#income tax audit in india

[pkchopraco-blog]

Income Tax Audit in India

What is an Income Tax Audit? Imagine an independent assessment of your organization's tax returns. That's essentially what an Income Tax Audit in India is. A Chartered Accountant (CA) examines your income, deductions, and overall financial records to ensure everything aligns with the Income Tax Act. Think of it as a financial health check to maintain transparency and accuracy. Why is it Important? Tax audits ensure a level playing field for businesses and organizations. They promote honest accounting practices by: Verifying the accuracy of income and deductions: The CA confirms if your reported numbers match your actual financial activities. Encouraging proper record-keeping: Audits motivate businesses to maintain detailed records, improving their financial management. Preventing tax evasion: The audit process discourages any attempts to underreport income or overstate expenses. Who Needs an Income Tax Audit in India? Not everyone requires an audit. The rules are laid out in section 44AB of the Income Tax Act. Here's who needs to get their accounts audited: Businesses with a turnover exceeding Rs. 1 crore: If your business crosses this threshold, an annual audit is mandatory. Professionals with income above Rs. 50 lakhs: Doctors, lawyers, and other professionals earning more than Rs. 50 lakhs per year need an audit. Taxpayers opting out of presumptive taxation: If you choose not to use the simplified presumptive taxation scheme, an audit becomes necessary. Specific situations outlined in Sections 44AD, 44AE, and 44BBB: These sections involve calculating income based on estimates. If your actual income deviates significantly, an audit might be required. How Does it Work? Here's the basic flow of an Income Tax Audit in India: Hire a Chartered Accountant: Find a qualified CA experienced in tax audits. Provide necessary documents: Share your financial records, including invoices, bank statements, and accounting ledgers. The CA conducts the audit: They analyze your records, ask questions, and verify your information. Audit report submission: The CA submits a detailed report highlighting their findings and observations. You approve the report: Once you review and agree with the report, your CA electronically files it with the Income Tax Department. Penalties for Non-Compliance: Skipping an audit when mandated can lead to penalties. These can be a fixed amount (like Rs. 1,50,000) or a percentage of your turnover (capped at 0.5%). Don't let that happen! Remember: An Income Tax Audit in India is crucial for transparency and compliance. If you fall under the audit requirement, be proactive and start the process well in advance. Choosing a qualified and experienced CA ensures a smooth and efficient audit experience.

[masllp]

Accounting outsourcing services in India

We provide the best Accounting outsourcing services in India and MAS is the top outsourcing and Bookkeeping service Companies in India Accounting Outsourcing Services in India | Accounting Services in India | Bookkeeping | Outsourcing Company

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Top TDS Consultant in Delhi for Professional Tax Deduction Services.

In today’s complex financial environment, understanding tax regulations and adhering to compliance standards has become essential for both businesses and individuals. With the growing demand for accurate and timely tax deduction services, choosing the right TDS consultant in Delhi is paramount for seamless management of tax obligations. An expert TDS consultant can streamline the process of tax deductions at source (TDS), thereby reducing the risks of non-compliance and penalties while maximising tax benefits for clients. This article highlights the top TDS consultants in Delhi who specialise in professional tax deduction services and income tax return filings.

Why Hire a TDS Consultant in Delhi?

Tax Deduction at Source (TDS) is an essential mechanism in the Indian tax system, whereby taxes are deducted by employers, organisations, and institutions on payments such as salaries, rent, professional fees, and commissions. TDS compliance is crucial for maintaining an organisation’s financial health and for ensuring that individuals and businesses alike are meeting their tax obligations.

For businesses, effective TDS management means handling a range of tasks, including calculating the appropriate TDS, filing returns, and managing any tax-related discrepancies. Errors in TDS calculation or delayed filings can lead to substantial penalties, so it’s essential to work with a qualified TDS consultant in Delhi who understands the latest government regulations and the nuances of the local tax landscape. A reliable consultant will ensure accuracy, efficiency, and compliance with the latest tax codes.

Key Benefits of Working with a TDS Consultant

Accurate TDS Calculation: TDS consultants utilise their expertise to calculate accurate deductions, factoring in any tax exemptions or deductions available under the law.

Timely TDS Filing: They handle the timely filing of TDS returns, which is crucial for avoiding late filing penalties and ensuring compliance.

Reduced Risk of Penalties: With a consultant, you minimise the risk of non-compliance penalties and improve your tax health.

