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Learn and Discover the Best in Tax Filing through Taxbuddy Courses:

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Cost-Efficient Learning:

Dive into the world of taxation affordably and gain valuable insights.

Interactive Community:

Engage with fellow learners through discussions, forums, and collaborative projects. Share ideas, seek answers, and evolve together as a dynamic community.

Flexible Access:

Don't worry if you miss a class; catch up by watching recorded lectures until the following week. Your learning is within your reach.

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Ready to Level Up?

Join our highly acclaimed masterclass courses at TaxBuddy’s Academy and discover your true potential. Whether you're a beginner or an experienced professional, our course is designed to empower you with in-depth knowledge and hands-on experience.

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Who Should Enroll

Skill-Driven Professionals: This masterclass is perfect for professionals seeking to elevate their skill set.

Aspiring Tax Experts: Beginners with a passion for diving into the world of taxation will find this course ideal.

Students: The students aiming for a career in taxation and finance will gain valuable insights and knowledge.

Taxation Enthusiasts: If you're enthusiastic about taxation and aspire for mastery in the field, this masterclass is tailored for you.

How are our Masterclass Courses benefiting you?

Understanding Advance taxes

Understanding Advance Taxes:

Plan and pay taxes in installments to manage cash flow and stay tax-compliant.

Basic of ITR1 Filing

Basics of ITR 1 Filing:

File ITR 1 (Sahaj) accurately for salaried individuals; disclose income sources and deductions.

New vs old tax Regime

New vs. Old Tax Regime:

Choose between lower rates (New) or more deductions (Old) for optimal tax planning.

Dealing with Notice cases

Dealing with Notice Cases:

Respond promptly to Section 139(9) notices to rectify defects in your tax return.

What’s in it for you?

Free

Choosing Between Old and New Tax Regimes

22 Mar 2024 (12pm to 12.30pm)

Free

Setoff carry forward of losses

29 Mar 2024 (12pm to 12.30pm)

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You will receive the Zoom link upon successful completion of the registration.

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Tune in live on YouTube every Friday, from 12 pm to 12.30 pm.

Certification Benefits

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Official and Verified

Official and Verified Recognition

Upon successful completion of this 2-hour masterclass, you will be awarded an official and verified certificate.

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Our certification is easily shareable across various platforms. You can effortlessly integrate it into your CV or resume to impress potential employers. Moreover, it can be showcased on professional networking sites like LinkedIn, and you have the option to share it with your network on Instagram and Twitter.

Career Improving

Career Advancement

Harness your newly acquired analytical skills to secure a promising career and ascend the corporate ladder. Your certificate serves as concrete proof of your knowledge and expertise, opening doors to exciting opportunities and career growth.

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About The Mentor:

Rahul Swain is a highly skilled Tax Professional, currently holding the position of Assistant Manager at Taxbuddy. With over 6 years of extensive experience in Finance, Accounting, Taxation, Auditing, and related fields, Rahul has demonstrated his expertise in various leadership roles. His contribution to Taxbuddy includes conducting impactful sessions for the Taxbuddy course, receiving overwhelmingly positive feedback from students.

Having served as a leader in multiple capacities, Rahul has consistently proven his ability to drive results. Notably, he has successfully onboarded more than 3000 partners to Taxbuddy through a rigorous interview process under his team's guidance. Rahul's proactive approach is further exemplified by his initiation of webinars focused on the corporate sector, showcasing his commitment to knowledge dissemination and industry engagement.

Contact our friendly support team at course@taxbuddy.com for more information or to address any questions you might have.

Invest in your future with TAXBUDDY and take the first step towards upgrading your skills.

