While filing income tax return for businesses, one can deduct the deprication from the income and hence reduce the effective income tax. Typically depreciation is taken on items like two wheelers, car, truck, computer. mobile etc.
This article covers the depreciation rules applicable for mobile phones for FY 2016-17 or AY 2017-18
Starting April 1, 2017, Income tax penalty for under reporting and misreporting of the income will be handled by section 270(A) of the Income tax act. This section is newly added amendment of the income tax act. Please note that this is only valid for returns for years AY 2017-18 and after that.
Before April 1, 2017, income tax penalty for under reporting was handled by section 271 of income tax. This section will no more apply for this calculating penalty of under-reporting and misreporting of income.
As part of budget 2017, there was a announcement about TDS on rent which remain relatively unnoticed by lot of people. Please note that TDS on rent is only applicable for people showing more than Rs 50000 per month as rent for saving tax. Lately there has been lot of cases where either people submit fake rent receipts to save tax and this act is supposed to stop these practices.
Here are the relevant portion from the budget:
It is proposed to introduce a new provision in the Income-tax Act to provide for tax deduction at source at the rate of five per cent by an individual or HUF, other than those whose books of account are required to be audited, while making payment of rent of an amount exceeding Rs. 50000 per month. It is also proposed to provide that such tax shall be deducted and deposited only once in a financial year through a challan-cum-statement. Further, the deductor shall not be required to obtain TAN or file any separate TDS return for this purpose.
Sometimes for filing for income tax return rectification, when we check our return status, it says - 'Rectification Rights Transferred to AST'. What does that mean and do we need to do any followup in such a case?
Income tax rectification needs to be filed when you have made a mistake while filing your return and wants to fix it now.
Form 16 is the most important document for figuring out the income tax liability for a salaried person. In this document we cover the importance and detail of form 16.
Income tax rates and slabs in India are an important aspect impacting each and every salaried person. From individual perspective, they want the tax rate as low as possible. While from government perspective, it want to increase the money collected from tax without impacting the economy.
FY 2017-18 (AY 2018-19) starts from Apr 1, 2017 and end of Mar 31, 2018. It is a crucial year from tax and budget perspective due to demonitisation impact on economy.
Below is the income tax slab and rates based on budget 2017 presented on Feb 1, 2017.
There has been news and reports that government of India is planning to make Aaadhar card mandatory for Income tax efiling staring Finance Year 2016-17 (AY 2017-18).
As people are aware, government is trying to increase the financial tracking following demonitisation on Nov 2016 and use that as a tool to prevent black economy. Earlier Aadhaar number was also made mandatory for EPS portion of EPF.
TDS (Tax collected at Source) is a method to collect income tax on the origin / source of income. TDS is used by Indian government to ensure that tax is being paid by people as they earn instead of end of year. TDS also makes it difficult for people/businesses to hide their income and associated tax. AY 2017-18 (FY 2016-17) refers to the period starting on Apr 1, 2016 and ending on Mar 31, 2017.
As per income tax rules, TDS on Commission / Brokerage need to be deducted whenever a payment is made by way of commission or brokerage. This article explains the TDS on commission for AY 2017-18.
Income tax is a crucial part of every working professional and businessman and affect their life and livelihood in multiple ways. In today's times it is important to have working knowledge of intricacies of Income tax rules and regulations, otherwise you end up losing your hard earned money.
Want to file your Income Tax return electronically (not on paper but on computer)? Then IncomeTaxIndiaEfiling is the website you are going to need and its address is incometaxindiaefiling.gov.in. This web portal is owned by Income Tax Department of India and it offers various services to tax payers like - tax calculator, online application for PAN/TAN, e...