Section 194P is recently introduced in Budget 2021 to provide a relief to senior citizens above the age of 75 years from filing the income tax return. It helps an individual to provide relief in terms of burden compliances from filing income tax returns.

TDS is deducted from the specified types of payments like rent, commission, salary, etc. at the specifies rates. The person who is deducting tax at source has to submit tax amount to the government on or before the specified due dates.

Income tax department launched a new website ‘www.incometax.gov.in’ for the easy access to the e-filing portal. The following steps is the procedure of registering your PAN on the new website of the income tax department.

Individuals have to pay taxes according to their income, the rates at which an individual pay taxes are called income tax slab rates. The article explains the slab rates for different income slabs.

Section 194Q Deduction of TDS on payment of certain sum for purchase of goods   The Government of India has come up with a new section which is going to be effective from 1st July 2021 in relation to deduction of tax at source on transactions involving purchase of goods. The tax to be deducted … Continue reading “Section 194Q & Section 206C (1H)”

 Section 112 – Rate of Tax on Long-Term Capital Gain   Section 112 – Tax on long-term capital gains The general rule says, when a capital asset which qualifies to be a long-term capital asset is sold, it is taxed @20% on the capital gains arising on such sale.   The treatment of long-term capital … Continue reading “Section 112 – Rate of Tax on Long-Term Capital Gain”

Maintenance, keeping and furnishing of information and document by certain persons.   The Section 92D of the Income Tax Act, 1961, requires that every person who has entered into an international transaction or specified domestic transaction shall keep and maintain such information and document in respect of such transactions which are prescribed by the department … Continue reading “Section 92D”

Concept of Indexation   Changes in the value of asset according to your living cost is called indexation. The benefit of indexation is available only to long-term capital assets. For computation of indexed cost of acquisition following factors are to be considered: Cost and Year of acquisition &/or improvement Year of transfer Cost inflation index … Continue reading “Concept of Indexation”

What is the meaning of the term Associated Enterprise (AE)?   The provisions of transfer pricing will apply only if the transactions happen to between the Associated Enterprises (AE). The term Associated Enterprises is specifically defined by the Income Tax act, 1961 in Section 92A. The definition explains various scenarios when an organization happens to … Continue reading “Meaning of Associate Enterprise in Transfer pricing”

Transfer Pricing – Section 92   What is Transfer Pricing? Transfer pricing is the related to determining the value of goods & services exchanged or transferred between two related parties or related parties situated in other countries. The purpose of transfer pricing is to ensure that the price determined in the following transaction should be … Continue reading “Transfer Pricing – Section 92”