Our Tax team has summarised the important compliance related provisions of Income Tax Act 1961 and prepared the compliance hand book for easy reference.
Personal financial management involves managing an individual's or family's monetary resources over time. It includes income from employment, savings and investments, expenses, taxes, and planning for life events. Effective tax planning can help reduce tax liability by taking advantage of exemptions, deductions, rebates and allowances within the law. It involves organizing one's finances to structure income and expenses to minimize taxes owed. Proper tax planning ensures taxes are paid on time while maximizing wealth accumulation for life goals and financial security.
Tax planning is the analysis of a financial situation or plan from a tax perspective. The purpose of tax planning is to ensure tax efficiency, with the elements of the financial plan working together in the most tax- efficient manner possible. Tax planning is an important part of a financial plan, as reducing tax liability and maximizing eligibility to contribute to retirement plans are both crucial for success.
This document discusses various concepts related to taxation including tax planning, tax avoidance, tax evasion, and tax management. It provides definitions and examples of each concept. Tax planning is legal and involves arranging finances to maximize tax benefits. Tax avoidance finds loopholes in laws but remains legal. Tax evasion is illegal and involves falsifying records or accounts. The document also discusses factors to consider for tax planning like residential status and provides examples of tax planning decisions around capital structure, leasing vs buying assets, and employee compensation.
Tax Planning Concept and tax planning with specific managerial decisionsSundar B N
In this ppt most of the tax planning concepts are covered. Tax planning, Tax evasion, tax avoidance, tax planning with inter corporate dividend and Bonus share. Tax Planning with specific managerial decisions are covered.
Subscribe to Vision Academy for Video assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
Foreign Direct Investments (FDI) refers to a company from one country making a physical investment into building a factory in another country. For an investment to qualify as FDI, the parent company needs to own at least 10% of voting shares or power of the foreign affiliate. Types of FDI include joint ventures, technical collaborations, and setting up branches or project offices. Economic factors that increase FDI inflows include economic growth, deregulation, liberal investment rules, and operational flexibility in the host country.
Corporate tax is collected from companies incorporated in India and is levied on their global income if the company's control and management is in India. Corporate tax planning aims to minimize current and future tax liabilities through comparing opportunities to defer or reduce taxes, as corporate tax is a significant overhead cost. The minimum alternate tax of 18.5% of book profits is levied if it exceeds the tax payable under normal provisions. Calculation of book profits involves adding certain expenses back and deducting certain incomes for tax purposes.
The document discusses objectives of tax planning such as reduction of tax liability and making informed financial decisions. It also discusses factors to consider in tax planning such as residential status, heads of income, applicable tax laws, and substance over form. Capital gains from the sale of a plot of land are then computed. Dividend policy and factors affecting decisions are also summarized, including retaining earnings to finance growth versus paying dividends to maximize shareholder wealth.
Personal financial management involves managing an individual's or family's monetary resources over time. It includes income from employment, savings and investments, expenses, taxes, and planning for life events. Effective tax planning can help reduce tax liability by taking advantage of exemptions, deductions, rebates and allowances within the law. It involves organizing one's finances to structure income and expenses to minimize taxes owed. Proper tax planning ensures taxes are paid on time while maximizing wealth accumulation for life goals and financial security.
Tax planning is the analysis of a financial situation or plan from a tax perspective. The purpose of tax planning is to ensure tax efficiency, with the elements of the financial plan working together in the most tax- efficient manner possible. Tax planning is an important part of a financial plan, as reducing tax liability and maximizing eligibility to contribute to retirement plans are both crucial for success.
This document discusses various concepts related to taxation including tax planning, tax avoidance, tax evasion, and tax management. It provides definitions and examples of each concept. Tax planning is legal and involves arranging finances to maximize tax benefits. Tax avoidance finds loopholes in laws but remains legal. Tax evasion is illegal and involves falsifying records or accounts. The document also discusses factors to consider for tax planning like residential status and provides examples of tax planning decisions around capital structure, leasing vs buying assets, and employee compensation.
Tax Planning Concept and tax planning with specific managerial decisionsSundar B N
In this ppt most of the tax planning concepts are covered. Tax planning, Tax evasion, tax avoidance, tax planning with inter corporate dividend and Bonus share. Tax Planning with specific managerial decisions are covered.
Subscribe to Vision Academy for Video assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
Foreign Direct Investments (FDI) refers to a company from one country making a physical investment into building a factory in another country. For an investment to qualify as FDI, the parent company needs to own at least 10% of voting shares or power of the foreign affiliate. Types of FDI include joint ventures, technical collaborations, and setting up branches or project offices. Economic factors that increase FDI inflows include economic growth, deregulation, liberal investment rules, and operational flexibility in the host country.
Corporate tax is collected from companies incorporated in India and is levied on their global income if the company's control and management is in India. Corporate tax planning aims to minimize current and future tax liabilities through comparing opportunities to defer or reduce taxes, as corporate tax is a significant overhead cost. The minimum alternate tax of 18.5% of book profits is levied if it exceeds the tax payable under normal provisions. Calculation of book profits involves adding certain expenses back and deducting certain incomes for tax purposes.
The document discusses objectives of tax planning such as reduction of tax liability and making informed financial decisions. It also discusses factors to consider in tax planning such as residential status, heads of income, applicable tax laws, and substance over form. Capital gains from the sale of a plot of land are then computed. Dividend policy and factors affecting decisions are also summarized, including retaining earnings to finance growth versus paying dividends to maximize shareholder wealth.
Duties And Responsibilities of of TDS officer. while calculating TDS Sundar B N
The document discusses the duties and responsibilities of a Tax Deducted at Source (TDS) officer. The key duties of a TDS officer include obtaining a Tax Deduction and Collection Account Number (TAN) and Permanent Account Numbers (PAN), deducting tax at the correct rate, depositing deducted taxes within the specified timeline, using the correct form to file TDS returns, and filing statements of tax deduction by the prescribed deadlines. TDS provisions are an integral part of India's income tax compliance and help the government collect taxes regularly while simplifying tax administration.
Tax planning involves legally arranging one's financial affairs to minimize tax liability and takes advantage of deductions and exemptions allowed by law. It is different from tax avoidance and tax evasion which are not legitimate ways to reduce taxes. Tax planning works within the legal framework while tax avoidance uses loopholes and may be illegitimate. Tax evasion involves illegally underreporting income or overreporting expenses. The objectives of tax planning are to reduce liability, minimize litigation and support economic growth. It is important for taxpayers to understand tax laws and plan accordingly to maximize benefits.
The document provides information about income tax rates and deductions in India. Some key points:
- Only 2% of the Indian population files income tax returns due to fear of disclosure or complexity.
- Tax rates range from 0-30% depending on income level and citizen status (senior, very senior).
- Various deductions are available under Section 80C (up to Rs. 150,000) and Chapter VI-A for investments, housing loans, education loans, medical expenses, donations, etc.
- Planning tools like investments in spouse/parents name, housing loans, capital gains exemptions can help reduce tax liability. Proper documentation is important for claiming deductions.
This document discusses various aspects of tax planning and management related to special economic zones (SEZs) in India. It outlines the objectives of tax planning as reduction of tax liability, minimizing litigation, productive investment and healthy economic growth. It describes different methods of tax planning including short and long range planning as well as permissive and purposive planning. The document also discusses provisions under the Income Tax Act of 1961 related to deductions and exemptions for entrepreneurs located in SEZs, including 100% deductions for profits for the first 5 years and 50% deductions for the next 5 years.
The document defines a company and outlines different types of companies under Indian law such as domestic, foreign, and industrial companies. It also discusses the meaning of business or profession and outlines expenses that are allowable deductions and amounts that are expressly disallowed when computing profits from business or profession. The document further explains concepts related to set off and carry forward of business losses under the Income Tax Act.
This document summarizes Canada's tax system and provides strategies for tax planning. It discusses key concepts like marginal tax rates, deductions, credits, and preparing a tax return. It also outlines tax-deferred plans, tax-friendly investments, and eligible deductions. Recent tax changes and how an advisor can help with tax planning are briefly mentioned.
Corporate tax planning aims to minimize a company's tax liability by taking advantage of tax exemptions, deductions, rebates, and reliefs allowed by law. It is legal and not considered tax evasion to reduce taxes as much as possible by such means. Some key aspects of corporate tax planning include maximizing post-tax returns, keeping proper records, deducting tax at source, paying advance taxes on time, and complying with all rules. Tax rates vary for different types of companies and industries in Bangladesh. Capital gains tax is also assessed on the profits from sale of capital assets above the purchase price.
The document discusses whether a business that is continuously suffering losses should be shut down or continued. It notes that losses can occur due to reduced demand, financial problems, changes in technology, high taxes, or mismanagement. When deciding whether to shut down or continue, tax implications should be considered. Losses can be carried forward if the business is discontinued, and unabsorbed depreciation can be set off against any income. Exceptions exist for cases involving business relocation, department closures, reconstruction after damage, succession, family partition, and amalgamation/demerger. The document provides an illustration comparing the tax implications of continuing versus discontinuing a loss-making business unit. It recommends discontinuing the loss-making unit
The document discusses various strategies for family tax planning in India, including establishing independent income sources for family members through gifts to take advantage of lower tax rates and exemptions. It recommends setting up separate income tax files for children, both major and minor, as well as for daughters-in-law by having them receive gifts from relatives other than their spouse or father-in-law. Having independent income sources and tax files for all family members allows splitting of income and maximizing deductions to reduce the overall tax burden.
This document discusses tax planning and management by Firstup Consultants. It provides information on:
- The differences between tax planning, which aims to minimize future tax liability, and tax management, which focuses on compliance.
- The distinctions between tax avoidance, which uses legal methods to reduce taxes, and tax evasion, which involves illegal activities to avoid paying taxes.
