The document discusses various aspects of income taxable under Section 56 of the Income Tax Act 1961 relating to "Income from Other Sources". It summarizes taxation of gifts, winnings, share premium in excess of fair market value, dividends, and other miscellaneous incomes. Specific items discussed include the taxability of gifts based on various limits and exceptions. Winnings from lotteries, races and other games are taxed at a flat 30% rate. Share premium received in excess of a company's fair market value may be taxed. Dividends from foreign companies and domestic companies over Rs. 10 lakhs are included.
Dr. P. Ravichandran has listed his academic and professional qualifications. He provides information on the different heads of income under the Income Tax Act, including salary, house property, business/profession, capital gains, and other sources. He notes that income is first computed under these heads and then adjustments are made for set-off losses before determining total income. The document then focuses on income from salary, providing details on what constitutes salary and allowable deductions. It discusses various forms of retirement benefits like leave encashment, gratuity, pension, and their tax treatment.
Profit & Gains from Business or Profession.RAJESH JAIN
This document provides an overview of income from business and profession under the Indian Income Tax Act. It defines business and profession, outlines the key points and basis of charge for income from business/profession. It also discusses the computation of income, specific deductions allowed, depreciation rules and amounts that are not deductible. The key information includes definitions of business and profession, income includes profits and losses, relevance of accounting method, and that income from illegal businesses is taxable.
With the help of this presentation one can learn e filing of Income Tax Return and can start his/her own practice as agent for filing of income tax returns
Tax is an important source of revenue for governments worldwide. Taxes are collected on income, sales, purchases, and properties to fund government operations. There are two types of taxes: direct taxes which are paid directly by individuals like income tax; and indirect taxes which are passed on through other entities like sales tax. Income tax was first introduced in India in 1860 under British rule to fund expenses from the 1857 rebellion. The current Income Tax Act of 1961 governs income tax in India and has been amended over time. It details the taxation of various types of income for individuals and organizations.
The document discusses India's Goods and Services Tax (GST) policies and regulations related to input tax credit. Key points include:
- Under GST, input tax credit is available for goods, services, and capital goods used in the course of business. This is a significant expansion of credit compared to earlier tax systems.
- Credit can be claimed by registered businesses against central GST, state GST, integrated GST, and Union territory tax paid on business purchases.
- Certain documents like tax invoices and bills of entry must be possessed, and payment must be made to the supplier within 180 days, for credit to be claimed.
- There are also time limits, apportionment and reversal
This document discusses set off and carry forward of losses under the Indian Income Tax Act. It provides details on:
1. Set off of losses from one source of income against income from another source under the same head (intra-head set off) and against income from other heads (inter-head set off), subject to certain exceptions.
2. Carrying forward unadjusted losses to future years for set off against income of those years, with time limits varying from 4 to 8 years depending on the head.
3. Key points around set off and carry forward of losses from different income sources like house property, business, capital gains, and owning race horses.
INCOME TAX- Aggregation of Income/ Clubbing of the income under INCOME TAX ACT,1961
Income of other persons to be included in the income of individual( Section 60-65)
Income received from Firm assessed as Firm And Association of Persons (Section 66-67)
Deemed Income (Section 68-69)
Transfer of Income without Transfer of Assets[Sec. 60]
Revocable Transfer of Assets [Sec. 61]
Dr. P. Ravichandran has listed his academic and professional qualifications. He provides information on the different heads of income under the Income Tax Act, including salary, house property, business/profession, capital gains, and other sources. He notes that income is first computed under these heads and then adjustments are made for set-off losses before determining total income. The document then focuses on income from salary, providing details on what constitutes salary and allowable deductions. It discusses various forms of retirement benefits like leave encashment, gratuity, pension, and their tax treatment.
Profit & Gains from Business or Profession.RAJESH JAIN
This document provides an overview of income from business and profession under the Indian Income Tax Act. It defines business and profession, outlines the key points and basis of charge for income from business/profession. It also discusses the computation of income, specific deductions allowed, depreciation rules and amounts that are not deductible. The key information includes definitions of business and profession, income includes profits and losses, relevance of accounting method, and that income from illegal businesses is taxable.
With the help of this presentation one can learn e filing of Income Tax Return and can start his/her own practice as agent for filing of income tax returns
Tax is an important source of revenue for governments worldwide. Taxes are collected on income, sales, purchases, and properties to fund government operations. There are two types of taxes: direct taxes which are paid directly by individuals like income tax; and indirect taxes which are passed on through other entities like sales tax. Income tax was first introduced in India in 1860 under British rule to fund expenses from the 1857 rebellion. The current Income Tax Act of 1961 governs income tax in India and has been amended over time. It details the taxation of various types of income for individuals and organizations.
The document discusses India's Goods and Services Tax (GST) policies and regulations related to input tax credit. Key points include:
- Under GST, input tax credit is available for goods, services, and capital goods used in the course of business. This is a significant expansion of credit compared to earlier tax systems.
- Credit can be claimed by registered businesses against central GST, state GST, integrated GST, and Union territory tax paid on business purchases.
- Certain documents like tax invoices and bills of entry must be possessed, and payment must be made to the supplier within 180 days, for credit to be claimed.
- There are also time limits, apportionment and reversal
This document discusses set off and carry forward of losses under the Indian Income Tax Act. It provides details on:
1. Set off of losses from one source of income against income from another source under the same head (intra-head set off) and against income from other heads (inter-head set off), subject to certain exceptions.
2. Carrying forward unadjusted losses to future years for set off against income of those years, with time limits varying from 4 to 8 years depending on the head.
3. Key points around set off and carry forward of losses from different income sources like house property, business, capital gains, and owning race horses.
INCOME TAX- Aggregation of Income/ Clubbing of the income under INCOME TAX ACT,1961
Income of other persons to be included in the income of individual( Section 60-65)
Income received from Firm assessed as Firm And Association of Persons (Section 66-67)
Deemed Income (Section 68-69)
Transfer of Income without Transfer of Assets[Sec. 60]
Revocable Transfer of Assets [Sec. 61]
Composition levy GST ( Composition Scheme GST )CA-Amit
Only taxable persons whose ‘aggregate turnover’ does not exceed Rs. 50 lacs in a financial year will be eligible to opt for payment of tax under the composition scheme.As per Section 16, Goods and/or services on which composition tax has been paid under Section 8 is not eligible for input tax credit.
