India’s startup ecosystem has become a force to be reckoned with. The domestic technology landscape has gone a drastic change in the past few years with the country emerging to be the third fastest growing startup hub globally with over 4,200 startups creating more than 80,000 job opportunities.<.....

In 2018 alone, India produced 11 unicorns. Unicorns are startups that have a valuation of $1 billion or more. Last year, startups raised nearly $12.68 billion in equity funding, in addition to $1.14 billion raised in debt funding, taking the total to a whopping $13.88 billion. The year 2018 was a.....

READ MORE

India has the largest section of the youth population in the world. By the year 2020, India will have a median age of 28, compared to 37 of the US and China, 45 of Western Europe, 49 of Japan. Such a dynamic shift in the nature of the workforce would inevitably stir the market, as it had with Chi.....


 

Now, India sees a similar advantage of the economic dividend where its working-age population has grown to be larger than its dependent population. This proportion .....

READ MORE

When it comes to broadband services, Indians prefer mobile broadband over fixed-line services. The total subscriber base for fixed-line broadband services in the country is only 18.42 million, according to the Telecom Regulatory Authority of India. To put things into perspective, 532 million peop.....

Jio Fiber - Another Revolution in the Making for BFSI Industry

 

The entry of Mukesh Ambani-backed Reliance Jio Infocomm in September.....

READ MORE

On October 2, 2016, India became the 62nd country to ratify the Paris Agreement. The agreement requires every ratifying member country to come up with a national plan to curb carbon emissions and rising temperatures. India has set a goal of generating 40% of its electricity from renewable energy .....

India has set for itself an ambitious target of generating 175 GW of power from renewable sources by 2022. Of this capacity, 100 GW comprises solar projects. Now, 40 GW from this capacity has been slated for rooftop solar panels on buildings.

 

The lofty target assumes greate.....

READ MORE

Education is one of the most critical aspects of the development of an individual. It enhances one’s skills, knowledge, intelligence, and opens up many doors to gathering knowledge, analysing and rationalising. Having an education makes it easier to have an informed opinion, which in the larger p.....

The Indian education system at its tertiary level has over 50,000 institutions, housing more than 35 million students. For a number so significant, the quality of education in these institutions needs to be of a world-class level so that the students can compete with the emerging workforce of the.....

READ MORE

Indian labour laws are a set of legal provisions which regulate the relationship between the employers and the employees in India. These laws aim to protect the rights of the workers, ensure fair wages, provide social security, prevent exploitation, and maintain equality at the workplace. They al.....

29 Indian labour codes which haven’t undergone any changes since India’s independence have now been codified into some new labour laws. These are: Occupational Safety, Health, and Working Conditions Code, Social Security Code, Code on Wages, and Industrial Relations Code.

 

T.....

READ MORE

India started 2018-19 on a strong footing, clocking a growth rate of 8.2% in the first quarter. However, the economy gradually decelerated to 5.8% in the last quarter, ending FY19 with an overall growth rate of 6.2% as against 7.2% in the previous fiscal year. The economic slump is probably more .....

 

Automobile sales have been falling consecutively for the last nine months. The growth in the volume of FMCG companies ha.....

READ MORE

What happens when one of the wheels of a vehicle comes off? It could lead to a catastrophic accident. If India is the vehicle, the automobile sector is one of the wheels. The Rs 4.8-lakh-crore auto industry employs 37 million people and single-handedly contributes 7.5 percent to the country’s GDP.....

The Indian auto sector had been growing at a rapid pace. With sales of over 4 million cars and commercial vehicles, India had surpassed Germany to become the fourth largest automobile market in the world last year. All that seems like a dream now with companies reporting a double-digit decline in.....

READ MORE

What Happens if You Miss the Deadline for ITR Filing

Similar to the previous year, the government has extended the ITR filing deadline for 2019 as well. With a grace period of 1 month, taxpayers have until August 31 to file their tax returns instead of July 31. The obvious purpose of this extension is to allow more people to file their income tax r.....

READ MORE

India was the sixth-largest economy in 2017, pushing France to the seventh spot. It was in striking distance of fifth-placed UK. In 2018, however, France and UK surged ahead, largely due to currency fluctuation, but also due to softening growth in India. The Indian economy has been battling a mar.....

The inflation-adjusted or ‘real’ GDP growth rate witnessed gradual deceleration in 2018-19. Starting with 8.2 percent in the first quarter, growth declined slightly to 7.1 percent in the second quarter. The country’s GDP growth rate slipped to 6.6 percent in the third quarter and further deterior.....

READ MORE

Filing your ITR and wondering where your taxes go? Here's a break-up

Money has become the accepted medium for the exchange of goods and services. We spend our hard-earned money to purchase products or experiences that we require or desire. One can always monitor the result of the money we spend. But a substantial portion of our earnings is taken away as taxes. Bei.....

READ MORE

The government needs resources to pay its employees, fund welfare schemes and develop infrastructure. How does the government raise resources? There are several sources, but the primary source is direct and indirect taxes. Taxes that are levied directly on individuals or entities such as income t.....

The direct tax system, however, remains out of sync with the modern economy. India had a tax-to-GDP ratio of 6% in 2017-18, which is decent when compared to other developing economies. When one digs deeper, then the anomaly in direct tax collection numbers come to light. The respectable figure is.....