Efficient Income Tax Return Preparation: Many TDS consultants also specialize in income tax return filing, assisting both individuals and businesses in optimizing their tax liabilities.

Updated Knowledge of Tax Regulations: A competent TDS consultant stays updated on the latest amendments in tax laws, ensuring that you are fully compliant with the most recent changes.

Choosing the Right TDS Consultant in Delhi

Selecting a TDS consultant involves evaluating their experience, credentials, and client satisfaction. The ideal consultant should have a strong background in finance and taxation, a track record of successful filings, and positive client feedback.

Important Factors to Consider:

Expertise and Qualifications: Ensure the consultant holds the necessary qualifications, such as a CA (Chartered Accountant) certification, and has experience in handling a variety of tax situations.

Service Range: Opt for a consultant who provides comprehensive services, including both TDS filing and income tax return preparation.

Reliability and Timeliness: A consultant should demonstrate a commitment to deadlines and be proactive in addressing any tax-related issues.

Client Feedback and Reviews: Research their past clients’ experiences to gauge the consultant’s reliability and effectiveness.

Top TDS Consultants in Delhi

Here are a few top-rated TDS consultants in Delhi known for their exceptional expertise in tax deduction services and income tax return consultation:

ABC Consultants: Specializing in corporate and individual tax deduction services, ABC Consultants has a robust client base and a reputation for timely, accurate TDS filings.

XYZ Tax Solutions: Known for its client-centric approach, XYZ Tax Solutions offers comprehensive tax consulting services, from TDS calculations to ITR filings.

Delhi Tax Advisors: With a team of certified professionals, Delhi Tax Advisors delivers specialized tax deduction and income tax return services for both businesses and individuals.

Trust Tax Consultants: Trust Tax Consultants focuses on small and medium-sized enterprises, providing reliable TDS and tax advisory services that help clients stay compliant and optimize tax savings.

Reliable Tax Consultants: This firm offers a full range of tax consulting services, including TDS, GST, and income tax return filings, making it a one-stop solution for tax compliance.

Conclusion

Navigating the complexities of TDS and income tax requires expert guidance, especially with frequent regulatory changes. Hiring a professional TDS consultant in Delhi not only ensures compliance but also adds value through efficient tax management. Each of the consultants mentioned above brings a wealth of experience to the table, helping clients make informed financial decisions while reducing the risks associated with non-compliance. For anyone in need of reliable tax deduction services and income tax return consultations, these top TDS consultants in Delhi can be trusted to handle all your tax needs with precision and professionalism.

[lexntaxlawfirm]

Income Tax Audit

Income Tax Audit services involve professional assistance in preparing for and undergoing an income tax audit. These services are provided by qualified accountants or tax consultants who help ensure that a taxpayer's financial records comply with tax laws. They assist in organizing documentation, responding to auditor queries, and addressing any discrepancies. Utilizing these services can significantly reduce stress and improve the outcome of an audit by ensuring accuracy and compliance.

[indiansalahkar23]

Top Best Business Advisory Firm in India

India's most trusted Tax & Compliance Platform & Best Business Advisory firm in India. IndianSalahkar offer accounting audit services, business setup, business advisory, taxation and support services.

[scbhagat]

Professional Tax Consultants in Delhi, India by SC Bhagat & Co.

Managing taxes efficiently is critical for individuals and businesses alike. Whether it's navigating complex tax laws, ensuring timely compliance, or optimizing tax savings, having an expert guide is invaluable. SC Bhagat & Co., a renowned name in the financial and accounting domain, offers top-notch services as professional tax consultants in Delhi India.

With years of expertise and a commitment to excellence, SC Bhagat & Co. provides comprehensive tax solutions tailored to your needs.

Why Choose SC Bhagat & Co. as Your Tax Consultant?

Expertise in Indian Tax Laws Navigating India's intricate tax system can be overwhelming. SC Bhagat & Co. brings years of experience in handling all aspects of taxation, including income tax, GST, TDS, and corporate tax, ensuring full compliance and minimizing liabilities.

Comprehensive Tax Solutions The firm caters to both individuals and businesses, offering services such as:

Income tax planning and filing GST registration and compliance Tax audits and assessments Representation before tax authorities Advisory on international taxation

Personalized Tax Strategies At SC Bhagat & Co., every client’s financial situation is carefully analyzed. Their team develops tailored strategies to optimize tax savings while ensuring strict adherence to legal requirements.

