From 1st April 2020 a new invoicing system is going to be implemented in the GST era to help business and to reduce the difficulty faced by various business stake holders. In this new system an e-invoice need to be raised by a trader which can be read by computer systems using dynamic QR code …

Introduction: To keep vigilance on high – value transactions entered by the taxpayers, The Income tax department has brought a new mechanism to furnish statement of financial transactions in the prescribed form 61A. Also known as Annual information return (AIR). It helps the department to curb the chances of tax evasion. Form 61A is a …

Profession tax is levied and collected by the State Governments in India and it is a Direct tax. A person earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor, etc or any person who are into business such as service provider, manufacturer, trader, etc. are required …

The sole proprietorship is the simplest form of business under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts. A sole proprietorship can operate under the name of its owner or it can …

Introduction The new section – Section 115BAA has been inserted in the Income Tax Act,1961 to give the benefit of a reduced corporate tax rate for the domestic companies. Section 115BAA states that domestic companies have the option to pay tax at a rate of 22% from the FY 2019-20 (AY 2020-21) onwards if such …

Introduction: FORM AOC-4 All companies under Companies Act 2013 are required to file annually Form AOC-4 (Financial Statement), AOC 4 XBRL (Financial Statement in extensible business reporting language), Form MGT-7(Annual Return), Form AOC-4 CFS (Companies which have Subsidiary/Associate company /Joint Ventures).  Financial statements provide information of great significance to the stakeholders. It gives a broad …

Since its introduction, the GST provisions have gone through many amendments from time to time. Recently issued Notification No. 22/2019-CT (R) dated 30.09.2019 clarifies the Reverse Charge (RCM) applicability on Rent-A-Cab Service.  GST is payable under Reverse Charge Mechanism” when the incidence of tax falls on the person receiving the service. Though the word “Rent-A-Cab” …

Purpose: Due to the significant rise in number of appeals pending disposal under Income Tax, which is burdensome on the Government preventing them from timely collection of revenue as well as for tax payers who has to spend time and resources on such appeals, the Finance Minister in her recent Budget has proposed “The Direct Tax Vivad Se …

Section 54 is applicable when an individual/HUF sells a residential property and buys another residential property, then he will be eligible for claiming Exemption u/s Section 54. Applicability If the newly purchased or constructed house is sold before 3 years from the date of capital gain on sale, then the exemption claimed earlier under section …

Who can Claim: This section is only applicable for Individual assessee  Conditions to claim Exemption:  a) Assessee should Purchase or construct a Residential house.  b) The time limits for purchase or construction of Residential house:  i) In case of Purchase: ii) In case of Construction: Max. amount of Exemption is: a) The complete amount of capital gain …

An investor in mutual funds usually makes profit by way of capital appreciation and dividend receipts on the capital invested. A capital gain is the difference between the sale value of investments and the initial purchase price. Holding Period for Mutual Funds: Taxability of Mutual Funds and Shares:

Investing in share and mutual funds are new way of investing as these instruments provide higher rate of return in less time, however it involves high degree of risk but due to high benefit it is attracting various investors. In these transactions there are two ways of earning profit, one is rate variance of purchase …

The section 55(2) (ac) is referred as Grand Fathering provision. Before going into the topic of Section 55(2) (ac), let’s have a sharp look into the provision of new section 112A which is applicable from FY 2018-19 in order to understand the current topic. Here we can notice a new regime of taxation of Long Term …

Donation is a noble task. In order to do favour for the Kind heart persons who donated for noble purpose, Income Tax department is providing Tax benefits to those persons. Contributions made to certain relief funds and charitable institutions can be claimed as deduction from tax under section 80G of Income Tax Act. However, contributions …

Introduction: Transmission of Shares: The word ‘transmission‘ means devolution of title of shares otherwise than by transfer, for example, devolution by death, succession, inheritance, bankruptcy, marriage etc. Transfer of title by operation of law. This type of situation arises when a shareholder dies, inheritance, bankruptcy, marriage and succession. Transfer of shares relates to a voluntary …

Section 10(10)D of the Income Tax Act, 1961: As per Section 10(10D) of the Income Tax Act, 1961- the amount of sum assured plus any amount received as policy proceeds on maturity or surrender of policy or on death of the insured are completely tax free for the receiver. But in the following condition it …

Introduction Due to the impact of rapidly increasing foreign trade and commerce, cross border transactions raises many issues on taxation of the income. Global income is taxed in the country of its residence. But there are situations when a Company/Individual is also exposed to tax in the source country. Hence, there arises issue of double …

Articles about company incorporation from our Knowledge Bank Incorporating a Company in India Incorporating a LLP in India Incorporating a One Person Company Have you wondered how a private company is registered in India under Companies Act 2013? No, then don’t worry, we have simplified the process of registration of company in India. ALL YOU NEED TO …