- Examples of tax planning for individuals, including investments in agriculture, HUFs, gifts, income of minor children and spouses.
- The importance of having thorough knowledge of tax laws and not relying only on avoidance or past court decisions when planning taxes.
The document provides an overview of corporate taxes. It defines a corporation as a separate legal entity that can be incorporated through legislation or registration. Corporations have legal personhood and can be responsible for crimes. They provide benefits like liability protection and raising funds through stock sales. The document then discusses taxes in general and how they are imposed by governments. It outlines different types of taxes including corporate taxes. Corporate tax rates vary globally from around 15-35% in different countries. The document provides details on India's corporate tax rates and regulations. It concludes with discussing tax planning strategies that corporations can use like accounting methods, inventory valuation, equipment purchases and benefits plans.
This document discusses various topics related to tax planning including tax evasion, tax avoidance, tax planning, tax management, the need for tax planning, and limitations of tax planning. It defines key terms such as tax evasion as illegally avoiding tax liability, tax avoidance as legally minimizing tax liability, and tax planning as arranging one's affairs to reduce tax liability. The document notes the importance of tax planning to save tax, defer liability, and gain incidental benefits, but also limitations such as complexity that may require expert advice or lead to litigation.
This document discusses tax planning, avoidance, evasion and management. Tax planning is arranging one's affairs to minimize tax liability legally by taking deductions. Tax management refers to complying with tax laws by maintaining records and filing returns. Tax avoidance legally reduces taxes by claiming exemptions, while tax evasion illegally avoids taxes by omitting information or submitting false statements, and can result in penalties.
This document discusses various tax planning strategies under Indian law. It defines tax planning as legally arranging one's financial affairs to minimize tax liability. Tax planning is legitimate if done within the law, unlike tax evasion which is illegal. The document outlines three common tax practices - planning, avoidance, and evasion. While avoidance is legal but aims to reduce taxes, evasion is illegal. It also discusses the importance of tax planning for expenses, investment, and economic stability. Areas of planning include strategies for individuals, setting up new businesses, and existing companies.
This document provides an overview of tax planning, tax avoidance, tax evasion, and tax management in India. It defines each concept and outlines the key differences between them. Tax planning is legal and involves arranging one's financial affairs to minimize tax liability. Tax avoidance uses loopholes in tax laws to reduce taxes without breaking the law. Tax evasion is illegal and involves dishonest means like concealing income or falsifying accounts to avoid paying taxes owed. The document also discusses objectives of tax planning like reducing liability and promoting economic growth. It provides examples of factors and decisions involved in effective tax planning for individuals and businesses.
TAX PLANNING WITH REFERENCE TO FINANCIAL MANAGEMENTArup Bordoloi
This document discusses tax planning relating to financial management decisions. It covers how capital structure, means of financing, and dividend policy can impact tax liability. Optimal capital structure and use of debt versus equity can lower tax costs. Dividends are taxable but distributing bonuses shares to equity holders does not incur tax liability and increases the shareholder's cost basis. The document provides details on what qualifies as a dividend and how expenses related to dividend income can be deducted.
The document provides information about taxation systems in several countries in Southern Asia, including Australia, India, Myanmar, Philippines, and Thailand. It discusses how each country collects taxes, common tax types like income tax, VAT, and property tax. It also outlines some key aspects of the tax history and rates in each country. The top priorities for how tax revenue is spent include education, infrastructure development, defense, internal affairs, and agriculture.
The document discusses tax planning in India. Tax planning aims to minimize tax liability legally through deductions, exemptions, and allowances. It differs from tax avoidance and evasion. Objectives of tax planning include reducing overall tax liability, economic stability, and growth. Types of tax planning include purposive planning with an objective in mind and permissive planning within the legal framework. The document also outlines types of taxpayers, heads of income, common tax deductions, and popular tax saving investments in India.
This document provides an overview of key Indian tax rates, rules, and regulations for the assessment years 2021-22 and 2022-23. It summarizes income tax slabs and rates for individuals, HUF, firms, companies and cooperative societies. It also outlines key tax deducted at source provisions around applicable thresholds and rates for common income types like salary, interest, dividends, rent, professional fees, and payments to contractors.
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.
Duties And Responsibilities of of TDS officer. while calculating TDS Sundar B N
The document discusses the duties and responsibilities of a Tax Deducted at Source (TDS) officer. The key duties of a TDS officer include obtaining a Tax Deduction and Collection Account Number (TAN) and Permanent Account Numbers (PAN), deducting tax at the correct rate, depositing deducted taxes within the specified timeline, using the correct form to file TDS returns, and filing statements of tax deduction by the prescribed deadlines. TDS provisions are an integral part of India's income tax compliance and help the government collect taxes regularly while simplifying tax administration.
Tax planning involves legally arranging one's financial affairs to minimize tax liability and takes advantage of deductions and exemptions allowed by law. It is different from tax avoidance and tax evasion which are not legitimate ways to reduce taxes. Tax planning works within the legal framework while tax avoidance uses loopholes and may be illegitimate. Tax evasion involves illegally underreporting income or overreporting expenses. The objectives of tax planning are to reduce liability, minimize litigation and support economic growth. It is important for taxpayers to understand tax laws and plan accordingly to maximize benefits.
The document provides information about income tax rates and deductions in India. Some key points:
- Only 2% of the Indian population files income tax returns due to fear of disclosure or complexity.
- Tax rates range from 0-30% depending on income level and citizen status (senior, very senior).
- Various deductions are available under Section 80C (up to Rs. 150,000) and Chapter VI-A for investments, housing loans, education loans, medical expenses, donations, etc.
- Planning tools like investments in spouse/parents name, housing loans, capital gains exemptions can help reduce tax liability. Proper documentation is important for claiming deductions.
This document discusses various aspects of tax planning and management related to special economic zones (SEZs) in India. It outlines the objectives of tax planning as reduction of tax liability, minimizing litigation, productive investment and healthy economic growth. It describes different methods of tax planning including short and long range planning as well as permissive and purposive planning. The document also discusses provisions under the Income Tax Act of 1961 related to deductions and exemptions for entrepreneurs located in SEZs, including 100% deductions for profits for the first 5 years and 50% deductions for the next 5 years.
The document defines a company and outlines different types of companies under Indian law such as domestic, foreign, and industrial companies. It also discusses the meaning of business or profession and outlines expenses that are allowable deductions and amounts that are expressly disallowed when computing profits from business or profession. The document further explains concepts related to set off and carry forward of business losses under the Income Tax Act.
This document summarizes Canada's tax system and provides strategies for tax planning. It discusses key concepts like marginal tax rates, deductions, credits, and preparing a tax return. It also outlines tax-deferred plans, tax-friendly investments, and eligible deductions. Recent tax changes and how an advisor can help with tax planning are briefly mentioned.
Corporate tax planning aims to minimize a company's tax liability by taking advantage of tax exemptions, deductions, rebates, and reliefs allowed by law. It is legal and not considered tax evasion to reduce taxes as much as possible by such means. Some key aspects of corporate tax planning include maximizing post-tax returns, keeping proper records, deducting tax at source, paying advance taxes on time, and complying with all rules. Tax rates vary for different types of companies and industries in Bangladesh. Capital gains tax is also assessed on the profits from sale of capital assets above the purchase price.
The document discusses whether a business that is continuously suffering losses should be shut down or continued. It notes that losses can occur due to reduced demand, financial problems, changes in technology, high taxes, or mismanagement. When deciding whether to shut down or continue, tax implications should be considered. Losses can be carried forward if the business is discontinued, and unabsorbed depreciation can be set off against any income. Exceptions exist for cases involving business relocation, department closures, reconstruction after damage, succession, family partition, and amalgamation/demerger. The document provides an illustration comparing the tax implications of continuing versus discontinuing a loss-making business unit. It recommends discontinuing the loss-making unit
The document discusses various strategies for family tax planning in India, including establishing independent income sources for family members through gifts to take advantage of lower tax rates and exemptions. It recommends setting up separate income tax files for children, both major and minor, as well as for daughters-in-law by having them receive gifts from relatives other than their spouse or father-in-law. Having independent income sources and tax files for all family members allows splitting of income and maximizing deductions to reduce the overall tax burden.
This document discusses tax planning and management by Firstup Consultants. It provides information on:
- The differences between tax planning, which aims to minimize future tax liability, and tax management, which focuses on compliance.
- The distinctions between tax avoidance, which uses legal methods to reduce taxes, and tax evasion, which involves illegal activities to avoid paying taxes.
- Examples of tax planning for individuals, including investments in agriculture, HUFs, gifts, income of minor children and spouses.
- The importance of having thorough knowledge of tax laws and not relying only on avoidance or past court decisions when planning taxes.
The document provides an overview of corporate taxes. It defines a corporation as a separate legal entity that can be incorporated through legislation or registration. Corporations have legal personhood and can be responsible for crimes. They provide benefits like liability protection and raising funds through stock sales. The document then discusses taxes in general and how they are imposed by governments. It outlines different types of taxes including corporate taxes. Corporate tax rates vary globally from around 15-35% in different countries. The document provides details on India's corporate tax rates and regulations. It concludes with discussing tax planning strategies that corporations can use like accounting methods, inventory valuation, equipment purchases and benefits plans.
This document discusses various topics related to tax planning including tax evasion, tax avoidance, tax planning, tax management, the need for tax planning, and limitations of tax planning. It defines key terms such as tax evasion as illegally avoiding tax liability, tax avoidance as legally minimizing tax liability, and tax planning as arranging one's affairs to reduce tax liability. The document notes the importance of tax planning to save tax, defer liability, and gain incidental benefits, but also limitations such as complexity that may require expert advice or lead to litigation.