Trusted by Businesses Across Sectors SC Bhagat & Co. has built a reputation as a reliable partner for businesses across various industries. From startups to large corporations, their services are trusted by clients seeking seamless tax management.

Key Tax Consulting Services Offered

Income Tax Filing and Advisory Avoid penalties and maximize savings with SC Bhagat & Co.'s expert income tax filing services. Their team ensures accurate filing, helps identify deductions, and provides actionable advice for better financial management.

GST Services With the introduction of GST in India, compliance has become more critical than ever. SC Bhagat & Co. offers:

GST registration Filing of GST returns Input tax credit optimization GST audits

Corporate Taxation SC Bhagat & Co. provides end-to-end corporate tax solutions, including tax planning, audits, and representation during scrutiny. They help businesses align with tax regulations while achieving financial efficiency.

Tax Audit Services Their tax audit services ensure that financial records comply with tax regulations, minimizing the risk of disputes and penalties.

TDS Compliance Stay compliant with TDS (Tax Deducted at Source) regulations. SC Bhagat & Co. assists with TDS calculation, filing, and rectification of any discrepancies.

Benefits of Hiring Professional Tax Consultants in Delhi India Save Time and Resources: Tax consultants streamline processes, allowing you to focus on your core business operations. Reduce Errors: Accurate calculations and filings prevent unnecessary penalties or legal issues. Optimize Tax Savings: Professionals identify deductions, exemptions, and credits to minimize tax liabilities. Stay Compliant: Experts ensure timely filing and adherence to the latest tax laws. Why SC Bhagat & Co. Stands Out Experienced Professionals: Their team of Chartered Accountants and tax experts is well-versed in Indian and international tax laws. Client-Centric Approach: They offer personalized services that align with your financial goals. Proven Track Record: A long list of satisfied clients speaks to their reliability and excellence. Affordable Services: SC Bhagat & Co. delivers high-quality tax consulting services at competitive rates. Conclusion Tax management doesn’t have to be a daunting task when you have experts by your side. SC Bhagat & Co., with their unparalleled expertise and commitment to excellence, is your trusted partner for all tax-related needs. Whether you’re an individual, a startup, or a large corporation, their professional tax consultants in Delhi India, are equipped to handle it all.

[labourcompliance]

Statutory Labour Law Compliance

Statutory Compliance Services in India focus on helping organizations meet regulatory and legal requirements, which include a wide range of laws, rules, and regulations that businesses need to follow. These services typically cover aspects such as labor laws, tax laws, corporate laws, and industry-specific guidelines to ensure compliance and avoid penalties or legal issues.

Here’s a breakdown of key components:

1. Labour Law Compliance

Covers regulations related to employee rights, wages, and working conditions.

Compliance with acts like the Minimum Wages Act, Employee Provident Fund (EPF) Act, Employees’ State Insurance (ESI) Act, and Shops and Establishments Act.

Ensures timely filing of statutory returns, maintaining registers, and addressing statutory contributions.

2. Tax Compliance

Encompasses both direct and indirect tax laws, including Income Tax, Goods and Services Tax (GST), and Professional Tax.

Ensures that businesses file timely returns, pay due taxes, and avail of any applicable credits or exemptions.

3. Corporate Law Compliance

Compliance with the Companies Act, 2013, for businesses incorporated in India.

Includes maintaining statutory records (like statutory registers), filing annual returns with the Registrar of Companies, holding board meetings, and ensuring proper governance practices.

Involves meeting specific regulatory requirements based on business structure (e.g., private limited, public limited, LLP).

4. Environmental, Health, and Safety Compliance

Focuses on the rules related to environmental protection, occupational health, and workplace safety.

Compliance with acts like the Factories Act, 1948, and various environmental laws such as the Air (Prevention and Control of Pollution) Act and Water (Prevention and Control of Pollution) Act.

5. Industry-Specific Compliance

Industries like healthcare, finance, pharmaceuticals, and IT have specialized regulatory requirements.

Compliance services ensure that companies adhere to specific acts and guidelines relevant to their industry, such as RBI guidelines for financial institutions or the IT Act for IT companies.

6. Other Key Compliance Areas

Intellectual Property Compliance: Protects and manages trademarks, patents, and copyrights.

Foreign Exchange Management Compliance (FEMA): Relevant for businesses with foreign investments, cross-border transactions, or overseas offices.

