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Taxchopal Latest Questions

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
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
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened
    This answer was edited.

    Advance Salary and bonus become taxable in the year of actual receipt on the basis of the tax rates applicable in the year of receipt. However, Assess can claim relief under section 89(1) of the Income Tax Act.

    Advance Salary and bonus become taxable in the year of actual receipt on the basis of the tax rates applicable in the year of receipt. However, Assess can claim relief under section 89(1) of the Income Tax Act.

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    • 3
CA Sanjiv Kumar
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    Leave encashment at the time of service is fully taxable. Leave encashment at the time of retirement is not taxable for Government Employees. Leve encashment received by the legal hair of deceased employee is fully exempted. But for other employees, an exemption is provided u/s 10(10AA)(ii) as per tRead more

    Leave encashment at the time of service is fully taxable.

    Leave encashment at the time of retirement is not taxable for Government Employees. Leve encashment received by the legal hair of deceased employee is fully exempted.

    But for other employees, an exemption is provided u/s 10(10AA)(ii) as per the below method:

    Leave encashment received 200000
    Average salary* of last 10 months 180000
    Salary per day * Balance of earned leave for service span (Maximum 30 days leave per year for every year of completed service is allowed) 250000
    Amount notified by the Government Rs 3,00,000 aggregate. 3,00,000
    Leave encashment Exemption(Lower of above) 180000

    *Salary means basic salary, dearness allowance, and commission based on a fixed percentage of turnover secured by the employee.

    So the taxable amount is Rs 2,00,000-1,80,000=20,000/-

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    • 3
Vikas
Beginner
Asked: In:

  1. Swati Teacher

    Clause (a) of the Proviso to Section 12A (2) clearly specify that if the existing Trusts / Institutions registered under Section 12A or 12 AA of the Act, apply for fresh registration u/s 12 AB of the Act before 30th June 2021, provisions of Section 11 and 12 shall apply to Trust/ Institution from thRead more

    Clause (a) of the Proviso to Section 12A (2) clearly specify that if the existing Trusts / Institutions registered under Section 12A or 12 AA of the Act, apply for fresh registration u/s 12 AB of the Act before 30th June 2021, provisions of Section 11 and 12 shall apply to Trust/ Institution from the assessment year from which they were granted their earlier registration.

    Section 12A (2) further clarifies that if the said time line of 1 st April to 30th June 2021 is not followed, the provisions of Section 11 and 12 shall apply to Trust/ Institution from the 1 st day of the financial year in which such application is made.

    In short, within time application for fresh registration u/s 12 AB will register the Trust from the date on which it was originally registered u/s 12 A or Sec 12 AA. If the application for registration u/s 12 AB is made late that is after 30/06/2021, the registration u/s 12 AB will be granted for F Y 2021/22 and onwards.

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    • 3
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