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Who is assesse as per Income Tax Act?
An assessee is a person who is liable to pay any tax or any sum of the amount payable or has any obligation to pay tax as per Section 2(7) of the Income Tax Act,1961. It includes: In simple words, if you have any liability to pay income tax, then you are an assessee. Following are the types of the aRead more
An assessee is a person who is liable to pay any tax or any sum of the amount payable or has any obligation to pay tax as per Section 2(7) of the Income Tax Act,1961.
It includes:
In simple words, if you have any liability to pay income tax, then you are an assessee.
Following are the types of the assessee:
- Normal Assess: An individual who pays tax for the total income earned during a financial year.
- Representative Assess: A person who is responsible to pay tax for the total income/loss caused by a third party.
- Deemed Assess: A representative of legal authorities. Like Accounts officer of Electricity office
See lessWhat are the Incomes Head for reporting in IT act?
Section 14 of the Income Tax Act classifies all incomes under the following heads: Income from Salary Income from House Property Income from Business & Profession Income from Capital Gain Income from Other Source
Section 14 of the Income Tax Act classifies all incomes under the following heads:
- Income from Salary
- Income from House Property
- Income from Business & Profession
- Income from Capital Gain
- Income from Other Source
See lessHow prequisit are taxed?
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.
See lessWhat is the prequisit as per Income Tax Act?
“Perquisite” is the casual emolument or benefit provided to the employee in addition to salary or wages.“Perquisite” is defined in section 17(2) of the Income Tax Act as including: (i) House without Rent or at concessional rent. (ii) Interest-Free Loan (iii) Facility of sweeper, gardener, personal aRead more
“Perquisite” is the casual emolument or benefit provided to the employee in addition to salary or wages.“Perquisite” is defined in section 17(2) of the Income Tax Act as including:
(i) House without Rent or at concessional rent.
(ii) Interest-Free Loan
(iii) Facility of sweeper, gardener, personal attendant
(iv) Car or other Automative Conveyance
(v) Amount paid by the employer in respect of an obligation which was actually payable by the assessee.
(vi) Value of any benefit/amenity granted free or at concessional rate to specified employees etc.
(vii) The value of any specified security or sweat equity shares allotted or transferred, directly or indirectly, by the employer, or former employer, free of cost or at concessional rate to the assessee.
(viii) The amount of any contribution to an approved superannuation fund by the employer in respect of the assessee, to the extent it exceeds one lakh Fifty Thousand rupees; and
(ix) the value of any other fringe benefit or amenity as may be prescribed.
See lessWho is a person as per Income Tax Act?
Definition of “Person” as per section 2(31) of Income Tax Act,1961 “person" includes— (i) an individual, (ii) a Hindu undivided family, (iii) a company, (iv) a firm, (v) an association of persons or a body of individuals, whether incorporated or not, (vi) a local authority, and (vii) every artificiaRead more
Definition of “Person” as per section 2(31) of Income Tax Act,1961 “person” includes—
(i) an individual,
(ii) a Hindu undivided family,
(iii) a company,
(iv) a firm,
(v) an association of persons or a body of individuals, whether incorporated or not,
(vi) a local authority, and
(vii) every artificial juridical person, not falling within any of the preceding sub-clauses.
The word “person” is a very broad term that in itself includes the following:
1. Individual – It refers to a natural human being whether male or female, minor or major.
Example – Mr. Manish Gupta
2. Hindu Undivided Family- Under Hindu Law, an HUF is a family which consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters. An HUF cannot be created under a contract, it is created automatically in a Hindu Family. The manager of HUF is called “Karta” and its members are called ‘Coparceners’.