  • What Benefit user will get?
    Agricultural income earned by a taxpayer in India is exempt under Section 10(1) of the Income Tax Act
  • Let’s understand the Provisions of Agricultural income with the help of an example.
    1) If any industrial organization grows crops and sells half of the produce as raw material in the market and remaining (further processed) as finished goods, what will be the tax treatment? Agricultural income is exempt from income tax. It does not matter whether the agricultural operations are done by an industrial organization or an individual. If any industrial organization grows crops and sells half of the produce as raw material in market and remaining (further processed) as finished goods, the income which is earned on the first half of produce (sold in market as raw material) is totally exempt from tax. In case of the remaining produce which is further processed, scheme of presumptive taxation is applicable. Rule 7, 7A, 7B & 8 of Income tax Rules deals with such type of income. Rule 7A deals with Income from manufacture of rubber, 7B deals with Income from manufacture of coffee and Rule 8 deals with Income from manufacture of tea. Rule 7 says that in cases where income is partially agricultural in nature and partially from business, the market value of the agricultural produce which has been raised by the assessee or received by him as rent in kind and which has been utilised as a raw material, shall be deducted from the sale receipts and will be treated as agriculture income. The remaining will be considered as non agricultural income. 2) I have an income of Rs.1,45,000 from my business and an agricultural income of Rs. 8,40,000. Do I need to file the return of income? The process of computation of tax liability is followed only if the assessee’s non-agricultural income is in excess of the basic exemption slab. In this case, the income from business of the assessee is lower than the basic exemption limit. However, the returns have to be filed with regards to the disclosure of agricultural income. 3)I had sold an agricultural land in a rural area, which is outside jurisdiction of the Municipal Authority. Whether the sales proceeds are exempt or taxable? The scope of agricultural income excludes the revenue which is earned by transfer of agricultural land not falling under the definition of Capital assets u/s. 2(14). By definition of a capital asset under Section 2(14), an agricultural land in an area falling out of jurisdiction of the Municipal Authority (which has a population of more than 10,000), is not a capital asset. Section 10(37) allows income from transfer of such a land to be classified as a capital gain via clause (i). Under Section 54B, a capital gain arising out of this transaction will be exempt provided the conditions (mentioned earlier in this article) are satisfied.
  • What is Agricultural Income?
    As per section 2(1A), agricultural income generally means (a) Any rent or revenue derived from land which is situated in India and is used for agricultural purposes. (b) Any income derived from such land by agriculture operations including processing of agricultural produce so as to render it fit for the market or sale of such produce. (c) Any income attributable to a farm house subject to satisfaction of certain conditions specified in this regard in section 2(1A). Any income derived from saplings or seedlings grown in a nursery shall be deemed to be agricultural income.
  • What Benefit user will get?
    Pension is taxable under the head salaries in the income tax return. Pension is paid out periodically on a monthly basis usually. You may also choose to take pension as a lump sum (also called commuted pension) instead of a periodical payment. At the time of retirement, you may choose to receive a certain percentage of your pension in advance. Such pension received in advance is called commuted pension. Uncommuted (Monthly basis) is fully taxable for all the employees.
  • What is Pension?
    Pension received by an employee from his employer is exempt upto some limit if some conditions are satisfied. Commuted pension received by government employee is fully exempt.
  • Let’s understand the calculation with the help of an example.
    A) Mr. Y, an employee of the Central Government, receives Rs.2,00,000 as gratuity at the time of his retirement on May 1, 2016 under the new pension code. Determine the taxability of the gratuity in his hands for the assessment year 2017-18. In case he joins a private sector company on July 1, 2016 as its Managing Director, will it make any difference? Solution: Gratuity received by Mr. A shall be fully exempt from tax under Section 10(10)(i) of the Income-tax Act, 1961 as he is an employee of Central Government. Even if he joins a private sector company after the retirement, the aforesaid exemption shall still be available to him.
  • What Benefit user will get?
    Gratuity received at the time of retirement
  • What is Gratuity?
    Gratuity received by an employee from his employer is exempt upto some limit if some conditions are satisfied. Gratuity received by government employee is fully exempt. Gratuity is a sum of money paid by an employer to an employee for services rendered in the company. However, gratuity is paid only to employees who complete 5 or more years with the company.
  • How to Calculate?
    Please click on the provided link which contains the calculator for calculation of leave salary tax benefit, which is been prepared to provide the user with the tax benefit amount.
  • How do outsourced bookkeeping services help in reducing overhead costs?
    Outsourced bookkeeping eliminates the need for in-house staff, office space, and equipment, leading to significant cost savings.
  • What distinguishes bookkeeping services in India from other global providers?
    Indian bookkeeping services often offer a cost-effective solution with skilled professionals proficient in international accounting standards.
  • What does the term "accounting and bookkeeping services" encompass?
    Accounting services and bookkeeping services involve the systematic recording, organizing, and analysis of financial transactions. It includes bookkeeping services, financial statement preparation, and analysis to provide businesses with accurate insights into their financial health.
  • How can outsourced bookkeeping services benefit my business?
    Outsourced bookkeeping services provide cost savings, expertise, and time efficiency, allowing you to focus on core business activities.
  • What measures are in place to ensure the security of outsourced bookkeeping services?
    Outsourced bookkeeping services employ encryption, secure servers, and strict access controls to safeguard client data.
  • Are there industry-specific bookkeeping services available for niche businesses?
    Yes, some bookkeeping services specialize in serving specific industries, tailoring their services to meet the unique needs of businesses in those sectors.
  • How quickly can businesses expect to see the benefits of using online bookkeeping services?
    The timeframe for experiencing benefits varies, but businesses often notice improvements in efficiency and accuracy within the first few months of using online bookkeeping services.
  • Can outsourced bookkeeping services help with budgeting and forecasting?
    Yes, outsourced bookkeeping services often assist businesses in creating accurate budgets and forecasts based on their financial data.
  • Do bookkeeping services provide real-time financial updates for businesses?
    Many bookkeeping services offer real-time updates, providing businesses with instant access to their financial status.
  • What specific advantages do bookkeeping services offer to small businesses?
    Bookkeeping services for small businesses provide accurate financial records, help in tax preparation, and offer valuable insights for better financial management.
  • How can small businesses choose the right online bookkeeping service for their needs?
    Consider factors such as pricing, features, user reviews, and the ability to scale when selecting an online bookkeeping service.
  • Can online bookkeeping services help businesses with cash flow management?
    Yes, online bookkeeping services provide insights into cash flow patterns, helping businesses make informed decisions to improve their financial health.
  • Are online bookkeeping services secure for small businesses?
    Yes, online bookkeeping services use secure platforms and encryption to protect sensitive financial data, ensuring the confidentiality of your information.
  • What are bookkeeping services, and how do they differ from accounting services?
    Bookkeeping services primarily involve recording financial transactions, while accounting services encompass a broader range, including financial analysis and reporting.
  • What role do bookkeeping services play in tax preparation for small businesses?
    Bookkeeping services organize financial data, making tax preparation more efficient and reducing the risk of errors during the tax filing process.
  • How does online bookkeeping contribute to the sustainability of a business?
    Online bookkeeping reduces paper usage, streamlines processes, and minimizes the environmental impact associated with traditional bookkeeping methods.
  • Can businesses customize the level of bookkeeping service they receive?
    Yes, businesses can typically choose the level of bookkeeping service that aligns with their needs, whether it's basic transaction recording or comprehensive financial analysis.
  • Are there any compliance benefits associated with outsourcing bookkeeping services?
    Yes, outsourcing ensures that your financial records comply with relevant regulations, reducing the risk of non-compliance issues.
  • Are there any hidden fees associated with outsourced bookkeeping services?
    Reputable outsourced bookkeeping services are transparent about their fees, ensuring there are no hidden charges. It's crucial to review service agreements carefully.
  • Can online bookkeeping services integrate with other business software?
    Yes, many online bookkeeping services integrate seamlessly with various business software, enhancing overall operational efficiency.
  • How can businesses transition from traditional bookkeeping to online bookkeeping seamlessly?
    Businesses can transition smoothly by choosing a reliable online bookkeeping service, migrating their financial data, and providing adequate training to staff if necessary.
  • Person staying in Bangalore city on a rental basis, but owns a flat in Mumbai, which he has given on rent. Since the flat that he owns comes under different Grampanchayat (possession taken), these two places are considered to be two different cities. Can he claim exemption on interest on house property as well as on HRA?
    Yes, you can claim both benefits.
  • There are chances that House Rent Allowance(HRA) is paid by your Employer, but exemption is not provided by him due to non production of Rent Receipts.
    In such case, he himself can claim HRA exemption benefit while filing Income Tax return by computing the exemption amount as follows:- Refer Calculation/Provision
  • Let's understand the calculation of HRA with the help of an example.
    Example: Mr modi who earns a basic salary of Rs. 40,000 per month and lives in Mumbai. He receives HRA component of Rs. 20,000 but the actual rent paid by him is Rs. 12,000. How much exemption can he get? Solution:Actual HRA received is (Rs. 20,000 x 12) = Rs. 2,40,000 Actual rent paid (Rs. 12,000 x 12) ֠10% of salary [(Rs. 40,000 x 12) x 10%] = Rs. 96,000 50% of basic salary [(Rs. 40,000 x 12) x 50%] = Rs. 2,40,000 Rs. 96,000 is the least among the above obtained figures and hence Mr Modi can get Rs. 96,000 exempt. Example:Now suppose Mr modi who earns a basic salary of Rs. 40,000 per month and lives in Chandigarh. He receives HRA component of Rs. 20,000 but the actual rent paid by him is Rs. 12,000. How much exemption can he get? Solution:Since he lives in a non-metro city, he will be allowed 40% of basic salary as HRA. Actual HRA received is (Rs. 10,000 x 12) = Rs. 1,20,000 Actual rent paid (Rs. 7,000 x 12) ֠10% of salary [(Rs. 20,000 x 12) x 10%] = Rs. 60,000 You will receive 40% of basic salary [(Rs. 20,000 x 12) x 40%] = Rs. 96,000 Rs. 60,000 is the least among the above obtained figures so Mr Modi here can get Rs. 60,000 exempt.
  • Do I need PAN of my landlord for claiming HRA benefit?
    Yes, you need to enter the PAN of your landlord if the annual rent paid by you exceeds Rs.1 lac. In case the landlord does not have a PAN, you can accordingly ask for a declaration (affidavit) from the landlord with his name and address on it.
  • HRA calculation for Shared flats
    If you are living with your friends, colleagues or others in a shared flat, you can avail HRA benefit in proportion of rent that you are paying. HRA could be claimed in your Income-tax return only if you have submitted rent receipts to your employer. Hence you need to make sure that you are issued a separate rent receipt by your landlord for amount paid by you.
  • Is received last year's salary arrears this year. If I can include these arrears while claiming my HRA exemptions?
    The basic pay, dearness allowance and commission of the relevant period during which rental accommodation is occupied by the employee in the previous year. Thus, emoluments of a period other than previous year are not to be considered, even though such amount is received (as well as taxed) during the previous year.
  • Can I claim HRA and Home loan Tax exemption both?
    Yes, you can claim both the exemptions provided you are able to produce original and sufficient proofs for both. You will be entitled to claim tax benefit on: Principal repayment under Section 80C, interest payment under Section 24 and HRA benefit as well.
  • Employer has not paid House Rent Allowance(HRA) as part of Salary and Taxpayer himself is staying in Rented house.
    In such case, Taxpayer can claim deduction for amount of Rent paid for his accommodation U/s 80GG, if following conditions are fulfilled. 1. Taxpayer is self employed person or he/she is salaried person but does not receive House Rent Allowance from the employer at any time during the year. 2. Taxpayer or his/her spouse or minor child should not own any residential house at the place where he resides, performs the duties of his office, or employment or carries on his business or profession. 3. In case Taxpayer owns residential accommodation at a place other than the place in Pt.2 above, then he/she should not declare such House Property as self occupied. It should be declared as Deemed Rent House Property (Declaring Fair Market Rent as Rental Income). As per Income Tax Act, Maximum Deduction under section 80GG is list of: 1. Rs 5000 per Month, 2. 25% of Total Income, 3. The Excess of actual rent paid over 10% of Total Income. Note: Total Income for this purpose means total Income minus Income from Capital Gains minus Tax Saving and other deductions.
  • Can both the spouses claim HRA tax benefit separately
    If both the working spouses are paying rent to the landlord and are furnishing separate receipts, then husband and wife both can claim HRA exemption separately. However, you need to be careful that there is no duplication and Income-tax department has not deducted tax twice from your landlord's income.
  • Calculation of HRA
    List of the four is HRA
  • What do you mean by HRA?
    If in the Break up of your CTC statement you find a term called House Rent Allowance (HRA), it is paid to compensate the employee for the rent he is paying in absence of the company quarter. A portion of HRA is tax-free for you. Who can claim exemption? Self-employed and salaried people can claim HRA exemption, though under a different section of Income-taxes explained in the article. Again exemption is denied where an employee lives in his own house, or in a house for which he does not pay rent.
  • How is the advance tax paid by small businessmen and professionals?
