Following are the differences between advances and loans. A Loan is a financial assistance given with an absolute promise to repay, whereas an advance is given against the supply of goods and services. Generally, Loan carries a rate of Interest against the financial assistance whereas an Advance doeRead more
Following are the differences between advances and loans.
A Loan is a financial assistance given with an absolute promise to repay, whereas an advance is given against the supply of goods and services.
Generally, Loan carries a rate of Interest against the financial assistance whereas an Advance does not carry such a rate of interest.
A loan can be for a long-term period whereas an advance is given for a short-term period and against work or project.
A loan is always repaid, whereas an advance is adjusted with the outstanding bill amount.
Example-Advance given to employees against the current month’s salary. A loan is given to employee for buying a Car.
Please refer the rule 3 of the Companies (Incorporation) Rules, 2014, which provides that only a natural person who is an Indian citizen and resident in India is eligible to incorporate OPC. Therefore, the question of any “body corporate” or other organizations can not constitute a One person companRead more
Please refer the rule 3 of the Companies (Incorporation) Rules, 2014, which provides that only a natural person who is an Indian citizen and resident in India is eligible to incorporate OPC. Therefore, the question of any “body corporate” or other organizations can not constitute a One person company. Naturally, they are not a natural person.
Hi, Section 135 of Companies Act is applicable to every company which is having : • net worth of Rs 500 crore or more; or • turnover of Rs 1000 crore or more; or • a net profit of Rs 5 crore or more during any of the three preceding financial years. The word used here is ’every company’, However, iRead more
Hi,
Section 135 of Companies Act is applicable to every company which is having : • net worth of Rs 500 crore or more; or • turnover of Rs 1000 crore or more; or • a net profit of Rs 5 crore or more during any of the three preceding financial years.
The word used here is ’every company’, However, in terms of rule 6(2) of companies (Incorporation) Rules, 2014, an OPC loses its status if paid-up capital exceeds Rs. 50 lakhs or average annual turnover is more than 2 crores in three immediate preceding consecutive years.
In view of this, it is quite clear that an OPC would not meet the criteria specified in section 135 as detailed above.
Hi, Please refer to section 149(1) of the Company Act,2013, according to which: A One Person Company needs to have a Board of Directors consisting of individuals as directors and shall have a minimum of one director. It can have directors up to a maximum of 15 which can also be increased by passingRead more
Hi,
Please refer to section 149(1) of the Company Act,2013, according to which:
A One Person Company needs to have a Board of Directors consisting of individuals as directors and shall have a minimum of one director. It can have directors up to a maximum of 15 which can also be increased by passing a special resolution as in case of any other company.
Section 24(b) of the Income Tax Act allowed the deduction of Interest paid on money borrowed for the purpose of purchase, repairs, renovation, etc. of house. However, it is not necessary that the money should have been borrowed as a home loan or from any banking institution. Interest paid to your fRead more
Section 24(b) of the Income Tax Act allowed the deduction of Interest paid on money borrowed for the purpose of purchase, repairs, renovation, etc. of house. However, it is not necessary that the money should have been borrowed as a home loan or from any banking institution.
Interest paid to your friends and relatives in respect of money borrowed for the purposes specified above can also be claimed under section 24(b).
But the actual use of the personal loan should be only for the purpose of the purchase, repairs, renovation, etc. To prove this, the personal loan should be taken through a bank account and the expenditures made for the above purpose and payment of interest should also be made from the bank account.
Difference between Section 112 and Section 112A of Income Tax Act, 1961 1. Both sections cover the following Long Term Capital Asset:- Equity share in a company Unit of Equity Oriented Fund Unit of a business trust 2. Both the sections are related to tax on long-term capital and charged @ 10% subjecRead more
Difference between Section 112 and Section 112A of Income Tax Act, 1961
1. Both sections cover the following Long Term Capital Asset:-
Equity share in a company
Unit of Equity Oriented Fund
Unit of a business trust
2. Both the sections are related to tax on long-term capital and charged @ 10% subject to fulfilment of conditions specified therein.
S.No.
Particulars
Section 112
Section 112A
1.
What type of LTCA covers?
Applies to transfer of all Long Term Capital Assets defined as per section 2(29A) of the Act.
Applies to transfer of only following Long Term Capital Assets:-
Equity share in a company
Unit of Equity Oriented Fund
Unit of a business trust
2.
Condition of payment of STT
Applies on transfer of LTCA whether STT is paid or not.