Example – Mantri parivar with Mr. Vikas, his wife, his brother and his brother’s wife
3. Company. Company means-
(i) any Indian company registered under Indian Companies Act 1956
(ii) any body corporate incorporated by or under the laws of a country outside India, or
(iii) any institution, association or body which is or was assessable or was assessed as a company for any assessment year under the Indian Income-tax Act, 1922 (11 of 1922) or which is or was assessable or was assessed under this Act as a company for any assessment year commencing on or before the 1st day of April, 1970, or
(iv) any institution, association or body, whether incorporated or not and whether Indian or non-Indian, which is declared by general or special order of the Board to be a company:
Provided that such institution, association or body shall be deemed to be a company only for such assessment year or assessment years (whether commencing before the 1st day of April, 1971 or on or after that date) as may be specified in the declaration;
Example – Tata Motors Ltd.
4. Firm – Section 2(23)(i) of the Income-tax Act, 1961 takes the meaning of the “firm ” from Indian Partnership Act, 1932. Section 4 of the Indian Partnership Act, 1932 defines firm as under:
“Persons who have entered into partnership with one another are called individually “partners” and collectively “a firm”, and the name under which their business is carried on is called the “firm name”.
The firm shall include a limited liability partnership as defined in the Limited Liability Partnership Act, 2008. Section 2(1)(n) of the Limited Liability Partnership Act, 2008 defines “limited liability partnership” as a partnership formed and registered under the Act.
Example – Mantri & Company. (CA firm)
5. Association of Persons (AOP) or Body of Individuals (BOI)- AOP or BOI shall be deemed to be a person, whether or not, they were formed or established or incorporated with the object of deriving income, profits or gains.
When persons combine together to carry on a joint enterprise and they do not constitute partnership under the ambit of law, they are assessable as an association of persons. There must be common purpose, and common action to achieve common purpose i.e. to earn income.
An AOP can have firms, companies, associations and individuals as its members.
A body of individuals (BOl) cannot have non-individuals as its members. Only natural human beings can be members of a body of individuals.
Whether a particular group is AOP. or BOl. is a question of fact to be decided in each case separately.
Example – Goregaon Sports Club (BOI)
Example – Markfed (AOP)
6. Local Authority. Municipality, Panchayat, Cantonment Board, Port Trust etc. are called local authorities.
Example – A Village Panchyat.
7. Artificial Juridical Person. A public corporation established under special Act of legislature and a body having juristic personality of its own are known to be Artificial Juridical Persons. Universities are an important example of this category.
See lessExample – Rajasthan University
What are CGST, SGST and IGST?
Hiring a career coach is similar to buying food : if you want to play the price game, don’t expect top-notch quality. If you decide to engage in a coaching relation, you need to be comfortable with spending enough for the advice to be actually valuable. You have no way of knowing beforehand whetherRead more
Hiring a career coach is similar to buying food : if you want to play the price game, don’t expect top-notch quality. If you decide to engage in a coaching relation, you need to be comfortable with spending enough for the advice to be actually valuable.
You have no way of knowing beforehand whether or not it will be beneficial for you. It’s similar to seeing a psychologist : for some people, it makes wonders, for some people, it doesn’t do much. However, career coaches are professionals, and if you cannot solve an orientation problem yourself, they are the best suited people to help you.
You will only know how beneficial it was when you will have a new job. If you are happier, it was beneficial, otherwise, it probably wasn’t.
See lessWhat are the differences between the UPA’s GST and the NDA’s GST?
To expand a bit on my comment on @KateGregory’s answer, the problem you face with using your own computer is “who owns what?”. How is a line drawn between things that you do on that computer for the company vs. for yourself? If you work on other projects off the clock, can the company make any claimRead more
To expand a bit on my comment on @KateGregory’s answer, the problem you face with using your own computer is “who owns what?”. How is a line drawn between things that you do on that computer for the company vs. for yourself? If you work on other projects off the clock, can the company make any claim to those? Does the computer have to comply with all corporate standards & policies, including antivirus, web filtering, remote scanning for unapproved software, etc.? Who owns the software you’re using? Who’s responsible for the licensing?
You are going to have to wait a couple weeks before you can make any kind of pitch to get a usable computer. Otherwise, you come across as the new guy who wants everything “just so”, and that will not earn you any points.
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