This document discusses tax planning, avoidance, evasion and management. Tax planning is arranging one's affairs to minimize tax liability legally by taking deductions. Tax management refers to complying with tax laws by maintaining records and filing returns. Tax avoidance legally reduces taxes by claiming exemptions, while tax evasion illegally avoids taxes by omitting information or submitting false statements, and can result in penalties.
This document discusses various tax planning strategies under Indian law. It defines tax planning as legally arranging one's financial affairs to minimize tax liability. Tax planning is legitimate if done within the law, unlike tax evasion which is illegal. The document outlines three common tax practices - planning, avoidance, and evasion. While avoidance is legal but aims to reduce taxes, evasion is illegal. It also discusses the importance of tax planning for expenses, investment, and economic stability. Areas of planning include strategies for individuals, setting up new businesses, and existing companies.
This document provides an overview of tax planning, tax avoidance, tax evasion, and tax management in India. It defines each concept and outlines the key differences between them. Tax planning is legal and involves arranging one's financial affairs to minimize tax liability. Tax avoidance uses loopholes in tax laws to reduce taxes without breaking the law. Tax evasion is illegal and involves dishonest means like concealing income or falsifying accounts to avoid paying taxes owed. The document also discusses objectives of tax planning like reducing liability and promoting economic growth. It provides examples of factors and decisions involved in effective tax planning for individuals and businesses.
TAX PLANNING WITH REFERENCE TO FINANCIAL MANAGEMENTArup Bordoloi
This document discusses tax planning relating to financial management decisions. It covers how capital structure, means of financing, and dividend policy can impact tax liability. Optimal capital structure and use of debt versus equity can lower tax costs. Dividends are taxable but distributing bonuses shares to equity holders does not incur tax liability and increases the shareholder's cost basis. The document provides details on what qualifies as a dividend and how expenses related to dividend income can be deducted.
The document provides information about taxation systems in several countries in Southern Asia, including Australia, India, Myanmar, Philippines, and Thailand. It discusses how each country collects taxes, common tax types like income tax, VAT, and property tax. It also outlines some key aspects of the tax history and rates in each country. The top priorities for how tax revenue is spent include education, infrastructure development, defense, internal affairs, and agriculture.
The document discusses tax planning in India. Tax planning aims to minimize tax liability legally through deductions, exemptions, and allowances. It differs from tax avoidance and evasion. Objectives of tax planning include reducing overall tax liability, economic stability, and growth. Types of tax planning include purposive planning with an objective in mind and permissive planning within the legal framework. The document also outlines types of taxpayers, heads of income, common tax deductions, and popular tax saving investments in India.
This document provides an overview of key Indian tax rates, rules, and regulations for the assessment years 2021-22 and 2022-23. It summarizes income tax slabs and rates for individuals, HUF, firms, companies and cooperative societies. It also outlines key tax deducted at source provisions around applicable thresholds and rates for common income types like salary, interest, dividends, rent, professional fees, and payments to contractors.
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.
This document provides information on TDS requirements for foreign remittances under Indian law. It notes that TDS must be deducted on payments to non-residents according to section 195 of the Income Tax Act. Form 15CA must be filed for remittances over Rs. 50,000 or Rs. 2.5 lakhs annually along with Form 15CB from a chartered accountant. The proper procedure for deducting and depositing TDS is outlined. Implications of sections 195, 206AA, and tax treaties are discussed. The importance of obtaining a tax residency certificate for claiming treaty benefits is also explained.
Budget 2016 was recently announced by the Finance Minister of India. This Presentation unravels the Transfer Pricing and International Tax proposals of the Budget 2016.
The document provides an overview and analysis of key provisions in the Indian Union Budget 2020 relating to direct and indirect taxation. Some key highlights include:
- Introduction of a new optional tax regime with lower tax slabs but without deductions for individuals and HUFs.
- Reduction of corporate tax rates for new domestic manufacturing companies.
- Tax incentives for affordable housing, startups, and investments in electricity generation plants.
- Measures to simplify tax administration such as expansion of faceless assessment proceedings and introduction of a taxpayer's charter.
- A dispute resolution scheme called "Vivaad Se Vishwas" to reduce pending direct tax litigation.
- Changes to tax rates for employer contributions to
The document summarizes direct tax proposals in the Indian Budget for 2016-2017, including:
- Threshold income limits and tax rates will largely remain the same, with some small increases to rebates and limits. Surcharge will be increased for higher income levels.
- New tax incentives are proposed for start-ups. Several deductions will be phased out over time, with lower percentages allowed until full removal.
- Changes also include increased TDS thresholds, taxation of dividends over Rs. 10 lakhs, and introduction of presumptive taxation schemes for professionals and businesses with income under Rs. 50-100 lakhs.
This document provides an overview of Tax Deduction at Source (TDS) in India. TDS refers to tax deducted at the source of income by the payer from amounts paid to the recipient. The key points covered are:
- TDS is an advance tax paid to the government and the tax deducted has to be deposited within a specified time.
- Employers, government bodies, companies, banks, and other specified entities are responsible for deducting TDS based on the type of payment and thresholds.
- Various sections of the Income Tax Act specify the rates of TDS to be applied on different types of income such as salaries, interest, rent, professional fees, lottery winnings
The document summarizes key aspects of the Direct Taxes Code Bill, 2009 introduced in India, including proposed changes to tax rates, definitions, and tax deduction at source rules. Some notable changes include substantial increases to individual income tax slabs, reduction of corporate tax rate to 25%, expansion of income deemed to accrue in India, removal of the concept of "resident but not ordinarily resident", and modifications to tax deduction at source rates and exemptions across various categories including interest, rent, commission, and payments to contractors.
The document discusses key amendments made by the Finance Bill 2018 under the Income Tax Act.
It discusses changes to income tax rates for individuals, companies, and other assessees for FY 2018-19 compared to FY 2017-18. Notable changes include reduced tax rates for certain domestic companies and increased dividend distribution tax rate for deemed dividends.
It also summarizes some other amendments, including applying dividend distribution tax to deemed dividends under section 2(22)(e), plugging a loophole related to reduction of capital post amalgamation, and a new 100% tax deduction for income of farm producer companies. Key economic trends like exports, imports, trade deficit, gold and forex reserves are also
This presentation provides an overview of the Indian tax system, including direct and indirect taxes. Direct taxes include income tax, which is levied on individuals, HUFs, firms, and companies according to different tax slabs. Agricultural income is exempt from tax. Indirect taxes include VAT, service tax, and duties. The presentation discusses tax rates, deductions, advance tax payment, TDS, tax returns, and recent budget proposals including increasing the income tax rebate threshold.
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.
The document provides an analysis of key changes in the Union Budget 2013 related to direct taxes, indirect taxes, and service tax. Regarding direct taxes, key changes include deferring GAAR implementation, revising withholding tax rates on royalties and FTS, and imposing surcharges on various incomes above certain thresholds. For indirect taxes, notable changes involve hiking and lowering customs duty rates on certain products. Under service tax, changes include modifying the negative and exemption lists as well as reducing abatement rates for certain services.
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 summarizes key highlights from India's 2010-2011 budget related to indirect taxes, direct taxes, deductions and exemptions, and tax rates. Some key points include:
- Service tax rate remained unchanged at 10% but new services were taxed, while some services were excluded.
- Income tax slabs and exemption limits for individuals remained largely unchanged. Surcharge on personal income tax was removed.
- Corporate tax rate remained at 30% for domestic companies. MAT was increased to 18% and surcharge reduced to 7.5% for companies with income over Rs. 1 Crore.
- Deductions were introduced or increased for infrastructure bonds, health insurance, and research and development expenditures.
This document outlines the tax deduction at source (TDS) compliance process in India. It applies to all corporate and government deductors who are required to get their accounts audited. The key steps are: 1) apply for and obtain a TAN number; 2) deduct tax from applicable payments like salaries, interest, rent, etc. at the time of payment or credit; 3) deposit the deducted tax with the government treasury by the due dates; 4) file quarterly electronic TDS returns; and 5) issue TDS certificates to deductees. Failure to comply can result in penalties like interest charges, fines, and in severe cases, imprisonment.
Welcome to our guide for Taxation in Vietnam. In this guide, we hope to provide you with an overview of the key aspects of Taxation in Vietnam and answer many of the questions that foreign businesses and entrepreneurs have when making their first venture into the Vietnamese market.
Most business activities and investments in Vietnam will be affected by the following taxes:
Corporate income tax;
Various withholding taxes;
Capital assignment profits tax;
Value added tax;
Import duties;
Personal income tax of Vietnamese and expatriate employees;
Social insurance, unemployment insurance and health insurance contributions.
There are various other taxes that may affect certain specific activities, including:
Special sales tax;
Natural resources tax;
Property taxes;
Export duties;
Environment protection tax.
All these taxes are imposed at the national level. There are no local, state or provincial taxes.
Similar to Snr income tax compliance hand book (20)
We are pleased to share our June 2022 edition of the GST Bulletin covering recent amendments/ updates in the realm of GST.
This issue covers in detail the following:
1. Judicial Updates
• No GST on services by security manager located outside India for subscription to secured notes placed in USA.
• Concessional GST rate of 0.75% on construction applies to promoter and not to sub-contractor.
• Ocean freight levy violates 'Composite supply' principle under GST.
• Secondment of employees by Overseas Group Company is covered under Manpower Supply & liable to service tax.
• Charitable clubs imparting sports training exempt, however entrance/membership fees taxable.
2. Notifications/ Circulars
• Due date for filing GSTR-3B for April 2022 extended.
• Due date for payment of tax in GST PMT-06 for April 2022 extended.
• Late fee for delay in filing of Form GSTR-4 waived off.