Applies only when following conditions are satisfied:-
LTCA
STT Paid
On Acquisition
On Transfer
Equity share in a company
Yes
Yes
Unit of Equity Oriented Fund
No
Yes
Unit of a business trust
No
Yes
However, above conditions are not applicable if transfer covers under sub-section (3) or (4).
3.
Tax Rate
Tax Rate @ 20% or 10%
Tax Rate only @ 10% in excess of Rs. 1 lakh.
4.
Exemption of Rs. 1 lakh
No
Yes
5.
Applicability
Inserted by Finance Act, 1992
Inserted by Finance Act, 2018. Applicable w.e.f. 01-04-2019
6.
Relief u/s 87A
Yes
No
7.
Indexation benefit as per 2nd proviso to Section 48
Yes
No
8.
Mode of Computation of Capital Gain in foreign currency in case of NR (1st proviso to Section 48)
Hi, An employee can withdraw the full amount of PF accumulated in their EPF once they retire. However, he can also make premature withdrawals from the EPF account after meeting certain conditions. Full Withdrawal In the following two conditions, full EPF can be withdrawn: When an employee retires WhRead more
Hi,
An employee can withdraw the full amount of PF accumulated in their EPF once they retire. However, he can also make premature withdrawals from the EPF account after meeting certain conditions.
Full Withdrawal
In the following two conditions, full EPF can be withdrawn:
When an employee retires
When the employee remains unemployed for more than two months. To make a withdrawal on this circumstance, the individuals must get an attestation from a gazetted office.
However, if the employee joins another organization within two months then he cannot make a complete withdrawal of the EPF balance.
Partial withdrawal
Under the following circumstances, partial withdrawal can be possible:
Sl. No.
Reasons for withdrawal
Limit for withdrawal
No. of years of service required
Other conditions
1
Medical purposes
Lower of below:
No criteria
Medical treatment of self, spouse, children, or parents
i. Six times the monthly basic salary, or
ii. The total employee’s share plus interest,
2
Marriage
Up to 50% of employee’s share of contribution to EPF
7 years
For the marriage of self, son/daughter, and brother/sister
3
Education
Up to 50% of employee’s share of contribution to EPF
7 years
Either for account holder’s education or child’s education (post matriculation)
4
Purchase of land or purchase/construction of a house
For land – Up to 24 times of monthly basic salary plus dearness allowance.
5 years
i. The asset, i.e. land or the house, should be in the employee’s name or jointly with the spouse.
For house – Up to 36 times of monthly basic salary plus dearness allowance,
ii. It can be withdrawn just once for this purpose during the entire service.
The above limits are restricted to the total cost.
iii. The construction should begin within 6 months and must be completed within 12 months from the last withdrawn instalment.
5
Home loan repayment
Least of below:
10 years >
i. The property should be registered in the name of the employee or spouse or jointly with the spouse.
i. Up to 36 times of monthly basic salary plus dearness allowance, or
ii. Withdrawal permitted subject to furnishing of requisite documents as stated by the EPFO relating to the housing loan availed.
ii. Total corpus consisting of employer and employee’s contribution with interest, or
iii. The accumulation in the member’s PF account (or together with the spouse), including the interest, has to be more than Rs 20,000.
iii. Total outstanding principal and interest on housing loan
6
House renovation
Least of the below:
i. Up to 12 times the monthly wages and dearness allowance, or
ii. Employee’s contribution with interest, or Total cost.
5 years
i. The property should be registered in the name of the employee or spouse or jointly held with the spouse
ii. The facility can be availed twice:
a. After 5 years of the completion of the house,
b. After the 10 years of the completion of the house
7
Partial withdrawal before retirement
Up to 90% of accumulated balance with interest
Once the employee reaches 54 years and withdrawal should be before one year of retirement/superannuation (retirement fund for employees by the company)
Financial Year is the year in which the income is earned or say the year of which income-related. Assessment Year is the year following the financial year in which you have to evaluate the previous year’s income and pay taxes on it. For example, if the financial year is from 1 April 2020 to 31 MarchRead more
Financial Year is the year in which the income is earned or say the year of which income-related.
Assessment Year is the year following the financial year in which you have to evaluate the previous year’s income and pay taxes on it.
For example, if the financial year is from 1 April 2020 to 31 March 2021, then it is known as FY 2020-21. The assessment year for this period would begin after the financial year ends – that is from 1 April 2021 to 31 March 2022. Hence, the assessment year would be AY 2022-22.
