Home/ Ramesh Sharma/Questions

Taxchopal Latest Questions

Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    The Union Budget 2025 has introduced key modifications to the taxation of equity shares and equity-oriented mutual funds. The following table summarizes the before and after impact of the changes: Comparison of Capital Gains Taxation Before and After Budget 2025 Type Earlier After Budget 2025 Short-Read more

    The Union Budget 2025 has introduced key modifications to the taxation of equity shares and equity-oriented mutual funds. The following table summarizes the before and after impact of the changes:

    Comparison of Capital Gains Taxation Before and After Budget 2025

    Type Earlier After Budget 2025
    Short-Term Capital Gains (STCG) – Holding Period ≤ 12 Months ·       Listed Shares (STT Paid): Taxed at 15% under Section 111A.

    ·       Unlisted Shares: Taxed as per the individual’s income tax slab rate.

    		 No Change
    Long-Term Capital Gains (LTCG) – Holding Period > 12 Months ·         Listed Shares (STT Paid):
    – Gains up to ₹1 lakh per financial year are tax-free under Section 112A.
    – Gains exceeding ₹1 lakh are taxed at 10% (without indexation).

    ·         Unlisted Shares:
    – Taxed at 20% with indexation benefit under Section 112.

    ·          For non-residents, LTCG on unlisted shares is taxed at 10% (without indexation).

    		 ·     New Rate (Effective July 23, 2024): 12.5% on LTCG exceeding ₹1 lakh.

    ·     This change applies to the sale of listed equity shares and equity-oriented mutual funds where Securities Transaction Tax (STT) is paid.

    ·     The LTCG tax rate for non-residents, including FIIs, has also been increased from 10% to 12.5%, aligning with resident taxpayers.
    Indexation Benefit ·       Unlisted Shares: Indexation allowed under Section 112. ·       No change announced for indexation benefits (confirmation awaited in the Finance Act).
    Rebate Under Section 87A ·       Taxpayers with net taxable income up to ₹7 lakh (under the new tax regime) could claim a full tax rebate under Section 87A. ·      Rebate is no longer available for short-term and long-term capital gains from equity shares, making all gains fully taxable.
    Exemption Under Section 112A ·       LTCG up to ₹1 lakh per financial year is exempt from tax. ·      Exemption limit increased to ₹1.25 lakh per financial year.
    Additional Tax Considerations ·       Surcharge: Applies if total income exceeds ₹50 lakh.

    ·       Cess: 4% Health & Education Cess on total tax.

    		 No Change
    Grandfathering Rule for LTCG ·       For shares purchased before 31st Jan 2018, the acquisition cost is adjusted to the highest market price on that date to limit taxable gains. No Change

     

    Key Takeaways from Budget 2025

    ✅ Higher LTCG Tax Rate: Increased from 10% to 12.5% for gains exceeding ₹1 lakh.
    ✅ Higher LTCG Exemption Limit: Increased from ₹1 lakh to ₹1.25 lakh per financial year.
    ✅ No More Rebate (87A) on Capital Gains: Investors can no longer claim this benefit.
    ✅ Impact on Foreign Investors: FIIs and non-residents now face 12.5% LTCG tax, up from 10%.
    ✅ Short-Term Capital Gains Tax (15%) Remains Unchanged.

    See less
    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    Hi, I am breaking your question into multiple pieces to make it easier to understand. Payment to Nonresident Taxable Person (NRTP) Section 2(77) of CGST Act, 2017 says that a Non-Resident Taxable Person means "any person who occasionally undertakes transactions involving the supply of goods or serviRead more

    Hi,

    I am breaking your question into multiple pieces to make it easier to understand.

    Payment to Nonresident Taxable Person (NRTP)

    Section 2(77) of CGST Act, 2017 says that a Non-Resident Taxable Person means “any person who occasionally undertakes transactions involving the supply of goods or services, or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.”

    Requirement of Registration in India 

    Section 24 of the CGST Act, 2017, required NRTP to register under GST law mandatorily five days before the commencement of the business irrespective of the minimum threshold turnover limit.

    Applicability of RCM

    Since NRTP requires the registration, he has to deposit tax in advance, equivalent to the estimated tax liability calculated on the value of taxable supply for the period for which the registration has been obtained.

    Conclusion: GST should be paid under forward charge, not under reverse charge.

     

    See less
    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. KULDEEP SHARMA Teacher

    Following process should be adopted if you purchases any property of which DLC rate/ Stamp Value exceeds Rs. 50,00,000/- and rate of TDS is 0.1%.. At the time of payment of installment or date of registry whichever is earlier.   You are allowed 5 days for making TDS payment after the month in whichRead more

    1. Following process should be adopted if you purchases any property of which DLC rate/ Stamp Value exceeds Rs. 50,00,000/- and rate of TDS is 0.1%.. At the time of payment of installment or date of registry whichever is earlier.   You are allowed 5 days for making TDS payment after the month in which transaction took place
    2. Go to the login page of the official Income Tax website (https://eportal.incometax.gov.in/iec/foservices/#/login?language-code=en)
    3. log in to your account
    4. Navigate to the “E-file” section and select ‘e-pay Tax
    5. In the ‘New payment’ section click the “Proceed” button for ’26QB (TDS on sale of the property)
    6. Fill in three pages with the below necessary information:
    • DetaBuyer and seller basic details
    • ils of property
    • Ttax deposit details
    • Property consideration credited or paid
    • Property address details
    • Contact details
    • Residential status of the seller.

