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 [...]


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 [...]


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 [...]

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 [...]

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 [...]

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 [...]

Changes in Income tax & GST effective from 01st April 2019

Changes in Income tax & GST applicable from 01st April 2019

The new financial year has just begun, and there has been a lot of changes in Income tax & GST. So in this article, we aim to discuss few changes, relevant to most of the taxpayers. We are covering the changes made in Income tax Act and GST. A. Changes in Income tax Act 1.Rebate u/s 87 A The tax rebate available under Section 87A has been increased from Rs. 2,500 to Rs. 12,500. However, it would only be available to a resident individual [...]


Important changes announced in 22nd GST council meet

The GST Council, in its 22nd meeting held at New Delhi on 6th October 2017, has recommended the following facilitative changes to ease the burden of compliance on small and medium businesses: A.Flexibility in eligibility to composition scheme 1.Increase in turnover limit The turnover limit for eligibility of opting composition scheme has been increased from present Rs. 75 lakhs to Rs 1 crore and for special category states, it has been increased from Rs 50 lakhs to 75 lakhs. The increase in the turnover [...]


Procedure for closing a private limited company in India

Often, we register a company for a business idea we wanted to implement and for some reasons it does not work, we do not even start the work. Also, there are times when we register a company for a future project and hence those companies are not operational in present. There are various compliances which one needs to meet after registering a company and it takes a cost to meet them. Who would want to bear more cost for the [...]

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