    In case of small business taxpayers or professionals who opt to pay tax as per Presumptive Taxation Scheme, the entire advance tax is payable only on 15th of March of that year.
  • Who is required to pay advance tax?
    Any person being individual, HUF, partnership firm, company, LLP, Trust or society who is having tax liability of more than Rs.10,000/- on income in a year is required to pay advance tax in that year. However, a senior citizen of age 60 years or more who doesn’t have income from business and profession need not pay advance tax.
  • When should the advance tax be paid?
    The advance tax is paid in each quarter of the financial year. Such advance tax is to be computed and paid at the rates prevalent in that year. The section 211 of the Income tax Act, 1961 specifies the dates of payment of advance tax. In respect of all classes of taxpayers, the dates are as below.
  • Know your Tax Slab Rates for Individuals - 1st April 2019 to 31st March 2020.
    A. Income Tax Slab below Age 60 years: B. Income Tax Slab for the Age between 60-80 years: C. Income Tax Slab above Age 80 years:
  • What is TDS return filing, and why is it important?
    TDS return filing is the process of submitting details of tax deducted at source. It is crucial for businesses and individuals who deduct TDS to comply with tax regulations. Filing TDS returns ensures accurate reporting and adherence to tax laws.
  • When is the TDS return filing date?
    The TDS return filing date is on or before the 31st of July for the first quarter, 31st of October for the second quarter, 31st of January for the third quarter, and 31st of May for the fourth quarter of the financial year.
  • What is the due date for filing TDS return?
    The due date for filing TDS return is on or before the 31st of July for the first quarter, 31st of October for the second quarter, 31st of January for the third quarter, and 31st of May for the fourth quarter of the financial year.
  • What is the procedure for TDS return filing?
    The procedure for TDS return filing involves logging into the Income Tax Department's e-filing portal, selecting the appropriate form, entering the required details, verifying the information, and submitting the return online.
  • Can TaxBuddy assist in meeting last-minute TDS return filing deadlines?
    Yes, TaxBuddy's timely reminders and efficient platform are designed to help you meet even last-minute TDS filing deadlines. Our goal is to keep you on track and compliant with TDS regulations.
  • What is the penalty for late filing of TDS return?
    The penalty for late filing of TDS return can vary, but it is generally Rs. 200 per day of delay. The amount may increase based on the duration of the delay and the amount of TDS.
  • How can I file TDS return online?
    TDS return can be filed online through the Income Tax Department's e-filing portal. You need to log in, select the appropriate form, fill in the details, and submit the return online.
  • When is the TDS return due date?
    The TDS return due date is typically on the 31st of July for the first quarter, 31st of October for the second quarter, 31st of January for the third quarter, and 31st of May for the fourth quarter of the financial year.
  • Which TDS return form should I use, and how can TaxBuddy assist in selecting the right one?
    TaxBuddy guides you in selecting the appropriate TDS return form based on your specific requirements. Our platform ensures that you use the correct form for accurate reporting, minimizing errors and potential issues.
  • How does TaxBuddy determine the TDS return filing date for users?
    TaxBuddy considers the specific quarter and associated due dates to determine your TDS return filing date. Our platform provides personalized notifications and reminders, ensuring you file your TDS returns on time.
  • Can I track the status of my TDS return filing online with TaxBuddy?
    Absolutely. TaxBuddy allows you to track the status of your TDS return filing through your dashboard. Real-time updates keep you informed about the progress, providing transparency and peace of mind.
  • What is the TDS return filing due date for FY 2021-22?
    The TDS return filing due date for FY 2021-22 is on or before the 31st of July 2022 for the first quarter, 31st of October 2022 for the second quarter, 31st of January 2023 for the third quarter, and 31st of May 2023 for the fourth quarter.
  • Is it mandatory for TDS return filing online, and how does TaxBuddy facilitate online filing?
    No, it is not mandatory to file TDS returns online. But, TaxBuddy simplifies this process by providing an online platform where you can enter TDS details, generate forms, and submit returns electronically, ensuring efficiency and compliance.
  • Can TaxBuddy assist in filling out the TDS return form accurately?
    Absolutely. TaxBuddy provides step-by-step guidance to fill out the TDS return form accurately. Our platform includes validation checks to minimize errors and ensure that your TDS return is filed correctly.
  • What is the TDS return filing due date for FY 2020-21?
    The TDS return filing due date for FY 2020-21 is on or before the 31st of July 2021 for the first quarter, 31st of October 2021 for the second quarter, 31st of January 2022 for the third quarter, and 31st of May 2022 for the fourth quarter.
  • How can TaxBuddy simplify the TDS return filing process?
    TaxBuddy streamlines TDS return filing by providing a user-friendly platform. You can enter TDS details, generate the required forms, and submit your returns online. Our system ensures accuracy and compliance with TDS regulations.
  • What is the last date to file TDS return?
    The last date to file TDS return is on or before the 31st of July for the first quarter, 31st of October for the second quarter, 31st of January for the third quarter, and 31st of May for the fourth quarter of the financial year.
  • What is the TDS return filing due date for FY 2022-23?
    The TDS return filing due date for FY 2022-23 is on or before the 31st of July 2023 for the first quarter, 31st of October 2023 for the second quarter, 31st of January 2024 for the third quarter, and 31st of May 2024 for the fourth quarter.
  • What are the benefits of an HUF account?
    HUF accounts provide benefits such as better tax planning, effective wealth management, and seamless transfer of ancestral property within the family.
  • Can any family form an HUF, or are there specific criteria?
    While any Hindu family can form an HUF, there are specific criteria related to the family's Hindu status and joint ownership of ancestral property. TaxBuddy can guide you on whether your family qualifies for HUF formation.
  • What is HUF in income tax?
    In income tax, HUF refers to a Hindu Undivided Family. It is considered a separate entity for tax purposes, and its income is assessed separately from that of its individual members.
  • What is an HUF (Hindu Undivided Family) account?
    An HUF account is a financial arrangement that allows Hindu Undivided Families to pool their income and manage it as a single entity. It provides a distinct legal structure for joint family financial activities.
  • What is the 87A rebate for HUF?
    The 87A rebate, which provides a tax relief to individual taxpayers, does not apply to HUFs. It is specifically designed for individual taxpayers with income below a certain threshold.
  • What is HUF, and how does it function from a taxation perspective?
    HUF stands for Hindu Undivided Family, a legal entity recognized for tax purposes in India. TaxBuddy provides insights into the concept of HUF, its formation, and the taxation principles that apply to it.
  • What is the significance of HUF accounts in taxation?
    HUF accounts play a significant role in taxation as they allow for the segregation of income and expenses within a joint family, enabling efficient tax planning and management.
  • How does TaxBuddy simplify the process of filing HUF taxes online?
    TaxBuddy streamlines the HUF filing process by providing a user-friendly platform. You can enter financial details, access relevant forms, and submit your HUF tax return online. Our system ensures accuracy and compliance.
  • Can TaxBuddy assist in the strategic utilization of HUF tax benefits for long-term financial planning?
    Absolutely. TaxBuddy goes beyond immediate tax benefits and helps you strategically utilize HUF tax benefits for long-term financial planning. Our experts provide insights for sustained financial growth and tax efficiency.
  • Are there any tax benefits for HUFs?
    Yes, HUFs can avail themselves of various tax benefits, including exemptions, deductions, and rebates, similar to those available to individual taxpayers.
  • Can TaxBuddy help me track the status of my HUF filing online?
    Yes, you can track the status of your HUF filing through your TaxBuddy dashboard. We provide real-time updates on the progress of your filing, ensuring transparency and peace of mind.
  • What specific tax benefits does an HUF offer over individual taxation?
    HUFs enjoy heavy HUF tax benefits such as separate taxation, exemptions, and deductions. TaxBuddy's experts delve into these benefits, providing personalized strategies to help you maximize savings and minimize tax liabilities within the HUF framework.
  • What is the process for HUF Registration with TaxBuddy?
    TaxBuddy simplifies the HUF registration process. You can initiate the HUF registration online by providing the necessary details about the family members and their financial contributions. Our platform guides you through the entire process.
  • What is the tax slab for HUF?
    HUFs are taxed based on the applicable income tax slabs. The tax rates for HUFs are similar to those for individual taxpayers, with different slabs for different income ranges.
  • Can TaxBuddy help me claim HUF tax benefits specific to investments and expenditures?
    Absolutely. TaxBuddy assists in identifying and claiming tax benefits related to HUF investments and expenditures. We ensure that you make the most of available deductions and exemptions.
  • How is HUF income taxed, and how can TaxBuddy assist in optimizing it?
    HUF income is taxed separately from individual incomes. TaxBuddy's expertise lies in analyzing your HUF's financial situation and recommending strategies to optimize your tax position, ensuring compliance with income tax regulations.
  • What are the tax implications for HUF income distribution among family members?
    TaxBuddy provides insights into the tax implications of income distribution within an HUF tax slab. We help you navigate the complexities to ensure tax-efficient distribution while adhering to legal requirements.
  • Can I complete the HUF registration process entirely online with TaxBuddy?
    Yes, TaxBuddy facilitates a seamless online HUF registration process. You can provide all the required information, upload necessary documents, and track the progress of your registration, all from the comfort of your home or office.
  • How to open an HUF account?
    Opening an HUF account involves providing the necessary documentation, including the HUF deed, PAN (Permanent Account Number) for the HUF, and KYC documents for the members. The account can be opened at most banks.
  • How does HUF account taxation work?
    HUFs are taxed separately, and their income is subject to applicable income tax rates. Understanding HUF taxation is crucial for effective financial planning and compliance with tax regulations.
  • What is the HUF tax slab for family income, and how does it differ from individual tax slabs?
    TaxBuddy provides information on the HUF tax slab, which may differ from individual tax slabs. We guide you on understanding the applicable rates and optimizing your HUF's tax position accordingly.
  • What documents are required for online HUF registration with TaxBuddy?
    The documents required for HUF registration include identity proofs of family members, address proofs, and PAN cards. TaxBuddy's platform will guide you on the specific documentation needed during the registration process.
  • How can TaxBuddy help in minimizing tax liabilities within the HUF tax slab?
    Our experts analyze your HUF's income within the tax slab framework to minimize liabilities. TaxBuddy provides personalized strategies to optimize your tax position and maximize savings.
  • What are the benefits of having an HUF account?
    HUF accounts offer benefits such as income tax advantages, efficient wealth management, and a structured approach to handling joint family finances.
  • What are HUF tax benefits , and how can TaxBuddy help maximize them?
    HUF filing online enjoys various tax benefits, including exemptions and deductions. TaxBuddy's experts identify and leverage these benefits to minimize your tax liabilities, providing personalized strategies based on your HUF's financial profile.
  • Is HUF registration online mandatory for tax purposes?
    While HUF registration is not mandatory, it offers several tax benefits. Registering with TaxBuddy ensures that you leverage these benefits to optimize your family's tax liabilities.
  • What is Form 13?
    Form 13 is an application for a Certificate under Section 197/206C (9) of the Income Tax Act, allowing for lower deduction or non-deduction of TDS.
  • Consequences if Form 13 is Not Approved?
    If Form 13 is not approved by the Assessing Officer, TDS will be deducted at the regular rates specified under the Income Tax Act.
  • Looking for help obtaining a Lower Tax Deduction Certificate?
    Get in Touch
  • Time Taken for Form 13 Certificate Approval?
    The time taken for Form 13 certificate approval varies, but it typically ranges from a few weeks to a couple of months, depending on the workload of the Assessing Officer.
  • How long does it take to get a Lower Tax Deduction Certificate?
    You can expect the process to take 5-6 weeks. The Assessing Officer may issue a certificate within this period if satisfied with the details and documentation provided in Form 13. The certificate specifies the income eligible for a lower tax deduction.
  • NRI Selling Property in India – Form 13 Requirement?
    Yes, NRIs selling property in India to a resident buyer need to apply for Form 13 to avail lower deduction or non-deduction of TDS.
  • Can Form 13 be modified?
    Form 13 cannot be altered after submission. However, the taxpayer can withdraw the application anytime before approval by the assessing officer.
  • How to Submit Form 13 Online?
    Log into the TRACES portal, select 'Submit Request,' choose 'Form 13,' fill in details, attach necessary documents, and submit. The Assessing Officer will review and process the submission.
  • How to File Form 13 for Lower Deduction?
    File Form 13 for Lower Deduction on the TRACES portal. Log in, select 'Request for Form 13,' provide details, attach documents, and submit. The Assessing Officer will review and approve if eligible.
  • How to Download Form 13 from TRACES?
    Log in to the TRACES portal, select 'Downloads,' and choose 'Form 13.' Ensure accuracy before using the form.
  • Can I Apply Nil Deduction of TDS in Form 13?
    Yes, you can apply for nil deduction of TDS in Form 13 if you meet the conditions specified under the Income Tax Act.
  • What kind of incomes are eligible for a Lower Tax Deduction Certificate?
    Various types of incomes are eligible for a Lower Tax Deduction Certificate. These include income from diverse sources such as rent, commission, interest, and capital gain on the sale of property. Any income subject to TDS can be considered for a Lower Tax Deduction Certificate.
  • Who can apply for a Lower Tax Deduction Certificate?
    Any taxpayer expecting that the tax payable on their total income for a particular financial year will likely be lower than the amount of tax that would actually be deducted at source can apply for a Lower Tax Deduction Certificate. It means you should pay close attention to both these amounts and apply for the certificate on time.