National Pension Scheme is a good option for saving as well as tax benefit sources. A tax exemption of Rs.1.5 lakh can be claimed on the employee’s and employer’s contribution towards the National Pension System (NPS). However, employees can get an additional tax benefit of Rs 50000 for self contribRead more
National Pension Scheme is a good option for saving as well as tax benefit sources. A tax exemption of Rs.1.5 lakh can be claimed on the employee’s and employer’s contribution towards the National Pension System (NPS). However, employees can get an additional tax benefit of Rs 50000 for self contribution in NPS. Tax benefits can be claimed under Section 80CCD(1), 80CCD(2), and 80CCD(1B) of the Income Tax Act. Following is a brief description of all these sections:
80CCD(1), This section is a part of Sec 80C. It covers self-contribution in NPS made by the employee. Salaried employees can claim a maximum deduction of 10% of their salary, while self-employed individuals can claim up to 20% of their gross income.
80CCD(2), is also a part of Section 80C. It includes the employer’s contribution towards NPS. This benefit cannot be claimed by self-employed individuals. The maximum amount that an individual is eligible for deduction is either the employer’s NPS contribution or 10% of basic salary plus Dearness Allowance (DA) whichever is higher.
80CCD(1B), under this section, individuals can claim an additional tax benefit up to Rs.50,000 for any other self-contributions as NPS tax benefit.
Therefore, individuals can claim up to Rs.2 lakh as tax benefits under NPS.
What is the difference between advance and loan?
Following are the differences between advances and loans. A Loan is a financial assistance given with an absolute promise to repay, whereas an advance is given against the supply of goods and services. Generally, Loan carries a rate of Interest against the financial assistance whereas an Advance doeRead more
Following are the differences between advances and loans.
A Loan is a financial assistance given with an absolute promise to repay, whereas an advance is given against the supply of goods and services.
Generally, Loan carries a rate of Interest against the financial assistance whereas an Advance does not carry such a rate of interest.
A loan can be for a long-term period whereas an advance is given for a short-term period and against work or project.
A loan is always repaid, whereas an advance is adjusted with the outstanding bill amount.
Example-Advance given to employees against the current month’s salary. A loan is given to employee for buying a Car.
See lessCan a company form a One Person Company (OPC) as its subsidiary?
Please refer the rule 3 of the Companies (Incorporation) Rules, 2014, which provides that only a natural person who is an Indian citizen and resident in India is eligible to incorporate OPC. Therefore, the question of any “body corporate” or other organizations can not constitute a One person companRead more
Please refer the rule 3 of the Companies (Incorporation) Rules, 2014, which provides that only a natural person who is an Indian citizen and resident in
See lessIndia is eligible to incorporate OPC. Therefore, the question of
any “body corporate” or other organizations can not constitute a One person company. Naturally, they are not a natural person.
Is section 135 relating to Corporate Social Responsibility applicable to OPCs?
Hi, Section 135 of Companies Act is applicable to every company which is having : • net worth of Rs 500 crore or more; or • turnover of Rs 1000 crore or more; or • a net profit of Rs 5 crore or more during any of the three preceding financial years. The word used here is ’every company’, However, iRead more
Hi,
Section 135 of Companies Act is applicable to every company which is having :
• net worth of Rs 500 crore or more; or
• turnover of Rs 1000 crore or more; or
• a net profit of Rs 5 crore or more
during any of the three preceding financial years.
The word used here is ’every company’, However, in terms of rule 6(2) of companies (Incorporation) Rules, 2014, an OPC loses its status if paid-up capital exceeds Rs. 50 lakhs or average annual turnover is more than 2 crores in three immediate preceding consecutive years.
In view of this, it is quite clear that an OPC would not meet the criteria specified in section 135 as detailed above.
See lessWhat is the requirement as to the minimum and maximum number of directors in an OPC ?
Hi, Please refer to section 149(1) of the Company Act,2013, according to which: A One Person Company needs to have a Board of Directors consisting of individuals as directors and shall have a minimum of one director. It can have directors up to a maximum of 15 which can also be increased by passingRead more
Hi,
Please refer to section 149(1) of the Company Act,2013, according to which:
A One Person Company needs to have a Board of Directors consisting of individuals as directors and shall have a minimum of one director. It can have directors up to a
See lessmaximum of 15 which can also be increased by passing a special resolution as in case of any other company.
is interest paid on personal loan eligible for 24(b) of income tax act?