    6. Choose your preferred payment mode: ‘Pay later’ or ‘Pay Now’.

    7. Click on ‘Pay Now’ to make payment of TDS

    8. After payment, the Form 26QB acknowledgment will be generated and can be downloaded.

    9. Login as a Taxpayer on the TRACES Portal (https://contents.tdscpc.gov.in/) and generate the TDS Certificate from

    See less
    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. KULDEEP SHARMA Teacher

    Yes, TDS is applicable on transportation Exp. Subject to following Single payment to single transporter exceeds Rs. 30000/- or Multiple payments to single transporter exceeds Rs. 100000/-   Rate of TDS is 1% and 2% if paid to partnership firm or companies   There is exemptions from TDS ifRead more

    Yes, TDS is applicable on transportation Exp. Subject to following

    Single payment to single transporter exceeds Rs. 30000/- or Multiple payments to single transporter exceeds Rs. 100000/-

     

    Rate of TDS is 1% and 2% if paid to partnership firm or companies

     

    There is exemptions from TDS if deductee provides you declaration U/s 194(6) for non deduction

     

    But in both above cases (whether TDS deducted or declaration received) you must file your TDS return..

    See less
    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Manish Kumar Gupta Enlightened

    TDS is NOT applicable on Demat account opening charges because they are in the nature of bank charges or service charges, which do not fall under any specific TDS provision. Such charges are generally considered as a payment for services, and TDS is applicable only if the payment falls under a speciRead more

    TDS is NOT applicable on Demat account opening charges because they are in the nature of bank charges or service charges, which do not fall under any specific TDS provision.

    Such charges are generally considered as a payment for services, and TDS is applicable only if the payment falls under a specific section of the Income Tax Act.

    Since Demat account opening charges are generally not categorized as professional fees, commission, or contractual payment, TDS is NOT required to be deducted under the Income Tax Act.

    See less
    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    There is no technical issue if an employee raises a service invoice with his company. The only thing is that it should not violate his appointment terms with the company.

    There is no technical issue if an employee raises a service invoice with his company. The only thing is that it should not violate his appointment terms with the company.

    See less
    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Dipali Bhatia Beginner

    An executive director is the full-time working director of the company. They look after the affairs of the company and have a higher responsibility towards the company. A non-executive director is a non-working director and is not involved in the everyday working of the company. They might participaRead more

    An executive director is the full-time working director of the company. They look after the affairs of the company and have a higher responsibility towards the company.

    A non-executive director is a non-working director and is not involved in the everyday working of the company. They might participate in the planning or policy-making process.

    See less
    • 1
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    A vendor registered under the MSMED Act, 2006 is called an MSME vendor. There are three categories of vendors in MSMED act which are based on their investment and turnover. Micro manufacturing and services units- Rs. 1 Crore of investment in plant and machinery or equipment and Rs 5 Crore of turnoveRead more

    A vendor registered under the MSMED Act, 2006 is called an MSME vendor. There are three categories of vendors in MSMED act which are based on their investment and turnover.

    1. Micro manufacturing and services units- Rs. 1 Crore of investment in plant and machinery or equipment and Rs 5 Crore of turnover.
    2. Small manufacturing and services units- Rs. 10 Crore of investment investment in plant and machinery or equipment and Rs 50 Crore of turnover.
    3. Medium manufacturing and services units- Rs. 50 Crore of investment in plant and machinery or equipment and Rs. 250 Crore of turnover.
    See less
    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    No, SAI is not considered a local authority under the Income Tax Act. As per Section 10(20) of the Income Tax Act, a local authority includes:✅ Panchayats under Article 243(d) of the Constitution.✅ Municipalities under Article 243P.✅ Municipal Committees, District Boards, or similar authorities respRead more

    No, SAI is not considered a local authority under the Income Tax Act.

    As per Section 10(20) of the Income Tax Act, a local authority includes:
    ✅ Panchayats under Article 243(d) of the Constitution.
    ✅ Municipalities under Article 243P.
    ✅ Municipal Committees, District Boards, or similar authorities responsible for local governance and civic functions.

    Hence, SAI is an Autonomous Body with No Local Governance Role and neither has any Statutory Authority for Local Self-Governance. It operates under the supervision of the Ministry of Youth Affairs & Sports, Government of India.

    See less
    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    If you are purchasing ready-made T-shirts with your company logo printed on them, it is treated as a purchase of goods. No TDS is required under Section 194C (TDS on contracts) or Section 194J (TDS on professional services). GST might apply, but TDS is not applicable under the Income Tax Act.

    • If you are purchasing ready-made T-shirts with your company logo printed on them, it is treated as a purchase of goods.
    • No TDS is required under Section 194C (TDS on contracts) or Section 194J (TDS on professional services).
    • GST might apply, but TDS is not applicable under the Income Tax Act.
    See less
    • 0
Load More Questions