  • How long is a Lower Tax Deduction Certificate valid?
    The Lower Tax Deduction Certificate mentions its validity period. Usually, it is valid for a particular financial year or for a specified period as determined by the Assessing Officer.
  • Validity Period of Form 13?
    Form 13 is typically valid for the financial year for which it is issued. However, the validity period may vary based on the decision of the Assessing Officer.
  • What is the procedure to obtain TAN?
    To obtain TAN, you should visit www.tin-nsdl.com and choose 'Apply online' in the TAN module. The next step is to select the online TAN application option and the appropriate category of the applicant. At this point, you will have to fill out the online application form and insert the DSC of the authorised signatory along with the digital signature on the form.
  • What are the information / documents needed before filing?
    Anyone filing an ITR in India should provide several documents to validate their return. These include the PAN card, Aadhar card, Form 16, Form 26 AS, bank account details, bank statement, capital gain details, home loan statement, foreign income, and dividend income details.
  • Who allots TAN?
    TAN is allotted by the income-tax department to the persons who need to deduct tax at source (TDS) or collect tax at source (TCS).
  • Who is supposed to pay Income Tax?
    Everyone in India earning or receiving an income is subject to income tax. It includes salaries for individuals, business owners, and professionals. However, the liability of taxpayers is determined according to specific income slabs.
  • Who should file their taxes?
    According to the income tax laws, an individual or business earning any income during a financial year must file their return. The income may be in different forms such as a salary, business profits, income earned from dividends or property, interests, capital gains, or other sources.
  • When should I file my taxes?
    Usually, the due date to file an ITR is 31st July of the relevant assessment year for individuals and non-audit cases. For audit cases, the deadline is extended to 31st October. You should ensure sticking with these deadlines to prevent penalties.
  • What will happen if I file a belated tax return?
    Belated tax returns can result in penalties. The maximum penalty for late filing is up to ₹5,000. This amount applies to taxpayers with a total taxable income greater than INR 5 Lakh. No penalty is levied on taxpayers with a total income less than INR 2.5 Lakh.
  • What is Income Tax?
    Income tax is a tax charged by the government on the income an individual or business earns during a financial year. It is computed for a financial year based on the income tax slab issued by the government.
  • Can I include business losses from previous years?
    You can carry forward the loss under “Profits and gains of business or profession” to the next year even if the loss of the year is not furnished on or before the due date of the return. It means you can include a business loss from the previous year in your current year’s return.
  • What is Residential Status with respect to tax filing?
    A resident taxpayer refers to an individual satisfying any one of the following conditions Residing in India for at least 182 days in a year Residing in India for a minimum of 365 days in the immediately preceding four years and for at least 60 days in the current financial year
  • What is Permanent Account Number?
    Permanent Account Number (PAN) is a ten-digit unique alphanumeric number given by the Income Tax Department in the form of a laminated plastic card. The last character is an alphabetic check digit.
  • Is Income tax Act applicable only to residents?
    As per the income tax law of India, an Indian citizen earning a total Income over ₹ 15 lakh (other than income from foreign sources) is deemed to be resident in India. They are liable to pay income tax on this income. The period of stay of a non-resident in the country may also be a deciding factor in whether they will have to pay income tax in India.
  • How should I file my taxes?
    You can file your tax returns with the help of a chartered accountant. Alternatively, you may do it yourself through the e-filing portal www.incometax.gov.in. The process is simple and user-friendly, so it can be done without much hassle.
  • What is the period for which a person’s income is to be considered for Income tax return?
    Income tax is to be paid on the annual income of a taxpayer. The year refers to the period beginning on April 31 and ending on March 31 of the next calendar year. The years are classified as the Previous year and the Assessment year.
  • What is the Income for the purpose of Income tax return?
    Any income you earn during a year is considered as your income from the tax return purpose. It includes salary, commission, interest, investments, gifts, allowance, and business profits. Even one-time or temporary income is taxable.
  • What is the relevance of TAN in Income Tax Filing?
    TAN is the tax deduction and collection account number. All persons deducting tax at source or collecting tax at source should obtain TAN it is compulsory to quote this number in TDS/TCS return, TDS/TCS certificates, TDS/TCS payment challan, and other documents prescribed in communications with the IT department.
  • What is Gross Total Income?
    Gross total income (GTI) is the total income an individual earns during a financial year before claiming exemptions, deductions, or allowances. It covers income from all sources, including salary, business or profession, house property, capital gains, and other sources, without any deductions
  • Can a 12th pass student file a GST return?
    Yes, a 12th pass student can file a GST return, and TaxBuddy simplifies the process for easy compliance.
  • Can an individual file GST directly?
    Certainly, individuals can file GST directly with TaxBuddy's user-friendly platform, ensuring a hassle-free filing experience.
  • Can a company file GST for mobile in their company?
    Yes, TaxBuddy can guide companies in filing GST for mobile operations within their organization, ensuring compliance and accurate record-keeping.
  • Can a shopkeeper file a GST return without payment?
    TaxBuddy can provide guidance on filing GST returns even if there's no payment involved, ensuring that shopkeepers meet their GST obligations accurately.
  • Can an amendment in GST be filed in September?
    Yes, you can file GST amendments in September, and TaxBuddy assists you in the process to meet GST requirements and maintain compliance.
  • Can a regular GST taxpayer file returns in advance?
    With TaxBuddy, regular GST taxpayers can proactively file returns in advance, streamlining the process and helping you stay ahead of compliance requirements.
  • Am I not getting the aggregate turnover option in the GST file return?
    If you're missing the aggregate turnover option, TaxBuddy can help you navigate and resolve this issue for comprehensive GST filing.
  • Can a taxpayer file GST return?
    Absolutely, TaxBuddy is here to assist taxpayers in efficiently filing their GST returns, simplifying the process for smooth compliance with tax regulations.
  • I have received possession of a house in October 2018. Thus I have held the property only for a period of six months. This property was not given on rent and was vacant. I must compute the expected amount of rent that I might have received if the property would have been given on rent. The expected rent is Rs.10,000/- per month. Then annual value of my property shall be Rs.60,000/-. Is this correct?
    No. In case of the property which is considered as deemed let out, the annual value of the property is to be computed for the entire year and not for the part of the year. Therefore, the annual value of the property shall be Rs.120,000/-.
  • What will be the tax implications if I occupy more than one property for my residence? Can I treat all these properties as self-occupied and compute income from them at NIL or Zero?
    If the person has owned more than one self-occupied property, only one of them will be treated as self-occupied & the others will be treated and taxed as deemed to be let-out properties. The taxpayer can claim GAV as ‘Nil’ only for the one house property that he would consider as SOP (any 1 house of his choice). Other properties will be treated as deemed to be let-out & income from the same will be calculated accordingly. In such cases, the house whose income is computed at a higher value would be taken as Self Occupied Property (SOP).
  • I own two houses. One is a farmhouse that I visit on weekends and the other is in the city that I and my family live in. Is it correct to treat both these residences as self-occupied?
    No. In such a case, one of the houses of which the income is higher as compared to the other, shall be treated as a self-occupied house, while the other would be treated as a deemed let out. For the latter, the annual value shall be taken as the higher of the municipal value and the amount of rent it is expected to yield.
  • How do I compute income from self-occupied property?
    The gross annual value of the self-occupied property is ZERO or NIL. Accordingly, the standard deduction at 30% of the annual value shall also be ZERO or NIL. Therefore, the amount of interest paid by the person against home loan shall be the loss from house property which can be set off against income under any other head or carried forward to next assessment year. Particulars - Amount Gross Annual Value - Nil Less: Municipal taxes paid by the assessee - Nil Net Annual Value (NAV) - Nil Less: Deduction u/s 24 - Amount 1. Standard deduction at 30% of NAV - Nil 2. Interest on borrowed capital - (xxxx) Income from House Property (It’s generally a loss) - ( – )xxxx
  • I have rented out a part of my house property and I stay in another part of the same house property. In such case, how will the income be computed? In this case, the two parts of the house shall be considered as independent house properties or taxable units.
    • The part in which you are staying shall be treated as a self-occupied property and the income shall be computed accordingly. • The part which is given on rent shall be treated as a let-out property and income shall be computed as income from let out property. • This can be applied to multiple units of a house property
  • I have given my shop on rent and I also facilitate services like providing of computers and other ancillary services to the tenant. I receive rent from the tenant which includes service charges. How should it be brought to tax?
    In such cases, the best approach would be to bifurcate the rent amount into two categories —‘rent’ and ‘service charges’. The amount of rent received is to be charged as Income from House Property and the amount of service charges received is to be treated as ‘Income from other sources’.
  • I have paid property tax for the past years in this year. Can I claim deduction for entire amount of property tax paid?
    Yes. You can claim deduction for entire amount of property tax paid. The deduction on account of property tax is on a payment basis and not on the basis of charging year of such property tax.
  • For construction or buying a house, I have borrowed loans from friends and relatives and not borrowed home loan from bank. I am paying interest on such loans but not in the form of EMIs. Can I claim deduction on account of such interest paid?
    Yes, as the source of the loan does not matter. However, the loan must be taken and utilized for purchase, construction, acquisition, renovation or repair of the house property. The person from whom loan is taken and to whom interest is paid must be in India and he must be liable for tax on such interest paid by you to him.
  • How do I compute income from a property which is self-occupied for part of the year and let out for part of the year?
    Such a property will be treated as been let-out throughout the year and income will be computed accordingly. However, while computing the taxable income in case of such a property, actual rent will be considered only for the let-out period.
  • My spouse and I jointly own a house in which both of us have invested equally from individual and independent sources. Can we split the rental income received between the two of us to be taxed in individual hands?
    Yes, Rental Income received by each co-owner can be taxed proportionately and taxed in the hands of both independently as per your share in the said property.
  • I have received rent due for the past period in the current financial year. How do I offer it to tax?
    If you recover any rent that was not previously realized, then such unrealized rent shall be taxed in the year in which such income is realized by you (whether or not you are the owner of that property in that year) after deducting a sum equal to 30% of such unrealized rent. ​
  • While computing income chargeable to tax under the head “Income from house property” in case of a let-out property, how much interest on housing loan can be claimed as deduction?
    In case of a let-out property, there is no limit on the quantum of interest which can be claimed as deduction while computing income from house property.
  • Can TaxBuddy aid in tax planning and optimization for my firm's ITR filing?
    TaxBuddy's experts are skilled in tax planning and optimization, tailoring strategies to your firm's unique requirements and ensuring maximum tax benefits during ITR filing.
  • When to file ITR?
    The filing deadline varies, but typically it's before July 31st. TaxBuddy helps you determine the right time and file your ITR promptly.
  • Do I need to file ITR?
    Filing ITR is mandatory if your income is taxable. TaxBuddy ensures that you understand your filing obligation and helps you comply.
  • How can TaxBuddy simplify ITR filing for my small enterprise?
    TaxBuddy streamlines the ITR filing process for small enterprises, ensuring accurate and hassle-free income tax return submissions.
  • Can TaxBuddy assist in ITR filing for a partnership firm?
    Certainly, TaxBuddy provides expert guidance and support for ITR filing, catering to the specific needs of partnership firms to ensure compliance and efficiency.
  • Is TaxBuddy a cost-effective solution for small enterprise ITR filing?
    TaxBuddy provides highly cost-effective solutions, reducing compliance expenses and optimizing tax efficiency for small enterprises during the ITR filing process.
  • What are the advantages of using TaxBuddy for small business ITR filing?
    TaxBuddy offers small enterprises a significant advantage with ITR filing, optimizing deductions, minimizing tax liabilities, and ensuring transparent financial reporting.
  • What is ITR filing?
    ITR filing refers to Income Tax Return filing, where individuals report their income and taxes paid. TaxBuddy assists in this process, ensuring accuracy and compliance.
  • Can I file a revised return after ITR is processed?
    Yes, if there's an error in your ITR, you can file a revised return. TaxBuddy guides you through the process to rectify any mistakes.
  • Is it mandatory to file ITR?
    Yes, if your income is above the exemption limit, filing ITR is compulsory. TaxBuddy simplifies the process for mandatory filers.
  • Which ITR to file?
    The appropriate ITR form depends on your income sources. TaxBuddy guides you to select the correct form for accurate filing.
  • Which ITR form to file?
    Choosing the right ITR form is crucial. TaxBuddy can help you determine the suitable form based on your income and financial activities.
  • Who should file ITR?
    Anyone with taxable income should file ITR. TaxBuddy ensures that individuals who are required to file do so correctly and on time.
  • Can I file ITR for the last 3 years now?
    Yes, you can file ITR for previous years if you missed the deadlines. TaxBuddy helps you catch up on overdue filings.
  • What happens if I don't file ITR?
