TAX DESTINATION

Arrear Salaries Taxation Arrear salaries means salary received for past period. Let us understand with an example how one can receive arrear salary- Mr X salary was 10,000 p.m. In April he received a hike of 5,000 effective from last year's January month. So, as in last quarter he has received a salary of 30,000 for 3 months instead of 45,000. So, a salary of 15,000 becomes an arrear salary. Relief when salary, etc., is paid in arrears or in advance. Where an assessee is in receipt of a sum in the nature of salary, being paid in arrears, in any one financial year, due to which his total income is assessed at a rate higher than that at which it would otherwise have been assessed, the Assessing Officer shall, on an application made to him in this behalf, grant such relief as may be prescribed. Taxpayer must meet certain conditions to claim relief under Section 89. The reliefs can be claimed on any of the following received during a particular year: a) Salary received in...

Arrear Salaries Taxation Arrear salaries means salary received for past period. Let us understand with an example how one can receive arrear salary- Mr X salary was 10,000 p.m. In April he received a hike of 5,000 effective from last year's January month. So, as in last quarter he has received a salary of 30,000 for 3 months instead of 45,000. So, a salary of 15,000 becomes an arrear salary. Relief when salary, etc., is paid in arrears or in advance. Where an assessee is in receipt of a sum in the nature of salary, being paid in arrears, in any one financial year, due to which his total income is assessed at a rate higher than that at which it would otherwise have been assessed, the Assessing Officer shall, on an application made to him in this behalf, grant such relief as may be prescribed. Taxpayer must meet certain conditions to claim relief under Section 89. The reliefs can be claimed on any of the following received during a particular year: a) Salary received in...

Hello Everyone! Welcome back. You must have heard that the income tax has launced mobile app AIS for taxpayer.  Annual Information Statement (AIS) is a comprehensive view of information for a taxpayer displayed in Form 26AS. Taxpayers can provide feedback on information displayed in AIS.  AIS shows both reported value and modified value (i.e. value after considering taxpayer feedback) under each section (i.e. TDS, SFT, Other information).  The objectives of AIS are: 1) Display complete information to the taxpayer with a facility to capture online feedback 2) Promote voluntary compliance and enable seamless prefilling of return 3) Deter non-compliance What is the Difference between AIS and Form 26AS? AIS is the extension of Form 26AS. Form 26AS displays details of property purchases, high-value investments, and TDS/TCS transactions carried out during the financial year. AIS additionally includes savings account interest, dividend, rent received, purchase and sa...

Hello Everyone! Welcome back. You must have heard that the income tax has launced mobile app AIS for taxpayer.  Annual Information Statement (AIS) is a comprehensive view of information for a taxpayer displayed in Form 26AS. Taxpayers can provide feedback on information displayed in AIS.  AIS shows both reported value and modified value (i.e. value after considering taxpayer feedback) under each section (i.e. TDS, SFT, Other information).  The objectives of AIS are: 1) Display complete information to the taxpayer with a facility to capture online feedback 2) Promote voluntary compliance and enable seamless prefilling of return 3) Deter non-compliance What is the Difference between AIS and Form 26AS? AIS is the extension of Form 26AS. Form 26AS displays details of property purchases, high-value investments, and TDS/TCS transactions carried out during the financial year. AIS additionally includes savings account interest, dividend, rent received, purchase and sa...

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 ear...

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 ear...

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...

Hello Everyone, Budget was announced yesterday. However, to understand the new rates and changes, we must have information about existing rates and limits. So in this article we will see what was existing law and what changes have come. Let's get started.  Presumptive Taxation   Micro enterprises with turnover up to 2 crore and certain professionals with turnover of up to 50 lakh can avail the benefit of presumptive taxation as per the current law. In the budget 2023, it is proposed to provide enhanced limits of 3 crore and 75 lakh respectively, to the tax payers whose cash receipts are no more than 5 per cent. Cooperation   New co-operatives that commence manufacturing activities till 31.3.2024 shall get the benefit of a lower tax rate of 15 per cent, as is presently available to new manufacturing companies. Start-Ups Extension of date of incorporation for eligible start up for exemption. Certain start-ups are eligible for some tax benefit if they are incorpo...

Hello Everyone, Budget was announced yesterday. However, to understand the new rates and changes, we must have information about existing rates and limits. So in this article we will see what was existing law and what changes have come. Let's get started.  Presumptive Taxation   Micro enterprises with turnover up to 2 crore and certain professionals with turnover of up to 50 lakh can avail the benefit of presumptive taxation as per the current law. In the budget 2023, it is proposed to provide enhanced limits of 3 crore and 75 lakh respectively, to the tax payers whose cash receipts are no more than 5 per cent. Cooperation   New co-operatives that commence manufacturing activities till 31.3.2024 shall get the benefit of a lower tax rate of 15 per cent, as is presently available to new manufacturing companies. Start-Ups Extension of date of incorporation for eligible start up for exemption. Certain start-ups are eligible for some tax benefit if they are incorpo...

Hello Everyone, The most awaited budget has been announced by Smt. Finance Minister Nirmala Sitaraman and we are here to give you a quick update on the same. On an overall basis, Unionbudget2023 is an attention-seeking budget. To list out there are many proposals on many things but the impact of all those things are same. The main example for this is, they have reduced Income tax rates, Rebates, and surcharges where you won't be having any deductions & exemptions that will yield the same impact as of the old regime. But it will create impact to government & seek attention from the public that Government has reduced tax rates. There are seven Priorities in Budget 2023 as below. Inclusive development Reaching the last mile Infra & investment Unleashing the potential Green growth Youth power Financial sector Capital investment outlay increased by 33% Capital investment outlay being increased by 33% to Rs 10 lakh crores, which would be 3.3% of GDP. 50-year interest-free l...

Hello Everyone, The most awaited budget has been announced by Smt. Finance Minister Nirmala Sitaraman and we are here to give you a quick update on the same. On an overall basis, Unionbudget2023 is an attention-seeking budget. To list out there are many proposals on many things but the impact of all those things are same. The main example for this is, they have reduced Income tax rates, Rebates, and surcharges where you won't be having any deductions & exemptions that will yield the same impact as of the old regime. But it will create impact to government & seek attention from the public that Government has reduced tax rates. There are seven Priorities in Budget 2023 as below. Inclusive development Reaching the last mile Infra & investment Unleashing the potential Green growth Youth power Financial sector Capital investment outlay increased by 33% Capital investment outlay being increased by 33% to Rs 10 lakh crores, which would be 3.3% of GDP. 50-year interest-free l...