Interest for Deferment of Advance Tax – Section 234C
Interest is payable by assessee under section 234C for non payment or under payment of advance tax. Rate of Interest – Simple Interest @ 1% per month or part of month Interest is calculated by Non Corporate Assessee as provided under:- Interest is Payable under Section 234C if Period of Interest Amount on which Interest Payable […]
Why there was a need for 3 types of GST – CGST, SGST & IGST
Since GST subsumed both indirect taxes of central government (excise duty, service tax, custom duty, etc. ) and state governments (VAT, Luxury tax, etc.), both the government now depend on GST for their indirect tax revenue. Therefore the GST rate is composed of two rates, one of CGST and one of SGST. Therefore, while making […]
Tax on buying/selling of immovable property below stamp duty value
If any immovable property is sold below the stamp duty value (or circle rate) then such case will fall under Section 50C, Section 43CA, Section 56(2)(x) and double taxation shall apply on the difference in the stamp duty value and transfer price. Taxability in the hand of Seller If the immovable property is considered as […]
Winning from the Lottery, Crossword Puzzle, Race, Games etc.
As per Section 115BB, a flat tax rate of 30% is applicable on income arising by way of winnings from any: – Lottery Crossword Puzzle Race including horse race (not being income from the activity of owning and maintaining race horses) Card Game and other game of any sort ( As per Section 24(ix) includes […]
Capital Gain on sale of Equity Shares – LTCG & STCG
Profit or gain arising on transfer of shares (considered as an investment not a business by assessee) is chargeable to tax under the head ‘Capital Gains’. Types of Capital Gain Capital gains on shares are divided into two types : – Short Term Capital Gains Long Term Capital Gains CAPITAL ASSETS SHORT TERM CAPITAL ASSETS […]
Taxability on Buyback of Shares of Companies
In simpler terms, buyback of shares means buying by a company of its own shares in accordance with the provision of the law. Taxability on buyback of shares is divided on the basis of the listing of the company i.e. a) Buyback by Listed Companies b) Buyback by Unlisted Companies Buyback by Listed Companies Taxability […]
Restrictions on Cash Transactions and Penalty on Contravention
In order to curb black money, the government has imposed various restrictions on cash payments from time to time. Paying/Receiving cash beyond these limits attracts a heavy penalty which can be up to 100% of the amount received/paid. Here is the list of various restriction which is imposed under the Income Tax Act 1961. Expenditure […]
Request for Reissue of Income Tax Refund Online
At the time of filing income tax return, many of us claimed the refund of excess income tax paid or TDS deducted i.e. income tax paid is more than income tax chargeable on the total taxable income for the year. Depending on the option exercised by the assessee, at the time of filing of income […]
Deduction in respect of employment of new employee under Section 80JJA
Section 80JJA has been substituted by Finance Act 2016 (with effect from FY 2016-17) which provide the deduction to an employer for generating employment. Eligibility for claiming the deduction Available to that assessee: – who is required to get his books of accounts audited under Section 44AB and income include profit and gains derived from […]
Forgot to verify your income tax return? File condonation of delays in filing ITR-V
Income tax return filing process get completed once you verify your return. Verification of return can be done online (using Aadhaar one time password, EVC using net banking etc) or by sending the physical copy of ITR-V to the Central Processing Centre, Bengaluru, within 120 days from the date of filing of the return. An […]