READ MORE

Wealth refers to the basket of assets such as cash, land, property, gold, shares, and bonds. In any economy, wealth is created over time by investing in these assets with an expectation that the price will rise further in the future. This rise in price over a period of time leads to wealth creati.....

In India, wealth creation isn’t possible without nurturing private enterprises and entrepreneurs, investors and consumers - which are significant wealth creators. Conducive business ecosystem and supportive regulatory climate go a long way in ensuring sustained wealth creation in the country.

.....

READ MORE

A handy list of documents you should keep ready when filing your ITR

With the deadline for ITR filing in 2019 extended by a month to August 31, you should have enough time to prepare all the income tax return documents for filing your returns. To avoid last minute glitches and delays, it’s advisable to prepare well before the extended deadline.

READ MORE

Every year when the budget is presented, people wait for new announcements on income tax. A lower tax outgo doesn’t harm anyone. Either the government is expected to increase the income slab rate that is exempted from paying taxes or offer more tax deductions. The government allows several types .....

When the date to file income tax returns nears, a mad scramble for tax-saving begins. An annual income of Rs 5 Lakhs is effectively tax-free in the country. After the limit is breached the best way to save taxes is to use deductions, which decreases the taxable income. 

READ MORE

Income Tax Basics for Beginners

For youngsters attempting tax planning for the first time, understanding income tax basics can be quite confusing. Most people hire a tax advisor or a CA to for tax planning and to invest in tax saving instruments, especially at the last minute. However, that’s not the only way out. In this age w.....

READ MORE

Unit Linked Insurance Plans merge the protective cover of an insurance plan with the wealth-appreciation possibilities of investments.

A portion of your regular premium is reserved for funding your insurance policy, while the rest of your premium is dedicated to various investment instruments. The policy-holder can choose between high-risk, low-risk or medium risk instruments. Policyholders can choose between investments in equi.....

READ MORE

The income that you earn will undoubtedly increase as the years go by. As you move from one promotion to the next, your inflow of income will also rise. Correspondingly, so will the tax rate applicable to you as per the Income Tax Act, 1961. This effectively means a higher tax liability.

.....

Section 80C of the IT Act allows a deduction of up to Rs. 1.5 lakhs per annum. The deductions are applicable to eligible taxpayers for various investment options and expenses incurred. The subsections of Section 80C include sections 80CCC, 80CCD (1), 80CCD (1b) and 80CCD (2).

 

He.....

READ MORE

How to File an Income Tax Return

Mandated by the Income Tax Department of India, filing an income tax return is a process of reporting your gross taxable income from all sources, while also mentioning various tax deductions and thereby declaring your net tax liability. As a taxpayer, you can file your income tax return online (e.....

READ MORE

In India, capital gains refer to the profits earned from the sale of assets. It was introduced in India in 1956, and it has undergone several revisions over the years. The tax is levied on both, short-term and long-term capital gains, with several rates and exemptions. This is dependent on the ty.....

1. Capital Asset

A capital asset is an asset which is held by an individual or for long-term use in their business operations. Capital assets can include tangible assets such as real estate, buildings, and equipment, as well as intangible assets, such as patents, trademarks, and copyrig.....

READ MORE

Taxpayers are often advised to start early with their tax planning. The key to tax saving is understanding the right investment strategies for an individual, and where one can claim deductions. Furthermore, it is also imperative for taxpayers to have a long-term, planned approach towards taxes, a.....

However, we often find ourselves with a limited amount of time for tax planning, which sometimes leads to trusting unscrupulous tax advisors or paying a higher amount in taxes. Here are some last minute tax planning hacks that will help you in making effective last-minute decisions.

READ MORE

As you age, your income tax planning strategies may need to be adjusted to reflect changes in your financial situation and tax laws. Income tax planning refers to the process of organising your finances and making strategic decisions to minimise the amount of income tax you owe. Here are some tax.....

  • Invest in tax-saving schemes: Consider investing in tax-saving schemes such as Equity-Linked Saving Schemes (ELSS), Public Provident Fund (PPF), or National Pension Scheme (NPS). These schemes help in tax planning for salaried employees as they offer benefits under Section 80C of.....

READ MORE

Life is inherently unpredictable. The best we can do is battle the ups and downs bravely as they arise. Planning wisely to save your hard-earned money is one such way to prepare for unforeseen circumstances.

One of the most important aspects of financial planning is tax saving. You can perform effective tax saving by investing in tax saving investments, as specified under t.....

READ MORE

Income tax is the most direct form of tax applicable on Indian citizens. Salaried individuals pay it in accordance with the income they earn and the tax slab they fall under. However, apart from salary, many people also earn income from a variety of other sources. To facilitate and ease the proce.....

According to section 56 of the Income Tax (IT) Act, 1961, ‘Income from Other Sources’ is the means of earnings which can not be declared under any other income heads. This section also comprises a list of different incomes which are to be declared under this head when computing the tax dues by us.....

READ MORE

For individuals who are unsure of what TDS is and are asking themselves, "What is TDS?," it is the income tax that is subtracted from an amount during a certain payment. The Income Tax Act of India, 1961, states that if an individual or organization's income exceeds the predetermined th.....

The TDS amount can be computed by using the Form 26AS on the income tax portal. It is a tax credit statement with a detailed report of TDS deducted during a financial year. Here is a step-by-step guide to know the deducted TDS amount.

