#Income Tax Act 1961

[thetaxguyin]

Deductions which can be claimed under the New Income Tax Regime

Are you navigating the complexities of tax planning under the new income tax regime? Are you looking to maximize your savings by leveraging all available deductions? Look no further! In this definitive guide, we’ll walk you through the myriad deductions offered under the Income Tax Act of 1961 in the new regime, empowering you to make informed financial decisions and optimize your tax…

[jasmelon]

Taxation Rules for non-residents in India including Foreign Citizens

Incidents of taxation on Income earned by non residents in India depends upon his physical presence in India during last financial year. Whether an income earned by an individual in India or outside India, is taxable in India depending upon his stay in India rather than on his citizenship. Invariably, the person holding foreign citizenship remain under wrong impression that taking up foreign citizenship would help them for obtaining tax benefits. The Income Tax Act 1961 (as amended uptill date “the Act”)does not provide any benefit to an assessee on the basis of  his citizenship.  Read More - https://www.pkpconsult.com/blog/taxation-rules-for-non-residents-in-india-including-foreign-citizens.html

[indilegalonline]

Section 24 of Income Tax Act

Section 24 of Income Tax Act –Deductions from income from house property Income chargeable under the head “Income from house property” shall be computed after making the following deductions, namely:—  (a) a sum equal to thirty percent of the annual value;  (b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any…

[pkchopraco-blog]

Income Tax Audit in India

What is a Income Tax Audit in India? Under Section 44 AB of the Income Tax Act, 1961, provision of Income Tax Audit is covered. Income Tax Audit is a way to examine an individual’s organization tax returns by any outside agency. Income Tax Audit done to verify all income

Income Tax Audit in India | Income Tax Audit in Delhi

[toponlinemoneytips]

Sukanya Samriddhi Yojana 2023 Benefits & Interest Rates

Sukanya Samriddhi Yojana (SSY) is a savings scheme launched by the Government of India in 2015 as part of the "Beti Bachao Beti Padhao" campaign. The scheme is designed to encourage parents to save for the future education and marriage expenses of their girl child.

Here are some of the benefits and interest rates associated with Sukanya Samriddhi Yojana:

High Interest Rates: The current interest rate for Sukanya Samriddhi Yojana is 7.6% per annum (as of January 2022), which is higher than most other government-backed savings schemes.

Tax Benefits: Contributions to Sukanya Samriddhi Yojana are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. The interest earned and the final maturity amount are also tax-free.

Flexible Investment Options: Parents or guardians can open an SSY account for their girl child with a minimum initial deposit of Rs. 250. They can make contributions in multiples of Rs. 100, up to a maximum of Rs. 1.5 lakh per annum. The account can be opened until the girl child attains the age of 10 years.

Long Maturity Period: The maturity period for Sukanya Samriddhi Yojana is 21 years from the date of opening the account. This makes it an ideal savings scheme for long-term financial planning.

Partial Withdrawals Allowed: Partial withdrawals of up to 50% of the balance in the account are allowed once the girl child attains the age of 18 years, for the purpose of higher education or marriage.

Account Transferable: In case of a change in residence of the account holder, the account can be transferred anywhere in India.

Overall, Sukanya Samriddhi Yojana is a great savings scheme for parents who want to secure their daughter's future education and marriage expenses. It offers high interest rates, tax benefits, and flexible investment options, making it a popular choice among investors.

[kanakkupillai-trademark]

Essential Annual Compliance for Private Limited Companies

Private Limited Companies (Pvt. Ltd.) in India are required to comply with various regulations under the Companies Act, 2013, as well as other laws like the Income Tax Act and Goods and Services Tax (GST) laws. Please meet these compliances to avoid penalties, fines, or disqualification of directors. Understanding the critical annual compliances for a private limited company is essential to help businesses stay in good standing.

Annual General Meeting (AGM)

What: A Private Limited Company must hold an Annual General Meeting (AGM) every financial year.

When: The AGM should be held within six months of the end of the financial year but by nine months after the first financial year.

Fundamental Purpose: Approval of financial statements, declaration of dividends, and appointment or reappointment of auditors and directors.

Filing of Financial Statements – Form AOC-4

What: The company must submit its financial statements (including balance sheet, profit & loss account, and other required documents) to the Ministry of Corporate Affairs (MCA).

When: Within 30 days from the date of the AGM.

Why: To ensure transparency and compliance with the Companies Act, 2013.

Annual Return Filing – Form MGT-7

What: The company's Annual Return contains details about the directors, shareholders, and other essential aspects of the company.

When: Within 60 days from the date of the AGM.

