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VRS and Income Tax
What is Voluntary Retirement Scheme? VRS is a monetary facility provided by the corporates for the retrenchment of some of its employees due to various reasons related to employees and the company. It is opted by an employee that wishes ...
PENSION AND INCOME TAX
Pension is a kind of retirement benefit that is provided to the retired employees of an organization as compensation for past employment with that organization. It is paid over a regular, fixed period of time and in form of an ...
Income Tax on Encashment of Leave
Income Tax on Leave Salary The basic knowledge An employee is allowed various types of leaves like Casual Levees, Earned Leaves, Medical Leave, Gazetted Holidays, etc. Generally, the employee is allowed to either avail of these leaves or carryforward to ...
Which loss can be carry forward under income tax act?
Set-off of losses means adjusting the losses against the profit or income of that particular year. Losses that are not set off against income in the same year can be carried forward to the subsequent years for set off against income of those years. Following losses can be carried forward under the iRead more
Set-off of losses means adjusting the losses against the profit or income of that particular year. Losses that are not set off against income in the same year can be carried forward to the subsequent years for set off against income of those years.
Following losses can be carried forward under the income tax act 1961
Losses from House Property
Losses from Non-Speculative Business (Regular Business) Loss
Speculative Business Loss
Specified Business Loss under 35AD
Capital Losses
Losses from owning and maintaining race-horses
See lessFor how many years losses can be carry forward under the income tax act?
Set-off of losses means adjusting the losses against the profit or income of that particular year. Losses that are not set off against income in the same year can be carried forward to the subsequent years for set off against income of those years. Carry forward of losses Losses from House PropertyRead more
Set-off of losses means adjusting the losses against the profit or income of that particular year. Losses that are not set off against income in the same year can be carried forward to the subsequent years for set off against income of those years.
Carry forward of losses
Losses from House Property :
It Can be carried forward up to the next 8 assessment years from the assessment year in which the loss was incurred and Can be adjusted only against Income from house property
Losses from Non-Speculative Business (Regular Business) Loss
It Can be carried forward up to the next 8 assessment years from the assessment year in which the loss was incurred and Can be adjusted only against income from business or profession. It is not necessary to continue the business at the time of set off in future years.
Speculative Business Loss
It Can be carried forward up to the next 4 assessment years from the assessment year in which the loss was incurred and Can be adjusted only against income from speculative business. It Cannot be carried forward if the return is not filed within the original due date.
Specified Business Loss under 35AD
It Can be adjusted only against income from specified businesses under 35AD. There is No time limit to carry forward the losses from the specified business under 35AD. It Cannot be carried forward if the return is not filed within the original due date.
Capital Losses
It Can be carried forward up to the next 8 assessment years from the assessment year in which the loss was incurred. Long-term capital losses can be adjusted only against long-term capital gains. Short-term capital losses can be set off against long-term capital gains as well as short-term capital gains.
Losses from owning and maintaining race-horses
It Can be carried forward up to the next 4 assessment years from the assessment year in which the loss was incurred and Can only be set off against income from owning and maintaining race-horses only.
See lessCan the premium be claimed u/s 80C by married daughter in her return if LIC premium paid by her father?
No, it cannot be claimed.
No, it cannot be claimed.
See lessWhat is the difference between 2A & 2B in GST Portal ?
Even though both the Form GSTR-2A and GSTR-2B reflects similar details, both the forms are different in various ways. The difference between both the forms is summarized hereunder- Type of statement- Form GSTR-2A is a form of a dynamic statement. The details of inward supplies vis-Ã -vis input tax crRead more
Even though both the Form GSTR-2A and GSTR-2B reflects similar details, both the forms are different in various ways. The difference between both the forms is summarized hereunder-
Form GSTR-2A is a form of a dynamic statement. The details of inward supplies vis-Ã -vis input tax credit will be updated on a continuous basis.
On the other hand, Form GSTR-2B is a form of a static statement. The details will be updated on a constant basis.