  • Step 1: Visit the income tax e-filing.....

READ MORE

The primary goal while making an investment is to grow the corpus and aim to accomplish long-term as well as short-term goals through it. Another goal on the minds of investors while making an investment is to ensure the highest amount of tax savings possible. As a result, while deciding on the p.....

For instance, term insurance policies are often lauded as being a great investment not only for the long-term benefits they offer to policyholders as well as their dependents but also for how they help save taxes. The Bajaj Allianz Smart Protect Goal plan, available on Bajaj Markets, provides d.....

READ MORE

When you invest in different instruments or park your savings in a bank account, you generally earn interest. This is termed as interest income and is subject to taxation as per the Income Tax Act. 

 

Tax on interest income depends on how you earned the interest, i.e., t.....

1. Interest from FDs and RDs

Fixed and recurring deposits are among the most popular investment options. This is due to the rising interest rates resulting in a substantial interest income. However, the interest you earn from these instruments is taxable under Section 194A of the Income.....

READ MORE

Anyone who earns an income in the country is liable to pay income tax. The Income Tax Act comprises of various sections, which separately deal with various aspects of taxation in the country. Furthermore, this Act also provides the taxpayers with various income tax deductions they can claim while.....

The Income Tax Act contains 23 chapters in total, and 298 sections, as per the official website of the income tax department. While it is extremely tedious to go through all the income tax sec.....

READ MORE

Critical illness usually covers severe and long-term health conditions that include heart attack, cancer, Parkinson’s disease or even loss of limbs. Reports reveal that around 60% of Indians suffer from heart problems. Even cancer affects one out of ten people in India.

 

The.....

The Indian Government encourages everyone to avail health insurance. To incentivise this, the government has introduced certain tax benefits so that paying premiums regularly does not strain your pocket.

 

According to Section 80D of the Income Tax Act, all premiums paid towa.....

READ MORE

Gifts are an integral part of our social culture and are often given as a token of love, gratitude, and appreciation. However, gift tax in India is applicable on certain gifts, while some gifts are free from taxation. The Income Tax Act of India imposes taxes on certain gifts received by individu.....

The taxation rules and regulations related to gifts can be complex, and it is essential to understand them to avoid any legal and financial complications. Read on to know the provisions under the Income Tax Act, the gift tax exemptions available, and how to save taxes on gifts.

READ MORE

As per Section 192 of the Income Tax Act, 1961, Tax Deducted at Source (TDS) is deducted from the income earned by an employee. Your employer deducts the TDS on salary based on your net taxable income and deposits it with the Income Tax Department. 

 

This TDS is reflect.....

Salary refers to the compensation received by an employee from an employer. It encompasses the below-listed variables which are subject to taxation as per the applicable income tax laws: 

  • Basic Pay

  • Dearness allowance

  • EPF contributions

    <.....

READ MORE

Tax Deducted at Source or TDS applies to resident Indians, non-resident Indians, domestic companies, and international companies that operate in India. The TDS percentage can vary between 1% and 30%, based on your income source. In some rare cases, it may even touch 50%.

 

So.....

TDS is applicable not only on your income but also on your investments and any earnings made on your fixed assets. Hence, you must be aware of TDS rates and applicability while planning your investments. Tax is deductible at source, even on big-ticket purchases like buying a new home. The scope o.....

READ MORE

What is TDS Refund?

TDS, which stands for Tax Deducted at Source, means exactly that: it is that component of tax which is levied by the Income Tax department on your salary, depending on the income slab that you belong to. Since this component of tax is collected/levied at the source, it can often be more than the .....

READ MORE

ITR Deadline Extended to 30th June 2020

Amidst the chaos, the nation not just tackles the extremities of a health crisis but also battles the consistently affected economy. With a negative impact over businesses, down sliding market and a state of lockdown across the country, there have been major amendments made by the jurisdiction to.....

READ MORE

Tax Identification Number (TIN), in India,  is an unique identification number required for any business entity registered under the Value-Added Tax (VAT) system. Businesses engaged in manufacturing, exporting, trading, and transactions involving goods and services must possess a tax identif.....

READ MORE

Budget 2020 was announced back in February, which introduced us to the new personal income tax regime. The new personal tax regime undoubtedly has grabbed the attention of the million taxpayers in India. So, before we understand the impact of this, let us know what the new income tax regime holds.....

The following table shows a comparison between the traditional income tax regime and the new personal tax regime.

READ MORE

A Tax residency certificate or TRC is a certificate that is issued by the authorities of tax for the non-residents of that country declaring that the non-resident is a resident for that particular tax year for Double Taxation Avoidance Agreement (DTAA) applicability, and is eligible for tax benef.....

An individual’s physical stay is considered for deciding the status of residence in India. An individual who is qualified as a ‘Resident and Ordinarily Resident’ (ROR) is expected to pay taxes for the taxes that he/she has earned abroad. Both his/her foreign as well as Indian income is subject to.....

READ MORE

Tax Deducted at Source (TDS) on rent is applicable when a person is responsible for paying rent to a resident exceeding a specified threshold. Section 194I of the Finance Act, 19.....

According to Section 194I, the person (not an individual or HUF) who has to pay rent is legally obliged to deduct tax at source. The TDS on rent limit for the financial year 2020-2021 was ₹2.40 Lakhs.

 

For instance, an organisation rents an office for ₹90,000 per month. Since the.....

