We all borrow funds either from Non-banking financial Company (NBFC) to grow our business and pay Interest in the form of Equated monthly installment (EMI). Merely regular payment of EMI complies the entire requirement? How would you react if you were asked by professional to deduct Tax deductions of source (TDS) of NBFC on the …
Continue reading “One more compliance which Founder of Private Limited Company often fails to do.”
Government always try to make affords to avoid double taxation in India but their efforts is useless when same income becomes taxable 3 times. In India it is a tax policy that Government taxed the income when company earns it and again it is taxed when it is passed on to the owners of the …
Continue reading “You know when your incomes are taxed thrice.”
The government of India has launched ‘Startup india’ initiative on 2016 to build strong entrepreneurship. As a part of this initiative, the department of industrial policy and promotion (DIPP) has issued notification to avail income tax exemption. Section 80IAC specifies that you no need to pay income tax on your profits for 3 years out …
Purchasing of own shares (Buyback of shares) at higher value is a popular method of distributing profits. One of the recent instance where Infosys has spent around Rs.13000 crore to buyback of shares. Before purchasing of own shares both Listed and Unlisted companies has to follow provisions of Company acts, 2013, SEBI Guidelines and …
The GST anti-profiteering watchdog, National Anti-profiteering Authority (NAA), on Monday imposed a fine on consumer goods giant HUL of Rs.383 crores. Few applicants complained to GST anti-profiteering watchdog that although GST had been reduced from 28% to 18% on a large number of products w.e.f. 15.11.2017 but HUL has not reduced the maximum retail process …
On Wednesday government said startups would not be harassed if they receive consideration more than its fair price of shares. A section 56 of income tax comes into play when a unlisted company receives funds from Angel investors and Value offered by Angel investor is far more than its fair value. This section is introduced …
We all know, if value of gifts received is more than Rs.50,000 a year, then such amount is taxable in the hands of the receiver. The condition of Rs.50,000 is not applied if gifts are received from relatives. Income tax act also defines relatives, which include your spouse, parents, brother, sister, brother and sister of …
Most of you must be aware that if you are residing in a rented accommodation and your company is giving you HRA as a part your salary, you can claim HRA deduction. But many of you may not be aware of the following points: You can pay rent to your parents to claim deduction under …
By proper planning you can file separate income tax return of both Husband and Wife. Under the income tax act husband and wife would be entitled to have separate income tax return, but in certain situations income of wife is clubbed with husband’s income. Section 64 of income tax act 1961 clearly defines the following …
Continue reading “Situation when Income of Wife is clubbed with income of Husband.”
It often said that how income tax department (ITD) came to know about my transactions done through banks. Did you ever heard about the Annual information report (AIR) which notifies the transactions to be reported by all banks to ITD. Here are your transactions reported to ITD: *Cash deposits Rs. 10 lakh or more in …
Continue reading “When bank can share your financial details with Income tax department?”
