a firm cannot take the benefit of Section 80C. Refer Post :
Deduction under section 80C 80CCC and 80CCD
Answer: Premium paid to any insurer approved by the Insurance Regulatory and Development Authority of India, whether public or private. Hence, the insurance premium paid can claim under section 80C. Refer Post :
Deduction under section 80C 80CCC and 80CCD
Answer: Deduction under section 80CCD (1B) is allowed up to Rs. 50,000. Investment in National Pension Scheme (NPS) is the best and only solution available to save tax. As per section 80CCD(1B). Refer Post :
Deduction under section 80C 80CCC and 80CCD
Answer: Section 80E allows deduction in respect of payment of interest on loan taken from any financial institution or any approved charitable institution for higher education for the purpose of pursuing his higher education or for the purpose of higher education of his spouse or his children or the student for whom he is the legal guardian. Refer Post :
Section 80E Income Tax Deduction for Interest on Education Loan
Answer: The new residential house can not be sold out with in 3 years from the date of purchase, or purchase a new house with in two years from the date of sale of the original assets or constructed with in 3 years from the date of sale of original assets, the exemption under section 54F will be reversed, or it will be taxed under long term capital gain. Refer Post :
Exemption u/s 54F: Long term Capital assets other than residential house.
Answer: Section 54F gives relief to taxpayers, who sold his house property after 3 years of purchase. If he arises any profit on sale of property, can claim exemption under section 54F on the following basis-
- If the entire amount of sale consideration is invested, you can claim the full exemption benefit.
Answer: Section 54 gives relief to taxpayers, who sold his house property after 3 years of purchase. If he arises any profit on sale of property, can claim exemption under section 54 on the following basis-
- If the entire amount of capital gain is invested, you can claim the full exemption benefit.
- If the entire amount of capital gain is not invested, you can claim the exemption of invested amount and the balance is taxable under long term capital gain.
Investment in new residential house property or amount of capital gain, whichever is lower. Refer Post :
Exemption u/s 54: Long term Capital Gain on Transfer of Residential House Property.
Answer: Under section 80QQB in respect of royalty income earned by an author for writing books. This deduction is available for an individual
“Resident in India”. An author writes books and gives to the publishers. Publishers publish them and earn profit on selling those. They pay an agreed amount of percentage of profit on sales made to the authors. This reward is called Royalty Income. Royalty income is taxable under the Income Tax Act, so the deduction u/s 80QQB is allowed as deduction. Refer Post :
Deduction under section 80QQB: for Royalty Income.
Answer: A deduction of 30% is allowed in addition to normal deduction of 100% in respect of emoluments paid to eligible new employees who have been employed for a minimum period of 240 days during the year under section 80-JJAA of the Income-tax Act. However, the minimum period of employment is relaxed to 150 days in the case of apparel industry, footwear industry and leather industry. Refer Post :
Deduction u/s 80JJAA: in respect of employment of new employees.
Answer: Mr. Oberoi has total income of Rs. 3,25,000
Tax amount:Up to Rs. 2,50,000: Nil, 2,50,000 to 5,00,000: 5% (means 5% of Rs. 75,000 ( 3,25,000-2,50,000) = 3,750/-),Less Rebate u/s 87A Rs. 2,500, Tax liability: Rs. 1,250 Add: Ed. Cess @ 3% =37.50, Total Tax liability= 1,287.50 Refer Post :
Who Can Claim Rebate Under Section 87A.
Answer: Rebate under section 87A is available to a persons whose total income does not exceeds Rs. 3,50,000 during the financial year. The amount of deduction under section 87A is the least of Rs. 2,500 or 100% of tax amount. Refer Post :
Who Can Claim Rebate Under Section 87A.
Answer: Mr. Ramesh would be eligible for a deduction under section 80D for Rs. 67,000/- (Rs. 25,000 + Rs. 42,000) during the financial year 2018-19. In such case where assessee is not senior citizen while his parents are senior citizens the deduction can be claimed up to maximum of Rs. 75,000. Refer Post :
Deduction under section 80 D- for Medical Insurance & Health Checkup.
Answer: A deduction of Rs. 25,000 can be claimed for insurance of self, spouse and dependent children. An additional deduction for insurance of parents is available to the extent of Rs 25,000 if they are less than 60 years of age or Rs 50,000 (has been increased in Budget 2018 from Rs 30,000). if, a taxpayers age and parents age is 60 years or above, the maximum deduction available under this section is to the extent of Rs. 100,000. or actual amount paid which ever is lower. Refer post:
Deduction under section 80 D- for Medical Insurance & Health Checkup.