3. GST Compliance Calendar for June 2022
This document provides an overview of key Indian income tax rates, rules, and compliance requirements for the assessment years 2022-23 and 2023-24. It summarizes tax rates for individuals, HUFs, companies, cooperative societies, and local authorities. It also outlines rules regarding residential status, scope of total income, advance tax payments, taxes deducted at source (TDS), and presumptive taxation schemes. The document is intended to help taxpayers and tax professionals understand India's personal and corporate income tax system.
The document discusses input tax credit under GST and summarizes key points from AAR rulings on blocked credits.
It covers major conditions for claiming ITC such as payment of tax to the government within 180 days. It discusses Rule 36(4) and Section 16(2)(aa) regarding matching invoices. It summarizes AAR rulings on blocked credits for demo cars, CSR expenses, canteen expenses, and business promotion expenditure.
The document analyzes conditions favorable and unfavorable for claiming ITC in various AAR rulings and points of difference between rulings. It discusses arguments against unfavorable AAR rulings on certain expenditures.
The document summarizes an Advance Authority Ruling (AAR) on whether input tax credit can be claimed for goods and services procured for corporate social responsibility (CSR) activities under the Goods and Services Tax (GST) Act. The AAR ruled that CSR expenses are eligible for input tax credit since CSR activities are mandatory under law and part of business operations. It also ruled that input tax credit can be claimed for goods and services used for school construction projects, except for amounts that are capitalized. The ruling provides clarity on input tax credit eligibility for CSR expenditures and will allow companies to claim credit for COVID relief activities classified as CSR.
1. The document summarizes key updates from the Tax Bulletin of June 2020 regarding direct tax matters in India.
2. It discusses two judicial cases - in the first case, the ITAT held that no disallowance under section 14A can be made if the assessee has not earned any tax-exempt income. In the second case, the ITAT allowed depreciation on the cost of a golf course by considering it as "plant and machinery".
3. It also summarizes three circulars/notifications issued by the CBDT - reduction of TDS/TCS rates and extension of various compliance due dates in light of COVID-19; deferring new procedures for approval/registration
Recently Karnataka AAR has given a ruling in the matter of “Mr. Anil Kumar Agrawal” holding that salary paid to executive director is not liable to GST as it is covered under schedule III of CGST Act, 2017, thus not to be considered for computing aggregate turnover for registration. This ruling has effectively put aside the confusion of applicability of GST under RCM on director’s remuneration ruled by Rajasthan AAR in the matter of “Clay Craft India Private Limited”. Brief facts and findings of the present ruling are analysed in this update.
#gst #gstupdate #gstupdate #update #snr #krestonsnr
1) The Delhi High Court ruled that the time limit of 90 days to file Form TRAN-1 to carry forward CENVAT credits from previous indirect tax regimes to GST was directory, not mandatory.
2) As the GST transition has not been smooth, what was reasonable in ideal circumstances could not be expected currently.
3) In the absence of a specific time limit in the GST Act, the court held that the 3 year limitation period under the Limitation Act would apply, allowing taxpayers until June 30, 2020 to file Form TRAN-1.
Amidst extended lockdown period due to coronavirus outbreak, the Central Board of Indirect Taxes & Customs (CBIC) has extended various GST compliance deadlines. Brief of the notifications issued is provided in this GST update. #gstupdate #cbic #snr #krestonsnr #gst
Recently Hon’ble Karnataka Authority of Advance Ruling (AAR) has given a ruling in the matter of “M/s T&D Electricals” holding that no Registration is required under the CGST Act, 2017 for execution of a works contract in other state where there no fixed establishment in that state. In this update, we have analysed the captioned AAR ruling.
#taxlaws #gstupdate #gst #krestonsnr #snr
In the attached handbook, we have included major legal compliance applicable on NGOs in India under Income Tax Act, Foreign Contribution Regulation Act, Payment of Gratuity Act, Provident Fund & Misc Provisions Act. #ngos #Taxation #Compliances #SNR #krestonsnr
Recently Hon’ble Rajasthan Authority of Advance Ruling (AAR) has given a ruling in the matter of “Clay Craft India Private Limited” holding that the remuneration paid to Director whether whole time or not will attract GST under Reverse Charge Mechanism (RCM). In this update, we have analysed the captioned AAR ruling along with capturing the current legal position on the matter. #taxlaws #gst #gstupdate #krestonsnr #snr
From the current financial year 2020-21, Individuals & HUFs are having an option to select between old tax system & New Tax system to discharge their tax obligations. CBDT has recently issued a circular clarifying that employees need to intimate their respective employers regarding their choice and accordingly employer shall compute TDS. However in the absence of intimation, employer shall proceed according to existing tax system. Our tax team has explained the nuances of old and new tax system alongwith detailed comparison making the selection easy.
In the Finance bill passed by Lok Sabha, the government has made certain significant changes predominantly with regard to the applicability of various provisions as were originally introduced in the Finance Bill. Our tax alert providing brief summary of the significant changes in relation to Income Tax Act, 1961
Summary of announcements made by Hon'ble Finance Minister on 24th March 2020 regarding extension of due dates and other relaxations in compliances pertaining to Income Tax & GST.
Vivaad Se vishwas scheme has been introduced by Government of India to provide one time opportunity for settlement of pending litigation by paying the basic tax amount and complete waiver of interest and penalty.
The audit profession in India is governed by the Institute of Chartered Accountants of India (ICAI). Members of ICAI can be appointed as statutory auditors under the Companies Act. In 2018, the National Financial Reporting Authority (NFRA) was established to regulate audits of listed and large unlisted companies, while ICAI continues to regulate other audits. Recent changes have included mandatory firm rotation after 10 years, requiring auditors to report on internal financial controls, and fraud reporting requirements. Alignment of Indian accounting standards with IFRS has also impacted auditors.
Honourable Finance Minister Nirmala Sitharaman has presented her second Union Budget in the Parliament on 01 February 2020.This Budget focused on bringing a series of measures aimed at promoting investments in the country, creating a world class infrastructure and stimulating economic growth.
Honourable Finance Minister Nirmala Sitharaman has presented her second Union Budget in the Parliament on 01 February 2020. This Budget focused on bringing a series of measures aimed at promoting investments in the country, creating a world class infrastructure and stimulating economic growth.
We bring you our analysis of Direct Tax proposals announced by the Hon'ble Finance Minister at her budget speech. Some of the key takeaways are highlighted below:
• 15% concessional tax regime for new domestic manufacturing companies will now be applicable to Power-generating companies as well;
• Alternative personal tax regime made available for Individual/ HUFs
• Abolition of Dividend Distribution Tax (DDT);
• Advance Pricing Agreement and Safe Harbour Rules to cover Income Attribution to a Permanent Establishment (PE);
• Thin Capitalization provisions liberalized and have been made inapplicable to a debt provided by PE of non-resident engaged in the business of banking in India;
• TDS on e-commerce transactions;
• TCS on overseas remittances under Liberalised Remittance Scheme (LRS), purchase of overseas tour packages and purchase of goods;
• Threshold of residency for citizens & PIOs visiting India reduced from 182 days to 120 days. Further, definition of ‘Not ordinarily resident’ is also narrowed;
• Donations to charitable institutions made to be pre-filled in IT return form to claim exemptions for donations easily. Further the Income Tax exemption approvals to Charitable Institutions is made subject to renewal every five years
The document summarizes key highlights from the Union Budget for 2018-19 presented by the Finance Minister in India. Some key points include:
- The budget continued fiscal discipline while targeting spending on rural development, education, healthcare, and MSME sector.
- GDP growth is projected to be 6.75% for 2017-18 and 7-7.5% for 2018-19.
- Changes were announced in direct taxes including income tax slabs and deductions. Capital gains tax was introduced for equity investments.
- Agriculture, rural development, and health sectors saw increased allocations for schemes.
- Corporate tax rate was reduced for small and medium enterprises.
सुप्रीम कोर्ट ने यह भी माना था कि मजिस्ट्रेट का यह कर्तव्य है कि वह सुनिश्चित करे कि अधिकारी पीएमएलए के तहत निर्धारित प्रक्रिया के साथ-साथ संवैधानिक सुरक्षा उपायों का भी उचित रूप से पालन करें।
Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...Sangyun Lee
Presentation slides for a session held on June 4, 2024, at Kyoto University. This presentation is based on the presenter’s recent paper, coauthored with Hwang Lee, Professor, Korea University, with the same title, published in the Journal of Business Administration & Law, Volume 34, No. 2 (April 2024). The paper, written in Korean, is available at <https://shorturl.at/GCWcI>.
Matthew Professional CV experienced Government LiaisonMattGardner52
As an experienced Government Liaison, I have demonstrated expertise in Corporate Governance. My skill set includes senior-level management in Contract Management, Legal Support, and Diplomatic Relations. I have also gained proficiency as a Corporate Liaison, utilizing my strong background in accounting, finance, and legal, with a Bachelor's degree (B.A.) from California State University. My Administrative Skills further strengthen my ability to contribute to the growth and success of any organization.
The Future of Criminal Defense Lawyer in India.pdfveteranlegal
https://veteranlegal.in/defense-lawyer-in-india/ | Criminal defense Lawyer in India has always been a vital aspect of the country's legal system. As defenders of justice, criminal Defense Lawyer play a critical role in ensuring that individuals accused of crimes receive a fair trial and that their constitutional rights are protected. As India evolves socially, economically, and technologically, the role and future of criminal Defense Lawyer are also undergoing significant changes. This comprehensive blog explores the current landscape, challenges, technological advancements, and prospects for criminal Defense Lawyer in India.
Synopsis On Annual General Meeting/Extra Ordinary General Meeting With Ordinary And Special Businesses And Ordinary And Special Resolutions with Companies (Postal Ballot) Regulations, 2018
This document briefly explains the June compliance calendar 2024 with income tax returns, PF, ESI, and important due dates, forms to be filled out, periods, and who should file them?.
