The residential status of the company is determined as per section 6(3) of the income tax act 1961. Residential status is important because the determination of income and income tax liability all depend on the residential status. It is a first step that every taxpayer must follow either a resident or non-resident. Indian company An …
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Freelancing is a particular assignment done by an individual of a company. You may call it a self-employed person who works either individually or hires a few more people to work with him on a particular assignment. Freelancing is a commercial term, but under the income tax act, there is no term like freelancer and …
Income tax provisions for the non-resident are not straightforward. There are many provisions which in itself are difficult to understand. To understand the provision applicable to non-residents it is important to first determine the residential status. The residential status is divided into 3 categories- Non-Resident (NR) Resident and Ordinarily Resident (ROR) Resident but not Ordinarily …
Tax deduction at source (TDS) is an income tax liability that is deducted from salary of the employee. It is similar to advance tax liability which is deducted from the salary of the employee by the employer and deposited it to the central government. Liability to deduct TDS is cast on the employer (person who …
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TDS on digital payment has always been a contentious issue. Taxpayers and income tax department have been fighting for taxability on digital payments for many years since the digitalization of business has taken place. The income tax department tries to make the digital payments taxable in India as a Fees for Technical Services (FTS), Royalty, …
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A salaried person knows that House rent allowance (HRA) is a tax planning/tax saving tool. For salaried person HRA is primary part that save hefty amount of income tax. Often company makes a structure in a way that can save more income tax. Few companies allow its employees at the time of joining to structure …
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Section 111A of the income tax act has specific rate of tax on short term capital gain. This section was inserted by finance act 2004 to provide special rate of 10 per cent on short term capital gain. In 2008 rate of 10% was increased to 15%. Section 111A is application on few transactions elaborated …
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Advance tax is an Income tax. As the name suggests advance tax is paid much before the period of filing of income tax return. Income tax act has prescribed section 208 that makes it obligatory for the taxpayer to pay tax in advance. There have been few conditions and due dates prescribed that taxpayer must …
There has been substantially increase in foreign remittance since when ecommerce activities and import of goods and services are taking place in huge numbers. Any person making payment to non-resident is liable to deduct tax at source from the payment. The liability is cast on the shoulder of the payer because tax can easily be …
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Filing income tax return is a one-time job in a year that every person should do. Every year we all are required to furnish information of income from all sources and taxes paid on that income to the income tax department. Either we hire income tax consultant or we file it by ourselves. Income tax …