Answer: The deduction is available only to Resident Senior Citizens. The deduction is eligible on all kind of interest received from banks, post offices or co-operative societies carrying on banking business up to the extent of Rs. 50,000 (w.e.f. 01.04.2018 on wards) during the year. Refer post :
Deduction on Interest Income: Under Section 80TTA/80TTB.
Answer: You can take exemption of Rs. 5,000 under section 80TTA for interest received on saving account. In the financial year 2017-18, Section 80TTB was not introduced. it is applicable from 01.04.2018 on wards. Refer post:
Deduction on Interest Income: Under Section 80TTA/80TTB.
Answer: If any person whether himself or dependent suffering from specified disease, or is not a senior citizen the assessee can claim deduction of Rs. 40,000 or actual expenditure, which ever is lower.if any person whether himself or dependent is senior citizen the deduction can be claimed Rs. 1,00,000 (w.e.f F.Y. 2018-19 on wards) or actual expenses, which ever is lower. Refer Post :
Deduction under section 80DDB: for Medical treatment of Specified Diseases.
Answer: The deduction covered under section 80C/80CCC/80CCD(1) is allowed up to the extent of Rs. 1,50,000 during the financial year. Refer Post :
Deductions under Chapter VIA.
Answer: No, The deduction under section 80CCD(1b) is allowed extra up to the extent of Rs. 50,000 besides the limit of Rs. 1,50,000. Refer Post :
Deductions under Chapter VIA.
Answer: Yes, The Contribution made by an employer up to 12% is exempt from Income Tax. In excess of 12% of salary is treated as salary income of the employee and is taxable in the year in which year excess contribution is made. Refer Post :
What is Provident Fund and Tax Liability.
Answer: Pension received by a family member of any employee in case of death of an employee is family pension. Commuted family pension is tax free while non commuted pension is 1/3rd of the uncommuted pension or Rs.15000/- whichever is less is to be exempted from tax and balance is taxable. Refer Post :
Who is eligible for Pension, their Exemption and Tax liability.
Answer: The Employees State Insurance act provides benefits to employees in case of sickness, maternity, injury and any accident occurred during employment. Refer Post :
What is ESI contribution and its benefit.
Answer: Yes, you can avail rebate of Rs. 2,500 or tax amount, whichever is less. this deduction is allowed for Individuals not for HUF, Firm or Companies etc. Refer Post :
Who Can Claim Rebate Under Section 87A.
Answer: Yes, you can avail rebate under section 87A. As per income tax slab, tax amount on Rs. 3,20,000 comes to Rs. 3,500. you can avail rebate of Rs. 2,500 and your tax amount comes to Rs. 1,000+ 3% Ed. cess extra. Refer Post :
Who Can Claim Rebate Under Section 87A.
Answer: GSTR 3B returns for any month(s) from July 2017 till January 2020, without payment of late fees, provided it is filed between 01.07.2020 to 30.09.2020, for those months in which they did not have any tax liability. Refer Post :
Relief in respect of Late Fees for filing Form GSTR 3B
Answer: The National Informatics Centre (“NIC”) has introduced certain new enhancements to the E-Way Bill (EWB) system dated April 23, 2019. The purpose of introduction of such enhancement is to ease the process of generation of E-Way Bill system by the taxpayers and the transporters. Refer Post :
New Enhancements in e Way Bill System dated-23rd-April-2019
Answer: GST council has increased the threshold limit of annual turnover for Composition scheme raised to Rs 1.5 crore from Rs. 1 Crore w.e.f. 1st April 2019. Refer Post :
Key updates of 32nd GST Council Meeting
Answer: Those providing services or mixed supplies (goods and services) with a turnover up to Rs. 50 lakh per annum will now be entitled to avail composition scheme. Refer Post :
Key updates of 32nd GST Council Meeting
Answer: Businesses whose under GST Composition Scheme from April 1st 2019, has to file just one annual return, but pay taxes once every quarter. Refer Post :
Key updates of 32nd GST Council Meeting
Answer: The Registration threshold limit under GST has increased to Rs. 40 lakh (earlier it was Rs. 20 lakh) for all states and Rs. 20 lakh (earlier it was Rs. 10 lakh) for NE and hill states. Refer Post :
Key updates of 32nd GST Council Meeting
Answer: GST Council allows Kerala to impose 1% calamity cess on intra-state sales for 2 years.This has been done to help the state cope up with natural disasters. Refer Post :
Key updates of 32nd GST Council Meeting
Answer: Mixed supply means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply. Refer Post :
Mixed Supply and Composite Supply under GST
Answer: Composite supply means a supply comprises two or more goods/services, which are naturally bundled and supplied in with each other in the ordinary course of business, one of which is a principal supply. Refer Post :
Mixed Supply and Composite Supply under GST