Lifting the Corporate Veil. Power Point Presentationseri bangash
"Lifting the Corporate Veil" is a legal concept that refers to the judicial act of disregarding the separate legal personality of a corporation or limited liability company (LLC). Normally, a corporation is considered a legal entity separate from its shareholders or members, meaning that the personal assets of shareholders or members are protected from the liabilities of the corporation. However, there are certain situations where courts may decide to "pierce" or "lift" the corporate veil, holding shareholders or members personally liable for the debts or actions of the corporation.
Here are some common scenarios in which courts might lift the corporate veil:
Fraud or Illegality: If shareholders or members use the corporate structure to perpetrate fraud, evade legal obligations, or engage in illegal activities, courts may disregard the corporate entity and hold those individuals personally liable.
Undercapitalization: If a corporation is formed with insufficient capital to conduct its intended business and meet its foreseeable liabilities, and this lack of capitalization results in harm to creditors or other parties, courts may lift the corporate veil to hold shareholders or members liable.
Failure to Observe Corporate Formalities: Corporations and LLCs are required to observe certain formalities, such as holding regular meetings, maintaining separate financial records, and avoiding commingling of personal and corporate assets. If these formalities are not observed and the corporate structure is used as a mere façade, courts may disregard the corporate entity.
Alter Ego: If there is such a unity of interest and ownership between the corporation and its shareholders or members that the separate personalities of the corporation and the individuals no longer exist, courts may treat the corporation as the alter ego of its owners and hold them personally liable.
Group Enterprises: In some cases, where multiple corporations are closely related or form part of a single economic unit, courts may pierce the corporate veil to achieve equity, particularly if one corporation's actions harm creditors or other stakeholders and the corporate structure is being used to shield culpable parties from liability.
Defending Weapons Offence Charges: Role of Mississauga Criminal Defence LawyersHarpreetSaini48
Discover how Mississauga criminal defence lawyers defend clients facing weapon offence charges with expert legal guidance and courtroom representation.
To know more visit: https://www.saini-law.com/
What are the common challenges faced by women lawyers working in the legal pr...lawyersonia
The legal profession, which has historically been male-dominated, has experienced a significant increase in the number of women entering the field over the past few decades. Despite this progress, women lawyers continue to encounter various challenges as they strive for top positions.
Receivership and liquidation Accounts
Being a Paper Presented at Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN) on Friday, August 18, 2023.
2. SNR & COMPANY PRIVATE & CONFIDENTIAL 1
S.No. Particulars Page
1. Tax Rates for AY 2020-21 2
2. Tax Rates for AY 2021-22 4
3. Advance Tax 5
4. Tax Deducted at Source (TDS) 6
5. Tax Collected at Source (TCS) 8
6. Presumptive Tax Scheme 9
7. Tax Audit 10
8. Income from Capital Gains 11
9. Income from House Property 15
10. Taxability of Gifts received 16
11. Remuneration to Partners 17
12. Restriction on Cash Receipts 18
13. Restriction on Cash Payments 19
14. Deductions 20
15. Interest levied under Income Tax Act 21
16. Penalties levied under Income Tax Act 22
Appendix – 1 24
3. SNR & COMPANY PRIVATE & CONFIDENTIAL 2
1. Tax Rates for Applicable for AY 2020-21:
a) Income Tax Slab Rate for Individual/HUF:
Net Income Range Income Tax Rate
Up to ₹ 2,50,000 Nil
Above 2,50,000 up to 5,00,000 5%
Above 5,00,000 up to 10,00,000 20%
Above 10,00,000 30%
b) Resident senior citizen, i.e., every individual, being a resident in India, who is of the age of 60 years or more but
less than 80 years at any time during the previous year:
Net Income Range Income Tax Rate
Up to ₹ 3,00,000 Nil
Above 3,00,000 up to 5,00,000 5%
Above 5,00,000 up to 10,00,000 20%
Above 10,00,000 30%
c) Resident super senior citizen, i.e., every individual, being a resident in India, who is of the age of 80 years or more
at any time during the previous year:
Net Income Range Income Tax Rate
Up to ₹ 5,00,000 Nil
Above 5,00,000 to 10,00,000 20%
Above 10,00,000 30%
Surcharge:
• 10% of Income Tax where total income exceeds ₹ 50 Lakh;
• 15% of Income Tax where total income exceeds ₹ 1 crore;
• 25% of Income Tax where total income exceeds ₹ 2 crore; and
• 37% of Income Tax where total income exceeds ₹ 5 crore.
Health & Education Cess:
• 4% of Income Tax and surcharge
d) Income Tax Rate for Partnership Firm:
A partnership Firm (including LLP) is taxable at 30%.
Surcharge:
• 12% of tax where total income exceeds ₹ 1 crore.
Health & Education Cess:
• 4% of Income Tax and surcharge
Note: A resident individual is entitled for rebate under section 87A, if his net taxable income does not
exceed ₹ 5,00,000. The amount of rebate shall be 100% of income-tax or ₹ 12,500, whichever is less.
4. SNR & COMPANY PRIVATE & CONFIDENTIAL 3
e) Tax Rate for Companies:
Domestic Companies
Particulars Income Tax Rate
Total turnover or gross receipts during the previous
year 2017-18 doesn't exceed ₹ 400 Crore
25%
Other Domestic Companies 30%
Foreign Companies:
The tax rate of foreign company is 40%.
Surcharge:
Company
Net Income
Between 1 Cr.
To 10 Cr.
Exceeds 10 Cr.
Domestic 7% 12%
Foreign 2% 5%
Health & Education Cess:
• 4% of Income Tax and surcharge
f) Income TaxSlab Rate for Co-operative Society:
Net Income Range Income Tax Rate
Up to ₹ 10,000 10%
10,000 to 20,000 20%
Above 20,000 30%
Surcharge:
• 12% of tax where total income exceeds ₹ 1 crore.
Health and Education cess:
• 4% of income tax and surcharge.
g) Income TaxSlab Rate for Local Authority:
A local authority is taxable at 30%.
Surcharge:
• 12% of tax where total income exceeds ₹ 1 crore.
Health and Education cess:
• 4% of income tax and surcharge.
Note: Domestic Manufacturing companies incorporated on or after 1st
October 2019 and other
domestic companies may opt for concessional tax rate scheme and pay tax @ 15% and 22%,
respectively. Further, resident co-operative societies shall also have an option to pay tax @ 22%. Such
option shall be available if the afore-mentioned companies & co-operative societies, do not avail any
incentive/exemption (Refer Appendix 1) offered under the Income Tax Act, 1961.
5. SNR & COMPANY PRIVATE & CONFIDENTIAL 4
2. Tax Rates for Applicable for AY 2021-22:
For AY 2021-22, tax rates shall be same as has been prescribed for AY 2020-21. However, Finance Act 2020 has
introduced section 115BAC providing the Individual taxpayers and HUF, an option to pay tax at reduced rates. The
newly introduced optional tax slabs are as follows:
Net Income Range Income Tax Rate
0 – 2.5 Lakhs Nil
Above 2.5 Lakhs – 5 Lakhs 5%
Above 5 Lakhs – 7.5 Lakhs 10%
Above 7.5 Lakhs – 10 Lakhs 15%
Above 10 Lakhs – 12.5 Lakhs 20%
Above 12.5 Lakhs – 15 Lakhs 25%
Above 15 Lakhs 30%
However, in order to exercise this option, the eligible taxpayers are required to forego certain deductions
and/or exemptions which are stated as follows:
Section Short-Title
10(5) LTC
10(13A) HRA
10(14) Other Allowances
10(17) For MPs & MLAs
10(32) Clubbed Income
10AA SEZ
16 Standard
Deduction
24(b) Interest on Self
Occupied Property
32(1)(iia) Additional
Depreciation
32AD Investment in
P&M in backward
areas
33AB Tea, Coffee &
Rubber
Development
Section Short-Title
35(2AA)(1)(ii) or
(iia) or (iii) or
35(2AA)
Expenditure on
Scientific
Research
33ABA Site Restoration
Fund
35AD Specified Business
important for
economy
35CCC Agricultural
Extension Project
57(iia) Family Pension
Chapter VIA All deduction
except 80CCD(2)
and 80JJAA
6. SNR & COMPANY PRIVATE & CONFIDENTIAL 5
3. Advance Tax:
As per section 208, every person whose estimated tax liability for the year is ₹ 10,000 or more, shall pay his tax in
advance, in the form of “advance tax”. Advance tax is to be paid in different instalments. The due dates for payment
of different instalments of advance tax are as follows:
Due Date % of Tax Payable
On or before 15th
June 15%
On or before 15th
Sep 45%
On or before 15th
Dec 75%
On or before 15th
March 100%
For taxpayers who have opted for Presumptive Taxation Scheme under section 44AD & 44ADA (discussed later), the
due date for payment of Advance Tax:
Due Date % of Tax Payable
On or before 15th
March 100%
Note: An eligible assessee who is governed by section 44AD/ADA is required to pay advance tax by 15th
March
of the previous year irrespective of the fact that he has substantial incomes apart from the income deemed
under section 44AD/ADA.
7. SNR & COMPANY PRIVATE & CONFIDENTIAL 6
4. Tax Deducted at Source (TDS)
TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of making specified payments
such as rent, commission, professional fees, salary, interest etc. by the persons making such payments.
TDS Rate Chart
Section Nature of Payment Threshold TDS Rate (%)
Ind/HUF Others
192 Salaries Slab Rate Based on Slab Rates
192A Premature withdrawal from EPF 50,000 10% 10%
193 Interest on Securities 10,000 10% 10%
194 Dividend 2,500 10% 10%
194A Interest from Banks, Co-operative societies & Post
Offices
40,000
[50,000 for
Sr.
