Meaning of Long Term and Short Term Capital Asset
Long term capital asset means a capital asset held by an assessee for more than 36 months immediately preceding the date of its transfer. However in the following cases, if Capital asset is held for more than 12 months it shall be treated as long term capital asset Equity or preference shares held in a […]
Meaning of Capital Asset – Section 2(14)
Capital asset means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include— any stock-in-trade, consumable stores or raw materials held for the purposes of his business or profession personal effects, that is to say, movable property (including wearing apparel and furniture) held for personal […]
Audit of Speculation Business-Shares, Futures and Options Trading
Audit under section 44AB is required when turnover exceeds Rs. 1 crore. But in case of speculation business, shares trading and futures/options, turnover is determined in the following manner. 1) Speculation Business – The aggregate of both positive and negative differences is to be considered as the turnover. 2) Intra day trading of shares – […]
Accounts and Records to be maintained under GST
Requirements Regarding Maintenance of Accounts Additional Requirements for an Agent Additional Requirements for Work Contractor Person operating a warehouse and transporter Commissioner’s Power regarding Accounts Maintenance Rules Retention of accounts and records Requirements Regarding Maintenance of Accounts Every registered person is required to maintain at his principal place of business, account of (a) Production or […]
Time of Taxation under GST
Time of Supply of Goods Time of supply of goods is earlier of the following dates- Date of invoice Last date on which invoice is required to issue under section 31(1). Invoicing in GST The date on which seller receives the payment The date on which the supplier receives the payment shall be the date […]
TCS under GST by E-commerce Operator
Electronic commerce operator like amazon, flipkart are required to collect Tax Collection at Source (TCS) at the rate of one percent of the net sales of goods or services made through their platform. Tax is to be collected only on the amount which is collected by the operator itself. Calculation of Net Sales Net sales […]
HRA provisions in Circular 8/2013
5.3.9 Under section 10(13A) of the Act, any special allowance specifically granted to an assessee by his employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee is exempt from Income-tax to the extent as may be prescribed, having regard to the area […]
Assessment as a Firm – Section 184
A partnership firm will be assessed as a firm in Income Tax Act if the following conditions are satisfied Partnership is evidenced by an instrument Normally a partnership agreement is made for the purpose and is a valid instrument. Instrument also includes any other formal document. Individual shares of the partners are specified in that […]
8 mistakes people do while filing Income Tax Return (ITR)
Now a days many people file their own Income Tax Return (ITR) in lieu of taking service of CA or tax consultant. But a number of persons make some very common mistakes while filing ITR. Here we have provided a list of common mistakes so that people can avoid them. Not claiming TDS Many times […]
Receipts without Considerations – Section 56(2)
If an individual or HUF received any money/property without consideration If the amount of money received without consideration exceeds rs. 50,000 any movable property, without consideration the fair market value of which is more than rs. 50,000, then such fair market value any movable property, for a consideration which is less than fair market value […]