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Taxchopal Latest Questions

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Beginner
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  1. Ramesh Sharma Enlightened

    If any deficiencies are noticed in the existing TDS Return such as incorrect PAN, incorrect challan details,  the revised TDS return should file. To file a revised TDS return there is no time limit. Interest will be levied if there is any TDS liability arising on the filing of the revised return. ThRead more

    If any deficiencies are noticed in the existing TDS Return such as incorrect PAN, incorrect challan details,  the revised TDS return should file.

    To file a revised TDS return there is no time limit. Interest will be levied if there is any TDS liability arising on the filing of the revised return. The penalty is also levied if it is filed for other reasons.

    The following are the various types of corrections that can be made to an accepted TDS Return:-

    1. Update deductor details such as Name, Address of Deductor. This type of correction is known as C1.
    2. Update challan details such as Challan Serial No., BSR Code, Challan Tender Date, Challan amounts, etc. This type of correction is known as C2.
    3. Update/delete /add deductee details. This type of correction is known as C3.
    4. Add/delete salary detail records. This type of correction is known as C4.
    5. Update PAN of the deductee or employee in deductee/salary details. This type of correction is known as C5.
    6. Add a new challan and underlying deductees. This type of correction is known as C9.

    TDS Revised Return statement can only be filed if the original return has been accepted by the Tin Central System. You can check the status of the regular statement on the TIN website by entering the TAN No. and Provisional Receipt No./ Token No. on https://onlineservices.tin.nsdl.com/TIN/JSP/tds/linktoUnAuthorizedInput.jsp

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CA Vishnu Ram
Enlightened
Asked: In:

  1. Advocate Dr Amit Dua Explainer

    HUF means Hindu Undivided Family. You can save taxes by creating a family unit and pooling in assets to form a HUF. HUF is taxed separately from its members.   Mainly A Hindu family can come together and form a HUF. And Buddhists, Jains, and Sikhs can also form a HUF. And also HUF has its own PRead more

    HUF means Hindu Undivided Family. You can save taxes by creating a family unit and pooling in assets to form a HUF. HUF is taxed separately from its members.

     

    Mainly

    A Hindu family can come together and form a HUF. And Buddhists, Jains, and Sikhs can also form a HUF.

    And also HUF has its own PAN and files tax returns independent of its members.

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CA Vishnu Ram
Enlightened
Asked: In:

  1. Advocate Dr Amit Dua Explainer
    This answer was edited.

    TDS @ 2% on cash withdrawal u/s 194N of the Act is applicable starting 1st September 2019, or FY 2019-2020. TDS will be deducted at a rate of 2% on cash withdrawals in excess of ₹ 1 crore if the person withdrawing the cash has filed income tax return for any or all three previous AYs. TDS will be deRead more

    TDS @ 2% on cash withdrawal u/s 194N of the Act is applicable starting 1st September 2019, or FY 2019-2020.

    TDS will be deducted at a rate of 2% on cash withdrawals in excess of ₹ 1 crore if the person withdrawing the cash has filed income tax return for any or all three previous AYs.
    TDS will be deducted at 2% on cash withdrawals of more than ₹ 20 lakh and 5% for withdrawals exceeding ₹ 1 crore if the person withdrawing the cash has not filed ITR for any of the preceding three AYs.

     

    Whereas,

    TDS on cash withdrawal u/s 194N will not apply to withdrawals made by the following persons:

    • Central or state government
    • Private or public sector bank
    • Any cooperative bank
    • Post office
    • Business correspondent of any bank
    • White label ATM operator of any bank
    • Central government specified commission agents or traders operating under Agriculture Produce Market Committee (APMC) for making payment to the farmers on account of purchase of agriculture produce
    • Authorized dealers and its franchise agent and sub-agent and Full-Fledged Money Changer (FFMC) licensed by RBI and its franchise agents
    • Any other person notified by the Government in consultation with RBI.

     

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CA Vishnu Ram
Enlightened
Asked: In:

  1. Advocate Dr Amit Dua Explainer

    If a person receives any sum in contravention of the provisions of section 269ST, he will be liable to pay a penalty of a sum equal to the amount of such receipt under Section 271DA. However if a person proves that there were good and sufficient reasons for the contravention, no penalty will be impoRead more

    If a person receives any sum in contravention of the provisions of section 269ST, he will be liable to pay a penalty of a sum equal to the amount of such receipt under Section 271DA.