READ MORE

What is TDS on Salary and How to Calculate it?

On This Page: What is TDS on Salary and How to Calculate it?What is TDS on Salary? | Who can Deduct TDS on Salary? | TDS on Salary Rate | How to Cal.....

TDS on Salary

TDS or Tax Deduction at Source is a type of income tax reduced by the payer. The person making the payment has to deduct the TDS amount and transfer it to the central government. This concept was introduced to collect tax directly from the source of income.<.....

READ MORE

Transportation tax is another term for TDS on freight charges. Freight charges can be classified as payments made to both owners and non-owners of goods and carriages.  Such payments, including the TDS applicable to them, are regulated under Section 194C of the Income Tax Act, 1961. If contractors or subcontractors have a PAN, a 1% TDS deduction applies to payments made to resident Indians or HUF. However, if they’re not an Indian citizen or HUF, TDS of 2% would be applicable. For payments made to transporters, no TDS shall be deducted. Here, a transport is responsible for m.....

READ MORE

Section 115BAC of the Income Tax Act, of 1961, introduces an alternative tax regime for individual taxpayers. It allows taxpayers to choose between the old tax rates and the new concessional tax rates without considering the legal mandates required for exemptions or deductions. 

&nbs.....

Any individual or HUF with income from sources apart from their profession is eligible to make claims under Section 115BAC. However, their declared income must not cover any of the business income. 

 

The calculation for this is done without considering any exemptions or deduction.....

READ MORE

How to Check the Refund Status on the Income Tax Portal online?

On This Page: How to Check Income Tax Refund Status?Understanding Income Tax Refund timeFAQs

The Government of India launched the new version of the income tax portal on June 7, 2021. The main aim behind this endeavour was to improve the user experience of the taxpayers and give them easier accessibility and control over their e-filing process.

 

READ MORE

How to Login to the Income Tax Portal? All you need to know

On This Page: Details Required to Register on Income Tax PortalHow to Log in to the Income Tax Portal? | Final Thought 

The original income tax e-filing portal stopped its active operations and gave way to Income Tax Portal 2.0 on June 7, 2021. Access to the income tax return portal is currently available via www.incometaxgov.in.

 

READ MORE

How to e-Verify ITR on the New Income Tax Portal? Know Details

On This Page: What is the New Income Tax portal?Ways to e-verify IT return on the Income Tax PortalDetails Required before e-Verifying IT Return on Income Tax Portal How to e-Verify .....

What is the New Income Tax portal?

With the financial year in full swing, it's time to file your income tax return, but did you know just filing your ITR doesn't count? You have to verify your return via the income tax portal within 120 days to deem.....

READ MORE

Statement Number in Form 61A

On This Page: What is Form 61A?Applicability of Form 61A | What are the Statement Number and Statement ID in Form 61A? | A Quick Look at the Different Parts of Form 61A.....

What is Form 61A?

It is the statement of the ‘Specified Financial Transactions’ (SFT) that individuals are expected to present to the government for a particular financial year. Form 61A was formerly called Annual Information Return (AIR).

 

According to the IT rule.....

READ MORE

Accurately filing your income tax returns is crucial, as errors can attract heavy penalties. To ensure accuracy, you need to be aware of the different sections of the Income Tax Act. These sections are either for deductions or the taxation applicable to your annual taxable income.

 <.....

In the budget of 2020, the Finance Minister of India introduced Section 194K. This resulted in the elimination of double taxation, which happened due to previous tax laws. Under the previous laws, tax on mutual fund payout was levied when the company distributed to the AMC and when the AMC distri.....

READ MORE

Section 206C of the Income Tax Act deals with Tax Collection at Source (TCS) levied by sellers on the purchase of certain goods. This section deals with the profits related to alcohol, forest produce, scrap, minerals, etc.

 

This is a certain percentage of tax that sellers co.....

Here are the goods and services on which sellers are liable to collect TCS, along with their respective rates:

READ MORE

Section 44AB of the Income Tax account is related to the Income Tax audit of accounts of individuals whose income exceeds a crore. Thus, if your annual income exceeds one crore, you fall under the ambit of this Act. So you must get a certified chartered accountant to audit your acco.....

The Government of India introduced this Act to help the assessing officers of the Income Tax department compute the total taxable income of professionals quickly.

READ MORE

How to Update Income Tax Profile Details on the New Income Tax Portal?

On This Page: What is the New Income Tax Portal?Some of the major features of the new portal are: | How to Update Your Profile on the Income Tax Portal? | Final Words

What is the New Income Tax Portal?

The new income tax portal was launched on June 7, 2021, by the Central Board of Direct Taxes (CBDT). The income tax portal has now changed from 'www.incometaxindiaefiling.gov.....

READ MORE

How to Fill and File Form 10A in Income Tax Portal? Know details

On This Page: What is Form 10A?How to Fill Form 10A on the Income Tax Portal? | Form 10A Download link | Documents Required for Form 10A | Important Points about Form 10AWhat is Form 10A?

Did you know that the income of charitable institutions and trusts is exempt from tax? However, such institutions need to have a registration under section 12A to claim an exemption.

READ MORE

Section 194Q of the Income Tax Act, 1961, was introduced by the Central Board of Direct Taxes and made effective from July 1, 2021. Under this section, a 0.1% TDS is applicable if the amount exceeds ₹50 Lakhs when a buyer purchases goods beyond the exemption threshold.