    Failure to file ITR may result in penalties and legal consequences. TaxBuddy advises on the importance of timely and accurate filing.
  • Will I receive a certificate?
    Yes, upon completion of the half-hour masterclass, you will still receive a signed certificate at no charge.
  • Do I receive study material?
    Absolutely! You will have free access to study materials for a lifetime.
  • What is the medium for the class?
    The classes will be conducted via Zoom.
  • Is the masterclass also live-streamed on YouTube?
    Yes, the masterclass sessions are live-streamed on our YouTube channel for those who prefer that platform. However, for optimal interaction with the expert, we recommend registering on our site.
  • Are there any prerequisites to attend the masterclass?
    No, there are no prerequisites for attending the masterclass.
  • Is the masterclass free?
    Yes, the masterclass is now completely free for users.
  • Are the classes live or pre-recorded?
    The classes are live.
  • Will you be able to e-file the return or will I have to mail it?
    We always e-file for the client whenever possible, and provide a confirmation document. In some cases, however, the IRS does not accept e-file and requires that the taxpayer snail-mail the return to the IRS with a wet signature. In this instance, we would prepare specific instructions for how to do so.
  • I have a chance to ask questions or make changes to my return after it is prepared?
    Yes, certainly. Nothing is filed until you approve your return. We will ask you to provide feedback when we prepare your return, including any changes you may want, or questions you may have about the return. We will then respond to each itemized question until you are happy with the result provided the tax positions chosen by you are in conformity with the Internal Revenue code.
  • What is your standard turnaround time?
    Our standard turnaround time is up to fifteen (15) business days per filing year. We value quality over speed, and unlike other firms, we do not work in silos. Every preparer at TaxBuddy.com (EA or CPAs) works with a supervisor (also a CPA or an EA) to ensure that every return is prepared correctly and in the most optimal method for the client.
  • Can I do the entire process with you through the website & email?
    Absolutely yes. That’s the plan :) We want to make filing tax returns as easy as possible for you.
  • Do you offer audit protection?
    We stand behind the work that we do. If you are ever questioned by the IRS about a return that we prepared, we will review the letter for you and advise on the course of action that should be taken. Specifically: If we made a mistake in your return, we will file an amended return free of charge (this is a very, very rare occurrence). If the return we prepared is correct but the IRS still has some questions about it, we'll advise on the best and simplest way for you to handle their inquiry. It may be as simple as calling them and speaking to an agent or mailing a letter to the agency. If the IRS disagrees with the figures you provided to us that were used to prepare the return (for example, you omitted income from sale of stocks), we can file an amended return for you (this would be a payable service as you had not provided us correct information).
  • How to reduce tax on income?
    You can save tax on income by utilizing deductions and exemptions under the Income Tax Act of India. You can also invest in tax-saving instruments to reduce your burden. A tax planner is the best person to show the way.
  • How to save maximum tax for salaried employees in India?
    Besides claiming deductions and exemptions, a salaried employee in India can save maximum tax by investing in tax-saving instruments such as life insurance, PPF, NPS, ULIP, and FDs. A tax planner is the best person to seek advice regarding deductions and tax-saving instruments.
  • How to save taxes in India?
    Whether you are a business owner, a salaried employee, or a self-employed professional in India, you can save your taxes with timely and proper tax planning. The best way to reduce your liability is by claiming legitimate deductions. Also, maintain proper accounts and records of income and expenses to stay on the right side of tax laws.
  • Will opting for a flexible benefit plan in salary reduce the take-home pay?
    Yes, a flexible benefit plan (FBP) can help employees reduce their tax burden. They have to declare FBP allowance and provide relevant receipts. Essentially, FBP components such as travel allowance and food allowance are non-taxable. Restructuring employees' CTC with these components can limit their tax rate without affecting the take-home salary
  • How to save maximum income tax?
    Saving maximum income tax is about maximising your deductions. You can seek guidance from a tax planning expert to do it. However, it shouldn’t be a last-minute decision because timely planning is the best way to handle the complications.
  • How to reduce income tax?
    Deductions are the key to reducing income tax in India, regardless of job or business. However, claiming deductions can get complicated because you need to validate them with proper evidence. Also, a financial and tax planner can guide you in reducing your tax burden.
  • How to reduce income tax for a salaried person in India?
    Reducing income tax for a salaried person in India is as simple as claiming deductions and exemptions such as employee contribution to the Provident Fund, House Rent Allowance, Leave Travel Allowance, pension, and standard deduction.
  • How to save tax in the new tax regime?
    With the new tax regime coming into effect in FY24, taxpayers can save taxes by paying attention to the changes and opportunities taxes. Planning your investments and claiming all tax deductions are the basics of minimising your liability. You can also leverage Section 80C investing in schemes qualifying for deductions, such as ELSS, NPS, PPF, etc. The maximum limit for Section 80C is ₹1.5 lakh.
  • Which instrument saves tax?
    In India, you can rely on several tax-saving instruments to reduce your liability and maximise your savings. These include: Equity-linked savings scheme Public provident fund Senior Citizen Saving Scheme Tax Saver Fixed Deposit (FD) National Pension Scheme (NPS) Unit Linked Insurance Plans (ULIP) National Savings Certificates (NSC) Life Insurance
  • How to save tax on business income?
    Saving tax on business income is not a complicated task, provided you do some tax planning from the start of the financial year. It includes keeping thorough records of business income and expenses, claiming genuine deductions, and ensuring authenticity at all times. Hiring a tax planner is also a wise move.
  • What are the objectives of tax planning for taxpayers?
    Tax planning is a crucial financial planning tool for individuals and business owners. Besides facilitating savings on taxes, it ensures that taxpayers adhere to the legal requirements and obligations of the Income Tax Act, of 1961. In the long run, they can save money, mitigate their tax burden, and prevent legal hassles.
  • How to save tax in business in India?
    Business owners in India can save taxes by adopting some savvy strategies from the start of the financial year. These include: Claiming deductions for business travel, utility expenses, medical insurance premium Hiring family members as employees Always deducting tax at the source Avoiding cash transactions Deductions for depreciation A tax planner is the best person to seek advice in this context.
  • What is corporate tax planning?
    Corporate tax planning refers to the measures to reduce tax liabilities on registered companies. Most corporate houses rely on deductions such as health insurance of employees, office expenses, business transport, retirement planning, charitable contributions, and child care to reduce their tax liability.
  • What is tax planning in income tax?
    With tax planning, individual and business taxpayers can reduce their tax liability by claiming deductions, exemptions, and benefits. In India, tax planning can help them lower the amount payable to the income tax department every financial year. All they have to do is to seek help from an expert to plan ahead.
  • How to save tax deductions from your salary as an employee?
    Like business owners, salaried professionals in India can claim several deductions to reduce their tax liability. These include: House Rent Allowance Leave Travel Allowance Employee contribution to Provident Fund Standard deduction Pension Exemption u/s 89(1) A tax planner can guide you regarding additional deductions to maximise them.
  • Can I get a partnership offer from TaxBuddy?
    After you complete this training programme, you will be eligible for a partnership with Taxbuddy. Not only do you get an opportunity to make money with your skills, but also have a chance to collaborate with seasoned specialists.
  • Can I do freelancing work along with my job/business?
    After completing the Income tax Expert Course tax training programme with Taxbuddy, you get a chance to become a part of India’s leading tax platform. The good thing is that you can join us as a freelancer while working on your job or running a business. You can also learn as you go and master your skills by working with industry-leading tax specialists.
  • What is the minimum qualification required to be eligible to enroll for this training programme?
    Income tax Expert Course is a versatile programme that empowers CAs with professional development. But you don’t have to be practicing or qualified CA to join the programme. Even aspiring CAs can enroll for this session. Anyone having basic knowledge about Income tax can be a part of the initiative. The programme trains any person to become a tax pro and unlock a regular Income stream.
  • Do I have No cost EMI available for Payment of my fees?
    No, we do not provide a no-cost EMI option for fee payment. However, the course is already affordable. The best part is that we also have a 20% discount on it. You get a chance to train with the best in the industry and start a great career as a tax specialist by spending only Rs 7999.
  • What is the duration of the Income tax Expert Course training programme?
    The duration of the course is 4 months. Since classes are held online and on alternate days, anyone can enroll without disrupting their schedules. You get a chance to train with seasoned tax specialists working with India’s leading tax platform. These experts are available for doubt-solving sessions. Besides the regular sessions, we provide additional sessions if required.
  • When can I have income from house property?
    Three conditions are necessary to bring income under the head, ‘Income from House Property’:
  • I have transferred my house property to my spouse through a gift. We are living together and not separated. In whose hands will income from the house property be taxed?
    In such a case, you shall be the owner of the house property and hence the income shall be taxed in your hands. (Section 27(i) of the I T Act)
  • Can rental income on a property be taxed in the hands of a person who is not a registered owner of the property?
    The income or receipt can be taxed as ‘income from house property’ only when you own the property and you are entitled to legally receive income from such property.
  • What is the meaning of “Income from house property”?
    When you own a property, which may be a building, flat, house, bungalow, gala, factory building or a shop, it may or may not yield a rental income. Such income which you have received or could have received if the property was given on rent is subject to tax. This income is categorized under the head ‘Income from House Property’.
  • How is the income from house property computed?
    The income from house property is computed after making certain deductions to the annual value or annual lettable value of the property. The first and most important step is the computation of annual value (AV) or (ALV) of the said property. The steps for computation of net income from house property are:(img)
  • I own the property and I have not given the property on rent. It is vacant. I don’t earn income from this property? Can there be a taxable income from such property?
    Yes. As per the Income tax law, if there is a property, there will be income. This income may be NIL or negative or positive. But there shall be income computed. The only exception to this rule is that ‘the property is occupied by the owner for the purpose of his business.’ Once there is a house property, the income from the same has to be computed as per the applicable provisions. This may result in NIL income or loss or taxable positive income. Based on this principle, the taxation of house property is different for ‘Self Occupied Property’, ‘Vacant Property’ and ‘Let out Property’.
  • How to compute the gross annual value (GAV) of the property which is vacant only for some time during the year? In such a case, the GAV of the property shall be the annual expected rent from the property. The annual expected rent of the property shall be computed in following manner, depending on whether or not the property is governed by The Rent Control Act:
    In such a case, the GAV of the property shall be the annual expected rent from the property. The annual expected rent of the property shall be computed in following manner, depending on whether or not the property is governed by The Rent Control Act: Does not fall under Rent Control Act Rent as per municipal valuation (A), Fair amount of rent (B), Expected Rent (C) = Higher of (A) or (B) Gross Annual Value = Expected Rent (C) Falls under Rent Control Act - Rent as per municipal valuation (A), Fair amount of rent (B) Expected Rent (C) = Higher of (A) or (B) Standard Rent (D) Gross Annual Value = Higher of (C) or (D) Thus, in case of a property not falling under Rent Control Act, the expected rent from a property shall be the Gross Annual Value of the property.
  • What is the meaning of self-occupied property (SOP)?
    A self-occupied property is the one which is used by the person for his own residential purpose. If the person owns more than one self-occupied property, then only one property will be treated as self-occupied and the other will be considered as the property which is deemed to be let out. Accordingly, income from house property shall be determined for both these properties.
  • I have transferred my house property to my minor child who is not married. In whose hands will the income from the house property be taxed?
    As per section 27(i) of the IT Act, you shall be the owner of the house property and hence the income shall be taxed in your hands.
  • What is the meaning of ‘House Property’?
    ‘House Property’ implies ‘a building or buildings with lands connected thereto’. It means that it should be a superstructure which is capable of occupation, and the building must be the most prominent part of the said property comprising of land and building. Where the property comprises a mere vacant land or site, the income from that will not be brought under the head ‘Income from house property’ but will be assessed as income from ‘other sources’.
  • I have rented a property from someone and since I could not occupy that property or could only partly occupy, I have sub-let the property to a third party in exchange for a receipt of income. Is this receipt taxed as house property income?
    The income or receipt can be taxed as ‘income from house property’ only when you own the property. This property is not owned by you and you are not entitled to legally receive income from such property. You are the tenant in the said property. Hence, the income received by you from sub-letting or partly sub-letting this property cannot be taxed as Income from House Property, but has to be taxed under ‘Income from other sources.’
  • I am not the owner of the land on which I have constructed the house. But as per municipal records, the house is in my name. Is the income taxable in my hands?
