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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.

Archive


2020

Treatment of Unexplained Transactions under the Income Tax Act 1961

This Article discusses Tax Treatment of Cash Credit, Unexplained investments, Unexplained money, Amount of investments not fully disclosed in books of account, Unexplained expenditure and Amount borrowed or repaid on hundi in cash under section 68, Section 69, Section 69A, Section 69B, Section 69C and Section 69D respectively of the Income Tax Act, 1961.

2020

Changes in Rules related to Tax Audit under the Income Tax Act 1961

There are various types of audits prescribed under different laws like company law requires a company audit, cost accounting law requires a cost audit, etc. The Income-tax Law requires the taxpayer to get the audit of the accounts of his business/profession from the view point of Income-tax Law.

Section 44AB gives the provisions relating to the class of taxpayers who are required to get their accounts audited from a chartered accountant. The audit under section 44AB aims to ascertain the compliance of various provisions of the Income-tax law and the fulfillment of other requirements of the Income-tax law. The audit conducted by the chartered accountant of the accounts of the taxpayer in pursuance of the requirement of section 44AB​ is called tax audit.

The chartered accountant conducting the tax audit is required to give his findings, observation, etc., in the form of audit report. The report of tax audit is to be given by the chartered accountant in Form Nos. 3CA/3CB and ​3CD. ​

2020

Frequently Asked Questions on Section 194K of Income Tax Act 1961

Q1: What does section 194K of the Income Tax Act says?

Any person responsible for paying to a resident any income in respect of:

  • Units of a mutual fund specified under Clause (23D) of Section 10; or
  • Units from the Administrator of the specified undertaking; or
  • Units from the specified company.

shall, at the time of credit of such income to the account of the payee or at the time of payment thereof by any mode, whichever is earlier, deduct income tax thereon at the rate of 10 per cent.

2020

Key Highlights of the Direct Tax Vivad se Vishwas Bill 2020

Vivad se Viswas scheme is launched by Ministry of Finance in LokSabha on 5th February 2020.It is a tax dispute Redressal mechanism which is introduced in Direct Tax regime so that taxpayers whose tax demands and disputes related to Income Tax are pending as on 31st January, 2020 [irrespective of whether the demand is pending or has been paid], can pay their taxes and settle disputes by 31st March, 2020.

2020

Disallowed Deductions Exemptions under New Income Tax Regime

The Budget 2020 has introduced a new Income Tax structure having six different slab rates. The current tax slab rates will also remain in place. This move will make tax structure more complex. If the tax payers wish to avail new structure, he/she will not be able to avail benefit of many of the deductions and exemptions available at present in old tax structure.The removal of tax exemptions and deductions certainly makes compliance less tedious, but tax planners who maximized their tax deductions will probably pay more tax under the new tax regime.

Financial Management