The document outlines the five heads of income that are specified under section 11 of the Pakistan Income Tax Ordinance of 2001. These five heads are: 1) salary, 2) income from house property, 3) income from business or profession, 4) capital gains, and 5) income from other sources. Any income earned by a person during the tax year must be classified under one of these five heads to determine tax liability and calculate tax payable.
The document summarizes key aspects of the Integrated Goods and Services Tax (IGST) and compensation draft law in India. It discusses how IGST will be charged on all inter-state supplies of goods and services at an aggregate rate of CGST and SGST. Intra-state supplies will be charged CGST and SGST, which will be equal in rate. Place of supply rules are provided for goods and services to determine whether a supply is inter-state or intra-state. Input tax credit provisions and treatment of zero-rated supplies are also summarized briefly.
This document discusses agricultural income as defined in the Indian Income Tax Act of 1961. It defines agricultural income as income derived from agricultural sources in India. The document outlines the various types of agricultural income, including rents from agricultural land, income from cultivating land, income from processes to make agricultural produce marketable, and income from the sale of agricultural produce. It also discusses the tests to determine what constitutes agricultural income and provides examples of incomes that are considered agricultural versus non-agricultural. The document concludes by explaining the process of integrating agricultural income with non-agricultural income for tax purposes when thresholds are exceeded.
Registration is required under GST for any supplier of goods or services whose aggregate turnover exceeds Rs. 20 lakh. Persons registered under earlier laws will be migrated to GST. Exemptions from registration include agriculturists and those exclusively engaged in exempt supplies. Additional categories requiring compulsory registration include inter-state suppliers and e-commerce operators. Registration involves declaring PAN and other details to obtain a temporary reference number, applying online with documents, and receiving a GSTIN. Amendments and cancellations to registrations are also conducted online. Non-resident taxable persons can obtain temporary registration by submitting passport details.
- Individuals and companies with total income exceeding the maximum taxable limit must file an income tax return by the due date, which is July 31 for most assessees and September 30/November 30 for some.
- Those holding overseas assets or accounts must also file a return even if income is below the taxable limit. Late or revised returns can be filed within 1 year with penalties for failure to file on time.
- The return must be verified digitally in most cases. It must be signed by the individual, partner, director or other authorized person depending on the entity. Strict documentation and procedures must be followed for e-filing.
This document provides information about e-filing of income tax returns in India. It defines e-filing as the electronic filing of income tax returns through the internet. The key benefits of e-filing are listed as convenience, security, accuracy, direct deposit refunds, and proof of filing. The document outlines the different types of e-filing (with or without digital signature) and the various income tax return forms for individuals, firms, companies and trusts. It then describes the step-by-step process for e-filing, including registering on the e-filing website, downloading the appropriate return form, generating an XML file, uploading the return, and receiving an acknowledgment.
This Power Point presentation is the latest in the series of GST related slides uploaded by me earlier. This Specifically discusses the Concept of CGST, SGST and IGST. Examples and illustrations have been given to help in understanding.
Ms. Suchitra Kumari has assisted me in editing these slides
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July, 2017 which was one of the most important reforms in the Indian Economy. Unlike erstwhile indirect tax regime, GST promises seamless credit on goods and services across the entire supply chain with some exceptions. In this webinar, we shall understand and analyse the provisions related to Input Tax Credit under the GST law
This document outlines the different heads of income under which a person's taxable income is classified and assessed in India. The key heads of income are: salary, house property, profits from business/profession, capital gains, and other sources. It provides details on what constitutes income from each of these heads, such as the types of allowances and deductions included in salary income or the conditions for business/profession income to be taxed.
Scope of Total Income - Problems and Solutions (3)RajaKrishnan M
The document discusses the computation of total income for two individuals - Pawan and Jairam - for the assessment year 2020-2021 based on their residential status as resident, not ordinary resident, or non-resident. For Pawan, the total income is ₹464,000 as a resident, ₹254,000 as a not ordinary resident, and ₹254,000 as a non-resident. For Jairam, the total income is ₹751,000 as a resident, ₹505,000 as a not ordinary resident, and ₹285,000 as a non-resident. The document provides details of the income sources and amounts for each individual and the treatment
Capital gains tax is levied on profits arising from the transfer of a capital asset. For gains to be taxed under capital gains, there must be a capital asset that is transferred, resulting in profits. Any profits exempted under sections 54-54G are not taxed. Capital assets include all property except certain exceptions like stock-in-trade. Short term capital gains arise from assets held for 36 months or less, while long term gains are for assets held longer. Indexation of cost is used to arrive at capital gains for long term assets by factoring inflation. Profits are taxed differently based on whether the gain is short term or long term.
This document provides an overview of tax deductions available under Sections 80C to 80U of the Indian Income Tax Act. It explains that these deductions are intended to incentivize taxpayers to engage in socially desirable activities and investments. The key deductions covered include those for life insurance premiums (Section 80C), pension contributions (Section 80CCC), medical insurance (Section 80D), treatment of disabled dependents (Section 80DD), tuition fees (Section 80E), interest on education loans (Section 80E), rent payments (Section 80GG), among others. Eligibility conditions and calculation of allowable deductions for each section are described.
The document summarizes various exemptions from GST in India, including:
1. Certain goods like live animals, meat, fish, vegetables and fruits are exempt from GST. Common items like sugar, drugs, fertilizers and national flags are also exempt.
2. Many essential services are exempt, including health care, education services up to higher secondary level, religious ceremonies, charitable activities, and pension schemes.
3. Agriculture-related services like warehousing of farm goods, fumigation, crop services and transport are exempt from GST.
4. The government has power to grant exemptions from GST if deemed necessary for public interest.
This document provides information on advance tax requirements in India. It defines advance tax, when it is due, and the applicable payment deadlines and percentages for companies and non-companies. Advance tax is due in four installments by September 15, December 15, March 15, and March 31. Interest is charged for late or deficient advance tax payments under sections 234B and 234C. The document also addresses provisions for casual income and capital gains, and situations where the assessing officer can issue an advance tax order.
