A Permanent Account Number has been made compulsory for every transaction with the Income-tax Department. It is also mandatory for numerous other financial transactions such as opening of bank accounts, in bank account, deposit of cash in bank account, opening of Demat account, transaction of immovable properties, dealing in securities, etc. A PAN card is […]
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Can We Quote PAN in Place of TAN?
No. PAN should never be quoted in the field where TAN is required to be quoted. The purposes for which PAN and TAN are allotted are different. TAN is a unique identification number which is allotted to persons who are required to deduct tax at source or collect tax at source. PAN is a unique […]
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Who Must Apply For Tax Deduction And Collection Account Number?
Every person liable to deduct tax at source or collect tax at source is required to obtain TAN. However, a person required to deduct tax under section 194IA orsection 194-IB or section 194M can use PAN in place of TAN as such person is not required to obtain TAN. (1) Section 194IA provides for deduction of tax at source from payment on […]
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Is A Senior Citizen Exempts From Filing ITR?
Income-tax Act, 1961 provides no exemption to senior citizen or very senior citizen from filing of return of income. However, to provide relief to the senior citizens (whose age is 75 years or more) and to reduce the compliance burden on them, the Finance Act, 2021, has inserted a new section 194P. This provision requires a […]
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CIT(A) Has No Power To Enhance New Source Of Income Neither Discussed in Assessment Order Nor Mentioned in ITR: ITAT Pune
In the case of Ram Infrastructure Ltd vs. JCIT, ITAT Pune has held that: It is well settled law laid down by the Hon’ble Apex Court in Commissioner of Income Tax Vs. Shapoorji Pallonji Mistry, 44 ITR 891 (SC) and Commissioner of Income Tax Vs. Rai Bahadur Hardutroy Motilal Chamaria, 66 ITR 443 (SC) and […]
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At What Rate The Payer Will Deduct Tax If I Do Not Furnish My PAN To Him?
As per section 206AA, if you do not furnish your Permanent Account Number to the payer (i.e., deductor), then the deductor shall deduct tax at the higher of the following rates: At the rate specified in the relevant provision of the Act. At the rate or rates in force, i.e., the rate prescribed in the […]
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Under What Condition The Payer Will Deduct TDS At Higher Rates?
As per section 206AB, the tax shall be deductible at the higher rates prescribed under this provision if the following conditions are satisfied: (a) Deductee has not filed the return of income for 2 assessment years relevant to the previous year immediately prior to the previous year in which tax is required to be deducted; […]
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What Are Duties Of Person Deducting TDS Under Income Tax?
Following are the basic duties of the person who is liable to deduct tax at source. He shall obtain Tax Deduction Account Number and quote the same in all the documents pertaining to TDS. He shall deduct the tax at source at the applicable rate. He shall pay the tax deducted by him at source […]
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Income Which is Not Chargeable Under Specific Provisions Of Articles 6 to 21 Cannot Be Taxed Under Residuary Provision: ITAT Chennai
In the case of DCIT vs. Ford India Limited, ITAT Chennai has held that: An income is of such a nature as, on satisfaction of conditions specified in the related provision, could be taxed under any of these specific treaty provisions, cannot be covered by this residuary clause. Take for example, income earned by a […]
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Will Payee Face Adverse Circumstances If Payer Not Deducted TDS?
It is the duty and responsibility of the payer to deduct tax at source. If the payer fails to deduct tax at source, then the payee will not have to face any adverse consequences. However, in such a case, the payee will have to discharge his tax liability. Thus, failure of the payer to deduct […]
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What Are Consequences Of Not Deducting And Depositing TDS To Government’s Account?
A deductor would face the following consequences if he fails to deduct TDS or after deducting the same fails to deposit it to the credit of Central Government’s account:- (A) Disallowance of Expenditure As per section 40(a)(i) of the Income-tax Act, any sum (other than salary) payable outside India or to a non-resident, which is […]
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What is Tax Deducted At Source (TDS) Under Income Tax?
For quick and efficient collection of taxes, the Income-tax Law has incorporated a system of deduction of tax at the point of generation of income. This system is called as “Tax Deducted at Source”, commonly known as TDS. Under this system tax is deducted at the origin of the income. Tax is deducted by the […]
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What Are Form No. 3CA/ 3CB And 3CD Under Income Tax?