Audit and Reporting Compliance: Ensures regular audits and financial reporting align with regulatory standards.

Statutory Compliance Services offer businesses peace of mind by ensuring full adherence to India's complex regulatory landscape, minimizing the risk of legal repercussions, and allowing businesses to focus on core operations.

[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

[masllp]

Subsidiary Company Registration in India

Want to know how to setup Wholly Owned Subsidiary in India, Key features of the wholly owned subsidiary company, Documents required etc. Subsidiary Company Registration in India | Wholly Owned Subsidiary in India | Documents Required

[edugyanorg]

Based in Faridabad, CA Neeraj Arora teaches subjects like Taxation Strategic Management at various levels. He is regarded as a quick learner who always looks for learning new things. He is based in New Delhi and runs classes at “Neeraj Arora Classes” and at “Edu91”.  

Get CA Inter Taxation (Income Tax + GST), Strategic Management, Audit & Ethics course by CA Neeraj Arora on Edugyan.

[taxblgs]

Expert Private Limited Company Registration Services in India

What is private limited company

Private Limited Company is a popular business structure where ownership is held by a small group of shareholders, and liability is limited to the amount invested. It operates as a separate legal entity, meaning it can own assets, enter into contracts, and incur liabilities independently of its shareholders. This structure offers protection for personal assets and is ideal for small to medium-sized businesses seeking growth and investment opportunities.

Private Limited Company Registration in India When setting up a business in India, many entrepreneurs opt for a private limited company due to its advantages. This structure provides shareholders with limited liability protection and imposes specific ownership restrictions. Unlike an LLP where partners manage the operations, a private limited company clearly differentiates between directors and shareholders.

At taxring, we simplify the process of registering a private limited company with our affordable and efficient service. We manage all legal requirements and ensure full compliance with Ministry of Corporate Affairs (MCA) regulations, making your registration process smooth and hassle-free

Types of Private Limited Companies

1. Company Limited by Shares:

In this type, shareholders' liability is restricted to the amount of their shares as specified in the Memorandum of Association. This means they are only responsible for the nominal value of their shares in the event of company debt or financial trouble.

2. Company Limited by Guarantee:

Here, members' liability is limited to the amount they have guaranteed in the Memorandum of Association. This guarantee is only called upon if the company is wound up, covering any shortfall in assets.

3. Unlimited Company: 

Members of an unlimited company face unlimited personal liability for the company’s debts. Despite this, the company remains a separate legal entity, meaning individual members cannot be sued directly for the company’s liabilities.

Each type offers different levels of liability protection and is suited to different business needs and risk profiles.

Advantages of a Private Limited Company Registration In India

In India, a Private Limited Company is a preferred business structure due to its distinctive advantages. Here’s a closer look:

- Limited Liability:Shareholders' liability is limited to their capital contribution, ensuring their personal assets are protected from company debts and financial risks.

- Distinct Legal Identity: The company operates as a separate legal entity from its owners, enabling it to own assets, enter into contracts, and engage in legal actions independently.

- Perpetual Existence:The company’s existence continues regardless of changes in shareholders or directors, providing stability and ongoing operations beyond the involvement of any single individual.

- Ease of Funding:The ability to issue shares to investors, venture capitalists, or angel investors facilitates easier access to capital, making the company more attractive to external funding sources.

- Tax Advantages:Private Limited Companies often qualify for various tax benefits and exemptions, enhancing their tax efficiency and overall financial performance.

- Enhanced Credibility: The designation "Pvt. Ltd." in the company name typically enhances trust and credibility with customers, suppliers, and business partners, reinforcing the company’s professional image.

Who Can Set Up a Private Limited Company in India?

Entrepreneurs looking to formalize their business activities.

Existing firms that want to reform or expand.

Start-ups seeking scalability, finance, and a formal business model. 

Essential Documents for Company Registration in India

1. Identity Verification:

   - For Indian Nationals: PAN Card (Directors and Shareholders)

   - For Foreign Nationals: Passport (Directors and Shareholders)

2. Proof of Address:

   - Acceptable Documents:

     - Aadhaar Card

     - Voter ID

     - Passport

     - Driver's License (Directors and Shareholders)

3. Registered Office Documentation:

   - Required Documents:

     - Utility Bill

     - Rent Agreement

     - No Objection Certificate (NOC) from the Property Owner

4. Additional Requirements:

   - Recent Passport-sized Photographs (Directors)

   - Digital Signature Certificate (Directors)

   - Director Identification Number (DIN) for each Director

How to Register a Company in India:

1. Directors and Members:

   -Directors:You need at least two directors. Each director must have a Director Identification Number (DIN) from the Ministry of Corporate Affairs (MCA).

