Income Tax Articles

Presumptive Taxation Scheme Section 44AD - Part I

CA.R.S.KALRA 07 October 2021 at 15:14

Presumptive taxation for businesses is covered under section 44AD of the income tax act. Any business which has a turnover of less than Rs 2 crore can opt to be taxed presumptively.

Section 194N: TDS on heavy cash withdrawal from Banks / Post Offices

Taxblock 07 October 2021 at 09:27

With the amendment in Finance Act, 2020 section 194N was amended by substituting 83A which imposes 2% TDS on withdrawal of sum exceeding Rs.1 crore. This section has come into effect from 1st July 2020.

Whether non gratuitous payment to a shareholder by company is taxable as deemed dividend?

FCS Deepak Pratap Singh 07 October 2021 at 09:27

A gratuitous loan given by a company to a shareholder would come u/s 2(22)(e ) but not in case where the loan or advance is given in return to an advantage conferred by such a shareholder.

Problem and Answer on Section 28(va) and Section 40(a)(ia) of the Income Tax Act, 1961

FCS Deepak Pratap Singh 06 October 2021 at 09:58

Section 40(a)(ia) is applicable only in case of interest, commission, rent, royalty, fees for professional or technical services etc. Amount taxable in the hands of recipient u/s 28(va) is not covered.

Unexplained cash credits under provisions of Income Tax Act 1961

FCS Deepak Pratap Singh 04 October 2021 at 09:38

Section 68 is a charging section, thus, if it is applicable, the assessee will not only be liable to pay the taxes but also penalty under section 271(1) (c) of the Income Tax Act, 1961.

Problems and Answers - Section 115QA & 115F of the Income Tax Act 1961

FCS Deepak Pratap Singh 04 October 2021 at 09:38

Section 115QA provides that a domestic company distributing its income through buy back of shares will have to pay income tax/distribution tax @20% (surcharge @12% and education chess @4%).

What is an SEZ, tax & trade implications on companies located in SEZ?

Taxblock 04 October 2021 at 09:38

A Special Economic Zone (SEZ) is a zone wherein businesses enjoy simpler tax and easier legal difficulties. It is located in a country’s national borders only, but they are treated as foreign territory for tax purpose.

Income Tax Questions & Answers Series Part II: Section 50C

FCS Deepak Pratap Singh 02 October 2021 at 18:32

Section 50C was introduced vide Finance Act. 2002 w.e.f. 01.04.2003, and prescribes similar provisions in the case of transfer of land or building or both, held in the nature of ‘Capital Assets’.

Is Depreciation allowed when vehicle is not registered in the name of leasing company?

FCS Deepak Pratap Singh 02 October 2021 at 18:31

As per the Motor Vehicles Act, the registration of a leased motor vehicle should be in the name of the lessee. However, as per the Income Tax Act, the asset must be owned by the person claiming depreciation.

What is Income Escaping Assessment?

Varsha Nayyar 01 October 2021 at 09:19

In technical terms, the income which is not disclosed at the time of filing returns is referred to as the income escaping assessment. As such, a valid notice must be served before an assessment or reassessment.