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
GST FOR DROPSHIPPING

GST FOR DROPSHIPPING

What is Dropshipping? Dropshipping is an extremely popular E-business model that works as intermediaries (merchant) between the supplier and the end consumer. In the dropshipping business, the dropshippers receive the order from the consumers and transfer it to the manufacturer/supplier. Now, the supplier directly delivers the order to the consumers. These merchants earn commission by selling the products of manufacturers. The benefit of dropshipping business is that the merchant doesn’t have to handle the product directly and does not require to maintain his/her own stock. While operating the Dropshipping business, you need to pay two types of taxes: • Goods and Service Tax (GST) • Income Tax GST Applicability & Rate For Dropshipping : Dropshipping can be international, domestic, or both, depending on the supplier and the consumers' location. Case I: Supplier: Outside India (Say US) Consumer: Indian customers Business Registration: India GST Implication: A business registered in India is...
Swagat W. GST
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
Passive Investment Strategies In Stock Market

Passive Investment Strategies In Stock Market

Intro Passive investing comes with a goal to build wealth gradually over the years. In cases of passive investment, regular trading, buying and selling, are limited. However, the return is maximized through medium and long-term investment. The ‘buy and hold’ strategy is applicable in this form of investment, and it has been noticed that wealth formation is better compared to active investing, in the long run. With this form of investing, the charges are minimum, as well as the risk.  Various Strategies of Passive Investment in Stock Market The best example of passive investment is investing in an index fund. In case of an index fund, you invest a good amount of money to a fund that mimic the growth of the index that it is part of. There is no active manager to tackle the growth regularly. However, they weight the funds, once in a while, and make sure...