Citizens]
10% 10%
194A Interest from others 5,000 10% 10%
194B Winning from Lotteries 10,000 30% 30%
194BB Winning from Horse Race 10,000 30% 30%
194C Payments to Contractors:
For Single Transaction
For Multiple Txn & Transporter with > 10 carriages
30,000
1,00,000
1%
1%
2%
2%
194D Insurance Commission 15,000 5% 5%
194DA Life Insurance Policy 1,00,000 5% 5%
194E Non-Resident Sportsmen & Sports Association Nil 20% 20%
194EE Deposit under NSS 2,500 10% 10%
194F Repurchase of units by MF or UTI Nil 20% 20%
194G Commission on Lottery Tickets 15,000 5% 5%
194H Commission/ Brokerage 15,000 5% 5%
194I Rent:
Plant & Machinery
Land or Building
2,40,000
2,40,000
2%
10%
2%
10%
194IA Transfer of Immovable Property 50,00,000 1% 1%
194IB Rent by Individual/HUF 50,000
p.m.
5% 5%
194IC Monetary Consideration under Jt. Dvpt. Agreement Nil 10% 10%
194J Fees for Technical Services
Professional Fees & others
Payments to Call Centre Operators
30,000
30,000
30,000
2%
10%
2%
2%
10%
2%
194K Payments i.r.o. Units of MF, administrator etc. Nil 10% 10%
194LA Compensation on Transfer of immovable property
Note: W.E.F. 01-04-2017, no deduction of tax shall be
made on any payment which is exempt from levy of
income-tax under Right to Fair Compensation Act, 2013.
2,50,000 10% 10%
194M Commission/Brokerage/Contractual Fees by
Individual/HUF not liable to tax audit
50,00,000 5% 5%
194N Cash withdrawals from account with Bank, PO etc. 1,00,00,000 2% 2%
194O E-Commerce operator payment to e-commerce
participant w.e.f. 01-10-2020
5,00,000
[Ind/HUF]
1% 1%
8. SNR & COMPANY PRIVATE & CONFIDENTIAL 7
TDS Provision for NRI
• TDS on interest on non-resident ordinary account is 30%. No TDS on interest earned on non-resident external
accounts and foreign currency non-resident (FNCR) accounts.
• TDS on rent of house property or other rent & commission / brokerage or any other income is 30%.
• NRI investments in shares/ Mutual funds attract TDS and below is the TDS rate applicable of MF redemptions
by NRIs for FY- 2019-20:
STCG LTCG
Equity Oriented Fund 15% 10%
Other than EOF (MF) 30%
[If investor in highest slab]
20% [Listed with Indexation]
10% [Unlisted without Indexation]
TDS Rate Chart for Non-Residents or Foreign Companies:
Nature of Income TDS Rate (%)
Income i.r.o. investment made by NRI (Sec 115E) 20.80%
LTCG referred to in sec 115E for NRI 10.40%
LTCG on unlisted securities referred to in sec 112(1)(c)(iii) 10.40%
LTCG referred to in 112A 10.40%
STCG referred to in 111A 15.60%
Any other type of LTCG 20.80%
Royalty payable i.r.o. Copyright in any book or Computer software 10.40%
Any other income 41.60%
Note 1: Surcharge and HEC is not deductible on payments made to residents, other than salary.
Note 2: TDS rate without PAN- 20% flat (if TDS Rate is lower than 20%).
Note 3: In case of non- resident, surcharge would be applicable on TDS.
Note: STCG and LTCG along with applicable surcharge, and health and education cess will be deducted
at the time of redemption of units in case of NRIs.
9. SNR & COMPANY PRIVATE & CONFIDENTIAL 8
5. Tax Collected at Source (TCS)
Tax collected at source (TCS) is the tax payable by a seller which he collects from the buyer at the time of sale. Rate
of TCS applicable for AY 2021-22 are as follows:
Section Nature of Payment Threshold TCS Rate (%)
206C(1) Sale of the Following: Nil
a) Alcoholic Liquor for Human Consumption Nil 1%
b) Tendu Leaves Nil 5%
c) Timber obtained under a Forest Lease Nil 2.5%
d) Timber obtained other than under a Forest Lease Nil 2.5%
e) Any other Forest produce Nil 2.5%
f) Scrap Nil 1%
g) Minerals being coal, lignite or iron ore Nil 1%
206C(1C) Grant of lease or license of the following:
a) Parking Lot Nil 2%
b) Toll Plaza Nil 2%
c) Mining & Quarrying Nil 2%
206C(1F) Sale of Motor Vehicle of value > 10 Lakh 10,00,000 1%
206C(1G)(a) On Foreign remittance through Liberalised Remittance
Scheme (LRS)
7,00,000 5% (10%, if PAN or
Aadhaar not available)
206C(1G)(b) On overseas tour package Nil 5% (10%, if PAN or
Aadhaar not available)
206C(1H) On sale of any other goods by sellers whose total sales in
the preceding FY exceeds ₹ 10 crore w.e.f. 01-10-2020
50,00,000 0.10% (1%, if PAN or
Aadhaar not available)
10. SNR & COMPANY PRIVATE & CONFIDENTIAL 9
6. Presumptive Taxation Scheme:
A person adopting the presumptive taxation scheme can declare income at a prescribed rate and, in turn,
is relieved from tedious job of maintenance of books of account and also from getting the accounts audited.
Prescribed rates for declaration of income for SMALLBUSINESSES (Section 44AD):
S.No. Presumptive Profit Conditions
1. 6% of Gross Receipts Received by an account payee cheque or account payee bank draft
or use of ECS through a banking channel during the previous year or
before the due date specified in sub-section (1) of section 139 in
respect of that previous year.
2. 8% of Gross Receipts Other than those covered above
• Applicable on businesses whose Turnover is up to ₹ 2 Crore.
• The income computed as per the prescribed rates shall be the final taxable income of the business covered under
the presumptive taxation scheme and no further expenses will be allowed or disallowed. While computing income
as per the provisions of section 44AD, separate deduction on account of depreciation is not available. However,
the written down value of any asset used in such business shall be calculated as if depreciation as per section 32
is claimed and has been actually allowed.
• If a person opts for presumptive taxation scheme, then he is also required to follow the same scheme for next 5
years. If he fails to do so, then presumptive taxation scheme will not be available to him for next 5 years. Further,
he is required to keep and maintain books of account and he is also liable for tax audit as per section 44AB from
the AY in which he opts out from the presumptive taxation scheme. [If his total income exceeds maximum amount
not chargeable to tax].
• Not applicable on LLPs, professions referred u/s 44AA (1), commission/ brokerage income & agency business/
business of Plying, Hiring, or Leasing goods carriage.
• Any person opting for the presumptive taxation scheme under section 44AD is liable to pay whole amount of
advance tax on or before 15th March of the previous year.
Prescribed rates for declaration of income for SMALL PROFESSIONALS (Section 44ADA):
• Applicable on professionals whose Gross Receipts is up to ₹ 50 Lakh.
• Eligible Assessee can declare profits of at least 50% of Gross Receipts (Deemed Profit);
• If an Eligible taxpayer wants to declare profit, lower than the Deemed Profit prescribed u/s 44ADA, then he is
required to get his accounts audited in accordance with Income Tax Act 1961.
For Partnership Firms declaring their presumptive profit u/s 44AD or 44ADA, the
Partners Remuneration and Interest are not allowed to be deducted from the
'Deemed Profit' derived under the aforesaid sections. They are presumed to be
part of expenses.
11. SNR & COMPANY PRIVATE & CONFIDENTIAL 10
7. Applicability of Tax Audit
Following categories of persons shall be required to carry out tax audit under section 44AB: -
Category of Person Threshold
BUSINESS
Carrying on business (not opting for presumptive
taxation scheme*)
Total sales, turnover or gross receipts exceeds ₹ 5
crore in the FY. (For AY 2020-21, the limit is ₹ 1 crore)
Carrying on business eligible for presumptive
taxation under Section 44AE, 44BB or 44BBB
Claims profits or gains lower than the prescribed limit
under presumptive taxation scheme
Carrying on the business and is not eligible to claim
presumptive taxation under Section 44AD due to
opting out from presumptive taxation in any one
financial year of the lock-in period i.e. 5 consecutive
years from when the presumptive tax scheme was
opted
If income exceeds the maximum amount not
chargeable to tax in the subsequent five consecutive
tax years from the financial year when the
presumptive taxation was not opted for
PROFESSION
Carrying on Profession Total gross receipts exceed Rs 50 lakh in the FY
Carrying on the profession eligible for presumptive
taxation under Section 44ADA
• Claims profits or gains lower than the prescribed
limit under the presumptive taxation scheme
• Income exceeds the maximum amount not
chargeable to income tax
13. SNR & COMPANY PRIVATE & CONFIDENTIAL 12
Summary of Capital Gain Exemptions:
Section Nature Available
to
POH* Amount of Exemption Conditions Amount
unutilised till due
date u/s 139(1)
Deposit
unutilised
Consequences
of t/f within
lock-in
54 Transfer of
residential
house
Ind/HUF Long Term If Capital Gain < Amount
invested = Full Amount
If Capital Gain > Amount
invested = Amount Invested
Reinvestment in one residential house
property in India either:
- Purchased 1 year before transfer
- Purchased 2 years after transfer
- Constructed 3 years after transfer
- House can’t be transferred for 3
years after purchase or construction
- Now, assessee can purchase &/or
construct 2 residential houses for
availing exemption u/s 54. This
benefit is available if LTCG < 2 crore
& once in a lifetime.
Deposit in CGAS Unutilised
amount taxable
as CG in the PY
in which 3 years
from the date of
transfer of
original asset
expires.
Cost of new asset
reduced from
capital gains
exempted earlier.
