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2017
  • The government made several tax proposals aimed at the housing and infrastructure sector. But apart from vowing pukka houses for the masses, an important announcement too was made, which has the potential to change the way taxes are levied on buying and selling houses.
  • If assets are held for long-term one can adjust the purchase price in accordance with inflation to reduce the tax applicable. This period of long-term differs from one asset to another. For debt-mutual funds it is 36 months and for unlisted shares it is 24 months, while for listed shares it is 12 months.
  • So, far immovable property should have been held for 36 months to be considered long-term. The Union Budget 2017-18 proposes to shrink this period to 24 months as well, in line with unlisted shares.

2017
  • The 50 days of demonetization are behind us and so is the deadline to deposit and convert the demonetized currencies of Rs. 500 and Rs 1000. If you have deposited cash up to Rs. 2.5 lakh in your account, there is no cause for worry as per the government directive. However, if your deposit amount exceeds Rs 2.5 lakh, you may get a notice from the Income Tax Department.
  • Most of the people get queasy when it comes to deal with income tax department. This article is an effort towards discussing how to handle the income tax notice after November 8.

Who may get an IT notice?

  • As per government’s directive, banks have been asked to furnish details of all individuals who have deposited more than Rs. 2.5 lakh in their savings account or opened fixed deposits. It has also asked banks for information on deposits of more than Rs. 12.5 lakh in current accounts. Banks send these details to tax authorities, which in turn may issue a notice if necessary.
  • At the same time, if you have bought big-ticket items such as gold or a car, you may get a notice from tax authorities. The government has asked all car dealers to furnish details of their transactions if there is a spike in the volume of business after the demonetization announcement. Similarly, jewellers have been asked to provide details of business transactions that transpired after November 8.

2017
  • The much anticipated Union Budget 2017 was finally announced today by our honourable Finance Minister. It was broadly focused on 10 issues — farming sector, rural population, youth, poor and health care for the underprivileged, infrastructure, financial sector for stronger institutions, speedy accountability, public services, prudent fiscal management and tax administration for the honest. Here is what it brought for personal Income Tax payers and corporate taxpayers.

Personal Income Tax:

  • Any person who files his tax return for the first time will not be scrutinised unless the tax department has specific information encouraging scrutiny.
  • The government will simplify tax filing by introducing a new ITR form for taxpayers with income up to Rs. 5 lakhs.
  • The government has proposed to levy a surcharge of 10% for persons having income between Rs. 50 lakhs and Rs. 1 crore.
  • The government has not changed Income Tax exemption limit but reduced tax rate to 5% for persons having income between Rs. 2.5 lakhs to Rs. 5 lakhs.
  • On the down side the budget 2017 has proposed to restrict the benefit of set-off loss from house property to a maximum Rs. 2 lakh per financial year and the balance loss can be carried forward to next 8 years

2017

For whom the presumptive taxation scheme of section 44ADA is designed?

  • The presumptive taxation scheme of section 44ADA is designed to give relief to small taxpayers engaged in specified profession.

Eligible persons who can take advantage of the presumptive taxation scheme of section 44ADA

  • A person resident in India engaged in following professions can take advantage of presumptive taxation scheme of section 44ADA:
    1. Legal
    2. Medical
    3. Engineering or architectural
    4. Accountancy
    5. Technical consultancy
    6. Interior decoration
    7. Any other profession as notified by CBDT

2017
  • With inflation catching the headlines too often have you been worried about expenses draining your income? The Income Tax Act offers some reason to lift your spirits amidst the gloom of expenses. There are more than a handful of expenses that help you slash taxes.

House Rent

  • If your landlord has increased the rent the ‘n’ th time and zooming real estate prices have been keeping your dream house out of your reach then the rising rent has a silver lining of tax saving. You can claim the lowest of – a. The actual HRA, b. 40% of the basic pay (50% for metros) or c. rent paid less 10% of basic pay.

2017
  • The future of Indian logistic industry looks bright, thanks to e-commerce penetration, economy revival, proposed GST implementation and government initiatives like Make in India, National Integrated Logistic Policy, 100% FDI in warehouses, food storage facilities, etc. In the Indian logistics industry, transportation enjoys a lion’s share of 60% while warehousing, freight forwarding, value-added logistics, etc. together contribute only 40%. Experts predict India’s GDP growth to be robust. This means that logistics industry will also grow by leaps and bounds as it is directly correlated with economic activity. Considering this fact, the Indian logistic industry is predicted to grow at CAGR of 15-20% between F.Y. 2016 and F.Y. 2020.
  • This doesn’t mean that logistics industry in India isn’t plagued by any problem. It suffers from many issues like higher logistic costs and complex tax structure. GST Act can become its savoir. The implementation of Goods and Service Tax bill is hoped to bring down the logistic costs up to 20% from the current levels, however, development of a robust logistics infrastructure is extremely crucial to bring down persistently high logistics costs. Indian logistics industry is identified by 4 major parts which are transportation, warehousing, freight forwarding and value-added logistics. Transportation which has the major share in the industry comprises of means like road, rail, air and water. However, India being an emerging economy, is heavily dependent on transportation through rail and road.

Financial Management