Objectives & Agenda :
To know when income will be taxable in India and to understand the determination of residential status for individuals, HUF, Firms, AOP/BOI and Companies. To analyse the concept of POEM in relation to determination of residential status of Company.
The document provides a history of income tax law in India and definitions of key concepts in income tax. It discusses how income tax was first introduced in 1860 and the various acts passed until the current Income Tax Act of 1961. It defines important terms like assessee, person, income, agricultural income, assessment year, and previous year. It also outlines what constitutes taxable income and exemptions under the law.
Our Tax team has summarised the important compliance related provisions of Income Tax Act 1961 and prepared the compliance hand book for easy reference.
This document defines various sections under the Indian Income Tax Act that specify tax to be deducted at source (TDS) for different types of payments. It outlines TDS rates and thresholds for salary (Section 192), interest (Section 193, 194), dividends (Section 194), lottery winnings (Section 194B), contracts (Section 194C), rent (Section 194I), professional fees (Section 194J), and payments to non-residents (Section 195). It also discusses due dates for remitting TDS, interest charged on late payments, and penalties for non-compliance.
Composition levy GST ( Composition Scheme GST )CA-Amit
Only taxable persons whose ‘aggregate turnover’ does not exceed Rs. 50 lacs in a financial year will be eligible to opt for payment of tax under the composition scheme.As per Section 16, Goods and/or services on which composition tax has been paid under Section 8 is not eligible for input tax credit.
The document outlines the five heads of income that are specified under section 11 of the Pakistan Income Tax Ordinance of 2001. These five heads are: 1) salary, 2) income from house property, 3) income from business or profession, 4) capital gains, and 5) income from other sources. Any income earned by a person during the tax year must be classified under one of these five heads to determine tax liability and calculate tax payable.
The document summarizes key aspects of the Integrated Goods and Services Tax (IGST) and compensation draft law in India. It discusses how IGST will be charged on all inter-state supplies of goods and services at an aggregate rate of CGST and SGST. Intra-state supplies will be charged CGST and SGST, which will be equal in rate. Place of supply rules are provided for goods and services to determine whether a supply is inter-state or intra-state. Input tax credit provisions and treatment of zero-rated supplies are also summarized briefly.
This document discusses agricultural income as defined in the Indian Income Tax Act of 1961. It defines agricultural income as income derived from agricultural sources in India. The document outlines the various types of agricultural income, including rents from agricultural land, income from cultivating land, income from processes to make agricultural produce marketable, and income from the sale of agricultural produce. It also discusses the tests to determine what constitutes agricultural income and provides examples of incomes that are considered agricultural versus non-agricultural. The document concludes by explaining the process of integrating agricultural income with non-agricultural income for tax purposes when thresholds are exceeded.
Registration is required under GST for any supplier of goods or services whose aggregate turnover exceeds Rs. 20 lakh. Persons registered under earlier laws will be migrated to GST. Exemptions from registration include agriculturists and those exclusively engaged in exempt supplies. Additional categories requiring compulsory registration include inter-state suppliers and e-commerce operators. Registration involves declaring PAN and other details to obtain a temporary reference number, applying online with documents, and receiving a GSTIN. Amendments and cancellations to registrations are also conducted online. Non-resident taxable persons can obtain temporary registration by submitting passport details.
- Individuals and companies with total income exceeding the maximum taxable limit must file an income tax return by the due date, which is July 31 for most assessees and September 30/November 30 for some.
- Those holding overseas assets or accounts must also file a return even if income is below the taxable limit. Late or revised returns can be filed within 1 year with penalties for failure to file on time.
- The return must be verified digitally in most cases. It must be signed by the individual, partner, director or other authorized person depending on the entity. Strict documentation and procedures must be followed for e-filing.
This document provides information about e-filing of income tax returns in India. It defines e-filing as the electronic filing of income tax returns through the internet. The key benefits of e-filing are listed as convenience, security, accuracy, direct deposit refunds, and proof of filing. The document outlines the different types of e-filing (with or without digital signature) and the various income tax return forms for individuals, firms, companies and trusts. It then describes the step-by-step process for e-filing, including registering on the e-filing website, downloading the appropriate return form, generating an XML file, uploading the return, and receiving an acknowledgment.
This Power Point presentation is the latest in the series of GST related slides uploaded by me earlier. This Specifically discusses the Concept of CGST, SGST and IGST. Examples and illustrations have been given to help in understanding.
Ms. Suchitra Kumari has assisted me in editing these slides
OBJECTIVE
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July, 2017 which was one of the most important reforms in the Indian Economy. Unlike erstwhile indirect tax regime, GST promises seamless credit on goods and services across the entire supply chain with some exceptions. In this webinar, we shall understand and analyse the provisions related to Input Tax Credit under the GST law
This document outlines the different heads of income under which a person's taxable income is classified and assessed in India. The key heads of income are: salary, house property, profits from business/profession, capital gains, and other sources. It provides details on what constitutes income from each of these heads, such as the types of allowances and deductions included in salary income or the conditions for business/profession income to be taxed.
Scope of Total Income - Problems and Solutions (3)RajaKrishnan M
The document discusses the computation of total income for two individuals - Pawan and Jairam - for the assessment year 2020-2021 based on their residential status as resident, not ordinary resident, or non-resident. For Pawan, the total income is ₹464,000 as a resident, ₹254,000 as a not ordinary resident, and ₹254,000 as a non-resident. For Jairam, the total income is ₹751,000 as a resident, ₹505,000 as a not ordinary resident, and ₹285,000 as a non-resident. The document provides details of the income sources and amounts for each individual and the treatment
Capital gains tax is levied on profits arising from the transfer of a capital asset. For gains to be taxed under capital gains, there must be a capital asset that is transferred, resulting in profits. Any profits exempted under sections 54-54G are not taxed. Capital assets include all property except certain exceptions like stock-in-trade. Short term capital gains arise from assets held for 36 months or less, while long term gains are for assets held longer. Indexation of cost is used to arrive at capital gains for long term assets by factoring inflation. Profits are taxed differently based on whether the gain is short term or long term.