54B Transfer of
agricultural
land
Ind/HUF More than
2 years
(Long
Term)
If Capital Gain < Amount
invested = Full Amount
If Capital Gain > Amount
invested = Amount Invested
- Agricultural land not in rural areas
used by assessee or his parents for
agricultural purposes for period of 2
years prior to date of transfer, is
transferred.
- Purchase of agricultural land within 2
years from the date of transfer.
- It should not be transferred for 3
years from the date of purchase.
Deposit in CGAS Unutilised
amount taxable
as CG in the PY
in which 2 years
from the date of
transfer of
original asset
expires.
Cost of new asset
reduced from
capital gains
exempted earlier.
54D Compulsory
acquisition
of land &
building
forming
part of
Any
Assessee
More than
2 years
(Long
Term).
However,
Short Term
in case of
If Capital Gain < Amount
invested = Full Amount
If Capital Gain > Amount
invested = Amount Invested
- Purchase or constructed land &
building within 3 years from the date
of compulsory acquisition
- Newly acquired l&b to be used for
industrial purposes
- It should not be transferred for 3
years from the date of acquisition.
Deposit in CGAS Unutilised
amount taxable
as CG in the PY
in which 3 years
from the date of
transfer of
Cost of new asset
reduced from
capital gains
exempted earlier.
14. SNR & COMPANY PRIVATE & CONFIDENTIAL 13
industrial
undertaking
depreciable
assets
original asset
expires.
54F Transfer of
LTCA other
than HP
Ind/HUF Long Term - If cost of new house > Net
Consideration (NC) of
assets transferred = Full
Amount
- If cost of new house < NC
of asset transferred, the
exemption =
CG x Cost of New
House/NC
- Assessee owns not more than 1
other HP on the date of transfer
(excluding new house). Exempt if
invested in 1 residential house in
India within the time limits specified
in sec 54.
- Assessee can’t purchase for 2 years
or construct for 3 years any other HP.
Otherwise CG exempted will be
taxable in year of purchase or
construction as LTCG.
- New house should not be
transferred for 3 years from the date
of its acquisition.
Deposit in CGAS Unutilised
amount taxable
as CG in the PY
in which 3 years
from the date of
transfer of
original asset
expires.
Capital Gains
exempted earlier
taxable in the year
new asset is sold.
54G Transfer of
assets in
cases of
shifting of
industrial
undertaking
from urban
areas (only
P&M, L&B)
Any
Assessee
Any period
[Thus, can
be long
term or
short term]
If Capital Gain < Amount
invested = Full Amount
If Capital Gain > Amount
invested = Amount Invested
Assessee has 1 year before or 3 years
after date of transfer:
- Purchased new P&M and
- Acquired L&B
- Shifted the original asset &
transferred the establishment to
such area.
New undertaking should not be in
urban area.
Deposit in CGAS Unutilised
amount taxable
as CG in the PY
in which 3 years
from the date of
transfer of
original asset
expires.
Cost of new asset
reduced from
capital gains
exempted earlier.
54EC Any Long-
Term
Capital
Asset
Any
Assessee
LTCA Lower of
- Amount Invested; or
- ₹ 50 Lakhs; or
- Capital Gains
- Purchase of specified bonds of NHAI
& RECL (These bonds have maturity
of 5 years or more).
- Within 6 months from the date of
transfer of capital assets.
Deposit in CGAS NA On sale of
securities or loan
taken on
securities within 5
years, LTCG
exempt earlier will
be taxable.
15. SNR & COMPANY PRIVATE & CONFIDENTIAL 14
Duration of Long-Term and Short-Term Capital Assets:
Assets Duration of the Assets Tax Rate*
Short Term Long Term STCG LTCG
Immovable Property e.g. House
property
Up to 2 years More than 2 years Slab Rate 20.80%
with indexation
Movable Property e.g.
Gold/Jewellery
Up to 3 years More than 3 years Slab Rate 20.80%
with indexation
Listed Shares* Up to 1 year More than 1 year 15.60% 10.40%, if
exceeds ₹ 1 Lakh
EOF Up to 1 year More than 1 year 15.60% 10.40%, if
exceeds ₹ 1 Lakh
Debt Oriented MFs Up to 3 years More than 3 years Slab Rate 20.80% with
indexation
* Tax rates mentioned above are excluding surcharge @ 10% on income between ₹ 50lakhs to ₹ 1 cr.
& 15% on income above ₹ 1Cr.
**Applicable only on the shares sold through stock exchange in India on which STT has been paid.
16. SNR & COMPANY PRIVATE & CONFIDENTIAL 15
9. Income from House Property
Income from house property shall be taxable under this head if following conditions are satisfied:
a) The house property should consist of any building or land appurtenant thereto.
b) The taxpayer should be the owner of the property.
c) The house property should not be used for the purpose of business or profession carried on by the taxpayer.
Income from a house property shall be determined in the following manner:
Particulars Amount
Gross Annual Value XXX
Less: Municipal Taxes XXX
Net Annual Value XXX
Less: Standard Deduction @ 30% [Sec 24(a)] XXX
Less: Interest on Borrowed Capital [Sec 24(b)] XXX
Income from House Property XXX
Interest on Borrowed Capital:
Taxpayer can claim a deduction of up to ₹2 lakh on their home loan interest, if the owner or his family reside in the
house property. The same treatment applies when the house is vacant. If a person has rented out the property, the
entire interest on the home loan is allowed as a deduction.
The deduction of interest on borrowed capital is limited to ₹30,000 if the taxpayer fails to meet any of the conditions
given below:
• The home loan must be for purchase or construction of a property.
• The loan must be taken on or after 1 April 1999.
• The purchase or construction must be completed within 5 years from the end of the financial year in which the
loan was taken.
17. SNR & COMPANY PRIVATE & CONFIDENTIAL 16
10.Taxability of Gifts
a) Any amount of money (in cash, cheque or draft):
If the total amount of money received by an individual from one or more persons during a previous year exceeds
₹ 50,000/-, the whole of such amount will be chargeable to tax.
b) Tax on Immovable property in India without consideration:
If any immovable property is received (without any consideration), the stamp duty value of which exceeds ₹
50,000/-, then the stamp duty value will be chargeable to tax in each such transaction.
c) Immovable property for a consideration which is less than the stamp value:
If any immovable property is received for aconsideration which is less than the stamp value (stamp duty value
exceeds 110% ofconsideration) of the property by an amount exceeding ₹ 50,000/-, then the difference between
stampduty value and considerationis chargeabletotaxineverysuchtransaction.
d) Tax on Movable property in India without consideration:
If aggregate fair market value of movable properties such as shares and securities, jewellery, archaeological
collections, drawings, paintings or any work of art received without consideration during a previous year exceeds
₹ 50,000/-, the whole of aggregate fair market value of movable properties will be chargeable to tax.
e) Movable property for a consideration which is less than the fair market value:
If movable property such as shares and securities, jewellery, archaeological collections, drawings, paintings or
any work of art is received for a consideration which is less than the aggregate fair market value of the property
by anamount exceeding ₹ 50,000/-, then the difference between aggregate fair market value and consideration
is chargeable to tax.
f) Gift from Relatives:
Any amount or property received from a relative is exempt from income tax. The following are the relatives
considered for this exemption:
i) Spouse of individual
ii) Brother or sister of the individual
iii) Brother or sister of the spouse of individual
iv) Brother or sister of either of the parents of the individual
v) Any lineal ascendant or descendant of the individual
vi) Any lineal ascendant of descendant of the spouse of individual
vii)Spouse of the person referred to in clauses (ii) to (vi)
The gifts received by bride and the groom from relatives, friends or anybody on their marriage are free from any
tax liability. The gift is exempt on marriage and not on the day of marriage, hence gifts received on tilak, tika
and similar religious function prior to marriage day will also be exempt from income tax.
18. SNR & COMPANY PRIVATE & CONFIDENTIAL 17
11.Special Provisions for Taxation of Partnership Firms:
• Remuneration is allowed only to working partners.
• The payment of remuneration to a working partner should be authorized by & should be in accordance with
the terms of the partnership deed. This amount shall be allowed as deduction only if the deed either specified
the amount of remuneration payable to each individual working partner or lays down the manner of
quantifying the remuneration.
• Remuneration should be within the permissible limits as mentioned below. Please note that this limit is for
total salary to all partners and not per partner.
Book Profit Amount Deductible as remuneration
If book profit is - ve ₹ 1,50,000
If book profit is + ve- On first ₹ 3 lakh
of book profit
₹ 1,50,000 or 90% of book profit whichever is more
On the balance of book profit 60% of book profit
• Following adjustments shall be made to the Net Profit under PGBP for computation of Book Profits:
a) Only the Interest income under head PGBP is to be taken.
b) Current year & B/f depreciation is to be deducted
c) Brought forward losses not to be deducted
d) Chapter VI-A not to be deducted
e) Remuneration is to be added back if it is debited to P&L A/c
f) Interest paid to partners to the extent it is deductible shall not be added back.
• The payment of interest to a partner should not exceed the amount calculated @ 12% p.a. simple interest. If
the firm pays interest to a partner & the partner pays interest to the firm on his drawings, then the interest
shall not be netted off. The interest received by the firm shall be taxable as income from PGBP.
• Interest paid by the firm to its partners on their Fixed capital account, current capital account and loan
account is allowable as deduction to the partnership firm provided the deed specifically authorizes the
payment of interest on Fixed capital account, current capital account and loan account. If the deed authorizes
the payment of interest on fixed capital account only then interest on current &/ or loan account shall not
be allowed as deduction.
19. SNR & COMPANY PRIVATE & CONFIDENTIAL 18
12.Restriction on cash receipts
No person shall receive an amount of ₹ 2 lakhs rupees or more: -
• In aggregate from a person in a day or
• In respect of single transaction or
• In respect of transactions relating to one event or occasion from a person.