Answer: If the composite supply involves supply of services as principal supply, such composite supply would qualify as supply of services and accordingly the provisions relating to time of supply of services would be applicable. Alternatively, if composite supply involves supply of goods as principal supply, such composite supply would qualify as supply of goods and accordingly, the provisions relating to time of supply of goods would be applicable. Refer Post :
Mixed Supply and Composite Supply under GST
Answer: The mixed supply, if involves supply of a service liable to tax at higher rates than any other constituent supplies, such mixed supply would qualify as supply of services and accordingly the provisions relating to time of supply of services would be applicable. Alternatively, the mixed supply, if involves supply of goods liable to tax at higher rates than any other constituent supplies, such mixed supply would qualify as supply of goods and accordingly the provisions relating to time of supply of services would be applicable. Refer Post :
Mixed Supply and Composite Supply under GST
Answer: FORM GSTR-1 for the months/quarter from July, 2017 to September, 2018 by the due date but furnishes the said details in Form GSTR-1 between the period from 22nd December, 2018 to 31st March, 2019 vide Notification No. 75/2018. Refer Post :
Waiver of Late Fees for Filing of GSTR-1 GSTR-3B and GSTR-4
Answer: The due date for furnishing the annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement in FORM GSTR-9C for the Financial Year 2017 – 2018 shall be further extended till 30.06.2019. Refer Post :
GST rates on goods and services reduced by GST Council
Answer: In case if the taxpayer does not file his/her return with in the due dates as mentioned above, the late fee for filing GSTR-1, GSTR-3B, GSTR-4, GSTR-5 & GSTR-6 will be charged Rs. 50/day i.e. Rs. 25 per day in each CGST and SGST (in case of having tax liability) and Rs. 20/day i.e. Rs. 10/- day in each CGST and SGST (in case of Nil tax liability) subject to a maximum of Rs. 5000/-, from the due date till the date the returns are actually filed. There is no late fee on IGST. Refer Post :
Due dates for filing GST Returns
Answer: Interest is 18% per annum. It has to be calculated by the tax payer on the amount of outstanding tax to be paid. Time period will be from the next day of filing to the date of payment. Refer Post :
Due dates for filing GST Returns
Answer: This is the annual return which is to be filed by the normal registered taxpayer once a year with all the consolidated details of SGST, CGST and IGST paid during the under GST. Refer Post :
Comparison between GSTR-9 and GSTR-9C
Answer: As per section 35(5) of CGST Act, every registered person whose turnover during the financial year exceeds the prescribed limit of Rs. 2 crore shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annual accounts, the reconciliation statement under sub-section (2) of section 44 which is called GSTR-9C and such other documents in such form and manner as may be prescribed. Refer Post :
Comparison between GSTR-9 and GSTR-9C
Answer: Tax means GST which is charged on goods/ services supplied, always it is paid by the supplier against supplies of goods & services, but in certain cases the buyer has to pay GST under reverse charge on purchase of goods/supplies. This type of GST paid by the buyer is called Reverse charge mechanism. Refer Post :
Reverse Charge Mechanism under GST (RCM)
Answer: Mr. Ram has an annual turnover of Rs. 12.00 lakhs (i.e. Rs. 10.00 lakhs from agriculture produce + Rs. 2.00 lakh from supply of woven bags). Mr. Ram has to register himself under GST because the “Aggregate Turnover” exceeds the threshold limit of Rs. 10.00 lakh (under special category states) during the year. Refer Post :
How to calculate Aggregate Turnover under GST
Answer: No, Taxes paid i.e. Central tax, State tax, Union territory tax, integrated tax and cess etc are not included while computation of Aggregate turnovere under GST. Refer Post :
How to calculate Aggregate Turnover under GST
Answer: As per provisions of section 2 (19) of the Act, “Capital goods” means goods, the value of which is capitalised in the books of account of the person claiming the input tax credit and which are used or intended to be used in the course or furtherance of business. Capital goods are like Plant & Machinery, Furniture, Equipment’s & Vehicle etc. used for production of goods. Refer Post :
GST credit on Capital Goods
Answer: When Goods are transported by rail, by vessel or by air the e-way bill shall be generated by the registered person (either supplier or recipient). This e-way bill shall be generated either before or after the commencement of movement of goods and the information should be furnished in part B of GST EWB 01. Refer Post :
Information about E-Way bill Under GST
Answer: If the goods are transported through courier agency or e-commerce operator on an authorization received from the consignor, the information in Part A of GST EWB 01 may be furnished by such persons. Refer Post :
Information about E-Way bill Under GST