This document provides an overview of tax deductions available under Sections 80C to 80U of the Indian Income Tax Act. It explains that these deductions are intended to incentivize taxpayers to engage in socially desirable activities and investments. The key deductions covered include those for life insurance premiums (Section 80C), pension contributions (Section 80CCC), medical insurance (Section 80D), treatment of disabled dependents (Section 80DD), tuition fees (Section 80E), interest on education loans (Section 80E), rent payments (Section 80GG), among others. Eligibility conditions and calculation of allowable deductions for each section are described.
The document summarizes various exemptions from GST in India, including:
1. Certain goods like live animals, meat, fish, vegetables and fruits are exempt from GST. Common items like sugar, drugs, fertilizers and national flags are also exempt.
2. Many essential services are exempt, including health care, education services up to higher secondary level, religious ceremonies, charitable activities, and pension schemes.
3. Agriculture-related services like warehousing of farm goods, fumigation, crop services and transport are exempt from GST.
4. The government has power to grant exemptions from GST if deemed necessary for public interest.
This document provides information on advance tax requirements in India. It defines advance tax, when it is due, and the applicable payment deadlines and percentages for companies and non-companies. Advance tax is due in four installments by September 15, December 15, March 15, and March 31. Interest is charged for late or deficient advance tax payments under sections 234B and 234C. The document also addresses provisions for casual income and capital gains, and situations where the assessing officer can issue an advance tax order.
Objectives & Agenda :
To know when income will be taxable in India and to understand the determination of residential status for individuals, HUF, Firms, AOP/BOI and Companies. To analyse the concept of POEM in relation to determination of residential status of Company.
The document provides a history of income tax law in India and definitions of key concepts in income tax. It discusses how income tax was first introduced in 1860 and the various acts passed until the current Income Tax Act of 1961. It defines important terms like assessee, person, income, agricultural income, assessment year, and previous year. It also outlines what constitutes taxable income and exemptions under the law.
Our Tax team has summarised the important compliance related provisions of Income Tax Act 1961 and prepared the compliance hand book for easy reference.
This document defines various sections under the Indian Income Tax Act that specify tax to be deducted at source (TDS) for different types of payments. It outlines TDS rates and thresholds for salary (Section 192), interest (Section 193, 194), dividends (Section 194), lottery winnings (Section 194B), contracts (Section 194C), rent (Section 194I), professional fees (Section 194J), and payments to non-residents (Section 195). It also discusses due dates for remitting TDS, interest charged on late payments, and penalties for non-compliance.
The document discusses various topics related to taxation in India including the definition of tax, types of taxes (direct and indirect), income tax, tax rates for individuals of different ages, tax deducted at source (TDS), capital and revenue receipts and expenditures. Some key points are:
- Tax is an amount paid to the government to fund public services and is deducted from income or profits.
- Direct taxes like income tax are paid directly to the government while indirect taxes can be shifted to customers.
- Income tax is the most significant direct tax in India according to the constitution.
- Tax rates vary for individuals based on their age and income level with exemptions for those over 60 or 80 years old
This document provides an overview of taxation in India. It discusses the basic concepts of direct and indirect taxes, income tax, types of residents and income. It outlines the rates of income tax for individuals, HUFs, firms and companies for the assessment year 2019-2020. It also discusses taxation rates for agriculture income, TDS rates, surcharge rates and special rates for capital gains and winnings. Marginal relief is explained which provides that additional tax liability on income exceeding certain thresholds will be limited.
Tds Presentation as per Finance Act, 2014Manu Katare
1) TDS refers to the deduction of tax at source on certain specified payments. Key provisions around TDS are covered under Chapter XVII-B of the Income Tax Act, 1961.
2) The document outlines various sections related to TDS such as 192 on salaries, 194 on dividends, 194A on interest, 194C on payments to contractors, and exceptions to these sections.
3) It also discusses the rates of TDS to be applied based on the nature of the deductee, including the applicability of surcharge and education cess in case of companies, foreign companies, and non-residents.
TDS stands for tax deducted at source, where any person making certain types of payments is required to deduct tax from the payment and deposit it with the government. The key points covered are:
- Common sections related to TDS include 192 (salaries), 193 (interest), 194A (other interest), 194C (contractors), among others.
- Rates and thresholds vary based on the type of payment and recipient. Rates are typically 10-20% and thresholds are amounts like Rs. 30,000 for contractors.
- The payer is responsible for depositing the TDS, issuing certificates to payees, and filing annual returns. Payees can claim credit for TDS against
Implications and Procedures for NRI Selling Property in India and Remittance ...DVSResearchFoundatio
Key Takeaways
Understanding on:-
• Tax implication on NRI selling property in India
• FEMA implications
• Impact of TDS
• Application for lower or no withholding of TDS
This document provides an overview of tax deducted at source (TDS) in India. It defines TDS and explains that it is a mechanism for collecting income tax by deducting taxes from payments made to recipients. It outlines who is required to deduct TDS, their responsibilities, applicable tax rates and payments that attract TDS. It also summarizes provisions related to tax collected at source (TCS), due dates for depositing TDS/TCS, filing returns and issuing TDS certificates.
In the day to day operations of the business, it is essential to have grip on Tax Deducted at Source (TDS) which acts as a means to collect tax at the inception of the income itself and Tax Collected at Source (TCS) where a seller collects a certain amount of tax from the buyer at the time of sale. In this webinar we will be learning the applicability, non-applicability, prevailing rate of tax and other related provisions of the Income-tax Act with respect to TDS and TCS
The document provides an overview of the real estate business in India and discusses various accounting, taxation, and legal aspects. Some key points:
1) The real estate sector is a major contributor to the Indian economy but faces challenges like high costs, regulatory hurdles, and delays.
2) Revenue from real estate development can be recognized using the percentage of completion method or completed contract method under AS-7.
3) Presumptive taxation schemes like section 44AD provide relief for small builders from maintaining books but require following the scheme for 5 years.