    You need not be the absolute owner of the house property. It will suffice if you are the beneficial owner and are entitled to receive the income from such house property. This income is liable to be taxed in your hands as income from house property.
  • Under which head is the rental income from a shop charged to tax?
    Shop being a building, rental income received from a shop is charged under Income from House Property.
  • How is income from a house property as per the Income tax Act different from the ‘rental income’ received from house property?
    The rental income is received by a person against renting out of his property. The computation of income from house property is NOT solely dependent on this rental income. If you are not receiving rental income, it does not mean that there will be no income from House Property. The Income from house property is computed as per the relevant provisions of the Income tax Act after certain deductions from the rental income received by the person.
  • I have transferred my house property to my spouse as per the terms of the agreement of living separately from each other. In whose hands will the income from the house property be taxed?
    As per section 27(i) of the IT Act, your spouse shall be the owner of the house property and hence the income shall be taxed in her/his hands, since the property stands transferred in connection with an agreement to live apart.
  • What is meant by the annual value of the property?
    This is the term used in the Income tax Act for computation of income from house property. It is the amount which can be yielded from the property in a year as income, as rent, service charges, etc. This is the starting point for computation of ‘income from house property’. This base value is used to make relevant additions/subtractions and then to compute the ‘income from house property’. The annual value of the property is actually the gross annual value (GAV) stated in the above example.
  • What is the Annual Lettable Value (ALV) of the property? How is it computed?
    • This is the amount for which a particular property is expected to be given on rent in a particular year OR an amount of potential rent. This is also known as ‘fair value of rent’, ‘expected amount of rent’, etc. • It is computed as annual value or Gross Annual Value (GAV) in case of the property which is vacant throughout the year. • It is higher of the following: • Municipal value of the property–It
  • Which businesses are NOT eligible for a presumptive taxation scheme?
    The following businesses are not eligible for the presumptive taxation scheme: ​ A person who is carrying on any agency business A person who is earning an income of commission or brokerage Any business whose total turnover or gross receipts exceeds two crore rupees Business of plying, hiring, or leasing goods carriages referred to in sections 44AE
  • What is the manner of computation of taxable business income in the case of a person adopting the presumptive taxation scheme of section 44AD?
    In the case of a person adopting the presumptive taxation scheme, the taxable business income shall be 8% or more of the turnover or gross receipts of the eligible business for the year. This rate shall be 6% for that portion of the turnover which is received through banking channels or other than cash.
  • If I don’t opt for a presumptive taxation scheme, how do I compute my taxable business income?
    For the purpose of computing taxable business income in the above manner, then you have to maintain books of account of the business, and income will be computed by deducting expenses from receipts as follows: ​ 1. Particulars - Turnover or gross receipts from the business Amount - XXXXX ​ 2. Particulars - Less: Expenses incurred in relation to earning of the income Amount - XXXX ​ 2. Particulars - Taxable Business Income Amount - XXXXX ​ ​In case, you are claiming any deductions from the business income, the same needs to be deducted from the business income before arriving at taxable business income.
  • What is the meaning of presumptive taxation scheme?
    For small taxpayers generating business income or professional income, the Income Tax Law provides a scheme whereby you don’t need to keep and maintain books of account, if you declare business profits or professional profits above certain fixed percentage. This scheme is called as Presumptive Taxation Scheme (PTS).
  • What is a presumptive taxation scheme (PTS) for transporters?
    What is a presumptive taxation scheme (PTS) for transporters? The PTS is available for persons who are engaged in the business of transport (plying and hiring) through goods vehicles and own 10 or lesser number of vehicles. In such cases, the taxable income shall be computed as follows: In the case of a Heavy Goods Vehicle (the gross vehicle weight exceeds 12 tons), the taxable income shall be Rs. 1,000 per ton of gross vehicle weight for every month or part of a month during which the heavy goods vehicle is owned by the assessee in the previous year. In the case of vehicles other than heavy goods vehicles, the income shall be Rs. 7,500 for every month or part of the month during which the carriage of the goods is owned by the assessee in the previous yea
  • Can a person who owns more than 10 goods vehicles adopt the presumptive taxation scheme of section 44AE?
    As per the presumptive taxation scheme of section 44AE, the income of a taxpayer will be computed at the rate of Rs. 7,500 per goods vehicle per month and in such a case the taxpayer can claim any further deductions from the presumptive income declaration. ​ As per the PTS of section 44AE, no expenses shall be allowed or disallowed. The income computed at the presumptive rate will be the final taxable income. However, in the case of the taxpayer is a partnership firm opting for the presumptive taxation scheme, the deduction can be claimed on account of remuneration and interest paid to partners (computed as per the Income-tax Act) from the income computed at the presumptive rate. No separate deduction on account of depreciation is available. However, the written down value of any asset used in such business shall be calculated as if depreciation as per section 32 is claimed and has actually been allowed.
  • What is the legal framework of presumptive taxation scheme?
    The presumptive taxation scheme is prescribed in the following sections of Income-tax Act ​ 1. Section 44AD - Small business having a turnover of less than Rs.2 crores Eligible business covered - Small business having a turnover of less than Rs.2 crores ​ 2. Section 44AD - Taxpayers engaged in any profession Eligible business covered - Taxpayers engaged in any profession ​ 3. Section 44AE - Small transporters having 10 or less vehicles Eligible business covered - Small transporters having 10 or less vehicles
  • What will happen if I opt for a presumptive taxation scheme (PTS) for small businesses but I declare the profit at the lesser percentage of turnover/receipts than that mandated as per the PTS (i.e. I declare profits at a rate lesser than 8%)?
    You can not opt for PTS if you are declaring profits at a rate lesser than the mandated rate. In such a case, you need to maintain the books of account and get them audited from a Chartered Accountant, and based on the report of such audit you have to declare income when filing returns.
  • If I adopt the presumptive taxation scheme of section 44AD, then am I liable to pay advance tax in respect of income from business covered under section 44AD?
    In this case, you are required to pay advance tax once, i.e. on or before 15th March of a financial year. However, any amount paid by way of advance tax on or before 31st day of March shall also be treated as advance tax paid during the financial year ending on that day.
  • Who is eligible to take advantage of the presumptive taxation scheme of section 44AD?
    Resident Individual. Resident Hindu Undivided Family. Resident Partnership Firm (not Limited Liability Partnership Firm). A person who has “NOT” made any claim towards deductions under section 10A/10AA/10B/ 10BA or under sections 80HH to 80RRB in the relevant year.
  • As a professional, I adopt the PTS. How should I compute my taxable business income?
    As a professional, if you adopt PTS, then your taxable income shall be 50% of your turnover or receipts. For example, if you have received receipts of, or your annual turnover is Rs.48 lacs, then you must declare taxable profits at 50% of such turnover i.e Rs.24 lacs.
  • If I adopt the presumptive taxation scheme of section 44AD, then am I required to maintain books of account as per section 44AA?
    No.
  • If I adopt the presumptive taxation scheme of section 44AE, then am I liable to pay advance tax in respect of income from business covered under section 44AE?
    Yes. In case of PTS for transporters, advance tax needs to be paid in all quarters and not only in last quarter unlike the PTS for section 44AD and 44ADA.
  • If a person adopts the presumptive taxation scheme of section 44AE, then is he required to maintain books of account as per section 44AA?
    No
  • Can I claim any further deductions from the income computed at 6% or 8% on a presumptive basis?
    No. The income computed at the given rates shall be the final taxable income on which you have to compute tax and no further deductions are allowed from this income.
  • What will happen if I don’t pay advance tax?
    Clause(a) of section 15 provides that any Salary due from an employer or a former employer to an assessee in the previous year whether paid or not, is chargeable to income-tax under the head ‘Salaries’. In other words, the Salary accrued or which becomes due need not be actually paid in order to make it chargeable income. What is relevant is whether the Salary is due to an employee from an employer. Income from ‘Salary’ is chargeable to tax on “due basis” or “receipt basis” whichever is earlier.Clause(a) of section 15 provides that any Salary due from an employer or a former employer to an assessee in the previous year whether paid or not, is chargeable to income-tax under the head ‘Salaries’. In other words, the Salary accrued or which becomes due need not be actually paid in order to make it chargeable income. What is relevant is whether the Salary is due to an employee from an employer. Income from ‘Salary’ is chargeable to tax on “due basis” or “receipt basis” whichever is earlier.
  • What will happen if I opt for a presumptive taxation scheme (PTS) for the profession but I declare the profit at lesser percentage of turnover/receipts than that mandated as per the PTS (i.e. I declare profits at a rate lesser than 50%)?
    You cannot opt for PTS if you are declaring profits at a rate lesser than the mandated rate. In such case, you need to maintain the books of account and get them audited from a Chartered Accountant and based on the report of such audit, you have to declare income in the income tax return.
  • If I adopt the PTS for a small business initially and then opt out of PTS in any of the subsequent five years, what will be the consequences?
    Once you opt for PTS then you have to continue with it for the next five years if your turnover is less than 2 crore rupees. Even after having a turnover of less than 2 crores in any of the subsequent five years if you declare profits lesser than 8% (or 6%), then it is considered as withdrawal from PTS, and you are barred from availing PTS for the next five years from the assessment year in which you had withdrawn from PTS.
  • Can an insurance agent adopt the presumptive taxation scheme of section 44AD?
    A person who is earning income in the nature of commission or brokerage cannot adopt the presumptive taxation scheme of section 44AD. Insurance agents earn income by way of commission. Hence, they cannot adopt the presumptive taxation scheme of section 44AD.
  • Can a person whose total turnover or gross receipts for the year exceed Rs. 2,00,00,000 adopt the presumptive taxation scheme of section 44AD?
    No, a person whose total turnover or gross receipts for the year exceed Rs. 2,00,00,000 cannot adopt the presumptive taxation scheme of section 44AD.
  • If I adopt the presumptive taxation scheme of section 44AD, then am I liable to pay advance tax in respect of income from business covered under section 44AD?
    You are not required to pay advance tax in all the four quarters of a financial year but you are required to pay advance tax only once i.e. on or before 15th March of a financial year. However, any amount paid by way of advance tax on or before the 31st day of March shall also be treated as advance tax paid during the financial year ending on that day.
  • Who is eligible to take advantage of the presumptive taxation scheme of section 44ADA?
    Any person resident in India, engaged in the following professions, and having a turnover of Rs.50 lacs or less are eligible to take advantage of PTS. ​ Legal Medical Engineering or architectural Accountancy Technical consultancy Interior decoration Any other profession as notified by CBDT
  • Who is eligible to take advantage of the PTS of section 44AE and which business is eligible for the PTS under section 44AE?
    Everyone i.e. Individual, Firm, HUF, Company, etc. can take advantage of the presumptive taxation scheme of section 44AE and all businesses are also eligible for it.
  • Can a person engaged in a profession adopt the presumptive taxation scheme of section 44AD?
    No. He has to adopt the presumptive taxation scheme as given in section 44ADA and not in section 44AD.
  • What will happen if I don’t pay advance tax?
    If you fail to pay the advance tax by 15th March of the previous year, you will be liable to pay interest as per section 234C.
  • What is the tenure of this bond?
    The NHAI /REC bond can be fully redeemed at maturity after three years. You cannot transfer these bonds in another person’s name. Also, it is a non-negotiable financial instrument, hence one should not expect to get money by keeping the bond as a security against any loan or advance, since this is not permitted.
  • How much can you invest?
    You can invest a minimum of Rs. 10,000 and a maximum of Rs. 50 lakh. The face value is Rs. 10,000 per bond, so you can buy up to 500 bonds.
  • How is the interest earned on these bonds taxed?
    There is no tax deductible at source on the interest paid by these bonds. But the interest earned on these bonds is taxable. You will need to pay tax on the interest income as advance tax.
  • Can the bonds be owned jointly?
    Yes, this bond can be held in the name of a single holder as well as jointly. Keep in mind that even if you make separate applications, individually or jointly, the aggregate investment should not exceed Rs. 50 lakh, or both of you may lose the benefit under section 54EC. You will be able to avail a nomination facility on these bonds.
  • I wanted to invest in REC/NHAI bonds but they are not available in market at this time and hence I am not able to invest my funds. What to do?
    If bonds of assessee’s choice are not available throughout period of six months as provided under section 54EC, time to invest in bonds would get automatically extended till bonds are available in market; and assessee can purchase same and claim exemption under section 54EC accordingly.
  • What is the risk in this investment?
    The bond comes with minimum risk and does not need daily monitoring. Moreover, you do not need to pay a commission to get the bond. The bond also comes with AAA/stable rating by Crisil Ltd and AAA(Ind)/(Affirmed) by Fitch.
  • Can I claim benefits u/s 54EC, 54 and 54F at the same time?
    The benefits of exemption u/s 54EC can be clubbed with those under either section 54 or 54F but not both.
  • If I sell my asset situated outside India, can I claim exemption u/s 54EC
    Yes, provided you invest the amount in three year bonds issued by REC/NHAI. Want to know more about REC/NHAI Bonds?