 

The .....

Under Section 194Q, TDS will be deducted on purchases that have been made after 1st July, 2021. However, the upper limit of purchase of ₹50 Lakhs is to be considered from 1st April, 2021.

 

Section 194Q applies to sellers in the following cases: 

  • When the buyer’s.....

READ MORE

On This Page: What is a Tax Audit? | What is the Recent Tax Audit Limit? | Tax Audit Objectives | Who is Req.....

To simplify tax audit meaning, it is an examination or reviewing of accounts of any business or profession that is carried out by taxpayers from the viewpoint of income tax. This is done to streamline the income computation process and make the

READ MORE

The sale of listed equity shares, equity-oriented mutual funds, and business trusts are subject to Long-term Capital Gains (LTCG) tax under Section 112A. For gains over ₹1 Lakh, these listed assets are subject to a 10% LTCG tax.

 

Schedule 112A, which must be filled out for e.....

Before Assessment Year 2018–2019, Section 10(38) provided an exemption from LTCG tax on the transfer of equity shares, units of equity-oriented funds, and units of business trust.

READ MORE

When it comes to accessing your funds through a debit card, it's essential to be aware of the cash withdrawal limit. These limits, set by banks, dictate the maximum amount you can withdraw from ATMs within a specified time frame. Typically, daily limits are in place to safeguard your account and .....

Here are some daily withdrawal limits set across different banks in India for debit cards: 

1. State Bank of India (SBI)  

SBI Bank allows its metro city cardholders 3 free withdrawals while users in other cities can enjoy up to 5 free withdrawals. Here are the daily cash withdr.....

READ MORE

In India, there are approximately 63 million Micro, Small, and Medium Enterprises (MSMEs), which contribute nearly 30% percent to the country's GDP, as of 2023. MSMEs also provide employment to thousands of people. Needless to say, the MSME sector is essential to the Indian economy. 

The new MSME classification system is based on business turnover, unlike the previous system, which was based on plant and machinery or equipment investment. Therefore, the classification of MSMEs has been revised to increase the turnover limit for each category and reduce the compliance burden o.....

READ MORE

Business management has evolved over the last couple of years with the cut-throat competition compelling businesses to become multifaceted. Today, most organisations are not focused on a single segment but offer a range of products and services under different brand names. It enables businesses t.....

‘Slump sale’ is a sale wherein you sell an undertaking without taking the values of individual liabilities and assets into account. According to Section 2(42C) of Income Tax (IT) Act, 1961, it means to transfer undertakings as an effect of the sale for a huge sum of the sale for a huge sum consid.....

READ MORE

Filing income tax returns is one of the most crucial responsibilities of every earning citizen of this country. Taxes essentially contribute directly to the growth and development of the economy and the country at large. This determines the opportunities the people receive in order to live a bett.....

Section 234F of the Income Tax Act of 1961 was introduced in 2017. This section states explicitly the kind of penalties that a tax-paying citizen must pay in order to rectify their situation in case of tardiness to Income Tax Return filing. Section 234F simply states that which can follow if the .....

READ MORE

The Indian Government, in 1988, launched the concept of Minimum Alternate Tax (MAT) to ensure that no company avoided paying tax to the government. All zero-tax paying firms must pay the government a specific percentage of their total book profit as taxable income. 

 

Fi.....

Your company as a taxpayer is liable to pay taxes under the following situations, whichever may be deemed higher:

1. Tax calculations according to the normal provisions of the Income Tax Act

According to the regular provisions, companies need to pay a tax rate of 30% plus 4% edu.....

READ MORE

Section 115BAA, established through an ordinance in 2019, was brought into existence by the State Government. Also called the ‘Taxation Amendment Ordinance’, this provision took effect from September 20 2019. The central objective of the introduction of this section was to mitigate the tax rates .....

The Income Tax Act, 1961 underwent an amendment to include Section 115BAA, providing a lowered corporate tax rate to domestic corporations. The enterprises can pay the tax at a rate of 22% in addition to the surcharge of 10% and 4% cess under this Section. This implies that these companies can ch.....

READ MORE

Section 44ADA has special provisions for calculating gains and profits of professionals who are mentioned in Section 44AA(1) on a presumptive basis .It was inserted after Section 44AD of the Income Tax Act of 1961 with effect from the F.Y 2016-2017. The total receipts from these professions shoul.....

Section 44ADA deals with presumptive taxation for professionals that have to be taken into consideration for generated earnings and profits. However, it is important to note that only income that is generated via specific occupations that are mentioned u/s 44A(1) qualify for this presumptive tax .....

READ MORE

Profits resulting from the sale or transfer of capital assets are considered as income under the capital gains heading. Section 48 of Income Tax Act, 1961 accounts for the expenses involved in the acquisition, repair and maintenance of such capital assets. 

As mentioned above, the Section 48 of the Income Tax Act is aimed at computing the real capital gain upon the sale of capital assets. You can arrive at the real capital gain by accounting for the cost spent by the seller in acquiring said capital asset, sales consideration costs and costs associa.....

READ MORE

Purchasing a home is a dream for many people. With property prices increasing everywhere, people are getting home loans to fulfil their dream. Although getting a home loan is a hassle-free process these days, it comes with a hefty monthly instalment. The Indian government, in order to reduce the .....