4) Conversion of capital assets into stock attracts capital gains tax based on fair market value on the date of conversion, while the difference on sale
This document provides an overview of accounting, budgeting, taxation and compliance for businesses. It discusses preparing annual budgets and comparing them to actuals to aid in planning. It covers income tax slabs, deductions, capital gains and TDS rates. Profits are computed for different businesses. Compliance requirements like registration, returns and due dates are outlined for VAT, service tax and professional tax.
This document discusses tax deductible at source in India. It defines key terms like deductor and deductee. It outlines various types of payments that are subject to tax deduction at source, such as salaries, interest, dividends, lottery winnings, and payments to contractors. For each type of payment, it specifies who is responsible for deducting tax, the applicable tax rates, and any important additional details.
THIS IS MY FIRST PRESENTATION OF BLACK MONEY BILL. I WILL PUT MY SINCERE EFFORTS AND TRIED MY BEST TO MAKE THIS PRESENTATION USEFUL AND EASILY UNDERSTANDABLE.
THANKS
CA DEEPAK KAPOOR
DIRECT TAX CONSULTANT
This document provides an overview of different types of taxes in India including direct taxes like income tax, wealth tax, and property tax as well as indirect taxes like sales tax, excise duty, customs duty, and service tax. It discusses income from different sources like salary, house property, business/profession, and capital gains. It also covers topics like PAN requirements, tax planning and precautions for senior citizens and NRIs. Common tax planning tips are provided along with information about the Annual Information Report submitted by specified entities on high value transactions.
This document provides information about CTC (cost to company), tax planning, and other important points related to income tax. It discusses topics like exempt income, gift tax, deductions under sections 80C, 80D, salary income, capital gains tax, and more. The speaker intends to discuss CTC, simple tax options, and what to provide to a CA or tax consultant when filing returns.
TDS stands for Tax Deducted at Source. As per the Income Tax Act, any person or company making certain types of payments above a threshold amount is required to deduct tax from the payment. This deducted tax is then deposited with the government. Common types of payments where TDS applies include salaries, rent, contract payments, professional fees, interest payments, and others. It is the responsibility of the deductor to deduct TDS at the time of making the payment and deposit it with the government on time. The deductee can claim tax credit for the TDS amount deducted based on the TDS certificate provided by the deductor.
Tax Recknor 2015-16
The rates are applicable for
the Financial Year 2015-16 (AY 2016-17)
Applicable Income Tax Rates - Investments in Mutual Fund Schemes
Tax Implications on Dividend received by Unit holders
Dividend Distribution Tax (Payable by the Scheme)
Capital Gains Taxation
Long Term Capital Gains
Short Term Capital Gains
Tax deducted at Source (Applicable only to NRI investors)
CAF 6 Principles of Taxation (Tax Year 2018)Fawad Hassan
1. The document provides definitions and explanations of key tax-related terms under Pakistan's tax laws, including definitions of different types of taxpayers and entities like companies, associations of persons, and non-profit organizations.
2. It also explains concepts like normal tax years, special tax years, and transitional tax years and the process for changing between these different tax year types.
3. Examples are provided to illustrate indirect taxation concepts like how sales tax is collected from manufacturers at each stage of production and passed on until it is ultimately paid by the final consumer.
Similar to Section 56-of-the-income-tax-act-1961 (20)
Why to determine Residential Status?
Categorization of Residential Status.
Rules for determining the Residential Status :
Section 6(1) - Rule for determining the Residential Status of an Individual
Section 6(2) - Rule for determining the Residential Status of an HUF, Firm, AOP, BOI
Section 6(3) - Rule for determining the Residential Status of Company
Section 6(4) - Rule for determining the Residential Status of any other person
Glance on Incidence of Tax
Rationale behind the Act
Effective date of new Act
Applicability of the Act
Its size and nature
49 Sections
6 Rules
25 Regulations
Other related matters
In general, Export trade is regulated by the Directorate General of Foreign Trade (DGFT) functioning under the Ministry of Commerce and Industry (MCI) and the exporters are required to follow the policies and procedures announced by the DGFT, from time to time.
Though DGFT is the regulator for Foreign trade in India, RBI being the financial market regulator is responsible for management of foreign exchange, regulator for payment & settlement systems while continuously working towards the development of Indian financial markets.
RBI regulates the foreign exchange markets through Foreign Exchange Management Act, 1999 (herein after referred as FEMA Act)
In exercise of powers conferred by section 7(1)(a), 7(3) & 47(2) of FEMA Act, 1999, RBI has notified Foreign Exchange Management (Export of Goods and Services) Regulations, 2000 (also known as “Export Regulations, 2000”) by notification number 23/2000-RB dated 3rd May 2000 which came into force from 1st June, 2000.
Sa260 communication-with-those-charged-with-governanceAdmin SBS
Meaning
Scope of SA
Role of communication between TCWG and Auditor
Applicability
Auditor’s responsibilities
Matters to be communicated to TCWG
Objectives
Factors affecting forms of communication
Documentation
Section 148 of the Income Tax Act allows the tax authorities to issue a notice to assess or reassess income that has escaped assessment for a particular year. If the Assessing Officer has reason to believe that income has escaped assessment, they may assess such income by serving a notice on the assessee within 4-16 years from the end of the relevant assessment year, depending on the amount of income escaped. Upon receiving the notice, the assessee must file a return. If the assessment is completed, the assessee will be liable to pay tax on the escaped income along with interest and potential penalties.
This document discusses audit procedures for trade receivables. It defines trade receivables and explains their importance for business cash flow and credit relationships. It then covers trade receivable management processes, aging reports, internal audit checklists, external confirmation procedures, and audit procedures to ensure completeness, occurrence, existence, classification, and proper presentation and disclosure of trade receivables.
The document outlines the agenda for a two-day training event on financial auditing hosted by Palmetto IT Solutions from March 12-13, 2019. The event will cover various topics through a series of presentations and speakers, including an inaugural speech, sessions on compliance requirements under taxation laws, audit documentation, and soft skills. It will take place at Palmetto IT Solutions' office in Hyderabad, India. The document provides the detailed schedule listing the session topics and speakers for each time slot on both days of the event.