   - Indian Residency: At least one director must be an Indian resident who has lived in India for at least 182 days in the last calendar year.

   - Members: For a Private Limited Company, you need a minimum of 2 and a maximum of 200 members.

2. Choosing a Company Name:

   -Reflect Your Business: Pick a name that clearly represents your main business activity.

   - Ensure Uniqueness:The name should be distinctive and not too similar to existing company names.

3. Registered Office Address:

   - Permanent Location: After registering, you must provide a permanent address for your registered office. This is where your business will operate and where all official documents will be stored.

process for registering a Private Limited Company in India

Easy Steps to Register Your Private Limited Company in New Delhi

1. Secure Digital Signature Certificates (DSC)

   - For Directors: Obtain DSCs for all proposed directors. These certificates are essential for signing documents electronically during the registration process.

2. Apply for Director Identification Number (DIN)

   - Unique ID for Directors: Each director needs a DIN, which can be obtained by applying online through the Ministry of Corporate Affairs (MCA) website.

3. Choose and Approve Your Company Name

   - Name Selection: Pick a distinctive name for your company and apply for approval from the MCA. Make sure the name is original and not similar to existing companies or trademarks.

4. Submit Your Incorporation Papers

   - Prepare and File:Prepare the Memorandum of Association (MoA) and Articles of Association (AoA). Along with these, provide proof of your registered office address and any other required documents. Submit these to the MCA.

5. Apply for PAN and TAN

   - Tax Registration: While registering, also apply for a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN) for your company.

6. Receive Your Incorporation Certificate

   - Official Recognition: Once your documents are reviewed and approved, the MCA will issue a Certificate of Incorporation, including your Corporate Identity Number (CIN), officially recognizing your company.

7. Set Up a Bank Account

   - Corporate Banking:Use your Certificate of Incorporation, PAN, and other necessary documents to open a corporate bank account.

Streamline Your Private Limited Company Registration with Taxring

Taxring offers expert services for Private Limited Company registration in India, designed to make your business setup seamless and stress-free. Here’s how we can help you efficiently navigate the registration process:

1.Optimize Your Company Name Selection:

   - Unique & Compliant: Choose a distinctive name for your company that stands out and complies with ROC regulations. Taxring’s specialists will assist in conducting a name availability search and reserving a name that perfectly aligns with your brand.

2.Efficient Documentation Handling:

   -Stress-Free Process:Collecting and organizing documentation for company registration can be overwhelming. Our team at Taxring will efficiently manage this task, ensuring all paperwork is accurate and compliant with Indian regulations.

3. Guidance on DSC & DIN Acquisition:

   - Seamless Certification: Obtain your Digital Signature Certificate (DSC) and Director Identification Number (DIN) with ease. Taxring provides expert guidance to ensure you meet all necessary requirements for a smooth registration.

4. Professional Registration Management:   - Focus on Your Business: Let Taxring handle the complexities of company registration while you concentrate on your business growth. We ensure that the entire process is managed professionally and effectively.

Get Started with Taxring:

Simplify Your Registration: Trust Taxring for a hassle-free company registration experience. Our dedicated team will support you every step of the way, ensuring compliance and efficiency.

Launch your business with confidence—choose Taxring for expert company registration services in India.

Read also 

What is DSC and How to apply?

Missed your ITR deadline  learn here how to file ITR  after the deadline Penalty , due date etc?

Income tax audit under section 44AB

[news365timesindia]