Answer: It is required for the registered dealer, if his total turnover for the financial year exceeds Rs. 2.00 crore shall get his accounts audited by Chartered Accountant or Cost Accountant and shall submit a copy of audited annual accounts. Refer Post :
Audit under GST
Answer: Unpolished Kota stone and similar stones [ other than marble and granite] is falling under GST rate of 5%, while polished Kota stone and similar stones (ready to use) is falling under GST rate of 18%. Refer Post :
List of Revised GST Tax Rates
Answer: The GST council in 28th meeting held on 21st July 2018, the Government has reduced the GST rates on various goods and services. Refer Post :
List of Revised GST Tax Rates
Answer: The late fees have been reduced to Rs. 50 per day (i.e. Rs. 25/- on account of CGST or Rs. 25/- on account of SGST) and Rs 20 per day (i.e. Rs. 10/- on account of CGST or Rs. 10/- on account of SGST) in case of Nil return. Refer Post :
Introduction about GSTR-1
Answer: The finance ministry has announced that the due date for filing return from July 2017 to Septermber 2018, can be filed up to 31.10.2018, without any fine or penalty. Refer Post :
Due date has been extended for filing GSTR-1
Answer: GSTR-1 is a monthly or quarterly return that should be filed by every registered dealer. It contains details of all outward supplies i.e. sales, details of business irrespective of whether the transaction was done or not in a month. Refer Post :
Introduction about GSTR-1
Answer: GSTR-1 once filed cannot be revised. Any mistake made in the return can be altered by amendment in the next month’s return. Refer Post :
Introduction about GSTR-1
Answer: No, The total value of services provided, and goods supplied by the landlord during the financial year is less than Rs. 20.00 lakh or Rs. 10.00 lakh for specified states. Refer Post :
GST on Rental Income of Immovable Property
Answer: The Hindustan Times, newspaper would be liable to pay GST @ 5% on Rs 50,000 which comes to Rs. 2,500/-
&
The client “Hindustan Liver Limited” can take input tax credit (ITC) of Rs 2,500/-. Refer Post :
GST on selling advertisement space on Print Media
Answer: For all e-commerce operators/companies w.e.f.1
st October 2018, have to deduct 1% tax collected at source (TCS) before making payments to their suppliers. Refer Post :
Provisions of TCS under GST
Answer: The deductor shall be required to pay the deducted amount of TCS within 10 days after the end of the month of collection. Refer Post :
Provisions of TCS under GST
Answer: The deductor is liable to file monthly statement in
“FORM GSTR-8” within a period of 10 days from the end of the month, or also file Annual statement in
“Form GSTR-9B” before 31
st December following the end of the financial year. Refer Post :
Provisions of TCS under GST
Answer: TDS to be deducted at the time of payment or credit to the supplier of taxable goods or services, if the total value of supply under the contract exceeds Rs. 2,50,000/-. Refer Post :
Provisions of TDS under GST.
Answer: If the contract value does not exceed Rs. 2,50,000/-, the applicability of TDS on GST, is considering individual contact value not the value of total number of contacts
OR
If the location of registration of recipient is different from the location of supplier and place of supply. Refer Post :
Provisions of TDS under GST.
Answer: The deductor shall be required to pay the deducted amount of TDS within 10 days after the end of the month in which such deduction is made. Refer Post :
Provisions of TDS under GST.
Answer: TDS certificate is required to be issued by deductor, in "Form GSTR-7A" to the deductee, within 5 days of crediting the amount to the Government, otherwise the deductor should be liable to pay a late fee of Rs. 100/- per day from the expiry of the 5th day till the certificate is issued. This late fee would not be more than Rs. 5000/-. Refer Post :
Provisions of TDS under GST.
Answer: The deductor is liable to file GST return in "FORM GSTR-7" within a period of 10 days from the end of the month, otherwise the deductor should be liable to pay a late fee of Rs. 100/- per day for each day for which the failure continues subject to a maximum of Rs. 5000/-. Refer Post :
Provisions of TDS under GST.
Answer: Under Section 52, an Electronic Commerce Operator is liable to collect TCS only if the supply has been made through such Operator by other suppliers and the consideration is collected by the Electronic Commerce Operator, not being an agent. Refer Post :
Provisions of TCS under GST
Answer: “Electronic Commerce Operator” is defined as any person who owns, operates or manages digital or electronic facility or platform for electronic commerce. Refer Post :
Provisions of TCS under GST
Answer: “Net Value of Taxable Supplies” means (Aggregate Value of Taxable Supplies of Goods/Services) – Services under section 9(5) – (Aggregate Value of Returned Taxable Supplies/Goods). Refer Post :
Provisions of TCS under GST
Answer: Yes, The Provision of TDS under GST is effective from 01st October 2018, under Notification No. 50/2018- Central Tax dated 13th September 2018. Refer Post :
Provisions of TDS under GST.