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Taxchopal Latest Questions

Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    The number of bank accounts an individual should open depends on their financial goals, income sources, and spending habits. Here’s a practical approach: 1️⃣ Primary Savings Account (Must-Have) Used for salary credits, savings, and daily transactions. Choose a bank with good digital banking servicesRead more

    The number of bank accounts an individual should open depends on their financial goals, income sources, and spending habits. Here’s a practical approach:

    1️⃣ Primary Savings Account (Must-Have)

    • Used for salary credits, savings, and daily transactions.
    • Choose a bank with good digital banking services and low fees.

    2️⃣ Secondary Savings Accounts (For Budgeting & Goals)

    • Helps separate funds for specific purposes (e.g., travel, emergency fund, investments).
    • Can be in a different bank to avoid overspending.

    3️⃣ Investment accounts (For Wealth Growth)

    • Linked to mutual funds, stock market, or fixed deposits.
    • Recommended if you actively invest.

    4️⃣ Business or Freelance Accounts (If Self-Employed)

    • Keeps personal and business expenses separate.
    • Required for tax filing and accounting.

    5️⃣ Joint Account (If Needed)

    • Useful for couples, aging parents, or dependents.
    • Ensures easy fund access for shared expenses.

    💡 Best Practice:
    ✅ 2-3 accounts are sufficient for most individuals.
    ✅ Avoid multiple accounts unless necessary (to prevent maintenance fees and complexity).

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    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Manish Kumar Gupta Enlightened

    Hi, It's a very interesting question and  I was waiting for it. Lots of companies are appointing a CFO cum Company secretary to save costs. Following provision will help to understand the context of the question: As per section 203, prescribed class of companies shall have the following whole-time kRead more

    Hi,

    It’s a very interesting question and  I was waiting for it. Lots of companies are appointing a CFO cum Company secretary to save costs. Following provision will help to understand the context of the question:

    As per section 203, prescribed class of companies shall have the following whole-time key managerial personnel
    (i) managing director, or Chief Executive Officer or manager and in their absence, a whole-time director;
    (ii) company secretary; and
    (iii) Chief Financial Officer
    Here, the term used is ‘whole-time’ and therefore, three different individuals are required to hold these three key positions.
    Further, as per Regulation 78 of Table F,

    ‘a provision of the Act or these regulations requiring or authorizing a thing to be done by or to a director and chief executive officer, manager, company secretary or chief financial officer shall not be satisfied by its being done by or to the same person acting both as director and as, or in place of, chief executive officer, manager, company secretary or chief financial officer’.

    Hence, with the above provision of the act, it is crystal clear that a CFO can not be appointed as company secretary of the company.

     

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    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Manish Kumar Gupta Enlightened

    1. Understanding Presumptive Taxation Under Section 44AE Section 44AE provides a simplified method of taxation for individuals, HUFs, firms (excluding LLPs), and companies engaged in the business of plying, hiring, or leasing goods carriages, provided they own not more than 10 vehicles at any time dRead more

    1. Understanding Presumptive Taxation Under Section 44AE

    Section 44AE provides a simplified method of taxation for individuals, HUFs, firms (excluding LLPs), and companies engaged in the business of plying, hiring, or leasing goods carriages, provided they own not more than 10 vehicles at any time during the financial year.

    Under this scheme, the taxable income is deemed and is calculated as follows:

    • For Heavy Goods Vehicles (HGV) (More than 12,000 kg Gross Vehicle Weight)

      • ₹1,000 per ton per month or part thereof

    • For Other Vehicles (Light/Medium Goods Vehicles)

      • ₹7,500 per vehicle per month or part thereof

    2. Can Deductions Be Claimed Under Section 44AE?

    🚫 No, deductions under Sections 30 to 38, including depreciation, cannot be separately claimed.

    As per Section 44AE(3):

    “Any deduction under Sections 30 to 38 shall be deemed to have been already given effect to and no further deduction shall be allowed.”

    Thus, no separate deductions for expenses like fuel, driver salary, repair & maintenance, insurance, or depreciation are allowed since these are assumed to be covered in the presumptive income.

    ✅ However, the following deductions are allowed:

    (a) Salary and Interest to Partners (For Partnership Firms)

    • If the assessee is a partnership firm, it can claim deduction for remuneration and interest paid to partners as per Section 40(b), subject to limits.

    (b) Deductions Under Chapter VI-A (E.g., Section 80C, 80D, 80G, etc.)

    Even though business expenses are not allowed, the taxpayer can claim deductions under Chapter VI-A against gross total income. These include:

    • Section 80C – LIC, PPF, ELSS, etc.

    • Section 80D – Health insurance premiums

    • Section 80G – Donations to eligible charities

    • Section 80U – Deduction for disabled individuals

    3. Exception – When Deductions Can Be Claimed

    If the taxpayer declares lower income than prescribed under Section 44AE, he must:

    1. Maintain books of account as per Section 44AA

    2. Get them audited under Section 44AB if total income exceeds the basic exemption limit
      👉 In such cases, actual expenses and deductions can be claimed.

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    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Manish Kumar Gupta Enlightened

    Section 44AA(2) requires certain taxpayers to maintain books of account. However, as per Section 44AE(4): 🔹 A person opting for Section 44AE is NOT required to maintain books of account under Section 44AA if they declare income as per the presumptive scheme. ✅ Example:A transporter owning 6 trucks oRead more

    Section 44AA(2) requires certain taxpayers to maintain books of account. However, as per Section 44AE(4):

    🔹 A person opting for Section 44AE is NOT required to maintain books of account under Section 44AA if they declare income as per the presumptive scheme.

    ✅ Example:
    A transporter owning 6 trucks opts for Section 44AE and declares income as per the prescribed method. In this case, he is not required to maintain books of account.

    Exception – When Books of Accounts are Required

    A person opting out of Section 44AE and declaring a lower income than the presumptive amount must:

    1. Maintain books of account as per Section 44AA.

    2. Get the books audited under Section 44AB, if total income exceeds the basic exemption limit.

    ❌ Example:
    A transporter has 8 trucks but declares an income less than ₹7,500 per truck per month (for light vehicles). Since the income is lower than the presumptive scheme, he must maintain books of account and get an audit done if his total income exceeds ₹2,50,000 (or the applicable exemption limit).

    Conclusion

    ✅ Books of account are NOT required if income is declared as per Section 44AE.
    ❌ Books of account are required if a lower income than prescribed is declared.

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    • 0
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
Vikas
Beginner
Asked: In:

How prequisit are taxed?

  1. CA Manish Kumar Gupta Enlightened

    Perquisites are taxable in the hand of employees to the extent as defined in Sec. 17(2) of the Income Tax Act, 1956. Generally, the taxable value of perquisites in the hands of the employees is its cost to the employer. like if the employer has provided a servent to the employee then the cost of hirRead more

    Perquisites are taxable in the hand of employees to the extent as defined in Sec. 17(2) of the Income Tax Act, 1956.

    Generally, the taxable value of perquisites in the hands of the employees is its cost to the employer.

    like if the employer has provided a servent to the employee then the cost of hiring this servent will be the value of perquisit.

    Althoug specific rules have been laid down in Rule 3 of the I.T for valuation of certain perquisites.

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    • 4
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