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Taxchopal Latest Questions

Ramesh Sharma
Enlightened
Asked: In:

  1. CA Manish Kumar Gupta Enlightened

    Hi, As per Section 2(76) read with Rule 3 of the Companies (Specification of definitions, details) Rules, 2014 of the Act, Related party with reference to a company means: 1. A director or key managerial personnel or relative thereof; 2. A firm, in which a director, manager, or his relative is a parRead more

    Hi,

    As per Section 2(76) read with Rule 3 of the Companies (Specification of definitions, details) Rules, 2014 of the Act, Related party with reference to a company means:

    1. A director or key managerial personnel or relative thereof;

    2. A firm, in which a director, manager, or his relative is a partner;

    3. A private company in which a director or manager or his relative is a member or director;

    4. A public company in which a director or manager is a director AND holds along with his relatives, more than two percent of its paid-up share capital;

    5. Any Body Corporate whose Board of Directors, managing director, or manager is accustomed to act in accordance with the advice, directions or instructions of a director or manager.

    (b) Any person on whose advice, directions, or instructions a director or manager is accustomed to act.
    Note: nothing contained in clauses (a) and (b)  shall apply to the advice, directions or instructions given in a professional capacity.

    6. Holding, subsidiary, or an associate company of such a company.

    7. Subsidiary of a holding company to which it is also a subsidiary.

    8. Investing company or the venturer of the company.

    Explanation—” investing company or the venturer of a company” means a body corporate whose investment in the company would result in the company becoming an associate company of the body corporate

    Note: Term relative in relation to a person means and includes Father, Mother, Son, Son’s wife, Daughter, Daughter’s husband, Brother, Sister, members of a HUF, Husband and wife

    Thanks

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    • 0
CA Sanjiv Kumar
Enlightened
Asked: In:

  1. Advocate Dr Amit Dua Explainer

    All audits on behalf of the Comptroller and Auditor General are required to be conducted as per the auditing standards. In other words, auditing standards shall apply to all types of audit including financial audit, compliance audit and performance audit. In conjunction with obtaining an understandiRead more

    All audits on behalf of the Comptroller and Auditor General are required to be
    conducted as per the auditing standards. In other words, auditing standards shall apply to all types of audit including financial audit, compliance audit and performance audit.

    In conjunction with obtaining an understanding of internal control over financial reporting, the auditor should obtain an understanding of the company’s process for:

    1. Identifying related parties and relationships and transactions with related parties;
    2. Authorizing and approving transactions with related parties; and
    3. Accounting for and disclosing relationships and transactions with related parties in the financial statements.
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    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    When Can a Revised Return Be Filed Under the Income Tax Act? A Revised Return is a corrected version of the originally filed Income Tax Return (ITR). If a taxpayer discovers any mistake, omission, or wrong statement in the original return, they can file a revised return under Section 139(5) of the IRead more

    When Can a Revised Return Be Filed Under the Income Tax Act?

    A Revised Return is a corrected version of the originally filed Income Tax Return (ITR). If a taxpayer discovers any mistake, omission, or wrong statement in the original return, they can file a revised return under Section 139(5) of the Income Tax Act.

    📌 Conditions for Filing a Revised Return

    1️⃣ Errors in the Original Return:

    • Incorrect income details or deductions claimed.
    • Omission of income that should have been reported.
    • Wrong tax computation or TDS mismatch.

    2️⃣ Updated Information:

    • If new information becomes available after filing.

    3️⃣ Defective Return Correction:

    • If a return is marked defective under Section 139(9) and needs rectification.

    4️⃣ Change in Tax Regime or Filing Status:

    • If a taxpayer wishes to switch between Old and New Tax Regimes.

    📅 Time Limit for Filing a Revised Return

    A revised return must be filed before the earlier of:
    ✅ December 31 of the assessment year (for FY 2023-24, the last date is 31st December 2024).
    ✅ Completion of assessment by the Income Tax Department.

    Example: If you filed your original return for FY 2023-24 on 30th July 2024, you can revise it until 31st December 2024, unless the tax department completes your assessment earlier.

    🚀 How to File a Revised Return?

    1️⃣ Log in to the Income Tax e-Filing Portal.
    2️⃣ Select ‘File Income Tax Return’ and choose the correct Assessment Year.
    3️⃣ Choose ‘Revised Return’ under Section 139(5).
    4️⃣ Enter the acknowledgment number of the original return.
    5️⃣ Make the required corrections and submit the revised return.

    ⚠️ Important Points to Remember

    • A return can be revised multiple times within the due date.
    • Filing a revised return does not attract penalties, but if income was underreported in the original return, interest or penalties may apply.
    • The revised return replaces the original return, so ensure all details are correctly updated.

    If you’ve made a mistake in your ITR, file a revised return as soon as possible to avoid any tax complications. 🚀

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    • 0
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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    • 1
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
CA Vishnu Ram
Enlightened
Asked: In:

  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    As per the Payment of Gratuity Act, Payment of gratuity is allowed only in the following situations: 1.When an employee has completed at least five years in continuous service with that employee and -Resign from the service - On superannuation (means an employee who attains the age of retirement is Read more

    As per the Payment of Gratuity Act, Payment of gratuity is allowed only in the following situations:

    1.When an employee has completed at least five years in continuous service with that employee and

    -Resign from the service

    – On superannuation (means an employee who attains the age of retirement is               said to be in superannuation)

    – At the time of retirement

    2. On death or disablement due to accident or disease (the time limit of 5 years shall not apply in the case of death or disablement of the employee)

    Note: in the following condition if an employee works less than five continuous years then also he will be eligible to get the gratuity.

    (i). If the person has worked for 190 days continuously since the end of the 4th year of his employment. This is applicable in the case of those who are working in underground mines or working with such organizations which work for less than 6 days a week.

    (ii) In the case of employees working with other organizations, this period is 240 days.

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    • 3
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    When determining a company's obligation for Corporate Social Responsibility (CSR) under Section 135(5) of the Companies Act, 2013, the “average net profit” is generally calculated on the basis of net profit before tax. Key Points: Accepted Practice:Although the statute does not explicitly state “befRead more

    When determining a company’s obligation for Corporate Social Responsibility (CSR) under Section 135(5) of the Companies Act, 2013, the “average net profit” is generally calculated on the basis of net profit before tax.

    Key Points:

    • Accepted Practice:
      Although the statute does not explicitly state “before tax” or “after tax,” the common interpretation—and the practice followed by most companies—is to use net profit before tax. This approach is supported by guidelines issued by the Ministry of Corporate Affairs.

    • Rationale:
      Using net profit before tax provides a more consistent measure of a company’s performance because it is not affected by variations in tax rates or tax planning strategies. This ensures that the CSR obligation is based on the company’s true operating performance.

    • Implication for CSR:
      The average net profit calculated over the preceding three financial years (using the before-tax figures) is compared against the prescribed threshold to determine if a company is required to spend on CSR activities.

    Conclusion:

    For CSR compliance under Section 135(5), companies use net profit before tax as the basis for calculating the average net profit. This is the prevailing interpretation and practice to ensure consistency and transparency in assessing CSR obligations.

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    • 0
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