The report of the tax audit conducted by the chartered accountant is to be furnished in the prescribed form. The form prescribed for audit report in respect of audit conducted under section 44AB is Form No. 3CB and the prescribed particulars are to be reported in Form No. 3CD. In case of persons covered under […]
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GST Portal Update: Availing ITC As Per Law And GSTR-2B
Official GST Portal has posted an update that: For some of the taxpayers, there was an issue in relation to duplicate entries in GSTR2B which has since been fixed and correct GSTR2B has been generated. In this regard, taxpayers while filing GSTR3B are advised to check and ensure that the value of ITC they are […]
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Loose Papers Which Do Not Have Full Details Are “Dumb Documents” And Have No Evidentiary Value: ITAT Ahmedabad
In the case of Nishant Construction Pvt. Ltd vs. ACIT, ITAT Ahmedabad has held that: The AO has no power to disturb the sale price shown except in three cases. The first is under Section 145 of the Act. Where the sale of properties is part of the business of the assessee, the Assessing Officer, […]
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Records To Be Retained For Credit Notes Under GST
The records of the credit notes have to be retained until the expiry of seventy-two months from the due date of furnishing of annual return for the year pertaining to such accounts and records. Where such accounts and documents are maintained manually, it should be kept at every related place of business mentioned in the […]
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New Update On Income Tax E-filing Portal
Income Tax E-filing Portal has posted an update that: Authentication and e-KYC services will not be available on e-filing portal from 11:00 PM on 18th June 2022 (Saturday) to 04:30 AM on 19th June 2022 (Sunday) due to downtime at NSDL. Please plan accordingly.
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Why is ITR Filing Mandatory, Even Though All My Taxes And Interests Paid And No Refund Due To Me?
Amounts paid as advance tax and withheld in the form of TDS or collected in the form of TCS will take the character of your tax due only on completion of self-assessment of your income. This self-assessment is intimated to the Department by way of filing of the return of income. Only then the Government […]
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How Many Times Can I Revise ITR?
If a person after furnishing the return finds any mistake, omission or any wrong statement, then return should be revised within prescribed time limit. A return can be revised at any time 3 months before the end of the Assessment Year or before the completion of the assessment; whichever is earlier. If original return has […]
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GST Return Requirement For Input Service Distributor (ISD)
An ISD will have to file monthly returns in GSTR-6 within thirteen days after the end of the month and will have to furnish information of all ISD invoices issued. The details in the returns will be made available to the respective recipients in their GSTR 2A. The recipients may include these in its GSTR-2 […]
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GST Return Requirement For Non-Resident Taxable Person
The non-resident taxable person shall furnish a return in FORM GSTR-5 electronically through the Common Portal, either directly or through a Facilitation Centre notified by the Commissioner, including therein the details of outward supplies and inward supplies and shall pay the tax, interest, penalty, fees or any other amount payable under the Act or these […]
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Failure To Provide Copy Of Statement Relied Upon And Of Cross-Examination Renders Assessment Order Void: ITAT Ahmedabad
In the case of Sunita Jain vs. ITO, ITAT Ahmedabad has held that: There is no denying that consideration was paid when the shares were purchased. The shares were thereafter sent to the company for the transfer of name. The company transferred the shares in the name of the assessee. There is nothing on record […]
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Can I File ITR After Due Date?
Return of income which has not been furnished on or before the due date specified under section 139(1) is called belated return. Belated return of income is furnished under section 139(4). Any person who has not furnished a return of income within the time period allowed under section 139(1) or within the time period allowed […]
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Who Can Use ITR-5?
Form ITR – 5 can be used by a person being a firm, LLP, AOP, BOI, Artificial Juridical Person (AJP) referred to in section 2(31)(vii), local authority referred to in section 2(31)(vi), representative assessee referred to in section 160(1)(iii) or (iv), cooperative society, society registered under Societies Registration Act, 1860 or under any other law […]
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Who Can Use ITR-4 (Sugam)
Form ITR-4 (SUGAM) can be used by an Individual/ HUF/ Firm (Other than LLP) whose total income for the year includes: (a) Business income computed as per the provisions of section 44AD or44AE; or; (b) Income from Profession as computed as per the provisions of44ADA; or (c) Income from salary/pension; or (d) Income from one house property […]
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Who Can Not Use ITR-3?
Form ITR-3 cannot be used by any person other than an individual or a HUF. Further, an individual or a HUF not having income from business or profession cannot use ITR-3. Source: Income Tax India’s Official Website
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Who Can Use ITR-3?
Form ITR-3 can be used by an individual or a Hindu Undivided Family who is having income from profits and gains of business or profession.ITR – 3 is also required to be filed by a person whose income is chargeable to tax under the head “Profits and gains of business or profession” is in the […]
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Disallowance Has To Be Made Even in Respect Of Securities Held As Stock-in-Trade By Assessee: ITAT Kolkata
In the case of Kalyani Barter (P) Ltd vs. ITO, ITAT Kolkata has held that: The object of section 14A is to disallow the direct and indirect expenditure incurred in relation to income which does not form part of the total income. There is no dispute that part of the income of the assessee from […]
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New Update On Income Tax Return You Must Know
Income Tax E-filing Portal has posted an update that: ITR5 is also now available for efiling . Excel offline Utility for preparing and filing ITR 5 is released. Please click Downloads | Income Tax Department to access and download the same. Once prepared, you can upload the JSON at Income-tax website. Downloads Excel Based Utility: […]
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Who Can Not Use ITR-2?
Form ITR-2 cannot be used by an individual and HUF whose total income for the year includes income from profit and gains from business or profession and also having income in the nature of interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from partnership firm. Also Read: […]