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CA Sanjiv Kumar
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  1. CA Vishnu Ram Enlightened

    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.

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CA Sanjiv Kumar
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  1. Advocate Dr Amit Dua Explainer

    All audits on behalf of the Comptroller and Auditor General are required to be conducted as per the auditing standards. In other words, auditing standards shall apply to all types of audit including financial audit, compliance audit and performance audit. In conjunction with obtaining an understandiRead more

    All audits on behalf of the Comptroller and Auditor General are required to be
    conducted as per the auditing standards. In other words, auditing standards shall apply to all types of audit including financial audit, compliance audit and performance audit.

    In conjunction with obtaining an understanding of internal control over financial reporting, the auditor should obtain an understanding of the company’s process for:

    1. Identifying related parties and relationships and transactions with related parties;
    2. Authorizing and approving transactions with related parties; and
    3. Accounting for and disclosing relationships and transactions with related parties in the financial statements.
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CA Sanjiv Kumar
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  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    Yes, GST applicable on delayed charges recovered from client by a stock broker. UP - Authority on Advance ruling has made it clear that Charges on delayed payment of amount towards trading of securities are taxable under GST. Applicant is engaged primarily in business of providing services of stockRead more

    Yes, GST applicable on delayed charges recovered from client by a stock broker.

    UP – Authority on Advance ruling has made it clear that Charges on delayed payment of amount towards trading of securities are taxable under GST.

    Applicant is engaged primarily in business of providing services of stock broking i.e. purchasing and selling of shares on behalf of clients on exchange platform by virtue of being a recognized BSE/NSE appointed stock broker- Applicant is seeking advance ruling as regards taxability on delayed payments charges on reimbursement of amount by client to applicant, where client failed to pay amount paid to Stock Exchanges for purchase of securities with T+1 (Trading day plus one day) under SEBI Regulation norms and deducted by Stock Exchange from applicant’s account being purchase consideration of securities which are neither goods nor services under GST.

    According to Section 15 of the Central Goods and Services Tax Act, 2017/Section 15 of the Uttar Pradesh Goods and Services Tax Act, 2017  the service is Taxable supply.

    UP AAR held that delayed payment charges squarely get covered under GST for purpose of taxation.

    UP AAR held that applicant is regularly providing services of ‘trading of securities on behalf of customers’ which is a supply of services on which applicant is admittedly paying GST and delayed payments charges are also linked to said services of ‘trading of securities on behalf of customers’ and GST on same shall be payable in view of section 15(2)(d). Thus, applicant is liable to pay GST on delayed payment of charges which are overdue from client towards trading of securities and reimbursed to it.

    SPFL Securities Ltd., In re
    [2021] (AAR- UTTAR PRADESH)

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CA Sanjiv Kumar
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  1. Ramesh Sharma Enlightened

    GST registration is required for Charitable Trust running medical store to give medicines without profit. Since charitable Trust is running a medical store, and selling medicines to customers at a lower rate with no profit, sale of medicine by Trust would be a taxable supply of goods; aggregate turnRead more

    GST registration is required for Charitable Trust running medical store to give medicines without profit.

    Since charitable Trust is running a medical store, and selling medicines to customers at a lower rate with no profit, sale of medicine by Trust would be a taxable supply of goods; aggregate turnover exceeding threshold limit, Trust would have to obtain registration

     

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CA Sanjiv Kumar
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  1. CA Manish Kumar Gupta Enlightened

    Hi, The taxability of Pension depends on two factors. First Type of Pension and second type of Employee. The pension is taxable under the head of “Salary” in the hands of the receiver and in the year of receipt and tax is calculated in the following manner: Uncommuted pension i.e. periodical pensionRead more

    Hi,

    The taxability of Pension depends on two factors. First Type of Pension and second type of Employee. The pension is taxable under the head of “Salary” in the hands of the receiver and in the year of receipt and tax is calculated in the following manner:

    Uncommuted pension i.e. periodical pension It is fully taxable in the hands of all employees, whether government or non-government.
    Commuted Pension a) Government employee or employee of local authorities or statutory corporation: Fully Exempted [section 10(10a)(i)] 

    b) Non-Government Employee

    Any commuted pension received is partially exempt from tax in the following manner:

    If the employee is in receipt of gratuity

    Exemption = 1/3 X (100% of Commuted Pension*) *if the employee has commuted the whole of the pension.

    If the employee does not receive a gratuity

    Exemption = 1/2 X (100% of Commuted Pension*) *if the employee has commuted the whole of the pension.

    Caution: Exemption shall be allowed to the extent it is allowed to be commuted and the balance uncommuted Pension received periodically will be fully taxable.

    For example:- Mr. A is drawing a salary of Rs. 20,000 p.m. at the time of retirement and retires from service and becomes entitled to receive a pension of Rs 10,000 p.m. He gets half his pension commuted and receives Rs. 1,50,000/- as lump sum payment. Henceforth, he shall be entitled to a pension of Rs. 5,000 p.m. (If Ram commute his full pension then he will receive Rs 3,00,000)

    Taxability:- 

    1. Uncommuted Pension of Rs 5000 P.M is fully taxable.
    2. Commuted Pension of Rs 1,50,000/-

    If A is a Government Employee: Rs 1,50,000 is fully exempted.

    If A is a non-Government Employee and also receiving Gratuity:

    Exempted pension will be =  Rs 1,00,000 (1/3 X 3,00,000) and the taxable amount will be Rs 50,000/-

    If A is a non-Government Employee and not receiving Gratuity:

    Then Exempted pension will be =  Rs 150,000 (1/2 X 3,00,000) and the taxable amount will be Rs Nil.

     

     

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CA Sanjiv Kumar
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  1. CA Manish Kumar Gupta Enlightened

    Hi, So you have received money, generally, people pay to leave a job. So let see the Income-tax treatment of money received in lieu of notice of resignation. This amount will be treated as "Salary" as defined in section 17(1) and will be chargeable to tax on a receipt basis as mentioned in section 1Read more

    Hi,

    So you have received money, generally, people pay to leave a job. So let see the Income-tax treatment of money received in lieu of notice of resignation.

    This amount will be treated as “Salary” as defined in section 17(1) and will be chargeable to tax on a receipt basis as mentioned in section 15 of the Income Tax Act.

    Thanks

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