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How to deal with the 20% restriction on availment of Input Tax Credit

The recent notification followed by a circular issued on 11 November 2019 states regarding restriction on availment of ITC. The ITC in respect of invoices or debit notes, the details of which have not been provided for by the supplier has been restricted. This is not an automatic restriction by the portal and has to be exercised by the taxpayer himself on basis the reconciliation. What’s the restriction? The taxpayers claiming ITC on the basis of the invoices, are now required to ascertain if the corresponding details are uploaded by the [...]

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Reduce taxes on salary

How to reduce taxes on salary

Introduction The salaried employees are always in a frenzy about taxes and plans out ways to save it. The allowances and perquisites received by a salaried person is either fully taxable or partly taxable or exempt. The article below illustrates different ways in which salaried class can save their taxes. 1. Standard Deduction Standard Deduction, re-introduced in 2018 budget, has replaced the conveyance allowance and medical allowance. A deduction of flat Rs. 40,000 (for FY 2018-19)/50,000 (for FY 2019-20) can be claimed by the employee from the [...]

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Doctors required to register under GST?

Are doctors required to register under GST?

The health care sector is one of the biggest sectors in India, is regulated by the Indian Medical Association (IMA). Doctors, apart from engaging themselves in healthcare services by working as doctors and consultants in hospitals, or running their own clinic etc. can do a lot of other activities. For instance, they can set up camps in rural areas, and sometimes are also involved in any nonmedical activities like education etc. So, whether doctors aren’t required to register under [...]

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Changes in ITR-1 form for FY 18-19

Recently Income Tax Department came with the changes in Form 16 issued by employer along with changes in TDS return filed in form 24Q and Income Tax Form to be filed by employees. This year steps have been taken by Income Tax Department in order to reconcile following forms: Form 16 : Certificate from the employer that has details of salary paid to an employee and tax deducted at source (TDS).Form 24Q : Returns filed by the employer for the tax deducted.ITR-1 : To [...]

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What is Form 16?

Form 16 is a certificate from the employer that has details of salary paid to an employee and tax deducted at source (TDS) from his or her salary for the financial year. It has to be issued by the Employer to the Employee under Section 203 of the Income-tax Act, 1961. It has two sections—part A and B. CBDT (Central Board of Direct Taxes) have notified new format of “Form 16 – The Salary TDS Certificate” requiring detailed breakup of [...]

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Which ITR Form to use for Assessment year 2019-20

CBDT has already released new ITR Forms. One can file the ITR now. While, Individuals are due to file their ITR by 31st July. Corporate entities are to file by 30th September. The big question is which form should one use according to their status, income level, sources of income etc. Here, we discuss about all the forms to let taxpayers use the correct form to file. These ITR Forms are related for assessment year 2019-20 only i.e. it is only related to the income earned [...]

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Treatment of F&O transactions under Income tax

Income Tax Implication on Futures & options (F&O) transactions & Intra-day trading

This article is about how trading in derivatives(F&O) and intra-day trading is to be treated under the Income tax. We will briefly discuss the following: 1. Basic understanding of the concept 2. Computation of income- F&O & intra-day trading 3. Calculation of turnover- F&O 4. Set-off & Carry forward of losses 5. Applicability of tax audit A basic understanding Derivatives are the instruments whose value is derived from an underlying asset. Its value is based on an underlying asset. The most popular derivatives are futures and options. Futures [...]

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Companies to declare commencement of business

Companies having share capital to declare commencement of business

All Companies having share capital registered on or after 02nd November 2018, are required to declare commencement of business to the authorities, before it could start its business. This needs to be declared within 180 days of incorporation to avoid penalties. This requirement was also present there in erstwhile Companies Act 1956 and Companies Act 2013. However, it was omitted eventually on 29th May 2015 and companies were not required to declare commencement of business. Now, it has again been [...]

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Recent Company law compliance a director should know

Recent Company law compliance a director should know

A person who is a Director is one or more companies or just holding DINs need to look at the following new compliance which makes a director directly or indirectly responsible for the compliance associated with the director or the company. As a director, one need to meet these in order to avoid fines & hassles such as DIN Deactivation, Company being marked as Inactive etc. amongst other legal action that can be taken against director Following are the compliance: 1. DIR-3 [...]

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Filing of Income Tax Return after the deadline.

Filing of ITR- Income Tax Return after the deadline

Deadline for filing ITR is 31 July for every assessment year. If you missed the deadline, you can always file a belated return up-to 31 March every year. If you have also skipped the deadline for filing a belated return for the year, 2016-17 and 2017-18, you cannot file a belated return anymore. Now, you can file return only through direction of the Income tax officer, i.e. if you receive a notice for not filing the return, in that [...]

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