TAX DESTINATION

Pension scheme refers to a type of investment option where you get a regular payment after a certain period of time. It ensure you get a amount at a fixed interval so that you can enjoy your retirement. One such scheme is National Pension System (NPS). NPS is a voluntary retirement savings scheme open for citizen of India. Who can open a NPS account under All Citizen Model ? A citizen of India, whether resident or non-resident, whose age is between 18 – 70 years can submit an application and comply with KYC norms prescribed to open a NPS account. Benefits of NPS Account: i) Low Cost:- NPS is considered to be the world’s lowest cost pension scheme. Administrative charges and fund management fee are also lowest. ii) Simple:- All applicant has to do is to open an account with any one of the POPs being run through all Head Posts Offices across india and get a Permanent Retirement Account Number(PRAN) iii) Flexible:- Applicant can choose his/her own investment option and Pension Fund or se

Pension scheme refers to a type of investment option where you get a regular payment after a certain period of time. It ensure you get a amount at a fixed interval so that you can enjoy your retirement. One such scheme is National Pension System (NPS). NPS is a voluntary retirement savings scheme open for citizen of India. Who can open a NPS account under All Citizen Model ? A citizen of India, whether resident or non-resident, whose age is between 18 – 70 years can submit an application and comply with KYC norms prescribed to open a NPS account. Benefits of NPS Account: i) Low Cost:- NPS is considered to be the world’s lowest cost pension scheme. Administrative charges and fund management fee are also lowest. ii) Simple:- All applicant has to do is to open an account with any one of the POPs being run through all Head Posts Offices across india and get a Permanent Retirement Account Number(PRAN) iii) Flexible:- Applicant can choose his/her own investment option and Pension Fund or se

The government has announced Marginal Relief for small taxpayer earning income above 7 lakh. The Marginal Relief will be available only to the people who are opting to pay tak under new tax regime. Let us look at the rate under new tax regime to understand it better. In the budget 2023, the tax structure in the new tax regime was made more attractive by reducing the number of slabs to five and increasing the tax exemption limit to 3 lakh. The new tax rates are: 0-3 lakh -    Nil                3-6 lakh -    5% 6-9 lakh -    10% 9-12 lakh -  15% 12-15 lakh-  20% Above 15 lakh- 30% Moreover in this budget there is no tax for those earning upto 7 lakhs. As rebate u/s 87A- Income rebate limit increased to Rs 7 lakh from Rs 5 lakh in new tax regime.  With the increase in rebate to 7lakh, there may arise a situation where the person earning more than 7 lakh has to pay higher tax than the additional income earned. The marginal relief will benefit the person who is earning more than 7 lakh. Le

The government has announced Marginal Relief for small taxpayer earning income above 7 lakh. The Marginal Relief will be available only to the people who are opting to pay tak under new tax regime. Let us look at the rate under new tax regime to understand it better. In the budget 2023, the tax structure in the new tax regime was made more attractive by reducing the number of slabs to five and increasing the tax exemption limit to 3 lakh. The new tax rates are: 0-3 lakh -    Nil                3-6 lakh -    5% 6-9 lakh -    10% 9-12 lakh -  15% 12-15 lakh-  20% Above 15 lakh- 30% Moreover in this budget there is no tax for those earning upto 7 lakhs. As rebate u/s 87A- Income rebate limit increased to Rs 7 lakh from Rs 5 lakh in new tax regime.  With the increase in rebate to 7lakh, there may arise a situation where the person earning more than 7 lakh has to pay higher tax than the additional income earned. The marginal relief will benefit the person who is earning more than 7 lakh. Le

The new Financial year is just around the corner while we are at the end of the Financial year 2022-2023. It is a crucial time for business owner, there are year end close activities that needs to be done. But worry not, we have summarized some of the important activities that needs to be checked at this time. Without further ado, let's get started- GST compliance : The company needs to ensure that all the inputs have been taken correctly and should reconcile the input with GSTR-2B form. If there are any discrepancies, it should inform the supplier so that necessary steps could be taken while filing the return.  The company should also check that the payment is made in respect of all purchases/expenses in which it has recorded GST input. As per the provisions of CGST Act, input has to be reversed if payment is not made for more than 180 days. The company has to pay tax liability along with interest on the same. So, to avoid the tax and interest, it should clear all the dues. Also,

The new Financial year is just around the corner while we are at the end of the Financial year 2022-2023. It is a crucial time for business owner, there are year end close activities that needs to be done. But worry not, we have summarized some of the important activities that needs to be checked at this time. Without further ado, let's get started- GST compliance : The company needs to ensure that all the inputs have been taken correctly and should reconcile the input with GSTR-2B form. If there are any discrepancies, it should inform the supplier so that necessary steps could be taken while filing the return.  The company should also check that the payment is made in respect of all purchases/expenses in which it has recorded GST input. As per the provisions of CGST Act, input has to be reversed if payment is not made for more than 180 days. The company has to pay tax liability along with interest on the same. So, to avoid the tax and interest, it should clear all the dues. Also,

Hi Everyone, Welcome back to Tax Destination! We are now approaching end of Financial year and new Financial year will begin on 1st April 2023. However, we need to do some compliances before this Financial year ends. Let's look at the most important one. Linking PAN Card with Aadhar Section 139AA of the Income Tax Act provides that every individual who has been allotted a Permanent Account Number (PAN) as on the 1st day of July, 2017, and who is eligible to obtain an Aadhaar number, shall intimate Aadhaar number in the prescribed form and manner. In other words, such persons have to mandatorily link their Aadhaar and PAN before the prescribed date.  As per the Income-tax Act, 1961, it is mandatory for all PAN holders who do not fall under the exempt category to link their PAN with Aadhaar before 31.3.2023. From 1.04.2023, the unlinked PAN shall become inoperative. Prerequisites for availing this service: Aadhaar PAN linkage is not done before 31/03/2023 Valid PAN Aadhaar number Val

Hi Everyone, Welcome back to Tax Destination! We are now approaching end of Financial year and new Financial year will begin on 1st April 2023. However, we need to do some compliances before this Financial year ends. Let's look at the most important one. Linking PAN Card with Aadhar Section 139AA of the Income Tax Act provides that every individual who has been allotted a Permanent Account Number (PAN) as on the 1st day of July, 2017, and who is eligible to obtain an Aadhaar number, shall intimate Aadhaar number in the prescribed form and manner. In other words, such persons have to mandatorily link their Aadhaar and PAN before the prescribed date.  As per the Income-tax Act, 1961, it is mandatory for all PAN holders who do not fall under the exempt category to link their PAN with Aadhaar before 31.3.2023. From 1.04.2023, the unlinked PAN shall become inoperative. Prerequisites for availing this service: Aadhaar PAN linkage is not done before 31/03/2023 Valid PAN Aadhaar number Val