Taxation Archives - Neeraj Bhagat & Co.

July 21, 2022 / Taxation

TDS under Section 194R & Section 194S of Income Tax Act, 1961

The Finance Bill 2022 has proposed two completely new TDS sections, 194R and 194S, in the Income Tax Act, to be made effective from 1.7.2022. Looking at the swift pace, with which the new TDS sections, are being inserted by the Legislature, year after year, in Chapter XVIIB of the Income Tax Act, 1961, it appears that very soon, the remaining seven sections 194T/U/V/W/X/Y and Z, will also be brought in, to complete the full ABC.

TDS under Section 194R…

April 12, 2022 / Taxation

Updated Return under Income Tax Act

Filing of Updated Income Tax Return
Finally, provision of filing an updated income tax return has been introduced in Income Tax with effect from 01.04.2022. An assessee, whether he has filed or not, an income tax return (whether it be the original return, the belated return or the revised return), may now furnish an updated return of income, within two years from the end of relevant assessment year. For eg: For the AY 2022-23 (i.e. FY 2021-22), the updated return …

March 31, 2022 / Business

Taxation of Cryptocurrency in India

Cryptocurrency and Income Tax
Clarification on the taxation of cryptocurrency in India was highly awaited for the crypto holders. With the introduction of Budget 2022 the government has announced taxation norms on the same. Key pointers regarding income tax implications on cryptocurrencies in India are as follows

1. Cryptocurrency – Meaning as per Income Tax provisions

a form of virtual digital asset
not being an Indian currency or foreign currency as per the provisions of Foreign Exchange Management Act, 1999

…

March 21, 2022 / Taxation

Income Tax Return: Be Ready to Pay Higher TDS if you Do Not Do this by March 31

If you have not linked your Permanent Account Number or PAN with Aadhaar card, be ready to pay higher Tax Deducted at Source (TDS) from next month. The last date for linking your Aadhaar number and PAN has been extended to March 31. Failing to link these two documents within the mentioned deadline, will have an impact on your debit and credit card payments, online transactions, cash withdrawal from ATMs among others.

According to the Section 139AA of the Income …

February 24, 2022 / Taxation

Cryptocurrency – Virtual Digital Asset

Cryptocurrency is a form of virtual digital asset which is designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of assets. It has become one of the fastest upcoming modes of investment. Crypto refers to the various algorithms and techniques that safeguard these entries such as elliptical curve encryption, public private key pairs and hashing functions. It is a collection of binary data which is designed to be anonymous and …

January 20, 2022 / Taxation

NRI Taxation in India

The income of a non-resident Indian (NRI) earned in India is taxable. Whether a person will be classified as NRI or not will depend on the number of days he or she has stayed in India and the quantum of income earned.

Tax on an individual’s income depends on the source of such income and the residential status in India. The residential status of an Indian citizen needs to be determined individually for every financial year which may vary from …

December 14, 2021 / Taxation

TDS on fee for Professional and Technical Services

Section 194J of The Income Tax Act 1961, pertains to deduction of tax at source in case of fees for professional or technical services. It applies to TDS on payment of any sum by way of –

a) fees for Professional services
b) fees for Technical services
c) Remuneration or fees or commission paid to directors (excluding salary)
d) Royalty
e) Non-compete fee

Threshold Limit for each of the above payments except for payment to directors is Rs. 30,000 i.e. …

September 29, 2021 / Taxation

Income Tax Return (ITR)- Impact of Delay in filing ITRs

The Government of India has framed Income Tax laws governing the taxes to be levied on the taxable income of all persons who are Individuals, HUF’s, Companies, Firms, LLP, Association of Persons, Body of individuals and any other juridical person. Every individual who qualifies as the resident of India is required to pay tax on the taxable income. Every financial year, tax payers are required to file Income Tax Returns (ITR) in adherence to the laid down rules and guidelines.…

August 4, 2021 / Taxation

Global Minimum Tax

21^st century world largely operates under a Global Economic System. International Business is the buzz all around & businesses are not confined to boundaries. It involves cross border transactions both in goods and services. Conducive International Business Environment is imperative for multinational companies to operate and perform. In order to promote cross border trade, the government of each economy is simplifying the trade policies easing out the way business is conducted. But the challenging and complex issue of Taxation …

July 23, 2021 / Taxation

Brief Analysis of TDS under Section 194Q

As per Section 194Q the buyer, whose turnover or gross receipts or total sales is exceeding Rs. 10 crores in a financial year immediately preceding the relevant financial year, shall be liable to deduct tax at rate of 0.1% on the value exceeding Rs. 50 lakhs at the time of: –

Section 194Q was introduced in the Budget of 2021-22 and has come into effect from 1^st July, 2021. However, the CBDT has said that this provision would not …