TDS from Interest on Securities – Section 193
The person responsible for paying interest on securities to a resident is required to deduct TDS. Tax is to be deducted at the time of payment or credit to the account of the payee, whichever is earlier. Where any amount of interest is credited to any account whether called Interest payable account or suspense account […]
Audit under GST
There are three types of audit under GST. They are Audit by Chartered Accountant Audit by Tax Authorities Special Audit Audit of Accounts by CA or CWA Every registered person whose turnover exceeds Rs. 2 crore during a financial year has to get his accounts audited under GST. Accounts is to be audited by a Chartered […]
Carry Forward of Loss
S.No. Type of loss to be carried forward to next year(s) Profits Against which loss can be set off in the same year Profit Against which carried forward loss can be set off in next year(s) For how many years loss can be carried forward Is it necessary to submit return of loss in time […]
Residential Status under Income Tax Act
Residential status of an Individual Tax Planning in respect of Residential Status by Individual Residential Status of HUF Residential Status of a Firm of Association or Persons (AOP) Residential Status of Company Residential status is very important in Income Tax Act as the determination of tax liability depends much on it. An assessee is either […]
Conditions for Taxability under House Property – Section 22
1) The property should be consisting of any building or land apparent thereto. Income from letting vacant land is chargeable to tax under “Income from Other source – Section 56” not under this head “Income from House Property – Section 22”. The purpose for which the building is used by the tenant is immaterial. Thus […]
Sweat Equity Shares
If the following conditions are satisfied, then value of sweat equity shares will be taxable in the hands of employee in the year in which the shares are allotted or transferred to employees. (i) The security involved is either specified security or sweat equity shares. (ii) Such security is allotted or transferred on or after […]
Taxability for Specified Employees
Specified Employees The following person shall be considered as specified employees: – An employee who is a director of company. An employee being a person who has substantial interest in the company i.e. who is the beneficial owner of equity shares carrying 20% or more of the voting rights in the company Any other employee […]
Rent Free Accommodation – Perquisite
Computing taxable value in case of rent free accommodation or accommodation provided at concessional rate When accommodation is provided by the Government Case I – When unfurnished accommodation is provided Taxable Amount = License Fees – Rent actually paid by employee Case II – When furnished accommodation is provided The following amount will also be […]
Section 80TTB – Deduction of Interest to Senior Citizens
This section is inserted in budget 2018 and is applicable from financial year 2018-19. When a senior citizen receives interest on deposits with a bank a co-operative bank a post office then he is allowed a deduction of such interest up to maximum limit of Rs. 50,000. Also note that deduction is allowed on interest […]
Place of Supply of Goods/Services under GST
GST is a consumption based tax. So the tax should be received by the government of the state or union territory where goods/services are consumed. So there should be proper determination of the place where supply took place. Also there is a requirement to determine whether sales is within state (intra state) or to outside […]