This document summarizes key aspects of Section 112A of the Indian Income Tax Act, 1961 related to taxation of long-term capital gains (LTCG) from listed equity shares and units. It defines LTCG and short-term capital gains, and explains that LTCG from listed shares is now taxed at 10% if securities transaction tax is paid. It also discusses the cost of acquisition and exemptions available, including the option to reinvest gains in a residential property.
This document provides an overview of bank guarantees. It defines what a bank guarantee is, noting that it is a written contract issued by a bank on behalf of a customer to take responsibility for payment if the customer does not pay. It discusses the key parties involved, types of bank guarantees, advantages and disadvantages, procedures for applying, and audit and disclosure requirements. The document aims to cover these topics at a high level for providing an overview of bank guarantees.
This document provides an overview of the key aspects of the Foreign Exchange Management Act (FEMA). It begins with a brief introduction to FEMA and outlines the rationale behind its enactment. It then discusses the various rules, regulations, directives and circulars issued under FEMA. Key definitions from the Act are also summarized. The document provides a schematic flow of the legal framework under FEMA and highlights some important sections of the Act. It concludes with a tabular representation of the various regulations issued by the Reserve Bank of India under FEMA. In summary, the document gives a high-level overview of the structure and content of FEMA and the legal and regulatory framework governing foreign exchange transactions in India.
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- Section 68 of the Income Tax Act allows the tax authority to treat any unexplained sum appearing in the books of an assessee as income if the assessee cannot provide a satisfactory explanation of its nature and source.
- Key questions around Section 68 include whether the sum is considered income, the tax rate applied, and whether losses can be set off against such income.
- Penny stocks are sometimes used to convert unaccounted money into accounted money using tax exemptions, but recent amendments aim to restrict this.
- The "peak credit theory" examines cash deposits and withdrawals to determine the maximum unexplained sum taxable under Section 68.
This document summarizes a presentation on shell companies in India. It begins by outlining reasons why regulators are cracking down on shell companies, such as their use for tax evasion, money laundering, and fraudulent schemes. It then defines shell companies as firms that exist on paper without real business operations or assets. Several methods used by shell companies are described, including creating layers of companies to hide owners and conducting fake transactions. The laws often violated by illegal shell companies in India are also listed. Government task forces have been established to investigate shell companies and several actions have been taken, like striking inactive companies from registration records.
Overview on-procedure-for-setting-up-of-sez-unitAdmin SBS
This document provides an overview of the procedure for setting up a unit in a Special Economic Zone (SEZ) in India. It discusses what an SEZ is, how SEZs evolved in India, the administrative setup for SEZs, defines an SEZ unit, compares SEZs and units, outlines who can set up a unit, and details the 8 step procedure for setting up a unit including application submission, approval process, and post-approval requirements. It also addresses the validity, extension, and cancellation of the Letter of Approval (LOA) granted to SEZ units.
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- Return of Income must be filed by certain persons and entities like companies, firms, individuals with income above exemption limit, residents with foreign assets/accounts, charitable trusts, political parties, and research/educational institutions.
- There are different ITR forms for individuals, HUFs, companies, and other persons to file ROI depending on income sources.
- The due date for filing ROI varies depending on the type of assessee but is typically July 31 or September 30. Late or belated returns can be filed within 1 year with penalties. Revised returns can also be filed to correct omissions or mistakes.
- The income tax department undertakes assessment in two stages - intimation issued after automated
Icds vi effects of changes in foreign exchange ratesAdmin SBS
Introduction of ICDS
Applicability of ICDS
Scope
Terms covered
Classification of Items
Recognition and Measurement
Initial Recognition
Subsequent Recognition
Exchange Differences
Differences between AS-11 and ICDS – VI
Topics to be covered:
Introduction of ICDS
Applicability of ICDS
Scope
Identification of tangible assets
Components of Actual cost
Special cases
Inclusions and Exclusions
Self-constructed tangible fixed asset
Non-monetary consideration
Improvements and Repairs
Joint ownership and Joint cost
Transitional provisions
Differences between ICDS V, AS-10 and Ind-AS-16
Introduction:
Section 11 deals with Income from property held for “Charitable or Religious purposes.”
The income shall be subjected to the provisions of
Section 60 - Transfer of Income where there is no transfer of assets
Section 61 - Revocable Transfer of Assets
Section 62 - Transfer irrevocable for a specified period
This document provides an overview of the statutory requirements for annual returns and audits under the Goods and Services Tax (GST) in India. It discusses key provisions regarding the requirement for audits based on annual turnover thresholds, the types of annual returns to be filed by different registered taxpayers, and the reconciliation statement that must be submitted along with audited annual accounts. The reconciliation statement aims to reconcile the turnover and tax amounts declared in the annual return with the audited financial statements. The document also clarifies differences in the turnover thresholds referenced in the GST law versus rules.
How to Invest in Cryptocurrency for Beginners: A Complete GuideDaniel
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Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
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Poonawalla Fincorp Limited, under the leadership of Managing Director Abhay Bhutada, has achieved industry-leading Gross Non-Performing Assets (GNPA) below 1% and Net Non-Performing Assets (NNPA) below 0.5% as of May 31, 2024. This success is attributed to a strategic vision focusing on prudent credit policies, robust risk management, and digital transformation. Bhutada's leadership has driven the company to exceed its targets ahead of schedule, emphasizing rigorous credit assessment, advanced risk management, and enhanced collection efficiency. By prioritizing customer-centric solutions, leveraging digital innovation, and maintaining strong financial performance, Poonawalla Fincorp sets new benchmarks in the industry. With a continued focus on asset quality, digital enhancement, and exploring growth opportunities, the company is well-positioned for sustained success in the future.
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
5 Compelling Reasons to Invest in Cryptocurrency NowDaniel
In recent years, cryptocurrencies have emerged as more than just a niche fascination; they have become a transformative force in global finance and technology. Initially propelled by the enigmatic Bitcoin, cryptocurrencies have evolved into a diverse ecosystem of digital assets with the potential to reshape how we perceive and interact with money.
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.
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Markets rallied in May, with all three major U.S. equity indices up for the month, said Sam Millette, director of fixed income, in his latest Market Risk Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Explore the world of investments with an in-depth comparison of the stock market and real estate. Understand their fundamentals, risks, returns, and diversification strategies to make informed financial decisions that align with your goals.