Section 24 considers the interest paid against a home loan as a tax deduction. This section is also referred to as “Deductions from income from house property”. Its subsections, 24A and 24B, deal with the deductions taxpayers can claim in different circumstances. The taxpayer necessarily does not.....

READ MORE

You are liable to pay property tax when you purchase property, such as a piece of land or building. Though the burden of repaying a property loan can be tiresome, the process is fruitful as the repayment of the principal and interest offers tax-saving benefits. The article looks at the TDS applic.....

Section 194IA of the Income Tax Act, 1961 deals with the TDS on the purchase of an immovable property at the time of transaction.  The Finance Act of 2013 introduced this section to process a taxpayer's purchase transaction of immovable property. 

 

The transferee is required to p.....

READ MORE

Section 206AB was introduced with effect from 1st July 2021. This section mandates a higher tax deduction than applicable TDS rates under other sections. So, when you make any payment involving TDS, the tax is deducted at higher rates. However, this new provision of Section 206AB is applicable on.....

With effect from July 1 2021, Section 206AB related to TDS came into existence. Understand this is not a separate new section but is only a new provision implemented in the existing Income Tax Act. 

 

 Sec. 206AB mandates a higher tax deduction than applicable TDS rates under each.....

READ MORE

Insurance policies act as a pillar of support against unforeseen financial burdens. They mitigate the financial crunch amid grim circumstances. Hence, financial experts suggest that every individual must take an insurance policy for themself and their families. There are times when people buy ins.....

TDS shall be deducted by the entity that makes the payment to a resident person in the form of remuneration, reward, or commission for the following reasons:

  • Bringing/obtaining insurance business

  • Ensuring continuance, renewal, or revival of insurance policies<.....

READ MORE

The Indian government has been trying to transform India into a digital economy. Digital India Campaign and Demonetisation are two of the popular initiatives that were taken to reduce the usage of physical money. Section 194N was introduced keeping this in mind and to promote digital payments.Section 194N deals with the Tax Deducted at Source (TDS) on cash withdrawals above ₹1 Crore during a particular financial year. This section applies to the aggregate of cash withdrawn from the bank in a fiscal year. 

READ MORE

Tax Deducted at Source (TDS) is a major component of the indirect taxation system in India. Since TDS allows the government to deduct tax at the source, or at the time of payout, it has helped in checking tax evasion. 

 

TDS is deducted from various sources of income as mandated b.....

To have a clear understanding of Section 194H of the Income Tax Act, 1961, you must be aware of what constitutes brokerages and commissions. Under this section, the following payments are considered as brokerage and commission:

  • Payment made for services to buy or sell goods

    .....

READ MORE

Section 194J of the Income Tax Act deals with the payments made in the form of professional or technical fees to doctors, lawyers, accountants, etc.

 

As per the rules and regulations of this section, an individual has to deduct the tax at the rate of 10% when payments are ma.....

Section 194J of the IT Act deals with the tax deducted at source (TDS) on professional fees or fees for technical services. If the total receipts or turnover or sales of an individual or Hindu Undivided Family(HUF) surpasses the limit specified u/s 44AB-A and B, they will be covered under this se.....

READ MORE

Section 194A of the Income Tax Act deals with the interest paid on secured and unsecured credit. However, this section does not apply to interest paid on securities. According to the Section 194A, payment is made in the form of:

  • Interests on recurring deposits

  • Here are the fundamental provisions of 194A:

    • Interest that you pay to owners of a partnership firm does not attract TDS deductions

    • Entities, except HUFs and individuals, making interest payments to residents need to deduct TDS 

    • If HUFs or in.....

READ MORE

Section 17 of the Income Tax Act states the provisions and taxation under three categories of employee benefits provided by an employer. This section addresses taxation on salary, prerequisites and profits in lieu of a salary. 

 

Section 17(1) addresses salary, Section 1.....

Section 17(3) is a subsection under the Income Tax Act which mentions the profits one earns beyond their regular salaries which are referred to as profits in lieu of salary in income tax. To simply put the profits in lieu of salary meaning, these profits are additional benefits that one earns as .....

READ MORE

Section 17(2) of the Income Tax Act in India pertains to the definition of "Salary" for income tax computation. Section 17(2) enumerates various components that are included in the definition of salary.

  • Salary

Includes wages, any annuity, pension, gratuity, fees, commissions, perquisites, profits instead of salary, advance of salary, leave encashment, etc.

  • Allowances

Any allowances (except those specifically exempt) are .....

READ MORE

Salary is a frequently used ‘Heads of Income’ while filing returns for income tax. According to the Income Tax Act, 1961, heads of income is the classification of income earned by an individual. This .....

The word ‘salary’ has been established under Section 17( 1) of the Income Tax Act to include perquisites, salary, and profits instead of a salary. Therefore, to calculate the income that comes under the head salaries, perquisites, the total amount of salary, and profits in the place of a salary r.....

READ MORE

Financial stability is of utmost importance to leading a comfortable life. However, at times, you may need funds to sail through a period of financial hardship. At such a time, availing of a loan may help you deal with finances relating to:

  • Child’s educational fees

  • <.....

    As per Section 269SS, an individual is barred from accepting any deposit, loan, or any other amount of money from another person in cash, except for:

    • An account payee cheque

    • An account payee bank draft

    • An amount of money using the electronic.....