Why: This document provides insights into the company’s structure and shareholders to the MCA.

Director’s Report

What: The Director’s Report is a comprehensive report that summarises the company's financial performance, prospects, and other important information, such as CSR initiatives and internal control policies.

When: This report must be presented before the shareholders in the AGM and filed with the financial statements.

Why: The Director’s Report serves as a governance tool, showcasing the company's overall health and compliance.

Income Tax Return – Form ITR-6

What: Private Limited Companies must file their income tax returns under Form ITR-6.

When: The return must be filed on or before September 30th of every assessment year.

Why: Compliance with the Income Tax Act of 1961 is mandatory, and timely filing ensures the company avoids penalties.

Statutory Audit by a Chartered Accountant

What: All Private Limited Companies must have their accounts audited by a qualified Chartered Accountant.

When: This audit must be completed before the AGM.

Why: An independent audit ensures that the company’s financial statements are accurate and compliant with accounting standards.

GST Compliance

What: Companies registered under the GST regime need to file monthly or quarterly GST returns, depending on their turnover.

When: Filing deadlines are based on the return period (monthly or quarterly), with annual returns filed by December 31st of the following financial year.

Why: Proper GST compliance helps avoid interest, penalties, and suspension of GSTIN.

Filing of Director KYC – Form DIR-3 KYC

What: Every director of a Private Limited Company must file their KYC details with the MCA.

When: On or before 30th September of each financial year.

Why: It is vital for directors to keep their details updated with the MCA to avoid disqualification.

Filing of MSME Form (If applicable)

What: If the company is registered as an MSME, details of outstanding payments to MSME suppliers need to be filed.

When: This filing needs to be done on a half-yearly basis.

Why: The MSME filings help maintain a proper record of payments to vendors and ensure compliance with MSME laws.

Maintenance of Statutory Registers and Records

What: Private Limited Companies are required to maintain various statutory registers such as the Register of Members, Register of Directors, and Register of Charges.

When: These registers must be maintained and updated on an ongoing basis.

Why: Proper maintenance of these records ensures that the company is in compliance with legal requirements and can provide records when requested by regulatory authorities.

Other Filings

Form DPT-3: For declaration of the deposits or loans received by the company.

Form ADT-1: For appointing or re-appointing auditors. Must be filed within 15 days from the AGM.

Form MBP-1: Disclosure of interest by the directors. It should be submitted at the first Board Meeting of the financial year.

Conclusion

Annual Compliance for Private Limited Companies to maintain their legal standing and avoid hefty penalties. Regularly consulting with professionals like company secretaries, chartered accountants, or legal advisors can help businesses navigate these complex regulations and ensure seamless operations.

[priyashareindia9]

ELSS and ULIPs are two investment products that are often compared, especially during the tax-saving season, as both offer tax benefits under Section 80C of the Income Tax Act of 1961. This comparison frequently sparks debate among investors trying to determine which option is superior. To provide clarity and aid investors in making informed decisions, this article will delve into an in-depth comparison of ULIP and ELSS, highlighting their key differences and helping readers identify which product may better suit their financial objectives.

[thetaxguyin]

Late Fees for Default in Filing Income Tax Returns

Filing income tax returns is a crucial responsibility for taxpayers, ensuring compliance with the provisions of the Income Tax Act of 1961. However, failure to file returns within the stipulated deadline may attract late fees and penalties. In this blog post, we explore the implications of late fees for default in filing income tax returns, shedding light on the provisions laid down under the…

[gkkediagmb]

The role of tax auditor in india

Auditing, under the purview of various legal frameworks, serves as a cornerstone for ensuring financial transparency and regulatory compliance. One such critical audit, mandated by the Income Tax Act, 1961, is the Tax Audit. This audit is crucial for verifying the accuracy of financial records and ensuring compliance with tax regulations. The role of the tax auditor in India is pivotal in this process, as they ensure that businesses and individuals adhere to Indian tax laws, thereby maintaining financial integrity and avoiding potential penalties.

[indilegalonline]

Section 16 of Income Tax Act 1961

Section 16 of Income Tax Act 1961-Deductions from salaries The income chargeable under the head “Salaries” shall be computed after making the following deductions, namely :—   (i) [***] (ia) a deduction of fifty thousand rupees or the amount of the salary, whichever is less;  (ii) a deduction in respect of any allowance in the nature of an entertainment allowance specifically granted by an…

[nivabupa]

Tax Implications of Health Insurance

Keep in mind that these tax implications may change with amendments to the Income Tax Act 1961. Consulting a tax expert or financial planner is recommended for further advice on the tax implications of health insurance.