CBDT MOU WITH MSME

CBDT MOU WITH MSME

Key features of CBDT MoU with MoMSME On July 20, 2020, the Central Board of Direct Taxes (CBDT) has signed a Memorandum of Understanding (MoU) with the Ministry of Micro, Small and Medium Enterprises (MoMSME). Key features: • Sharing Income tax related (ITR) related data • Two-way exchange of information • To keep a check and to classify enterprises in MSME category as per the criteria • Both Ministry of MSME and Income Tax department will appoint Nodal authorities 1. What is a MoU? Memorandum of Understanding (MoU) is an agreement between the two or more parties that have taken decisions and agreed to enter into a contract. It is made when the parties have outlined the rights and obligations during the initial discussions. However, it is not a legally binding contract. 2. What should taxpayers be aware of? As per section 138 of the Income Tax Act, the income...
Swagat W. Income Tax
CBDT MOU WITH SEBI

CBDT MOU WITH SEBI

On 22nd July 2020, The Securities and Exchange Board of India (SEBI) have signed Memorandum of Understanding (MOU) with The Central Board of Direct Taxes (CBDT) for the sharing of data. The MoU of CBDT and SEBI has come in force from the date of signing itself. Let us understand what is this MOU and what tax payers should be aware of now: Key features of CBDT and SEBI MOU : • Data sharing on automatic and regular basis • Exchange of other information on request or suo moto basis • Periodically review of the data exchange status • Steps to improve the effectiveness of the data-sharing mechanism Let us understand the basics now: 1. What is the MOU? Memorandum of Understanding (MOU) is an agreement between the two or more parties that have taken decisions and agreed to enter into a contract. It is made when the parties have...
Swagat W. Income Tax
TDS UNDER SECTION 194N

TDS UNDER SECTION 194N

What is TDS? The Income Tax Department introduces the concept of Tax Deduction at Source (TDS). The person making some specified payments is liable to deduct a certain percentage (as tax) before making payment to the recipient. It includes payment for salary, interest, rent etc. Every individual or organization is responsible for deducting TDS if the specified limit exceeds as prescribed in the Income-tax act. The person responsible for deducting TDS is known as “Deductor/Payer” and the person who receives payment after TDS is known as “Deductee /Payee.” As we all know their are many sections under which TDS is deducted but GOI has recently introduced and made applicable TDS under section 194N. In this article we would be understanding mainly about it. What is TDS Under Section 194N? Section 194N specified about the “TDS on cash withdrawals.” The section came into force from 01st September 2019. It is applicable...
Swagat W. Income Tax
Income Tax On Rent

Income Tax On Rent

Income Tax on Rent Intro: An individual earns income from various sources such as salary, business, rent from property, bank interest, etc. during a financial year and compute the tax liability on income. Section 14 of the Income Tax Act, states that the income of a person is taxed under 5 heads of income as follows: • Income from salary • Income from House property • Income from Profits and Gains of Business/Profession • Income from Capital Gains • Income from Other Sources Section 22 of the Income-tax Act is the charging section that deals with rental income taxation under the head income from house property. 2.  a. What is house property income? The house property income means earning income by renting out your property or income on transfer of house property. As per the Income-tax Act, any properties such as houses, apartments, buildings, warehouses, etc. are considered as house...
Swagat W. Income Tax
Faceless Assesment / E Scrutiny – All about it.

Faceless Assesment / E Scrutiny – All about it.

What is scrutiny? “Scrutiny means the examination of the Income-tax return and making enquires related to an assessment year”. Every financial year, taxpayers file their income tax returns and pay tax. After submitting the return, the income tax (assessing) officer examines whether the income declared or expenses claimed in return are accurate. If the officer has reasons to believe that return is not filed correctly or filed incomplete, he initiates the scrutiny process and allows the assessee to substantiate it with supporting documents. As per section 143(2) of the Income-tax act, 1961, the assessing officer has the power to issue a notice for the scrutiny cases. The department has now shifted from the manual scrutiny assessment to the “Faceless E-assessment Scheme” under which escrutiny would be done with the aim of: • Ease of compliance • Eliminate human interface • Curb corruption and • Bring transparency Features of New faceless...
INCOME TAX IN INDIA

INCOME TAX IN INDIA

INTRODUCTION:- Income tax, as many know, is a direct tax and is taxed according to various income sources received by an individual or an entity ina financial year. In India, income tax is based on a simple principle - "Tax the rich and leave the poor."  The tax rates are based on income slabs, and they increase with increasing income slab. Corporate entities like private limited, partnership firms, LLPs are taxed at the highest rate of 30%, in which individuals are taxed at lower rates as per their income slabs.   INCOME TAX IN INDIA:- Legality Flowchart Who administers CBDT means The Central Board of Direct tax monitors the income tax department and itself(CBDT) comes under the revenue department of the finance ministry. Income tax is a significant source of income for the government itself. FIVE MAIN HEADS OF INCOME: 1.Income from Salary:- The first head of income is a salary...