bySubhash Chandra Agrawal Much awaited new Income Tax Act is announced to be introduced shortly in the Union Budget for fiscal-year 2025-26 to replace six decades old Income Tax Act 1961. It should be expected that new Income Tax Act will simplify Direct Tax system. Rather it would have been better that new Income Tax Act would have been simultaneously introduced with the Union Budget. Drastic cut in tax-slabs is welcome, but there is no clarity if surcharges and cess exist or not. Tax-payer is confused if income is tax-free till rupees 12 lakhs per annum with tax-slabs existing for incomes between rupees 4 lakhs and 12 lakhs. Evidently normal tax-payer is not educated enough that it will be possible only due to relief available under section 87A of Income Tax Act 1961. Incomes exceeding rupees 12 lakh will deprive tax-payer of relief available under section 87A of Income Tax Act 1961. Direct tax-system could be most simplified by raising basic tax-exemption limit anywhere between rupees 4 lakhs and rupees 12 lakhs but abolishing confusing relief available under section 87A of Income Tax Act 1961. There should be only one tax-regime abolishing old tax-regime. Net tax-rate should not exceed 30-percent abolishing system of surcharges and cess to be in tune with most other countries of the world in accordance with recommendations of Raja Chelliah Committee for better tax compliance. With tax-slabs drastically cut, tax-exemptions including on charity, donation, contribution to political parties and even agricultural-income which are largely misused should be abolished. An ordinary farmer does not earn more than rupees four lakhs per annum, and the provision is grossly misused by ultra-rich persons including known celebrities to declare their unaccounted income as agricultural income through some village-land purchased only for whitening the black income without having any agricultural produce. India should step towards cashless economy like in Sweden by taking bold steps to bring cash in circulation in banking economy as was visualised at time of demonetisation of currency on 08.11.2016. A permanent Voluntary Disclosure Scheme can be introduced whereby provision may be there in tax-return to declare at highest suggested tax-rate of 30-percent, any income without disclosing source of income. This will make cash-transaction specially in property-deals accounted if registration-fees on property-deals is also reduced to say just five-percent inclusive of municipal taxes and capital-gain further cut to 10-percent like on shares. Names of all those disclosing incomes under suggested highest 30-percent slab should be on website according to income disclosed so that status-conscious persons may race to disclose more incomes. LK Jha committee recommendations to make calendar-year as fiscal-year should be implemented to be in line with most countries of the world, thus abolishing another British legacy of following April-March presently as Fiscal Year. It is ridiculous to have different Depreciation-Rules for Tax and Corporate audits. There should be a single and unified Tax and Corporate Audit. All sale-purchases above rupees 10000 must be compulsorily through bank-transactions. For this, transaction-charges on credit-cards should be slashed down to just half-percent (GST-exempted) that too to be borne by central government with all incentives on purchases made through credit-cards abolished. Present high two-percent transaction-charges on credit-cards make traders charge it separately from customers specially where trade-margins are low. System will fetch much higher tax-revenue for government, than through half-percent transaction-charges to be borne by government. Banks issuing credit-cards will get much-more earning even with half-percent transaction-charge because of manifold use of credit-cards. Two sets of credit-card swapping-machines should be compulsory for every GST-registered dealer so as to avoid declining payment through credit-cards with usual excuse that swapping-machine is out of order.

Strict-most action must be there against those refusing payment through credit/debit cards.  Input-Tax-Credit system in GST-regime in manufacturing-sector is biggest corrupt practice of tax-evasion where left-out GST-invoices by ordinary customers are sold by traders to consuming manufacturers or producers to avail false Input-Tax-Credit where cash is paid back by traders to those purchasing left-out GST-invoices of actual consumers bringing more currency in circulation, this being the reason of rapid and regular rise in currency-circulation. Annual forensic audit may be made compulsory on claims made for Input-Tax-Credit by manufacturers/producers to avoid false claims of excessive Input-Tax-Credit in these sectors. Rather study should be made if with abolition of 18-percent GST slab, Input-Tax-Credit can be altogether abolished from manufacturing/producing sectors, retaining it only on tradable commodities.  Input-Tax-Credit system under GST should not be available on expenses like has rightly be done in case of car-expenses for non-commercial use. With such large-scale reduction in Input-Tax-Credit and merging GST-slabs of 3 and 5 percent into a new slab of 6-percent apart from raising 28-percent GST slab to 30-percent, it may be possible to abolish 18-percent GST-slab thus reducing GST-slabs to just 6, 12 and 30-percent. India is the only country which has so many GST-rates. Gradually even slabs of 6 and 12 percent may also be replaced by a new 10-percent tax-structure. Zero-percent GST may only be retained on totally unbranded raw-materials which cannot be consumed without giving a finishing touch like agricultural-products, fish, meat, cotton-yarn etc. All items of long-term use like cars, air-conditioners, TV-sets, refrigerators etc may attract 30-percent GST while their parts may uniformly attract 12-percent GST. It is ridiculous that clutch-plate and clutch-bearing are under different GST-slabs of 18 and 28 percent. Likewise different food-items like sweets, biscuits, namkins etc attract different GST-slabs with luxury sweets causing diabetes attracting just 5-percent GST. Invoices for items like gold-jewellery can be drawn in two parts, one for metal and embodied items and the other for making-charges so that suggested 12-percent GST may be payable only on making-charges. Cess on extra-luxurious items should be replaced by additional GST-slabs in multiples of 60-percent, also bringing petroleum products under GST-regime to ensure uniform pricing of petrol and diesel in all states.  With GST-slab of 18-percent abolished and service sector then attracting just 12-percent GST, those with income of rupees ten lakhs or more (instead of present rupees 20 lakhs) can be brought under GST-regime like was the system before GST-regime with lawyers also coming under purview of GST-regime. Useless system of Tax-Deducted-At-Source for GST, which is hardly used in practice, should be altogether abolished. All government-payments can be considered to be exempted from GST to avoid unnecessary government-accounting by putting tax from one government-pocket to other. It is illogical that some premium postal-services like Speed-Post may attract GST while other postal-services do not attract GST. Even illogical and irrational postal-rates (both inland and foreign) need simplification for equal rise of postal-tariff for equal rise in slab-weight in multiples of 50 gms. of inland postal-article with all postal-tariffs being in multiples of rupees ten except for registered-newspapers and post-cards which may cost rupee one with abolition of outdated Inland-Letter-Cards. Presently a postal-article weighing 200 gms sent locally by reliable and fast Speed Post costs just rupees 30 but if sent by unreliable ordinary post, it will cost rupees 50. Likewise foreign-mail tariffs can be fixed for 20 gms or part slab-weight independently for air and sea-surface-mail. Writer is Guinness World Record Holder for writing most letters and RTI Consultant