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
Chapter 25: Economic Growth Summary from Samuelson and Nordhaus
Section 56-of-the-income-tax-act-1961
1. Section - 56 of The Income Tax Act, 1961
[Income from Other Sources]
By
Ravi Raju D
1st Year Intern
M/s SBS and Company LLP
ravirajud@sbsandco.com
Ph No. +91 8465 846 777
SBS Hyderabad
23rd February, 2019
2. Introduction
Taxation of :
Gifts
Relative Definition under the Act
Winnings
Share premium in excess of FMV
Dividend
Interest on compensations
Hire charges
Line up
2 ravirajud@sbsandco.com www.sbsandco.com +91 8465846777
3. Income that is taxable under the Income Tax Act 1961 (“Act”) shall fall under the Head “Income
from Other Source” if it is not chargeable under any other heads of income.
Heads of Income covered under the act are as below;
Income from:
Salary (Sec. 15)
House property [HP] (Sec. 22)
Profits and gains of business of profession [PGBP] (Sec. 28)
Capital gains [CG] (Sec. 45)
Income from Other sources [OS] (Sec. 56)
From the above, it was clear that income not falling under first four heads as above shall fall in
Income from other sources. Provided that it should be taxable income.
Introduction
3 ravirajud@sbsandco.com www.sbsandco.com +91 8465846777
4. Gift refers to sum of money or value of property received without any consideration or
inadequate consideration. It is chargeable to tax in hands of recipient subjected to following
limits.S No Nature Taxability
1. Money (Aggregate) If aggregate value exceeds Rs. 50,000/- (F.Y)
2.
Movable Property
(Aggregate)
No consideration: If aggregate fair market value exceeds Rs. 50,000/- (F.Y)
Inadequate consideration: Where the difference of fair market value and
the consideration exceeds Rs. 50,000/- is subject to tax under OS
3.
Immovable property
(Individual)
No consideration: If stamp duty value of the property exceeds Rs. 50,000/-
Inadequate: The difference between Stamp duty value and the
consideration exceeds, Higher of the below:
• Rs. 50,000/-
• 5 percent of the consideration. W.e.f from 1-4-19 (Finance act 2018)
Determination of Value of Immovable Property:
No consideration: Stamp Duty Value as on date of registration (DOR) is to be considered
Inadequate consideration: If Date of agreement (DOA) and DOR are different and part (or) full consideration
is paid on (or) before DOA then value as on DOA be considered. Otherwise DOR. Payment should be made by
Account Payee cheque or account payee draft or any electronic mode.
Gift (1/4)
4
5. Case-1 Mr. A transfer a Immovable property for 1 Crore consideration on 2nd June 2019. The stamp
duty value [“SDV”] of property as on the day is 1.04 Crores. Is it taxable?
Ans: No.
As per provision 50,000 (or) 5% of consideration, Whichever is higher.
Here 5 percent of the consideration is Rs. 5 lakhs, which is Higher than 50,000.
So, 5% of consideration is to be considered.
Difference between SDV and Consideration is 4 lakhs.
Since the difference does not exceed 5% of the consideration it is not Taxable.
Case-2 Mr. A transfer a Immovable property for 1 Crore consideration on 2nd June 2019. The stamp
duty value of property as on the day is 1.06 Crores. Is it taxable?
Ans: Yes.
As per provision 50,000 (or) 5% of consideration, Whichever is higher.
So, 5% of consideration is to be considered.
Difference between SDV and Consideration is 6 lakhs.
Since the difference exceeded 5% of the consideration whole difference amount is Taxable
Hence, Rs. 6 lakhs is taxable.
Gift – Example (2/4)
5 ravirajud@sbsandco.com www.sbsandco.com +91 8465846777
6. Property definition:
A capital asset of the assessee:
Immovable property being land and buildings
Shares and securities, Jewellery, Archaeological collections, Drawings, Paintings, Sculptures, Any art
of work, Bullion.
Relatives definition:
In case of individual:
Spouse of the individual
Brother or sister of the individual
Brother or sister of the spouse of the individual
Brother or sister of either of the parents of the individual
Any lineal ascendant or descendant of the individual
Any lineal ascendant or descendant of the spouse of the individual
Spouse of the person referred to in above points
In case of HUF: All the Members of HUF
Gift and Relative definition (3/4)
6 ravirajud@sbsandco.com www.sbsandco.com +91 8465846777
7. Exceptions to taxability of Gift under the Act: If amount is received from
Relatives
On occasion of marriage of Individual
Local authority
Under any will document
In contemplation to Death of Donor or Payer
Trust or institution Registered under 12A or 12AA of the Act
From any fund or trust or institution or any university or other educational institution or any
hospital or other medical institution referred to Section 10.
From an individual by a trust created or established solely for the benefit of relative of the
individual
By way of transaction not regarded as transfer under section 47 of the Act
By any fund or trust or institution or any university or other educational institution or any hospital
or other medical institution referred to Section 10
Gift (4/4)
7 ravirajud@sbsandco.com www.sbsandco.com +91 8465846777
8. Income earned by way of:
Winnings from
Lotteries
Cross word puzzles
Races including horse races
Card games
Gambling and betting
Entertainment shows
All the above incomes are chargeable to tax at flat rate of 30% and Cess @ 4%
Winnings (1/2)
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9. Deductions that can be claimed under sec 80 of the Act cannot be claimed from Winnings
Basic exemption limit is not applicable
Example:
Mr. A has won the prize money of Rs 3 lakhs from a game show and he has an interest income of
Rs 5 lakhs p.a. Then the tax liability would be calculated as per following:
Tax on Rs 3 lakhs @ 30% + 4% H and Ed cess = 93,600/-
Tax on Rs 5 lakhs as per income tax slab rates after claiming the relevant deductions =13000/-
Total Tax = 1,06,600.
If Prize money received in kind:
Tax is paid on the fair market value of the Prize received in kind.
Example:
Mr. X won an Alto car in a contest whose market value is Rs 4 lakhs, then tax @ 30% + 4%cess is to
be paid on 4 lakhs, which is equal to 1,24,800.