    However if a person proves that there were good and sufficient reasons for the contravention, no penalty will be imposed.

     

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    • 1
CA Vishnu Ram
Enlightened
Asked: In:

  1. Advocate Dr Amit Dua Explainer

    In order to put check on use of cash in high value transactions, the government has put a blanket ban on acceptance of cash beyond 2 lakhs by any person under Section 269ST. It is for each occasion like marriage, birthday party etc. or for each transaction like sale of gold, immovable property, holiRead more

    In order to put check on use of cash in high value transactions, the government has put a blanket ban on acceptance of cash beyond 2 lakhs by any person under Section 269ST. It is for each occasion like marriage, birthday party etc. or for each transaction like sale of gold, immovable property, holiday package, renovation/furnishing of property etc. for which this restriction will apply. It may happen that the payer does not claim tax deduction for it but the restriction on recipient will still apply.

    Unlike business expenditure, here the restriction is all pervasive for the whole transaction as a whole and not necessarily for payment made in a single day. For example, a caterer cannot accept two lakhs or more in aggregate for marriage reception form a single payer, whether on a single day or spread over several days. Law, generally, does not have any restrictions for payment of cash for transaction of purchase/sale of jewellery or immovable property etc. but if the value of a single transaction exceeds two lakhs, then seller is prohibited from accepting any cash beyond two lakhs for such transactions.

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CA Vishnu Ram
Enlightened
Asked: In:

  1. Advocate Dr Amit Dua Explainer

      STT is a kind of financial transaction tax which is similar to tax collected at source (TCS). STT is a direct tax levied on every purchase and sale of securities that are listed on the recognized stock exchanges in India. STT is governed by Securities Transaction Tax Act (STT Act) and STT ActRead more

     

    STT is a kind of financial transaction tax which is similar to tax collected at source (TCS). STT is a direct tax levied on every purchase and sale of securities that are listed on the recognized stock exchanges in India. STT is governed by Securities Transaction Tax Act (STT Act) and STT Act has specifically listed down various taxable securities transaction i.e., transaction on which STT is leviable.

    Taxable securities include equity, derivatives, unit of equity oriented mutual fund. It also includes unlisted shares sold under an offer for sale to the public included in IPO and where such shares are subsequently listed in stock exchanges. STT is an amount to be paid over and above transaction value and hence, increases transaction value.

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CA Vishnu Ram
Enlightened
Asked: In:

  1. Advocate Dr Amit Dua Explainer

    ​​​​​​TONNAGE TAX​ In case of a company, the income from the business of operating qualifying ships, may, at its option, be computed in accordance with the provisions of Chapter XII-G. Thus, tonnage taxation is a scheme of presumptive taxation wherein notional income arising from operation of shipsRead more

    ​​​​​​TONNAGE TAX​

    • In case of a company, the income from the business of operating qualifying ships, may, at its option, be computed in accordance with the provisions of Chapter XII-G.
    • Thus, tonnage taxation is a scheme of presumptive taxation wherein notional income arising from operation of ships is determined on basis of tonnage of ships.

    Special provisions relating to income of shipping companies

    • Section – 115V : Definitions.
    • Section – 115VA : Computation of profits and gains from the business of operating qualifying ships.
    • Section – 115VB : Operating ships.
    • Section – 115VC : Qualifying company.
    • Section – 115VD : Qualifying ship.
    • Section – 115VE : Manner of computation of income under tonnage tax scheme
    • Section – 115VF : Tonnage income.
    • Section – 115VG : Computation of tonnage income.
    • Section – 115VH : Calculation in case of joint operation, etc.
    • Section – 115V-I : Relevant shipping income.
    • Section – 115VJ : Treatment of common costs.
    • Section – 115VK : Depreciation.
    • Section – 115VL : General exclusion of deduction and set off, etc.
    • Section – 115VM : Exclusion of loss.
    • Section – 115VN : Chargeable gains from transfer of tonnage tax assets.
    • Section – 115V-O : Exclusion from provisions of section 115JB.
    • Section – 115VP : Method and time of opting for tonnage tax scheme.
    • Section – 115VQ : Period for which tonnage tax option to remain in force.
    • Section – 115VR : Renewal of tonnage tax scheme.
    • Section – 115VS : Prohibition to opt for tonnage tax scheme in certain cases.
    • Section – 115VT : Transfer of profits to Tonnage Tax Reserve Account.
    • Section – 115VU : Minimum training requirement for tonnage tax company.
    • Section – 115VV : Limit for charter in of tonnage
    • Section – 115VW : Maintenance and audit of accounts.
    • Section – 115VX : Determination of tonnage.
    • Section – 115VY : Amalgamation.
    • Section – 115VZ : Demerger.
    • Section – 115VZA : Effect of temporarily ceasing to operate qualifying ships.
    • Section – 115VZB : Avoidance of tax.
    • Section – 115VZC : Exclusion from tonnage tax scheme.
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CA Sanjiv Kumar
Enlightened
Asked: In:

  1. Advocate Dr Amit Dua Explainer

    Where 85% of the income is not applied for charitable purposes, the NGO is required to accumulate or set apart such income for future application. The incomes so accumulated will not be included in the total income of the NGO if the following conditions are applied: Such trust or institution furnishRead more

    Where 85% of the income is not applied for charitable purposes, the NGO is required to accumulate or set apart such income for future application. The incomes so accumulated will not be included in the total income of the NGO if the following conditions are applied:

    • Such trust or institution furnishes Form No. 10 – notice of accumulation of income by charitable trust or institution electronically to assessing officer, on or before the due date for filing the return of income.
    • Mention the purpose for which income is being accumulated or set aside.
    • Income shall not be accumulated for more than 5 years and years in which income accumulated or set aside due to order or injunction of any court to be excluded in computing 5 years.
    • Money so accumulated or set aside is invested or deposited in specified mode as mentioned under section 11(5).

    Above such option is to be exercised in form 10 to be furnished electronically to the assessing officer with or without digital signature by the trust on or before due date of filing the return.

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CA Sanjiv Kumar
Enlightened
Asked: In:

  1. Advocate Dr Amit Dua Explainer

      Category of income Income subject to tax Taxability Donations/voluntary contributions Voluntary contributions with a specific direction to form part of corpus of trust or institution Exempt* Voluntary contribution without such specific direction Forms part of income from property held under tRead more

     

    Category of income Income subject to tax Taxability
    Donations/voluntary contributions Voluntary contributions with a specific direction to form part of corpus of trust or institution Exempt*
    Voluntary contribution without such specific direction Forms part of income from property held under trust
    Anonymous donations i.e., donations where donee does not maintain record of identity/any particulars of the donor Donation exceeding higher of:
    i) 5% of total donations received by trust or
    ii) Rs 1,00,000    		 Taxed at  30%
    Anonymous donation received by trust established wholly for religious and charitable purpose on Taxable in the same manner  as voluntary contributions (without specific direction) as above
    Income from property held under trust for charitable or religious purpose Income applied for charitable or religious purpose in India Exempt*
    Income accumulated or set aside for the application towards charitable or religious purpose in India Exempt* to the extent of 15% of such income. This means at-least 85% of income from property to be applied for charitable and religious purpose in India as above and balance 15% can be accumulated or set aside. [See below comment on 85%]
    Income from property held under trust created for charitable purpose which tends to promote international welfare in which India is interested CBDT either by general or special order has directed that such income shall not be included in the total income of trust Exempt*
    Capital gain from asset held under trust in whole Net consideration is utilised fully for acquiring another capital asset Entire capital gain is deemed to have been applied for charitable and religious purpose and hence is exempt*
    Net consideration is utilised partially for acquiring another capital asset Capital gain utilised in excess of cost of old asset transferred is considered to have been applied for charitable and religious purpose and is exempt*

    *Only Charitable/ religious trust or institution registered under Section 12AA enjoys the exemption

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CA Sanjiv Kumar
Enlightened
Asked: In:

  1. Advocate Dr Amit Dua Explainer

    To obtain registration under Section 12A, an application in Form 10A for registration of a charitable or religious trust or institution can be made. The application should compulsorily be made in the online mode. The application shall be addressed to the Commissioner of Income Tax along with the necRead more

    To obtain registration under Section 12A, an application in Form 10A for registration of a charitable or religious trust or institution can be made. The application should compulsorily be made in the online mode. The application shall be addressed to the Commissioner of Income Tax along with the necessary documents.

     

     

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