  • What if I redeem the bonds issued by REC/NHAI before the period of three years after investment?
    In that case, the income from long term capital gains shall be taxed in the Assessment Year in which such redemption is done
  • Is it possible to invest more than Rs.50 lakhs in the REC/NHAI bonds?
    No. After amendment in the Finance Act (No.2) 2014, it is not possible to invest more than Rs.50 lakhs for benefits under section 54EC of the Act. But you may consider investment u/s 54F or 54.
  • What is the Interest rate on such bonds?
    Currently, an interest rate (coupon rate) of 6%, payable annually, is being offered on this bond annually on 1st April and final interest is payable at the time of maturity.
  • Is Capital Gains Account Scheme applicable for exemptions u/s 54EC of the Act?
    No. It is applicable only to benefits under sections 54 and 54F
  • What does the ‘appurtenant land’ in section 54 mean?
    The benefit under this section is applicable in case of profit from sale of a residential house with appurtenant land. This means the ‘house’ has the prominent weight-age. If the land exists so as to serve the purpose of residential house, then it is an appurtenant land, like verandah, garden, or compound which exists so as to serve the purpose of a residential structure. In case an insignificant residential quarter exists on a large open plot, the said structure does not qualify for the purpose of a residential house within the meaning of sec. 54 of the Act.
  • What is the position in case of a sale of a house owned by a firm but which was occupied by partners for residential purposes?
    The firm can not claim the benefit u/s 54. However, if the property owned by a firm was ocupied by partners for residence and on dissolution of the firm, partners sell their share of the property, they may exercise the option of benefit under this section.
  • I have sold my residential house and invested the entire proceeds in purchase of a new house from a builder for which an agreement to sale is registered. However, the builder has not given possession of the flat. Am I eligible for benefits?
    Yes. The key condition is utilization of sale proceeds for investment in a new residential house. If you could demonstrate that the delayed possession is beyond your control and you have paid substantial amounts to the builder, you are eligible for benefits u/s 54 of the Act.
  • I have demolished my old residential house and given the plot for development to a developer to construct a residential complex out of which I will receive some apartments. Am I eligible for exemption?
    No. Since you have demolished the said building yourself and what you sold is actually your rights in the land, you may not be eligible for benefits under section 54 of the Act.
  • I have sold my house to a builder in exchange for a new house in a different building. There was no exchange of money or cash in the transaction. Am I eligible for benefits?
    Yes. The word ‘purchase’ in section 54 ordinarily means buying for a price or equivalent of price by payment in kind or adjustment towards an old debt or for other monetary consideration. There is no stress in the section on ‘cash and carry’.
  • I am getting the house constructed from builder/contractor. Am I eligible for exemption?
    Yes. The taxpayer himself may not be required to construct the house.
  • I have invested the sale proceeds of a residential house in purchase of a house in the name of me and my wife. Am I eligible for the benefits?
    Section 54 does not explicitly state that the purchase to be made or the construction to be put up by the taxpayer should be in the name of the taxpayer. What is material is the investment of the sale consideration in acquiring the residential premises or constructing a residential premises. Once the sale consideration is invested in the above manner, the taxpayer would be entitled to the benefit conferred on him under this provision.
  • What is the time limit for purchase of a new residential house from the time of sale of original house?
    In order to be eligible for the benefit under this section the NEW house must be purchased within a period of ONE year BEFORE or TWO years AFTER the sale of original asset.
  • I have purchased a flat from the builder through an agreement to purchase. The payments are being done as per the stage of construction. I have not received the possession of the said flat within two years and I have not registered a sale deed for purchase of a new flat/house from the builder. Am I eligible?
    Yes. Agreement to purchase coupled with substantial payments is enough for claim of exemption. The date of possession is more important than the date of sale deed or purchase deed. However, if possession is beyond your control, you can claim so before the Assessing Officer (AO).
  • What is the time limit for construction of a new residential house from the time of sale of original house?
    In order to be eligible for the benefit under this section the NEW house must be constructed within a period of THREE years AFTER the sale of original asset.
  • Can I include the cost of the plot on which I am constructing a new house in computing exemption benefits?
    Yes. As per CBDT Circular 667 (dated 18.10.1993), the cost of the plot purchased for construction of a new house can be included for computation of benefits u/s 54 of the Act.
  • Can I start the construction of a NEW residential house before I sell my existing house?
    GST-Calendar-Jan-2020-taxbuddy-comIn this case, you will NOT be eligible for exemption under section 54 of the Act.
  • What is Capital Gains Account Scheme?
    If you have a profit from sale of a residential house and you have not invested such profits before filing return of income or before due date of RoI, then such an amount of capital gains needs to be deposited in the Capital Gains Account Scheme before due date of RoI and whenever the assessee purchases a new residential house, this amount can be withdrawn with permission from the Assessing Officer.
  • Is the exemption valid in case of residential house purchased outside India?Is the exemption valid in case of residential house purchased outside India?
    No. The section specifically mentions that the new asset being a residential house must be acquired in India.
  • Can I claim exemption u/s 54EC & 54EE along with section 54?
    Yes. You can claim exemption under all these sections together, but you have to exhaust exemption under section 54 first, since it doesn’t have a ceiling limit which is present in the other two.
  • My capital gain is worked out at an amount more than actual profit I earned in the sale of my asset because of application of section 50C of the Income tax Act. Am I eligible for exemption of such deemed capital gains in entirety?
    Yes. Where capital gain is assessed on notional basis under section 50C, whatever amount is invested in new residential house within prescribed period under section 54F would get benefit of deduction irrespective of fact that funds from other sources are also utilized for new residential house.
  • Can exemption can be claimed u/s 54 and 54F when capital gains from transfer of multiple properties are invested in a single residential property?
    If other conditions as regards time limit etc. are fulfilled, exemption under section 54 is allowable where capital gains arising from sale of two residential houses are invested in a single residential house.
  • Is the TDS deductible on the amount of interest paid by the partnership firm to the partner?
    No. Section 194A has exempted specifically such payments from the TDS liability.
  • Is the TDS deductible on the amount of interest paid by the Co-operative society to its members or other co-operative societies?
    No. Section 194A has exempted specifically such payments from the TDS liability.
  • I am having bank accounts in different branches of the same bank. The interest amount in any one of the branches does not exceed Rs. 10000. Is the TDS deductible from the amount of interest income?
    As per section 194A of the Act, the core banking solutions of the banks and societies have to be taken into account for considering whether the TDS has to be applied or not.
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    Typically, articles should be around 1500 words. However, the word count can vary depending on the subject matter and depth required.
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    Once published, your article will be shared with our readers, and you'll have the opportunity to engage with comments and discussions.
  • How long does it take to review and publish my article?
    We aim to review and publish articles within 5 business days. However, this duration can vary based on our editorial workload.
  • What topics should I write about?
    You should focus on taxation, tax planning, GST updates, TDS, and related subjects. We appreciate in-depth and insightful content that our readers can benefit from.
  • Terms & Conditions
    Confidentiality: TaxBuddy agrees to maintain the confidentiality of all information provided by the client in relation to their tax notices and appeals, ensuring that sensitive financial and personal data remains secure. Expertise: TaxBuddy commits to providing expert assistance and representation in handling tax notices and appeals, utilizing its knowledge and experience in tax law. Timely Handling: TaxBuddy will ensure that all tax notices and appeals are handled within the prescribed time limits to avoid adverse consequences. Transparent Pricing: TaxBuddy will provide the client with a clear breakdown of fees and charges for its services in handling tax notices and appeals, ensuring transparency in pricing. Progress Updates: TaxBuddy will regularly update the client on the progress of their tax notices and appeals, keeping them informed about any developments in their case. Client-Centered Approach: TaxBuddy will tailor its services to meet the specific needs and goals of the client in handling tax notices and appeals, with a client-centered approach to ensure the best possible outcome. Negotiation and Settlement: TaxBuddy may engage in negotiations with relevant authorities to seek a resolution that is favorable to the client in handling tax notices and appeals, potentially avoiding lengthy legal proceedings. Legal Representation: If necessary, TaxBuddy will provide legal representation during the handling of tax notices and appeals, presenting the client’s case effectively to the authorities. Responsiveness: TaxBuddy will be responsive to the client’s queries and concerns in handling tax notices and appeals, providing dedicated support throughout the process. Professionalism: With their expertise and professionalism, TaxBuddy aims to secure the best possible result for the client in handling tax notices and appeals, whether it’s a resolution, reduction in liabilities, or another favorable outcome. Fee: TaxBuddy may require an upfront fee from the client to secure its services for handling tax notices and appeals, and this fee may not be refundable. Engagement Duration: TaxBuddy may specify a minimum engagement duration for handling tax notices and appeals, and the client may be bound by this commitment. Discretionary Handling: TaxBuddy may have the discretion to determine whether to handle a notice or appeal on behalf of the client, based on the merits of the case and its professional judgment. Third-Party Costs: If third-party experts or services are required during the handling of tax notices and appeals (e.g., expert witnesses or consultants), the client may be responsible for these additional costs. Conflict of Interest: TaxBuddy may represent multiple clients in handling tax notices and appeals, and in some cases, there may be conflicts of interest that require TaxBuddy to prioritize one client over another. Limited Liability: TaxBuddy’s liability for errors, omissions, or inaccuracies in handling tax notices and appeals will be limited to the extent permitted by applicable laws and regulations. The client acknowledges that outcomes are subject to various factors, and TaxBuddy cannot guarantee specific results. Termination for Non-Payment: TaxBuddy may reserve the right to terminate its services for handling tax notices and appeals if the client fails to make timely payments as per the agreed-upon payment terms. Scope of Engagement: TaxBuddy may specify the exact scope of its engagement for handling tax notices and appeals, and any services outside of this scope may incur additional charges. No Guaranteed Outcomes: TaxBuddy may explicitly state that there are no guarantees of specific outcomes in handling tax notices and appeals, and final decisions rest with the relevant authorities or legal entities. Changes to Terms: TaxBuddy may have the discretion to make changes to the terms and conditions of the engagement for handling tax notices and appeals, with notice provided to the client. Record Retention: TaxBuddy may retain records related to the client’s case for a specified duration, even after the engagement for handling tax notices and appeals is concluded. Withdrawal of Services: TaxBuddy may withdraw its services for handling tax notices if it believes that the client’s case lacks merit or if the client fails to cooperate with reasonable requests during the handling process.
  • Terms & Conditions
    Confidentiality: TaxBuddy agrees to maintain the confidentiality of all information provided by the user in relation to their income tax appeal, ensuring that sensitive financial and personal data remains secure. Expertise: TaxBuddy commits to providing expert assistance and representation in income tax appeal cases, utilizing its knowledge and experience in tax law. Timely Filing: TaxBuddy will ensure that all appeals are filed within the prescribed time limits to avoid the risk of dismissal due to missed deadlines. Transparent Pricing: TaxBuddy will provide the user with a clear breakdown of fees and charges for their services, ensuring transparency in pricing. Progress Updates: TaxBuddy will regularly update the user on the progress of their income tax appeal, keeping them informed about any developments in their case. Client-Centered Approach: TaxBuddy will tailor its services to meet the specific needs and goals of the user, with a client-centered approach to ensure the best possible outcome. Negotiation and Settlement: TaxBuddy may engage in negotiations with tax authorities to seek a settlement or resolution that is favorable to the user, potentially avoiding lengthy litigation. Legal Representation: If necessary, TaxBuddy will provide legal representation during appeal proceedings, presenting the user’s case effectively to the authorities. Responsiveness: TaxBuddy will be responsive to the user’s queries and concerns, providing dedicated support throughout the appeal process. Professionalism: TaxBuddy will conduct all dealings with the user and tax authorities with the highest level of professionalism, aiming to secure the best possible result for the user’s appeal. Payment Terms: TaxBuddy will outline the payment terms, including the schedule and method of payment for its services. Termination: Both the user and TaxBuddy have the right to terminate the engagement if certain conditions are not met or if either party believes that it is in their best interest to do so. Retainer Fee: TaxBuddy may require an upfront retainer fee from the client to secure its services, and this fee may not be refundable. Engagement Duration: TaxBuddy may specify a minimum engagement duration, and the client may be bound by this commitment. Discretionary Appeals: TaxBuddy may have the discretion to determine whether to file an appeal on behalf of the client, based on the merits of the case and its professional judgment. Third-Party Costs: If third-party experts or services are required during the appeal process (e.g., expert witnesses or consultants), the client may be responsible for these additional costs. Conflict of