Otherwise than by an A/c payee cheque, bank draft or ECS.
This section covers the payee / recipient of cash, under its ambit and not the payer. Vide this section, following
three situations are covered:
a) Receipt of ₹ 2 Lakhs or more from a person in a day in aggregate:
Section 269ST relates to payments received in aggregate from ‘a person’ in ‘a day’. Attention is to be given
to words ‘a person’ and ‘in a day’. This section will get attracted if a sum of ₹ 2 Lakhs or
more is received in aggregate from the same person in a single day. However, there will be no violation of
section 269ST, if payments are received from different persons in a single day and none of such payments
exceeds the specified limit of ₹ 2 Lakhs.
b) Receipt of ₹ 2 Lakhs or more in respect of a single transaction:
This point covers receipt of ₹ 2 Lakhs or more in respect of a single transaction. It envisages to cover the
receipt of Rs 2 lakhs or more which is split into various dates in respect of a single transaction although not
in aggregate on a single day. To illustrate, if Mr. A receives a sum of ₹ 8 Lakhs in respect of a single
transaction, in four instalments of ₹ 2 Lakhs each, on different dates, then apparently, this would be covered
under the purview of second condition. Accordingly, this condition prohibits the splitting of payments over
period.
c) Receipt of ₹ 2 Lakhs or more in relation to one event or occasion from a person:
This condition is of the widest amplitude as it seeks to cover all receipts from a person in relation to
transactions in respect of single event or occasion. It would cover all transactions relating to one event or
occasion such as cash gifts on the occasion of marriage, birthday, anniversary etc. So this condition would
impact the people from all walks of society. Under the income tax law, though gifts received from ‘relatives’
are exempt without any capping. But with the introduction of section 269ST cash gift even from relatives to
the tune of ₹ 2 Lakhs or more towards single event or occasion, would attract consequences u/s 271DA .
20. SNR & COMPANY PRIVATE & CONFIDENTIAL 19
13.Restrictions of Cash Payments
Section 40A(3) calls for disallowance of certain expenditure, payment for which is made in cash. This section shall
be attracted if the following conditions are fulfilled:
• Assessee incurs an expenditure
• In respect of which payment or aggregate of payments made
• To a person
• In a single day
• Of a sum exceeding ₹ 10,000/- (₹ 35,000/- in case of transporters)
• Otherwise than by an account payee cheque or demand draft or use of ECS or Credit or Debit Card or Net
Banking or IMPS or UPI or RTGS or NEFT or BHIM.
Note: Purchase of stock or raw materials constitutes expenditure. Sec 40(3) shall apply on payment
made in this regard.
Note: This section shall apply in case of advance payment for the expenditure made in cash.
Disallowance shall be in the year in which expenditure is incurred.
21. SNR & COMPANY PRIVATE & CONFIDENTIAL 20
14.Deductions
Section Deduction in respect Amount of Deduction
80C Investment in ELSS
Contribution to PPF & EPF
Contribution to Approved Superannuation Fund
Investment Tax Saving Fixed Deposit
Investment in (NSC)
Investment in ULIP
Sukanya Samriddhi Yojana
Senior Citizen Saving Scheme
Life Insurance Premium
Tuition Fees
Repayment of Housing Loan
Maximum Deduction of ₹ 1,50,000
subject to Section 80CCE
80CCC Annuity Plan of LIC or any other insurer
80CCD(1) Contribution made to NPS (Max. 10% of Salary)
80CCD(2) Employer’s Contribution to NPS
80CCD(1B) Additional Contribution to NPS ₹ 50,000
80D Medical Insurance Premium
- For self, spouse & dependent children
- For Parents
₹ 25,000
₹ 25,000 [50,000 if Sr. Citizen]
80DD Medical Treatment of Dependent Disabled ₹ 75,000 (1,25,000 for severe disability)
80DDB Expenditure on Medical Treatment Max. ₹ 40,000 (1,00,000 for Sr. Citizen)
80E Interest on loan for higher education Entire Interest up to 8 years of loan or till
date of payment of Interest
80EE Interest on Loan for acquisition of self-occupied
house property. Conditions:
- Loan Sanctioned during FY 2016-17
- Amount of Loan is up to 35 Lakhs
- Value of House is up to 50 Lakhs
- No other house on the date of loan
₹ 50,000
80EEA Interest on Loan for acquisition of self-occupied
house property. Conditions:
- Loan Sanctioned during FY 2019-20
- SDV of House is up to 45 Lakhs
- No other house on the date of loan
₹ 1,50,000
80EEB Purchase of Electric Vehicles
Conditions:
- Loan Sanctioned during 2019-20 to 2022-23
₹ 1,50,000
80TTA Interest on deposits in Savings A/c ₹ 10,000
80U For person with disability ₹ 75,000 (1,25,000 for severe disability)
22. SNR & COMPANY PRIVATE & CONFIDENTIAL 21
15.Interest under Income Tax Act
Description Section Duration Rate (per month)
Income Tax Return
Delay in submission
234A
From due date to the date of
submission of return
1% of tax payable
Non-Submission
From due date to the date of
assessment
1% of tax
determined
Advance Tax
Failure to pay 90% of assessed tax 234B
From 1st
April of A.Y. to completion
of assessment
1%
Deferring Advance tax 234C
From Due Date to Due date of next
instalment
1%
TDS
Delay in deduction
201(1A)
Due date of deduction to the actual
date of deduction
1%
Delay in deposit
Actual date of deduction to the
actual date of deposit
1.5%
TCS
Failure to collect tax 206C(7)
From required date for collection to
the actual date of deposit
1%
23. SNR & COMPANY PRIVATE & CONFIDENTIAL 22
16.Penalties under Income Tax Act
Section Description Penalty
221(1) Default in making payment of taxes Amount as directed by the assessing officer.
However, the amount of penalty cannot
exceed the amount of tax in arrears
234E Failure to prepare the statements in respect of
TDS/TCS within the time prescribed
₹ 200 for every day of default
234F Default in furnishing of return under section
139(1) within the time prescribed
₹ 5,000 if return is furnished before 31st
December of the assessment year
₹ 10,000 in any other case
Note: if the income does not exceed ₹ 5
Lakhs then the penalty shall not exceed ₹
1,000.
270A Penalty for under-reporting of income
Penalty for under-reporting on account of
misreporting of income
50% of the amount of tax payable on under-
reported income;
200% of the amount of tax payable on
misreported income.
271A Failure to keep, maintain or retain the books of
account, documents as required under Section
44AA
₹ 25,000
271AA(1) Penalty in respect of an international
transaction/specified domestic transaction for:
- failure to keep and maintain any such
information and document as required by
Section 92D(1) or 92D(2)
- failure to report such transaction which is
required to be done
- Maintaining or furnishing incorrect
information or document
2% of the value of each international
transaction or specified domestic
transaction entered into
271AA(2) Failure to furnish information and document to
the authority prescribed as required under Section
92D(4)
₹ 5,00,000
271AAC Income under section 68,69,69A,69B,69C,69D
determined by the assessing officer if not
included by assessee or tax under Section 115BBE
not paid
Section 68- Cash Credits
Section 69- Unexplained Investments
Section 69A- Unexplained money
Section 69B-Amount of investments not fully
disclosed in books of account
10% on tax payable under Section 115BBE
24. SNR & COMPANY PRIVATE & CONFIDENTIAL 23
Section 69C-Unexplained expenditure
271B Failure to get the accounts audited or furnish the
report as required under Section 44AB
½% of the turnover/gross receipts
or
₹ 1,50,000,
whichever is less
271BA Failure to furnish TP Audit report 1,00,000
271C Failure to deduct TDS Sum equal to the amount of tax not paid or
failed to deduct
271CA Failure to collect TCS Sum equal to amount of tax not collected
271D Accepting loan or deposit or specified sum in
contravention of Section 269SS
Sum equal to the loan or deposit or
specified sum taken
271DA Receiving any sum (INR 2 Lakhs or more) in
contravention to the provisions of Section 269ST
Sum equal to the amount of receipt
271E Failure to comply with the provisions of Section
269T with regard to the repayment of
loan/deposit/specific advance
Sum equal to the amount of
loan/deposit/specific advance repaid.
271H Failure to furnish TDS/TCS statements of
furnishing incorrect information within the
prescribed time
Minimum: ₹ 10000
Maximum: ₹ 100000
25. SNR & COMPANY PRIVATE & CONFIDENTIAL 24
APPENDIX-1
Reference list of Incentive/ exemptions that can not be claimed where concessional rate of tax is
claimed:
Section Name
10AA Special provisions in respect of newly established units in SEZ
32(1)(iia) Additional Depreciation
32AD Investment in new plant or machinery in notified backward areas
in certain states
33AB Tea development account, coffee development account and
rubber development account
33ABA Site restoration fund
35(1)(ii), (iia), (iii), (2AA), (2AB) Expenditure on scientific research
35AD Deduction in respect of expenditure on specified business
35CCC Expenditure on agricultural extension project
35CCD Expenditure on skill development project
80G Deduction on donations
80H to Sec 80TT (except sec
80JJAA)
Deduction in respect of certain incomes
26. SNR & COMPANY PRIVATE & CONFIDENTIAL 25
Email : snr@snr.company Website : www.snr.company
No - 5A, Second Floor, 6th Main, KHB Colony,
Basaveshwaranagar Bangalore
Karnataka- 560010 (India)
Tel. +91 80 42064178
Bangalore
Pune
2A, Gangotri Complex,
927, Synagague Street,
Camp, Pune - 411001 (India)
Ph: +91 20 25435788
A-15, Second Floor, Hauz Khas,
New Delhi- 110016(India)
Tel. +91 11 4165 5801, 4165 5802,
Fax: +91 11 26567540
Delhi