Sign Up

Have an account?

Sign In

Don't have account,

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

Have an account?

You must login to ask question.

Need An Account,
Search
Ask A Question

Share & grow the world's knowledge!

We want to connect the people who have knowledge to the people who need it, to bring together people with different perspectives so they can understand each other better, and to empower everyone to share their knowledge.

Earn while you learn Join as an expert

Taxchopal Latest Questions

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
CA Vishnu Ram
Enlightened
Asked: In:

  1. Ramesh Sharma Enlightened

    In case of receipt of past salary, salary in advance or receipt of family pension in arrears, tax relief under section 89(1) is allowed. Here’s how you can calculate the tax relief as per below steps – Step 1: First calculate the tax payable on the total income, including additional salary – in theRead more

    In case of receipt of past salary, salary in advance or receipt of family pension in arrears, tax relief under section 89(1) is allowed.

    Here’s how you can calculate the tax relief as per below steps –

    Step 1:
    First calculate the tax payable on the total income, including additional salary – in the year it is received.

    Step 2:
    Now calculate tax payable on the total income, excluding additional salary in the year it is received.  You need to subtract the arrear received from the employer from the total salary received

    Step 3:
    Calculate the difference between Step 1 and Step 2.
    This will give you the additional tax liability arrived due to arrears of income.

    Step 4:
    Now calculate the tax payable on the total income of that year to which the arrears relate, excluding arrears.

    Step 5:
    Calculate tax payable on the total income of that year to which the arrears relate, including arrears

    Step 6:
    Calculate the difference between Step 4 and Step 5.
    This will calculate the actual tax liability in any past year pertaining to which arrears have been received in the current year, had the full arrears received in the same past year.

    Step 7:
    Excess of the amount at Step 3 over Step 6 is the tax relief that shall be allowed. ( Step 3 minus Step 6). If the amount in Step 6 is more than the amount in Step 3, no relief shall be allowed.

    See less
    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    Form 16A is also a TDS Certificate. Form 16A is applicable for TDS on Income Other than Salary while Form 16 is for only salary income. For example, a Form 16A shall be issued to you when the bank deducts TDS on interest credited on fixed deposits or for TDS deducted on insurance commission, or forRead more

    Form 16A is also a TDS Certificate. Form 16A is applicable for TDS on Income Other than Salary while Form 16 is for only salary income.

    For example, a Form 16A shall be issued to you when the bank deducts TDS on interest credited on fixed deposits or for TDS deducted on insurance commission, or for TDS deducted on your rent receipts.

    It means when TDS is deducted on any other income than salary then form 16A is issued.

    Likewise, form 16, form 16A also has details of the name and address of deductor/deductee, PAN/TAN details, challan details of TDS deposited. It also has details of income you have earned and the TDS deducted and deposited on such income.

    All details that are there in Form 16A are available on Form 26AS. This can be used to file your return. However, the same is not in the case of Form 16. Details of Form 16 that are available in Form 26AS are only TDS deducted by the employer.

    See less
    • 0
CA Vishnu Ram
Enlightened
Asked: In:

  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    Capital gain on compulsory acquisition of urban agricultural land is chargeable to tax unless it qualifies for exemption under Section 10(37).This exemption is available only to individuals or HUFs and only when land was used for agricultural purposes for 2 years before acquisition. Explanation in SRead more

    Capital gain on compulsory acquisition of urban agricultural land is chargeable to tax unless it qualifies for exemption under Section 10(37).
    This exemption is available only to individuals or HUFs and only when land was used for agricultural purposes for 2 years before acquisition.

    Explanation in Simple Terms:

    ✅ Urban Agricultural Land = Capital Asset

    • If it is in/near municipality (as per Sec 2(14)), it’s considered capital asset

    • Hence, capital gain is chargeable

    ✅ But Exemption Possible Under Section 10(37) if:

    1. Land was used for agricultural purposes in the 2 years before acquisition (by assessee or their parents)

    2. Assessee is an individual or HUF

    3. Compensation received on or after 1st April 2004

    ❌ If conditions NOT met, capital gains shall be taxable in the year of receipt of compensation (u/s 45(5))

    See less
    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    Yes, the monthly fixed amount you receive from a trust established by your father is subject to taxation under the Income Tax Act, 1961. The tax implications depend on the nature of the trust and its income distribution. Here's a breakdown: 1. Revocable vs. Irrevocable Trusts Revocable Trust: If youRead more

    Yes, the monthly fixed amount you receive from a trust established by your father is subject to taxation under the Income Tax Act, 1961. The tax implications depend on the nature of the trust and its income distribution. Here’s a breakdown:

    1. Revocable vs. Irrevocable Trusts

    • Revocable Trust: If your father retains control over the trust, making it revocable, the income generated is taxable in his hands.

    • Irrevocable Trust: If the trust is irrevocable, meaning your father has relinquished control, the taxation depends on the type of trust:

      • Specific (Determinate) Trust: If the trust deed specifies that you are entitled to a fixed monthly amount, this income is taxable in your hands as “Income from Other Sources.”

      • Discretionary Trust: If the trustee has discretion over income distribution, the trust is taxed at the maximum marginal rate, and the income is taxed in your hands only upon distribution.

    2. Tax Rates and Deductions

    • Tax Rate: The income you receive is taxed according to your applicable income tax slab rate.

