Applicability of TDS on Cash Withdrawals

CBDT introduced a new section in the Income Tax Act, w.e.f.1st September 2019, to bring in transactions of cash withdrawals under the tax net. According to Section 194N, all the Banks to which Banking Regulation Act applies, a Co-operative Society and a post office shall be responsible to deduct TDS, if any person withdraws cash from the account/s maintained with them, being the amount or aggregate of amounts exceeding rupees one crore during the financial year.

Continue Reading

Taxability where the Stamp Duty Value is higher than the Sale Consideration

Income Tax Act has broadly defined taxability of income under five heads of Income. One of them is Capital Gain, where gains arising out of sale of capital assets are taxable in the hands of the seller of the capital asset. However, with the intention of tax evasion, assesses started entering into an agreement with the buyer, where the sale value declared by the seller is less than the actual sale consideration. This led to loss of tax to the government, and thus to avoid this, section 50C and Section 56 (2)(x) was introduced as two sides of a coin. Section 50C states taxability of such cases in the hands of the seller while Section 56 (2)(x) specifies about the taxability of such transactions in the hands of the buyer.

Continue Reading

Tax Benefits for Disabled Individuals

Tax Benefits for Disabled Individuals

Whenever we come across an individual who is suffering from disabilities, the first reaction of most people is to pity them. However, it should not be the case. There are many stories of individuals who, despite suffering from disabilities, have soared the heights of success.

Continue Reading

Penalty for Late Filing of Income Tax Return for AY 2020-21

Income Tax Act has a provision to impose penalty in case of default in furnishing the return of income for any assessment year commencing on or after 1st April 2018.

Continue Reading

Interest Liability under Income Tax

Every person who earns income chargeable to tax should file its income tax return with the Income-tax Department before the due date and pay the taxes as applicable for the financial year. If any person fails to do so, such person shall be liable to pay interest as imposed by the Income Tax Act. Under the Income Tax Act, interest is imposed under three subsections of Section 234, viz., 234A, 234B, and 234C.

Continue Reading

Advance Tax – Dates, Penalty and Interest

All about Advance Tax for Taxpayers

What is Advance Tax?

As it can be easily understood, it is payment of the taxes in advance instead of lump sum payment at the end of the year. A taxpayer is liable to pay taxes in advance i.e. before the end of the year. Any taxpayer whose tax liability for the year is Rs. 10,000/- and more shall be liable to pay advance tax. It is popularly known as ‘pay as you earn’ scheme.

Continue Reading