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2020

 Audit under Income Tax Act 1961

Before understanding what is a tax audit, let us understand the term ‘audit’. Dictionary meaning of the term ‘Audit’ suggests that it is an official inspection of an organization’s accounts and production of the report, typically by an independent body. It is also referred to as a systematic review or assessment of something.

A Tax Audit is an audit, made compulsory by the Income Tax Act if the annual gross turnover/receipts of the assessee exceed the specified limit. Tax audit is conducted in Sec 44AB of the Income Tax Act by a Chartered Accountant. Simply Tax Audit means, an audit of matters related to tax. There are various kinds of audit being conducted under different laws such as company audit/statutory audit conducted under company law provisions, cost audit, stock audit etc. Similarly, income tax law also mandates an audit called ‘Tax Audit’. As the name itself suggests, a tax audit is an examination or review of accounts of any business or profession carried out by taxpayers from an income tax viewpoint. It makes the process of income computation for filing of return of income easier.

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2020

Brief Overview of TDS Certificates under Income Tax Act 1961

Under Section 203 of the Income Tax Act, 1961 mandates that the employer has to deduct TDS. After deducting the TDS, the employer has to issue certificates. These certificates are Form 16 and Form 16A that are issued to the deductees as a proof of the same.

Tax Deducted at Source (TDS) is a type of tax deducted from the income as per the specified percentage (%).TDS is deducted by the employer.

The TDS return process will be considered as incomplete until the Valid TDS certificate has been issued by the deductor. If we focus on the word Valid TDS Certificate, it means Form 16/ Form 16A issued by authenticated authority. As on the current date the TRACES have the authorization to issue valid TDS certificate.

2020

Transparent Taxation Honoring the Honest

Prime Minister Narendra Modi on August 13 launched the ‘Transparent Taxation, Honoring the Honest’ platform to further its initiative to reform direct taxes in India.

Launching the Transparent Taxation platform, PM Narendra Modi said the ongoing structural reforms have "reached new heights today" and that the 'Transparent Taxation - Honoring the Honest' platform will "have faceless assessments, faceless appeal and taxpayer charter". The motive behind the new policy are: Policy-driven governance, belief in people’s honesty, use of advanced technology, efficiency in bureaucracy.

2020

Common mistakes while filing Income Tax Returns

While filing your tax return, you should do it with utmost care. If you make a mistake you could end up with a tax notice from the department asking you to explain the discrepancy and pay tax, if any. Incorrect filing of tax returns will lead to many troubles. It’s better to file return correctly as well as on time to ensure mental peace.

Today we will discuss some common mistakes tax payers make while filing their income tax returns.

2020

Frequently Asked Questions on Section 269SU of the Income Tax Act 1961

As we all know the Government is pushing towards cashless economy and digital payment. In line with this policy GoI has introduced Section 269SU under the Income Tax Act, 1961. Section 269SU prescribes for accepting payment through certain electronic modes. In this article, we will discuss about some Frequently Asked Questions on Section 269SU.

2020

Further Extension of certain Income Tax Due Dates

After more than 2 months of nationwide lockdown, the Center announced Unlock – 1 from June 1st granting certain relaxations especially in non-red zones. However, social distancing norms and other guidelines, protocols& precautions are being violated by many people ever since the relaxations have been granted. Though the fatality rate has improved, the situation in Delhi and Mumbai is still not under control. Giving due consideration to the outbreak of novel corona virus in various states, Government has further extended certain dates pertaining to Income Tax law.

Financial Management