    • Deductions: You may be eligible to claim deductions under Sections 80C to 80U, depending on your specific circumstances.

    3. Documentation

    It’s essential to maintain proper documentation, including the trust deed and any income statements, to accurately report this income on your tax return.

    Given the complexities involved in trust taxation, it’s advisable to consult a tax professional to ensure compliance with all applicable tax laws and to optimize your tax planning.

    See less
    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    Under the Income Tax Act of India, losses incurred from the sale of securities and shares can indeed be carried forward to offset future capital gains, subject to specific conditions: 1. Classification of Capital Losses: Short-Term Capital Loss (STCL): Occurs when securities are sold within 12 monthRead more

    Under the Income Tax Act of India, losses incurred from the sale of securities and shares can indeed be carried forward to offset future capital gains, subject to specific conditions:

    1. Classification of Capital Losses:

    • Short-Term Capital Loss (STCL): Occurs when securities are sold within 12 months of acquisition. Such losses can be set off against both short-term and long-term capital gains. If not fully adjusted in the same financial year, they can be carried forward for up to 8 assessment years.

    • Long-Term Capital Loss (LTCL): Arises when securities are sold after 12 months of holding. These losses can only be set off against long-term capital gains. Unadjusted LTCL can also be carried forward for up to 8 assessment years.

    2. Conditions for Carry Forward:

    • Timely Filing of Income Tax Return: To carry forward capital losses, it’s mandatory to file your income tax return within the due date specified under Section 139(1) of the Income Tax Act. Failure to do so disqualifies the taxpayer from carrying forward the losses.

    3. Set-Off Provisions:

    • Short-Term Capital Loss: Can be set off against both short-term and long-term capital gains.

    • Long-Term Capital Loss: Can only be set off against long-term capital gains.

    4. Carry Forward Duration:

    • Both STCL and LTCL can be carried forward for a maximum of 8 assessment years immediately succeeding the year in which the loss was incurred.
    See less
    • 0
CA Sanjiv Kumar
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened
    This answer was edited.

    When it comes to intra-day trading (buying and selling shares on the same day), the Income Tax Act does not treat the profits as capital gains. Instead, such trading is classified as speculative business income. This means the traditional capital gains computation method doesn’t apply. Key Points NoRead more

    When it comes to intra-day trading (buying and selling shares on the same day), the Income Tax Act does not treat the profits as capital gains. Instead, such trading is classified as speculative business income. This means the traditional capital gains computation method doesn’t apply.

    Key Points

    • Not Capital Gains:
      Intra-day transactions are considered speculative because the shares are not actually delivered; they are bought and sold within the same day. Thus, the profits or losses from these transactions are treated as business income.

    • Calculation as Speculative Business Income:
      To compute your net income from intra-day trading, follow these steps:

      1. Calculate Turnover:
        Sum up the sale consideration of all intra-day trades (i.e., the total amount received from selling shares).

      2. Deduct Purchase Cost:
        Subtract the total purchase cost of those trades (i.e., the total amount paid to buy the shares).

      3. Deduct Direct Trading Expenses:
        Also deduct any brokerage fees, transaction charges, and other direct expenses incurred while trading.

      4. Net Speculative Business Income:
        The resulting amount is your net profit (or loss) from intra-day trading, which will be taxed as business income according to your applicable slab rates.

    Example Calculation

    Step Description Calculation
    Turnover Sum of sale prices for all trades e.g., ₹500,000
    Less: Purchase Cost Sum of buying prices for all trades e.g., ₹480,000
    Less: Trading Expenses Total expenses (brokerage, transaction charges, etc.) e.g., ₹10,000
    Net Income Final profit (or loss) from intra-day trading ₹500,000 – ₹480,000 – ₹10,000 = ₹10,000

    Additional Considerations

    • Set-Off & Carry Forward of Losses:
      Losses from speculative transactions can only be set off against speculative income and can be carried forward for one year.

    • Record-Keeping:
      It’s important to maintain detailed records (trade confirmations, brokerage statements, etc.) for each transaction to substantiate your calculations.

    Read: How to calculate capital gain on future and options trading?

    See less
    • 0
Load More Questions

Latest News & Updates

Taxchopal Latest Articles

On: Comments: 0 Views: 16

Startup India Seed Fund Scheme (SISFS) – Get ₹50 Lakh for Your Startup

🟢 Startup India Seed Fund Scheme (SISFS) – Get ₹50 Lakh for Your Startup The Startup India Seed Fund Scheme (SISFS) is a powerful funding program launched by the Government of India to support early-stage startups. If you have an ...

On: Comments: 0 Views: 12

PMEGP Scheme: Get Up to ₹25 Lakhs Subsidy to Start Your Business

🟢 PMEGP Scheme Subsidy for New Business in India – Apply Now & Get ₹25 Lakh The PMEGP scheme subsidy for new business in India is a golden opportunity for entrepreneurs. If you’re planning to start your own business or ...

On: Comments: 0 Views: 11

Impact of Budget 2025 on Taxpayers: Key Changes You Should Know

Impact of Budget 2025 on Taxpayers: Key Changes You Should Know Introduction The Union Budget 2025 has introduced several key tax changes that affect individual taxpayers, businesses, and investors. Whether you’re a salaried employee, self-employed, or an investor, it’s crucial ...

Explore Our Blog