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Jitender singh
Beginner
Asked: In:

  1. CA Manish Kumar Gupta Enlightened
    This answer was edited.

    Hi, TDS on Payment to consultant is covered in section 194J of the Income Tax Act. Let's discuss the second part of this question i.e who is required to deduct TDS As per section 194 J, Every person (Service Recipient) needs to deduct TDS on consultancy charges, except Individual and HUF: In case ofRead more

    Hi,

    TDS on Payment to consultant is covered in section 194J of the Income Tax Act.

    Let’s discuss the second part of this question i.e who is required to deduct TDS

    As per section 194 J, Every person (Service Recipient) needs to deduct TDS on consultancy charges, except Individual and HUF:

    • In case of an individual or HUF carrying on a business: Where his turnover does not exceed Rs. 1 crore during the previous financial year.
    • In case of an individual or HUF carrying on the profession: Where his turnover does not exceed Rs. 50 lakh during the previous financial year.

    Now let’s see the first part of the question i.e what happens if TDS is not deducted.

    Following consequences need to face to the service recipient.

    1. Disallowance of 30% Expenditure in the year in which it is claimed.
    2. Interest @1.% per month/part of the month from the date on which TDS was required to be deducted up to the date of actual deduction.

    Thanks!

     

     

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    • 4
Ankit
Beginner
Asked: In:

  1. CA Manish Kumar Gupta Enlightened

    Hi, The purpose of section 44Ad is to give relief to small assessee from compliance of maintaining books of accounts and annual Audit. This section is not related to the filing of ITR. It just gives a method of calculation of the taxable income of a business. So in this case, if the taxable income oRead more

    Hi,

    The purpose of section 44Ad is to give relief to small assessee from compliance of maintaining books of accounts and annual Audit.

    This section is not related to the filing of ITR. It just gives a method of calculation of the taxable income of a business.

    So in this case, if the taxable income of a business is less than the maximum amount which is not chargeable to tax then filing of return is not mandatory.

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    • 5
Ankit
Beginner
Asked: In:

  1. Best Answer
    CA Manish Kumar Gupta Enlightened
    This answer was edited.
    Is interest paid on home loan included in the cost of housing property while computing capital gains tax on its sale?

    Hi, In short "Yes" Real Estate is on the boom and involved huge costs. Attractive marketing schemes make it more lucrative.  Generally, People buy a house with the help of a bank loan and pays interest on that home loan. Repayment of Principal is allowed as deduction under section 80C and Portion ofRead more

    Hi,

    In short “Yes”

    Real Estate is on the boom and involved huge costs. Attractive marketing schemes make it more lucrative.  Generally, People buy a house with the help of a bank loan and pays interest on that home loan.

    Repayment of Principal is allowed as deduction under section 80C and Portion of such Interest can be claimed as deduction under section 24(b) while calculating Income from the house property.

    Now see the twist:

    Interest paid on a housing loan can be considered in the acquisition cost of a house while calculating capital gain under section 48.

    Section 48 of Income Tax says that

    The income chargeable under the head “Capital gains” shall be computed, by deducting from the full value of the consideration received or accruing as a result of the transfer of the capital asset the following amounts, namely:—

    (i) expenditure incurred wholly and exclusively in connection with such transfer;

    (ii) the cost of acquisition of the asset and the cost of any improvement thereto:

    The case of CIT vs. C. Ramabrahmam (2013) also supports this claim.

    So, Interest paid on a house loan can be claimed at both the income head, House Property, and Capital Gain.

     

     

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    • 8
Kirti Agarwal
Beginner
Asked: In:

  1. Ankit Agarwal Beginner

    A. FOR TRANSFERRING OF FIRM/STOCK: There can be two situations commonly in case of death of proprietor either the business is transferred as going concern to legal heir or business may be discontinued. We can understand both the situations as per follows: SENERIO I: Business is transferred as goingRead more

    A. FOR TRANSFERRING OF FIRM/STOCK:

    There can be two situations commonly in case of death of proprietor either the business is transferred as going concern to legal heir or business may be discontinued. We can understand both the situations as per follows:

    SENERIO I: Business is transferred as going concern to legal heir:

    1. Obtaining the new registration:

    As per provisions of sub-section (3) of section 22 of the CGST Act,

    “Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.”

    The transferee or the successor, as the case may be have to apply for the FORM GST REG-01 but in filling of the form below points have to keep in mind:

    a. The applicant is required to mention the reason to obtain registration as “death of the proprietor”

    b. Death certificate of the deceased to be attach in form.

    2. Transfer of ITC:

    a. A registered person shall submit FORM GST ITC-02, electronically on the common portal along with a request for transfer of unutilized input tax credit lying in his electronic credit ledger to the transferee:

    b. The transferor shall also submit a copy of a certificate issued by a practising chartered accountant or cost accountant.

    c. The transferee shall, on the common portal, accept the details so furnished by the transferor and, upon such acceptance, the un-utilized credit specified in FORM GST ITC-02 shall be credited to his electronic credit ledger.

    d. The inputs and capital goods so transferred shall be duly accounted for by the transferee in his books of account.

    3. Cancellation of Registration:

    Clause (a) of sub-section (1) of section 29 of the CGST Act, allows the legal heirs in case of death of sole proprietor of a business, to file an application for cancellation of registration in FORM GST REG-16 electronically on the common portal on account of transfer of business for any reason including death of the proprietor. In FORM GST REG-16, the reason for cancellation is required to be mentioned as “death of sole proprietor”.