Section 24(b) of the Income Tax Act allowed the deduction of Interest paid on money borrowed for the purpose of purchase, repairs, renovation, etc. of house. However, it is not necessary that the money should have been borrowed as a home loan or from any banking institution. Interest paid to your fRead more
Section 24(b) of the Income Tax Act allowed the deduction of Interest paid on money borrowed for the purpose of purchase, repairs, renovation, etc. of house. However, it is not necessary that the money should have been borrowed as a home loan or from any banking institution.
Interest paid to your friends and relatives in respect of money borrowed for the purposes specified above can also be claimed under section 24(b).
But the actual use of the personal loan should be only for the purpose of the purchase, repairs, renovation, etc. To prove this, the personal loan should be taken through a bank account and the expenditures made for the above purpose and payment of interest should also be made from the bank account.
See lessWhat is the address and PAN number of PM Care Fund?
PAN of PM CARES Fund is: AAETP3993P Address of PM CARES Fund is: Prime Minister's Office South Block New Delhi-110011
PAN of PM CARES Fund is:
AAETP3993P
Address of PM CARES Fund is:
Prime Minister’s Office
South Block
New Delhi-110011
See lessWhat is the difference between section 112 and section 112A of Income Tax Act?
Difference between Section 112 and Section 112A of Income Tax Act, 1961 1. Both sections cover the following Long Term Capital Asset:- Equity share in a company Unit of Equity Oriented Fund Unit of a business trust 2. Both the sections are related to tax on long-term capital and charged @ 10% subjecRead more
Difference between Section 112 and Section 112A of Income Tax Act, 1961
1. Both sections cover the following Long Term Capital Asset:-
2. Both the sections are related to tax on long-term capital and charged @ 10% subject to fulfilment of conditions specified therein.
See lessWhen can we withdraw our full PF?
Hi, An employee can withdraw the full amount of PF accumulated in their EPF once they retire. However, he can also make premature withdrawals from the EPF account after meeting certain conditions. Full Withdrawal In the following two conditions, full EPF can be withdrawn: When an employee retires WhRead more
Hi,
An employee can withdraw the full amount of PF accumulated in their EPF once they retire. However, he can also make premature withdrawals from the EPF account after meeting certain conditions.
Full Withdrawal
In the following two conditions, full EPF can be withdrawn:
However, if the employee joins another organization within two months then he cannot make a complete withdrawal of the EPF balance.
Partial withdrawal
Under the following circumstances, partial withdrawal can be possible:
i. Up to 12 times the monthly wages and dearness allowance, or
ii. Employee’s contribution with interest, or Total cost.
ii. The facility can be availed twice:
a. After 5 years of the completion of the house,
b. After the 10 years of the completion of the house
Plz feel free to ask more questions.
See lessWhat is the difference between Assessment Year and Financial Year?
Financial Year is the year in which the income is earned or say the year of which income-related. Assessment Year is the year following the financial year in which you have to evaluate the previous year’s income and pay taxes on it. For example, if the financial year is from 1 April 2020 to 31 MarchRead more
Financial Year is the year in which the income is earned or say the year of which income-related.
Assessment Year is the year following the financial year in which you have to evaluate the previous year’s income and pay taxes on it.
For example, if the financial year is from 1 April 2020 to 31 March 2021, then it is known as FY 2020-21. The assessment year for this period would begin after the financial year ends – that is from 1 April 2021 to 31 March 2022. Hence, the assessment year would be AY 2022-22.
See lessWhat are the tax benefit under NPS?
National Pension Scheme is a good option for saving as well as tax benefit sources. A tax exemption of Rs.1.5 lakh can be claimed on the employee’s and employer’s contribution towards the National Pension System (NPS). However, employees can get an additional tax benefit of Rs 50000 for self contribRead more
National Pension Scheme is a good option for saving as well as tax benefit sources. A tax exemption of Rs.1.5 lakh can be claimed on the employee’s and employer’s contribution towards the National Pension System (NPS). However, employees can get an additional tax benefit of Rs 50000 for self contribution in NPS. Tax benefits can be claimed under Section 80CCD(1), 80CCD(2), and 80CCD(1B) of the Income Tax Act. Following is a brief description of all these sections:
Therefore, individuals can claim up to Rs.2 lakh as tax benefits under NPS.
See less