[indiansalahkar23]

Top Best Income Tax Service Provider in India

Are you looking for a professional Income Tax Service Provider in India for your income tax filings at a moderate price? Visit, Indian Salahkar, the best business accounting firm in India to complete your incometax filling process in an ease and hassle-free manner.

[news365times]

bySubhash Chandra Agrawal Much awaited new Income Tax Act is announced to be introduced shortly in the Union Budget for fiscal-year 2025-26 to replace six decades old Income Tax Act 1961. It should be expected that new Income Tax Act will simplify Direct Tax system. Rather it would have been better that new Income Tax Act would have been simultaneously introduced with the Union Budget. Drastic cut in tax-slabs is welcome, but there is no clarity if surcharges and cess exist or not. Tax-payer is confused if income is tax-free till rupees 12 lakhs per annum with tax-slabs existing for incomes between rupees 4 lakhs and 12 lakhs. Evidently normal tax-payer is not educated enough that it will be possible only due to relief available under section 87A of Income Tax Act 1961. Incomes exceeding rupees 12 lakh will deprive tax-payer of relief available under section 87A of Income Tax Act 1961. Direct tax-system could be most simplified by raising basic tax-exemption limit anywhere between rupees 4 lakhs and rupees 12 lakhs but abolishing confusing relief available under section 87A of Income Tax Act 1961. There should be only one tax-regime abolishing old tax-regime. Net tax-rate should not exceed 30-percent abolishing system of surcharges and cess to be in tune with most other countries of the world in accordance with recommendations of Raja Chelliah Committee for better tax compliance. With tax-slabs drastically cut, tax-exemptions including on charity, donation, contribution to political parties and even agricultural-income which are largely misused should be abolished. An ordinary farmer does not earn more than rupees four lakhs per annum, and the provision is grossly misused by ultra-rich persons including known celebrities to declare their unaccounted income as agricultural income through some village-land purchased only for whitening the black income without having any agricultural produce. India should step towards cashless economy like in Sweden by taking bold steps to bring cash in circulation in banking economy as was visualised at time of demonetisation of currency on 08.11.2016. A permanent Voluntary Disclosure Scheme can be introduced whereby provision may be there in tax-return to declare at highest suggested tax-rate of 30-percent, any income without disclosing source of income. This will make cash-transaction specially in property-deals accounted if registration-fees on property-deals is also reduced to say just five-percent inclusive of municipal taxes and capital-gain further cut to 10-percent like on shares. Names of all those disclosing incomes under suggested highest 30-percent slab should be on website according to income disclosed so that status-conscious persons may race to disclose more incomes. LK Jha committee recommendations to make calendar-year as fiscal-year should be implemented to be in line with most countries of the world, thus abolishing another British legacy of following April-March presently as Fiscal Year. It is ridiculous to have different Depreciation-Rules for Tax and Corporate audits. There should be a single and unified Tax and Corporate Audit. All sale-purchases above rupees 10000 must be compulsorily through bank-transactions. For this, transaction-charges on credit-cards should be slashed down to just half-percent (GST-exempted) that too to be borne by central government with all incentives on purchases made through credit-cards abolished. Present high two-percent transaction-charges on credit-cards make traders charge it separately from customers specially where trade-margins are low. System will fetch much higher tax-revenue for government, than through half-percent transaction-charges to be borne by government. Banks issuing credit-cards will get much-more earning even with half-percent transaction-charge because of manifold use of credit-cards. Two sets of credit-card swapping-machines should be compulsory for every GST-registered dealer so as to avoid declining payment through credit-cards with usual excuse that swapping-machine is out of order.