    4. Liability of Transferor:

    The transferee/successor shall be liable to pay any tax, interest or any penalty due from the transferor in cases of transfer of business due to the death of the sole proprietor.

    SENERIO II: Business is closed by legal heir:

    1 Legal heir have to apply for Cancellation of registration and pay tax for stock in hand which is as raw material, semi-finished goods, finished goods and capital goods or the output tax payable on such goods by way of debiting either the electronic credit or cash ledger.

    2 Filling of Form GSTR-10

    3 The Legal Heir/successor shall be liable to pay any tax, interest or any penalty due from the deceased.

     

    B. FOR TRANSFER OF BANK ACCOUNT:

    It is not possible for legal heir to transfer the account number of deceased to in his name. So legal heir have to submit death certificate and application to branch of bank to transfer the balance in his name.

     

     

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    • 4
Kirti Agarwal
Beginner
Asked: In:

  1. CA Manish Kumar Gupta Enlightened
    What is the definition of Salary as per Income Tax Act?

    In simple words, any amount paid by an employer to his employees in lieu of services rendered by them is called salary. Although As per Sec 17(1) of Income Tax Act 1961, Salary Include following payments a) Wages b) Annuity or pension c) Any Gratuity d) Any fees, commission, perquisite, or profits iRead more

    In simple words, any amount paid by an employer to his employees in lieu of services rendered by them is called salary. Although As per Sec 17(1) of Income Tax Act 1961, Salary Include following payments
    a) Wages
    b) Annuity or pension
    c) Any Gratuity
    d) Any fees, commission, perquisite, or profits in lieu of or in addition to any salary or wages
    e) Any Advance of Salary
    f) Leave Encashment
    g) Employers contribution to the provident fund in excess of 12% of Salary
    h) The contribution by the central government or any other employer in the previous year to the account of an employee under a pension scheme u/s 80CCD

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    • 6
mkg
Teacher
Asked: In:

  1. CA Manish Kumar Gupta Enlightened
    This answer was edited.

    Hi, You mean the tax slab for the assessment year 2021-22 or say Income tax slab for the financial year 2020-21. Income Tax slab for Individual Below 60 years, HUF and NRI Income Old Regime New Regime  Up to 2.5 Lakh NIL NIL 2.5 Lakh to 5 Lakh 5% 5% 5 Lakh to 7.5 Lakh 20% 10% 7.5 Lakh to 10 Lakh 20%Read more

    Hi,

    You mean the tax slab for the assessment year 2021-22 or say Income tax slab for the financial year 2020-21.

    1. Income Tax slab for Individual Below 60 years, HUF and NRI
    Income Old Regime New Regime
     Up to 2.5 Lakh NIL NIL
    2.5 Lakh to 5 Lakh 5% 5%
    5 Lakh to 7.5 Lakh 20% 10%
    7.5 Lakh to 10 Lakh 20% 15%
    10 Lakh to 12.5 Lakh 30% 20%
    12.5 Lakh to 15 Lakh 30% 25%
    above15 Lakh 30% 30%

    2. For Individual 60 years but less than 80 years

    Income Old Regime New Regime
     Up to 2.5 Lakh NIL NIL
    2.5 Lakh to 3 Lakh NIL 5%
    3 Lakh to 5 Lakh 5% 5%
    5 Lakh to 7.5 Lakh 20% 10%
    7.5 Lakh to 10 Lakh 20% 15%
    10 Lakh to 12.5 Lakh 30% 20%
    12.5 Lakh to 15 Lakh 30% 25%
    above 15 Lakh 30% 30%

    3. For Individual 80 years and above

    Income Old Regime New Regime
     Up to 2.5 Lakh NIL NIL
    2.5 Lakh to 3 Lakh NIL 5%
    3 Lakh to 5 Lakh NIL 5%
    5 Lakh to 7.5 Lakh 20% 10%
    7.5 Lakh to 10 Lakh 20% 15%
    10 Lakh to 12.5 Lakh 30% 20%
    12.5 Lakh to 15 Lakh 30% 25%
    above 15 Lakh 30% 30%

     

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    • 5
mkg
Teacher
Asked: In:

  1. CA Manish Kumar Gupta Enlightened

    Income Tax exemption limit for the below three categories of the individual taxpayer for the Assessment Year 2021-22 is as follows: Taxpayer Income Exemption Limit in old regime  Indian Resident below 60 years of age, Huf and NRI  Up to Rs 2.5 Lakh  Indian Resident 60 years but less than 80 years  URead more

    Income Tax exemption limit for the below three categories of the individual taxpayer for the Assessment Year 2021-22 is as follows:

    Taxpayer Income Exemption Limit in old regime
     Indian Resident below 60 years of age, Huf and NRI  Up to Rs 2.5 Lakh
     Indian Resident 60 years but less than 80 years  Up to Rs 3 Lakh
     Individual 80 years and above  Up to Rs 5 Lakh

     

    Taxpayer Income Exemption Limit in New regime
     Indian Resident below 60 years of age, Huf and NRI  Up to Rs 2.5 Lakh
     Indian Resident 60 years but less than 80 years  Up to Rs 2.5 Lakh
     Individual 80 years and above  Up to Rs 2.5 Lakh

     

     

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    • 6
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