READ MORE

The Income Tax Act of India, 1961, has numerous sections that outline how and when one should levy or deduct tax. Adherence to these guidelines and provisions is crucial, as non-compliance can attract penalties. Among the many sections is Section 194C, which has provisions related to TDS ded.....

Sec 194C states the rules of TDS deduction when any specified person pays a resident contractor for work carried out by them, including labour. 

 

For the purpose of deduction under this section, a specified person includes the following:

  • Central/ State Governmen.....

READ MORE

Different Parts of Form 26AS

ON THIS PAGE: What is Form 26AS? | How to Download Form 26AS? | How to View Form 26AS? | Different Parts of Form 26AS | What is New in Form 26AS?&n.....

What is Form 26AS?

Form 26AS is an annual statement that includes information about the tax deducted and collected at source, advance tax payable, self-assessment tax payments, and details concerning the refund you have received during a financial year. It also includes.....

READ MORE

Section 44AD of the Income Tax Act, 1961 deals with the presumptive taxation scheme for certain eligible taxpayers. The section applies to resident individuals, Hindu Undivided Families (HUFs), and partnerships having a turnover of up to ₹3 Crores in the previous financial year.

 

The features of Section 44AD of the Income Tax Act, 1961 are as follows:

 

  • Applicability of Section 44AD: The scheme is applicable to resident individuals, HUFs, and partnerships who have a total turnover of up to ₹3 Crores in the previous financial year.

READ MORE

Section 44AE is a provision under the Indian Income Tax Act, 1961 that prescribes the presumptive income scheme for certain small taxpayers who are engaged in the business of leasing, hiring or plying of goods carriages.

 

The goal is to simplify tax compliance procedures, relieve.....

All taxpayer categories are subject to the presumptive income scheme u/s 44AE. This scheme is available to all taxpayers, including individuals, HUFs, partnership firms, and registered companies. There are simply no restrictions on any group of taxpayers, in contrast to other schemes like section.....

READ MORE

Under Section 139(4) of the Income Tax Act, 1961, taxpayers can file belated returns within a period of one year. This can be from the end of the relevant assessment year or prior to the conclusion of the assessment, whichever is earlier.

 

Income tax authorities provide you .....

As of FY 2022-23, the following situations necessitate the submission of an income tax return: 

  • If an individual's total income exceeds ₹2.50 Lakhs

  • If over ₹1 Crore is deposited in a current account with a cooperative bank or bank in a fiscal year

  • .....

READ MORE

As a responsible citizen, submitting your income details to the Income Tax Department is essential. You can declare them by filing your returns accurately. Once your returns are filed, the Income Tax Department starts processing them.

 

The department verifies your returns for cor.....

As you know, Section 143(1) of the Income Tax Act pertains to a summary assessment, which does not require a taxpayer to be physically present. Simply put, you are issued a notice when AO notices minor errors in your income tax returns.

 

Assessment under Section 143(1) can be ref.....

READ MORE

For an easy and hassle-free tax payment experience, the Income Tax (IT) Department has made several provisions for advance payment of tax. The IT department has slated four instalments for every quarter of the fiscal year. In case the assessee delays advance tax payment as per the scheduled insta.....

Section 234C deals with the penalty interest that will be imposed in case a taxpayer fails to pay the advance tax on time. The IT department has made it compulsory for taxpayers to pay advance tax for whom the total income tax payable exceeds ₹10,000 in a particular year. Moreover, the IT departm.....

READ MORE

Introduced during Budget 2017, Section 269ST of the Income Tax Act, 1961, pertains to cash transactions and places restrictions on receiving cash. Under this section, receiving ₹2 Lakhs or more in a single day from one person, for a single transaction or related transactions, is prohibited.

.....

Under this section, parties are prohibited from receiving payments that exceed the threshold under the following scenarios:

1.In a single transaction

You cannot make a cash transaction above ₹2 Lakhs, regardless of whether it is paid in single instalment or spread over days.  

READ MORE

What is Dearness Allowance, Its Types, and How to Calculate?

Dearness Allowance or DA is a part of the salary structure in the payroll system of India. It is provided by the Indian government to its pensioners and employees to offset inflation impact. Although the government has taken various measures to control inflation, there has only been partial succe.....

READ MORE

Under section 92E of Income Tax Act, every person engaged in an international transaction or a specific domestic transaction in the previous year must obtain a report from an accountant and submit it on or before the specified date.

 

A report of audit from a CA must be furnished .....

A transaction fulfilling the below-mentioned conditions:

  • A transaction which is done between two or more enterprises 

  • At least one must be a Non-resident of India

 

Also, the nature of such a transaction must be of:

.....

READ MORE

Section 10 of the Income Tax Act lists the exemptions available to taxpayers. The individual can claim an exemption under this section for various types of incomes that they earn in a particular financial year. Section 10 has multiple subsections that allow exemptions for various types of incomes.....

Section 10 of the IT Act has a maximum limit of Rs.2.5 lakhs for individuals below 60 years of age and Rs.3 lakhs for individuals who fall between the ages of 60 and 80 years, and Rs.5 lakhs for individuals who are above 80 years of age or higher. The upper limit of Rs.3 and 5 lakhs is available .....

READ MORE

Section 54EC of the Income Tax Act, of 1961, helps individuals mitigate their tax liability by claiming exemptions on tax on their long-term capital gains. This is done by investing their capital gains on particular capital gain bonds. It must be noted that the maximum investment limit in such bo.....