Strict-most action must be there against those refusing payment through credit/debit cards.  Input-Tax-Credit system in GST-regime in manufacturing-sector is biggest corrupt practice of tax-evasion where left-out GST-invoices by ordinary customers are sold by traders to consuming manufacturers or producers to avail false Input-Tax-Credit where cash is paid back by traders to those purchasing left-out GST-invoices of actual consumers bringing more currency in circulation, this being the reason of rapid and regular rise in currency-circulation. Annual forensic audit may be made compulsory on claims made for Input-Tax-Credit by manufacturers/producers to avoid false claims of excessive Input-Tax-Credit in these sectors. Rather study should be made if with abolition of 18-percent GST slab, Input-Tax-Credit can be altogether abolished from manufacturing/producing sectors, retaining it only on tradable commodities.  Input-Tax-Credit system under GST should not be available on expenses like has rightly be done in case of car-expenses for non-commercial use. With such large-scale reduction in Input-Tax-Credit and merging GST-slabs of 3 and 5 percent into a new slab of 6-percent apart from raising 28-percent GST slab to 30-percent, it may be possible to abolish 18-percent GST-slab thus reducing GST-slabs to just 6, 12 and 30-percent. India is the only country which has so many GST-rates. Gradually even slabs of 6 and 12 percent may also be replaced by a new 10-percent tax-structure. Zero-percent GST may only be retained on totally unbranded raw-materials which cannot be consumed without giving a finishing touch like agricultural-products, fish, meat, cotton-yarn etc. All items of long-term use like cars, air-conditioners, TV-sets, refrigerators etc may attract 30-percent GST while their parts may uniformly attract 12-percent GST. It is ridiculous that clutch-plate and clutch-bearing are under different GST-slabs of 18 and 28 percent. Likewise different food-items like sweets, biscuits, namkins etc attract different GST-slabs with luxury sweets causing diabetes attracting just 5-percent GST. Invoices for items like gold-jewellery can be drawn in two parts, one for metal and embodied items and the other for making-charges so that suggested 12-percent GST may be payable only on making-charges. Cess on extra-luxurious items should be replaced by additional GST-slabs in multiples of 60-percent, also bringing petroleum products under GST-regime to ensure uniform pricing of petrol and diesel in all states.  With GST-slab of 18-percent abolished and service sector then attracting just 12-percent GST, those with income of rupees ten lakhs or more (instead of present rupees 20 lakhs) can be brought under GST-regime like was the system before GST-regime with lawyers also coming under purview of GST-regime. Useless system of Tax-Deducted-At-Source for GST, which is hardly used in practice, should be altogether abolished. All government-payments can be considered to be exempted from GST to avoid unnecessary government-accounting by putting tax from one government-pocket to other. It is illogical that some premium postal-services like Speed-Post may attract GST while other postal-services do not attract GST. Even illogical and irrational postal-rates (both inland and foreign) need simplification for equal rise of postal-tariff for equal rise in slab-weight in multiples of 50 gms. of inland postal-article with all postal-tariffs being in multiples of rupees ten except for registered-newspapers and post-cards which may cost rupee one with abolition of outdated Inland-Letter-Cards. Presently a postal-article weighing 200 gms sent locally by reliable and fast Speed Post costs just rupees 30 but if sent by unreliable ordinary post, it will cost rupees 50. Likewise foreign-mail tariffs can be fixed for 20 gms or part slab-weight independently for air and sea-surface-mail. Writer is Guinness World Record Holder for writing most letters and RTI Consultant

[scbhagat]

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