Winnings (2/2)
9
10. Share premium in excess of FMV (1/4)
Taxable
amount=
Consideration
- FMV
Company in
which public are
not substantially
interested
Subscriber of
Shares is a
resident
Consideration
received > Face
Value of shares
10
11. Exemption:
Where consideration is received by venture capital company or Venture capital fund
By the company as notified by the Central Government
Determination of fair market value:
Fair Market Value of shares must be higher of the following:
Determined In accordance with the prescribed methods (or)
Substantiated by a company to the satisfaction of the assessing officer, based on value of its assets
on the date of issue of the shares.
Value of assets include the value of assets include the value of intangible assets such as goodwill, know-
how, patents, copyrights, trademarks, licenses, franchises or any other business or commercial rights of
similar nature.
Share premium in excess of FMV (2/4)
11 ravirajud@sbsandco.com www.sbsandco.com +91 8465846777
12. Example:
Share premium in excess of FMV (4/4)
Company No. of Shares Face Value of
share
F.M.V of Shares Issue Price of
Shares
Taxability
A (P) Limited 10000 100 120 130 Yes
B (P) Limited 10000 100 120 110 No
C (P) Limited 10000 100 90 98 No
D (P) Limited 10000 100 90 110 Yes
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13. 13
Two methods are prescribed for calculating Fair Market Value.
1. Fair Market Value =
A = Book value of assets – Net taxes paid during year under Act + unamortized amount of
deferred expenditure which does not represent the value of any asset;
L = Book value of liabilities – Paid up equity share capital – Amount set apart for payment
of dividend – Reserves and Surplus - Provisions made, if any – contingent liabilities
PV = Paid up value of equity shares
PE = Total amount of paid up equity share capital as shown in the balance sheet
2. The fair market value of the unquoted equity shares determined by a merchant banker as per
the Discounted Free Cash Flow method.
Calculation of FMV
( A- L) *(PV)
PE
14. Taxability of Dividend:
Dividend from foreign company
Deemed Dividend
Dividend U/s. 115BBDA (Taxability of certain dividends from domestic company)
Dividend from foreign company:
All the dividends received from foreign company are taxable under Sec. 56(2)(a)
Foreign company is a company other than Domestic company.
Domestic company:
“Domestic company” means an Indian company, or any other company which, in respect of its
income liable to tax under this Act, has made the prescribed arrangements for the declaration and
payment, within India, of the dividends (including dividends on preference shares) payable out of
such income.
Dividends (1/5)
14 ravirajud@sbsandco.com www.sbsandco.com +91 8465846777
15. Dividend U/s. 115BBDA:
Dividends received from the domestic company in excess of Rs.10 lakhs is taxable @ 10% on
amount over and above Rs.10 lakhs.
Set-off of losses is not applicable
Income is taxable at flat rate of 10%
Example: If Mr A’s total income is Rs. 20 lakh, which includes dividend income of Rs. 15 lakh during
the financial year 2017-18, then he is liable to pay additional tax at 10 per cent on Rs. 5 lakh and
under normal slab rated to the extent of Rs. 5 lakh.
Dividends (2/5)
15 ravirajud@sbsandco.com www.sbsandco.com +91 8465846777
16. Deemed Dividend [2(22)]:
a) Distribution of assets
b) Distribution of debentures, deposits certificates to shareholders and bonus to Preference
share holders
c) Distribution on liquidation to the extent of accumulated profit
d) Distribution on reduction of capital to its shareholders to the extent of accumulated profit
e) A company in which public are not substantially interested extends loans or an Advance to
following persons out of accumulated profits
Shareholders who has more than 10% of voting power or
To any concern in which such shareholder is substantially interested or
To individual benefit of such share holder or
On behalf of such shareholder
Dividends (3/5)
16 ravirajud@sbsandco.com www.sbsandco.com +91 8465846777
17. Exceptions:
Where loans are extended in Ordinary course of business
Where such loan is adjusted against Dividend to be declared and distributed
Taxability:
Taxable at the rate of 30% in case of Sec. 2(22)(e).
Taxable at the rate of 15% in case of Sec. 2(22)(a) to Sec. 2(22)(d).
Example:
ABC Pvt Ltd. is a company, in which public are not substantially interested. Hari an individual being
one of the shareholder having 15% voting power. The company has accumulated profits of Rs. 25
lakhs as on 31 March 2018. The company granted a loan of Rs. 100,000 to Hari, by way of an
account payee cheque. He repaid the amount on 5 May 2018.
Ans: In this case, even if the loan has been repaid by Hari, the loan amount granted to the extent
of accumulated profits are treated as deemed dividend.
Dividends (4/5)
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18. Accumulated profits:
All the profits of the company up to the date of distribution or payment of Dividends
In case of liquidation:
Accumulated profits include all profits up to the date of liquidation.
When liquidation is consequent to compulsory acquisition of government or any corporation
owned by government, then accumulated profits does not include any profits prior to 3 years
preceding the previous year in which such acquisition takes place.
Dividends (5/5)
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19. Interest on compensation:
Interest on compensation and enhanced compensation received on compulsory acquisition by
government is chargeable to tax under the head Income from other source.
50% deduction can be claimed under Sec.57
Advance forfeited:
Any sum received by way of advance or any other course of negotiations for transfer of capital
asset and
Such amount is forfeited and
Such negotiation did not result to transfer of such asset
These are chargeable to tax under income other source.
Interest on compensation & Advances forfeited
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20. Income from machinery, plant or furniture belonging to the assessee and let on hire, if the
income is not chargeable to income-tax under the head "Profits and gains of business or
profession.
If an assessee lets on hire plant or furniture, machinery and building and letting of that building
is inseparable from such letting of plant or furniture, machinery then such income is taxable
under IFOS.
If there is letting of Building as well amenities but without any letting of Assets, then this
section is not applicable & the whole of such Income earned will be taxed under Income from
House Property.
Example: Theatre Building and its Furniture is taxable under the head Income from Other Sources,
if not charged as Business Income
Taxability on hire charges
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ravirajud@sbsandco.com
+91 8465 846 777
SBS Hyderabad
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