Taxation of Dividends
1. Dividend is ordinarily used to refer to any distribution made by a company to its shareholders out of its profits in proportion to the number of shares held by the shareholder concerned in the company. 2. Section 115-O (1): Tax on...
Presumptive Taxation
A. Section 44AD: Special provision for computing profits and gains of business i) Applicable to - 1. Resident Individual, HUF and Firm (Excluding LLP) carrying on any business, and 2. whose total turnover or gross receipts in the previous...
Taxation of AOPs & BOIs
1. Introduction:- The income of an Association of Persons (AOP) and Body of Individuals (BOI) shall be computed normally applying the normal provisions of the Income tax Act.The business income of AOP/BOI shall be computed after allowing all...
Capital gain on Land & Building under Joint development Agreement
1. Introduction:- Under the existing provisions of section 45, capital gain is chargeable to tax in the year in which the transfer takes place except in certain cases.The definition of ‘transfer’, inter alia, includes any arrangement or transaction...
Taxation of Agricultural Income
1.Definition of agricultural Income: Any rent or revenue derived from agricultural landAny Income derived from such land by-i) agriculture, orii) processing of agricultural produce, oriii) sale by a cultivator or receiver of rent-in-kind of the...
Taxation of Hindu Undivided Family
HUF is treated as a separate entity for the purpose of assessment under Income tax act.HUF does not arise from a contract. HUF is a creation of law. After marriage, as soon as a child is born, HUF comes into existence. HF consist of Father, sons...
Section 194IB- TDS on payment of Rent by Individuals and HUF
1. Any person, being an individual or a Hindu Undivided Family, responsible for paying to a resident any income by way of rent exceeding 50,000 for a month or part of a month during the previous year, shall deduct an amount equal to 5% of...
Expenses not deductible under section 40
1.Section 40(a)(i): Non-Compliance of provision of TDS where payment is made to Non-Resident Disallowance u/s 40(a)(i) shall be attracted if:A. The amount paid or payable is interest, royalty, fees for technical services or any other sum chargeable...
Section 194I-TDS on Rent
1.Deductor- Any person, [other than individual or HUF (not liable to tax audit in the preceding Financial year)]2. Deductee- Any Resident3. Time of Deduction- At the time of credit or payment, whichever is earlier.4. Rate of TDS- -For use of Plant...
Section 194IA- TDS on payment on transfer of certain immovable property
1.Deductor- Any Purchaser (Other than person referred to in section 194LA)2. Deductee- Any seller being resident3. Time of deduction- At the time of credit or payment, whichever is earlier4. Rate of TDS- 1% of the total...
Registration under GST Act
1. Section 25- Procedure for Registrationa. Time Limit- Every person who is liable to be registered under section 22 or Section 24 shall apply for registration within 30 days from the date on which he becomes liable to registration.b. State...
Reverse Charge Mechanism
1.Section 2(38)- Reverse Charge means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both. 2. Specified Goods under Reverse Charge- Notification...