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2021

landscape income tax return guide

• ITR-7 is filed when persons including companies fall under section 139(4A) or section 139 (4B) or section 139 (4C) or section 139 4(D).
• No document (including TDS certificate) should be attached with this return form while filing ITR-7.
• Taxpayers are advised to match the taxes deducted/collected/paid by or on behalf of them with their Tax Credit Statement Form 26AS.

Archive


2021

Standard Deduction in case of Income from Salary

The Finance Minister Arun Jaitley introduced Standard Deduction of Rs. 40,000 in Budget 2018, giving the salaried class something to rejoice about. It replaced the transport allowance Rs. 19,200 and medical reimbursement of Rs. 15,000 per annum. Interestingly, the provision of Standard Deduction was earlier available. However, it was abolished in the Finance Act 2005. They are usually deducted from the gross salary and claimed as an exemption. The government has proposed requisite amendments to Section 17(2)(viii) of the Income-tax Act, 1961. As a result, the effective additional benefit on account of the standard deduction would be an additional income exemption of Rs 5800.

2021

Munimji Maintenance of Books of accounts under Income Tax Act 1961

In this article, we will discuss the legal provisions on the compulsory maintenance of books of accounts as specified in section 44AA of the Act by a Professional declaring tax under section 44ADA. Let us begin the discussion analyzing the provisions of section 44AA of the Act related to ‘Maintenance of accounts by certain persons carrying on profession or business’.

Section 44AA of Income Tax Act, 1961:

Section 44AA of the Act requires certain persons to maintain books of account. The provisions of this section read with Rule 6F of the Income Tax Rules, 1962 relate to maintenance of books by assessee as well as prescribe the list of books to be maintained.

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.

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.

Financial Management