You can claim tax deductions under Section 54EC based on the amount of capital gains you invest. Here are the deductions you can claim depending on your investment:

  • Full Investment: You can enjoy tax exemption of the full capital gains amount if you invest in bonds with t.....

READ MORE

Under Section 2(14), ‘capital assets’ are divided into 2 categories, namely, long-term capital assets and short-term capital assets. The profit gained from the transfer of either asset type is known as short-term capital gain and long-term capital gain. 

 

As per Section.....

‘Net consideration’ for transferring a capital asset is the total value received from the transfer, minus any expenses exclusively incurred in connection with that transfer. Hence, we can say that,

 

Net Consideration = Expenditure - Full Value of Consideration

READ MORE

As a taxpayer, it is mandatory to furnish your income details to the Income Tax Department. You can do this by filing your returns for each financial year. After you duly file your returns in the prescribed format, the Income Tax Department processes them.

 

It verifies your .....

The Finance Act 2021 has changed the assessment proceedings related to Sec 147 of the Income Tax Act. Furthermore, all Sections from 153A to 153C have been combined under Section 147.

 

As mentioned, Sec 147 focuses on income escaping assessment. This gives the Assessing Officer (.....

READ MORE

Section 153A of the Income Tax Act of 1961, establishes a mechanism for the assessment of income in the instance of a searched individual. According to the aforementioned section, the Assessing Officer (AO) has the authority to frame an individual's assessment for the 6 assessment years which imm.....

Under section 153A of the Income Tax Act of 1961, the income assessing system in case of a searched individual has been specified. As per the clause that has been stated, the assessor could frame the assessment of the searched individual for a span of 6 years immediately preceding the search year.....

READ MORE

Section 234B of the Income Tax Act 1961, deals with the interest a taxpayer must pay when they delay the advance tax payment charged to them. The interest can also be applied to the taxpayer if the amount of advance tax paid is less than 90% of the tax assessed.

 

There are two co.....

It would be best if you calculated the interest under Section 234B in the following instances:

  • No advance tax payment is made even though the individual is liable to do the same.

  • In case the payment of advance tax is less than 90% of the tax assessed -

READ MORE

Section 28 of the Income Tax Act 1961 defines what income is taxable under the head of ‘Profits and Gains of Business or Profession’. Some of the income that it covers includes:

  • Profits from sales or services 

  • Salary 

  • Commission&nb.....

    Section 2 of the Income Tax Act defines business and profession, helping you understand the difference between the two. 

     

    According to Section 2(13), business refers to companies conducting activities of trade, commerce, manufacture, or the ones including these activities. A key .....

READ MORE

Once you have filed your income tax returns, the Income Tax Department will examine your returns. For this purpose, the Department may issue you an intimation, assessment, or scrutiny notice.

 

Sections 142(1), 143(1), 143 (2), 148, and 156 of the IT Act vests power in the De.....

As per Section 142(1) of the Income Tax Act, tax authorities can issue a notice for the purpose of assessment of your tax liability. When you receive a notice under the aforementioned section, it is considered a preliminary step for conducting an inquiry into your tax returns. 

 

.....

READ MORE

The Income Tax Act of India outlines tax deductions and payment provisions. It also has provisions for delays related to filing of returns, including your income tax returns or advance tax returns.

 

The provisions for penalties in delayed income tax returns or advance tax re.....

As mentioned above, Section 234A the Income Tax Act outlines the interest penalty applicable in delayed income tax returns, updated returns, or returns filed in response to a notice issued u/s 142 (1). 

 

If you don’t file your income tax returns on time, you may fall into either .....

READ MORE

A capital asset can either be a property or security and as per Indian laws, it is mandatory to pay taxes on such assets. Capital gain refers to the profit that you’d make by transferring the ownership of any capital asset. Capital gains are further classified into short-term capital gains and lo.....

A short-term capital gain refers to any profit that you make on selling short-term capital assets. This would also include any gains made on depreciable assets. Here’s an example to help you understand the concept of capital gains a little bit better - let’s assume that you buy a villa for ₹40 La.....

READ MORE

Owning and managing a house property can get complicated for many. House owners need to spend time calculating things like taxes to be paid on income from properties, tax benefits, and other matters like paying property tax. In this article, we’ll take a close look at the taxes on income from hou.....

Let’s understand what classifies as ‘Income from House Property’. Income will be classified as income from house property under Section 24 of the Income Tax Act, 1961 if the given.....

READ MORE

Do you earn an income? If you do, you must pay taxes to the government, or you will have to bear the consequences. The government collects the taxes on your income based on the slab rate your income falls under through the following means:

  • Tax Deducted at Source (TDS)

  • .....

    Self-assessment tax, also known as ‘SAT’, is a system under which taxpayers can compute and report their own tax liabilities to the Indian government. This type of tax is applicable in countries like India, where taxpayers have multiple sources of income, such as rental income, self-employment in.....

READ MORE

Other Investment Products

Calculate FD
Earn interest up to 8.60% p.a. by investing in a Bajaj Finance Fixed Deposit | Rated CRISIL AAA/ STABLE and [ICRA]AAA(stable) Invest Now
Home
active_tab
Loan Offer
active_tab
Download App
active_tab
Credit Score
active_tab