In the case of Form GSTR-2A, the details of the inward supplies will be reflected in the statement on a real-time basis.
In order words, the details will be updated as and when the supplier furnishes the details of outward supplies either in Form GSTR-1 or via using Invoice Furnishing Facility (i.e. IFF).
For example, the registered person while filing Form GSTR-1 for the month of January 2021 has failed to declare some supplies. The missed supplies were reflected by the registered person while filing Form GSTR-1 for the month of February 2021. Correspondingly, the details of such missed supplies will be reflected in Form GSTR-2A in the month of February 2021.
However, in the case of Form GSTR-2B, the details of inward supplies will be reflected in a static manner. It will reflect the details of outward supplies reflected by the supplier between two due dates of either Form GSTR-1 or Invoice Furnishing Facility.
For example, suppose the registered person furnishes the details of outward supplies for the month of January 2021 after the due date. In such a case, the corresponding details of inward supplies and the input tax credit will not be reflected in Form GSTR-2B in the month of January 2021.
Form GSTR-2A doesn’t provide bifurcation of eligible input tax credit and ineligible input tax credit. Whereas, Form GSTR-2B briefly bifurcates the eligible and ineligible input tax credit.
Form GSTR-2A collects/ complies data on the basis of returns filed by the supplier in Form GSTR-1; Form GSTR-5; Form GSTR-6; Form GSTR-7 and Form GSTR-8.
Whereas, Form GSTR-2B complies data from Form GSTR-1; Form GSTR-5 and Form GSTR-6 filed by the supplier.
See lessWhat is the Rate of GST in reverse charge supply?
The rate of tax to be used for the reverse charge supply is the rate that is applicable on such goods/services. GST Compensation Cess is also applicable on reverse charge. If the goods/services purchased in exempted or nil rated then no tax is payable under RCM. Composition dealers are required to pRead more
The rate of tax to be used for the reverse charge supply is the rate that is applicable on such goods/services. GST Compensation Cess is also applicable on reverse charge. If the goods/services purchased in exempted or nil rated then no tax is payable under RCM.
Composition dealers are required to pay reverse charge at normal rates (5%,12%,18%,28%) and not at the composition rates (1% or 5%).
See lessWhat is difference between Trade Payables and Expenses Payable?
Hi, Both are accounting terms. Let's understand first to "Trade payable" (TP). Trade Payable refers to a general ledger account of an identified vendor or supplier in the books of the company. The company has made transactions with them for the supply of goods/services and has some outstanding balanRead more
Hi,
Both are accounting terms. Let’s understand first to “Trade payable” (TP).
Trade Payable refers to a general ledger account of an identified vendor or supplier in the books of the company. The company has made transactions with them for the supply of goods/services and has some outstanding balances to pay in accordance with the terms of payments/agreement.
Since the company has the obligation to pay them they called creditors or trade payable. These are shown in the liability side of the balance sheet of the company.
Now come to Expenses Payable, Technically they’re also the liability of the company and shown in the liability side of the balance sheet. Generally, they belong to unidentified parties. It is also not confirmed that whether the company will require an outflow of economic benefit to settle their obligation in near future. This means either the creditor is not identified or the obligation to payment of the outstanding amount is not confirmed. For example, in the “Provision of an expense” here neither the party is identified nor the obligation is confirmed. When the party is identified or payment of obligation is confirmed the outstanding amount is transferred to the creditor’s account.
Hope it clears the terms. There may be different opinions also.
See lessCan we use our Firm name after cancellation of GST registration?
Yes , You can use your firm Name after cancelling its Registration. Cancelling the Registration means Removing its liability of GST which does not impact on its existance. However, in case of wind off the concern , there are no questions of using of Firm Name.
Yes , You can use your firm Name after cancelling its Registration. Cancelling the Registration means Removing its liability of GST which does not impact on its existance.
However, in case of wind off the concern , there are no questions of using of Firm Name.
See less