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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 ...
What is the last date to revise TDS return?
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:-
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
See lesswhat is GST?
GST (Goods and Services Tax) is an Indirect tax and applied on the sale of goods and services. Earlier, there were lots of other Indirect taxes such as VAT, service tax, purchase tax, excise duty, etc, GST replaced all of these taxes. GST is applicable all over India and has similar rate of taxes (5Read more
GST (Goods and Services Tax) is an Indirect tax and applied on the sale of goods and services. Earlier, there were lots of other Indirect taxes such as VAT, service tax, purchase tax, excise duty, etc, GST replaced all of these taxes.
GST is applicable all over India and has similar rate of taxes (5%, 12% , 18% , & 28%.) on all services and products all over India. it is a multi-stage tax system that aims to curb the cascading effect of other Indirect taxes.
See lessCan we claim GST input of office expenses?
Businesses often use the same assets and inputs for both business & personal use. For example, Ms. Anita owns a grocery shop. She rents a 2-storey building and uses the ground floor for her shop and 1st floor of the same building as residence. The input credit of GST paid on rent will be allowedRead more
Businesses often use the same assets and inputs for both business & personal use. For example, Ms. Anita owns a grocery shop. She rents a 2-storey building and uses the ground floor for her shop and 1st floor of the same building as residence. The input credit of GST paid on rent will be allowed only to the extent it pertains to her business. Ms. Anita also has an attached land where she grows vegetables and sells them in her shop. The same property or common property is used for 3 separate reasons- taxable sales, exempted sales (vegetable) and personal expenses (residence). While Ms Anita is eligible to claim input credit for GST paid by her on her business expenses, some of the expenses are used for both business and nonbusiness purposes. The GST in rent (GST is applicable since it is let out for commercial purposes) is the common credit.
See lessThe status of my proprietorship has change in to partnership, can I use same GST number for the same?
There is no specific provision under the Goods and Services Tax (GST) Act on how to convert a proprietorship into a partnership. There are various mentions in the Act on converting a proprietorship into partnership firm: Step 1: Obtaining GST registration for partnership. Step 2: Transfer ofRead more
There is no specific provision under the Goods and Services Tax (GST) Act on how to convert a proprietorship into a partnership.
There are various mentions in the Act on converting a proprietorship into partnership firm:
Step 1: Obtaining GST registration for partnership.
Step 2: Transfer of unutilised Input Tax Credit (ITC) to partnership firm,
and Finally in Step 3: Cancellation of proprietorship GST registration.
See lessWhat Is Farmers Producers Organization (FPO)?
FPO is an organization where the members are farmers. Farmers Producers Organization provides end-to-end support and services to the small farmers and covers technical services, marketing, processing, and others aspects of agriculture inputs. The object behind the Farmer Producer Organizations (FPO)Read more
FPO is an organization where the members are farmers. Farmers Producers Organization provides end-to-end support and services to the small farmers and covers technical services, marketing, processing, and others aspects of agriculture inputs.
The object behind the Farmer Producer Organizations (FPO) is that the “Farmers, who are the producers of their agriculture products, can form the groups and can register themselves under the Indian Companies Act
The Small Farmers Agribusiness Consortium (SFAC) supports the State Government to form the Farmer Producer Organizations (FPOs). The goal is to enhance the farmers’ competitiveness. The major operations of the Farmers Producer Organization (FPO) include the supply of seed, machinery, market linkages & fertilizer, training, networking, financial and technical advice. Â
The Farmer Producer Organization ensures a better income for the producers through an organization of their own and to increase their advantage in emerging market opportunities. 
Small producers do not have the volume individually to get the benefit of economies of scale. Also in agricultural marketing, the chain of intermediaries take the advantage of small farmers by buying their products at lower rates. By FPO they will be eliminated. Farmers Producers can get the advantage of better bargaining power by bulk production and supplies.
See lessWhat are the conditions of section 40b for getting deduction of remuneration in a firm?
Section 40b determines the maximum amount of remuneration and interest on capital payable to a partner under Income Tax Act. The amount over the specified limit is not allowed as a deduction to a partnership firm. Remuneration To Partners Remuneration includes salary, bonus, commission .RemunerationRead more
Section 40b determines the maximum amount of remuneration and interest on capital payable to a partner under Income Tax Act. The amount over the specified limit is not allowed as a deduction to a partnership firm.
Remuneration To Partners
Remuneration includes salary, bonus, commission .Remuneration in partnership firm is allowed as a deduction if following conditions are satisfied
- Remuneration is allowed only to working partners.
- Remuneration must be authorised by partnership deed and according to the terms of partnership deed. Also the amount of salary or manner of its computation is to be mentioned in the deed. If there is not any such provision in deed then no deduction is allowed. Normally people mentions in deed that salary is allowed to partners as per maximum limit defined under this section. This clause satisfies the condition for quantum of deduction.
- It should be related to the period of the partnership deed. If there is another partnership deed for another period then such deed’s provisions will be considered for that period.
- It is not allowed if tax is paid on presumptive basis under section 44AD or section 44ADA.
- Remuneration should be within the permissible limits as mentioned below. Please note that this limit is for total salary to all partners and not per partner.
See lessWhat is going concern?
Going concern concept is one of the accounting principles that states that a business entity will continue running its operations in the foreseeable future and will not be liquidated or forced to discontinue operations for any reason. In other words, a going concern is expected to have the followingRead more
Going concern concept is one of the accounting principles that states that a business entity will continue running its operations in the foreseeable future and will not be liquidated or forced to discontinue operations for any reason.
In other words, a going concern is expected to have the following things working in their favour:
Importance of Going Concern Concept in Accounting
Going concern concept is very important for the generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). The concept of going concern plays a significant role in the way assets are treated.
The concept of depreciation and amortization are based on the assumption that a business will continue to perform its operations in the near future (this period is the next 12 months after an accounting period).
Advantages of Going Concern Concept
Following are some of the advantages of the going concern concept
1.Companies during the formation years will be purchasing fixed assets that will be requiring expenditure upfront, but such assets will be providing the benefits spread over a long term, that is well beyond one accounting period. Therefore, the going concern concept provides a way to record the value of such assets.
2. It is the basis on which the profits and losses of the business are recorded for the year to which it belongs.
Disadvantages of Going Concern Concept
Listed below are some of the disadvantages of the going concern concept:
1. Financial statements are prepared at cost and not on the basis of current market value. In such a case, if the company in an event of liquidation, will have assets valued at the market value, and as such these values will be different from the value determined at cost.
2. In the event of business being liquidated, the financial statements will be calculated on the on going concern basis, which can be misleading for the stakeholders.
See less