Interest: TaxBuddy may represent multiple clients, and in some cases, there may be conflicts of interest that require TaxBuddy to prioritize one client over another. Limited Liability: TaxBuddy may limit its liability in case of errors, omissions, or unfavorable outcomes in the appeal, potentially capping the extent of compensation the client can claim. Termination for Non-Payment: TaxBuddy may reserve the right to terminate its services if the client fails to make timely payments as per the agreed-upon payment terms. Scope of Engagement: TaxBuddy may specify the exact scope of its engagement, and any services outside of this scope may incur additional charges. No Guaranteed Outcomes: TaxBuddy may explicitly state that there are no guarantees of specific outcomes in the appeal, and the final decision rests with the tax authorities or legal entities. Changes to Terms: TaxBuddy may have the discretion to make changes to the terms and conditions of the engagement, with notice provided to the client. Record Retention: TaxBuddy may retain records related to the client’s case for a specified duration, even after the engagement is concluded. Withdrawal of Services: TaxBuddy may withdraw its services if it believes that the client’s case lacks merit or if the client fails to cooperate with reasonable requests during the appeal process. Limited Liability for Errors and Omissions: TaxBuddy’s liability for errors, omissions, or inaccuracies in handling the notice will be limited to the extent permitted by applicable laws and regulations. The client acknowledges that the outcome of tax matters is subject to various factors, and TaxBuddy cannot guarantee a specific result. Indemnification: The client agrees to indemnify and hold TaxBuddy harmless from any claims, losses, damages, or liabilities arising out of the client’s failure to provide accurate information, non-cooperation, or any actions or decisions made by the client that may affect the handling of the notice. Limitation of Claims: Any claims against TaxBuddy must be made within the timeframe specified in the engagement agreement. Failure to make a claim within this timeframe may result in the forfeiture of the client’s right to pursue such claims. Exclusion of Consequential Damages: TaxBuddy shall not be liable for any consequential, incidental, or special damages arising from the handling of the notice, including but not limited to lost profits, business interruption, or reputational harm. Force Majeure: TaxBuddy shall not be held liable for any delays or failures in performance due to circumstances beyond its control, such as acts of nature, government actions, or unforeseen events. Professional Standards: TaxBuddy will conduct its services in accordance with applicable professional standards and ethics. However, the client acknowledges that the tax landscape is subject to change, and TaxBuddy’s advice and actions are based on the information and regulations available at the time of handling the notice.
  • What is the role of Taxbuddy?
    TaxBuddy is an online tax filing platform that provides expert tax advice, meticulously designed to meet your diverse taxation and compliance needs, from ITR filing to tax planning. Our services address salaried individuals, corporations, freelancers, HNIs, and more!
  • Is it free to meet with a tax expert?
    Schedule a 30-minute consultation with TaxBuddy's experts for just Rs.999/- and select your preferred subject matter for discussion.
  • Is the scheduling call fee refundable if the client misses the scheduled time or date?
    While the fee is non-refundable, we'll gladly schedule another call to ensure you receive the best advice and guidance you're seeking.
  • Who will provide support if, after a call with the expert, I want to continue with Taxbuddy for a potential resolution?
    The next point of contact for the required support will be provided during the call by the representative addressing your query.
  • Besides Salary income I have other income on which tax is not deductible. Do I need to inform my employer about this for deduction of tax?
    You may inform your employer so as to enable him to determine the correct tax deductible from your income. In case you don’t provide these details to your employer, you may wish to pay advance tax on the income other than income from Salary.
  • I am an employee of an Insurance Company. I am paid a commission or incentive on the business I bring to my company. How should this commission or incentive be treated?
    Since in addition to Salary payable, you also receive incentive bonus/commission based on the insurance business brought by you, the additional income so derived during the course of and pursuant to the terms and conditions of the employment can be brought to tax only under the head ‘Salaries’, and not under ‘Business Income’.
  • Is leave encashment taxable as income from SALARY?
    Yes. As per section 17(1) (va) of the Income Tax Act, leave encashment is taxable as income from ‘Salary’
  • What are the profits in lieu of Salary?
    An employee sometimes receives a bonus or commission or remuneration for something that he has done during the course of employment. This is included in the income from Salary as Profits in lieu of Salary.
  • What is Leave Encashment?
    Some employers allow the employees to accumulate leave in case the employee is not availing the admissible leave. This unavailed leave is eligible to be encashed in monetary terms by the employees from employer. This monetary encashment is called is Leave Salary or Leave Encashment Salary (Sec. 17, Income Tax Act)
  • I am the legal heir of a Government Servant who died in harness. I have received certain amount as leave Salary encashment upon his death, in the capacity of his legal heir. Is it taxable as income from Salary?
    This receipt in the hands of the family is not in the nature of one from an employer to an employee. The deceased had no right or interest in this receipt. This payment is only by way of financial benefit to the family of the deceased Government servant, which would not have been due or paid had the Government servant been alive. In view thereof, the amount will not be liable to income-tax.
  • Is it necessary for my employer to deduct income tax from my Salary?
    Yes. It is his duty as per law to deduct tax from the income paid to you by him. In case you think that you may not have any tax liability, you may inform your employer about your claims (including loss for setting off) and demonstrate that there is no tax liability in your hand for that particular year.
  • How should I communicate the benefits u/s 89 and the consequent rate of deduction of TDS to my employer?
    You have to calculate the amount of tax after availing benefits of deduction u/s 89 of the Act and submit it to your employer in Form No.10E. (Rule 21A, Income tax Rules, 1962).
  • How is Leave Travel Concession taxed?
    If the employee is allowed a leave travel allowance or concession by his employer towards travel for himself and his family (includes spouse, dependent parents, and siblings of the employee and his two children) in India, such an amount of allowance is exempt from tax. This is not allowed for travel outside India nor is it allowed beyond the actual expenses incurred by the employee on his travel. The exemption can be availed only in respect of two journeys performed in a block of four calendar years.
  • Is the income received by the Managing Director of the company to be taxed as Income from ‘Salary’?
    Whether or not a managing director is a servant of the company apart from being a director can only be determined by the Articles of Association and the terms of his employment. If the company is itself carrying on the business in terms of its articles, and the managing director is employed to manage its affairs under the agreement, he could be dismissed or his employment could be terminated by the company if his work is not satisfactory, his income from the company deserves to be treated as income from ‘Salary’.
  • What is the taxability of the Salary and pension received by UN employees in India?
    Salaries received by employees of the UNO or any person covered under the UN (Privileges and Immunities) Act, 1947 as well as pension received by them from the UN will be exempt from income tax.
  • Judges of the High Court and Supreme Court are not subject to control about the manner and method of their work. How is their income treated?
    The Salary of a Judge of a High Court and the Supreme Court is income and is taxable by the Act of Parliament in the same manner as the income of any other citizen. It is true that such judges have no employer but that, ipso facto, does not mean that they do not receive salaries. They are constitutional functionaries. Articles 125 and 221 of the Constitution deal with the salaries of such judges and expressly state what the judges received a salary. Hence, their income is treated as Income from ‘Salaries’.
  • I have a loss under the head of ‘Long term capital gains’. Can I set it off against income from salaries?
    No. It cannot be set off against income from salaries.
  • After adopting PTS and computing my taxable income at the rate of 50% of my receipts, can I claim any deductions from such taxable income?
    No. The income computed at the given rate shall be the final taxable income on which you have to compute tax and no further deductions are allowed from this income.
  • Rules for Setting off losses Can there be a loss under the head ‘Salaries’?
    No. There cannot be a loss under the head of ‘income from salaries’.
  • What is Form No. 16C?
    When a taxpayer pays rent more than Rs. 50000 per month to any person, he is required to deduct tax at the rate of 5% on such rent paid. After such deduction, the deductor is required to issue a certificate of deduction in Form No. 16C to the deductee.
  • What will happen if I do not provided my PAN to my employer deductor?
    Any person who is entitled to receive the amount (income) on which tax is deductible, must provide PAN to the deductor. If you have not provided your PAN then your employer may deduct tax from your income at higher of the rates in force or 20% of the income credited to your account.
  • What is the rate of deduction of tax (TDS) in case of income from Salary?
    There is no fixed rate of deduction in case of Salary income unlike other incomes or payments. However, the TDS is deducted considering the likely tax amount on your income as per the rates in force for that particular assessment year.
  • I have loss under the head ‘Income from House Property’. Can I set it off against income from Salaries?
    Yes, it can be set off against income from salaries BUT only up to Rs. 2,00,000.
  • I have a loss under the head of ‘Short term capital gains’. Can I set it off against income from salaries?
    No. It cannot be set off against income from salaries.
  • What is Certificate in Form No. 16?
    The deductor of income tax is required to inform the deductee about the amount paid to deductee and the amount of tax deducted and deposited on behalf of the employee by the deductor. This information is provided by the deductor to the deductee through a certificate in Form No. 16. Learn More about Form No. 16(Link)
  • The income received by me from my employer does not fit into any of the items specified in Section 15 and 17 of the IT Act. In that case, is my income still taxable as Salary income?
    The definitions of various items specified in section 17 are exhaustive and comprehensive. They are also inclusive of the items which are not specified in any of the respective sections. Therefore, if the income received from the employer satisfies the criteria of receipt on account of ’employer-employee’ relationship, then the income qualifies as ‘Income from Salary’.
  • My employer gives me tax allowance and does not pay my tax by himself. Do I need to include this allowance in my income from salaries?
    Yes. It is a part of income from salaries.
  • I am an employee of a Multinational Corporation and working in India. But my Salary is NOT paid in India but is paid outside India. Is my income from Salary taxable in India?
    Salary accrues where the services are rendered even if it is paid outside India; Hence, the income received outside India against services rendered in India will be taxable in India. (Sec 15 & 9, Income Tax Act).
  • I am the Director of the company. Is my Salary received from the company to be taxed as income from ‘Salary’?
    A director of a company is not a servant but an agent inasmuch as the company cannot act in its own person but has only to act through directors who qua the company have a relationship of an agent with the company. In this case, their income is taxable as income from ‘Other sources’. However, if the director is working to carry out certain functions for a company and the company can prove it on facts then he may be treated as an employee of the company and his income may be taxed accordingly as income from ‘Salary’
  • What is included in Income From Salary?
    Income under the head Salaries includes Wages, Annuity, Pension, Gratuity, Fees, Commission, Perquisites, Profits in lieu of or in addition to Salary or Wages, Advance of Salary, Annual accretion to the balance of Recognized Provident Fund, Transferred balance in Recognized Provident Fund, Contribution by Central Government or any other employer to Employees Pension Account, etc.
  • I have received non-monetary perquisites from the employer on the value of which he has paid tax. Do I need to include the amount of such tax in my Salary income?
    No. The tax amount on such non-monetary perquisite is exempt u/s 10(10CC) of the IT Act.
  • I have received a lumpsum amount as advance Salary or commuted pension or arrears of Salary or gratuity or leave encashment or family pension which would have been due in earlier years. How should it be treated for tax purposes?
    In the event of receipt of a lumpsum amount of Salary or other such sums, the tax on the total income may be more than the tax on the normal income. To safeguard the taxpayer from this additional tax burden, benefit is provided in section 89(1) of the Act. It is available only in respect of income from Salary and income from other sources (family pension). It is not available when the taxpayer avails exemption from tax in respect of VRS compensation.
  • What is Gratuity and how is it taxable?
    Gratuity is given by the employers to their employees for the services rendered by them during the period of employment. It is usually paid at the time of retirement but it can be paid before also. An employee becomes eligible for gratuity only after the completion of five years of service with the employer. It is taxed as ‘Income from Salary’. However, the taxable amount of gratuity should be computed properly.
  • I am an employee of a Foreign Government working in India. Is my Salary paid by my employer i.e. Government, taxable in India?
    Salary paid by a foreign Government to its employees serving in India is taxable under the head “Salaries” u/s 15 of the 1961 Act. The words ‘an employer’ occurring in clause (a) of that section are wide enough to include a foreign Government. But if you are not a citizen of India then you enjoy exemption on such income.
  • What is Form No. 16A?
    The certificate in Form No. 16 is issued by the employer in case of income from Salary. In respect of other types of incomes, certificate in Form 16A is issued.
  • How is the remuneration received by MLAs/MPs/elected representatives is treated and taxed as?
    The basic ingredient of employer-employee relationship is missing in the case of MLAs and MPs, as they are not employed by anybody, rather, they are elected by the public, forming their election constituencies, and it is consequent upon such election, that they acquire constitutional position, and discharge constitutional functions and obligations. They may be receiving remuneration after swearing in but that is not attracted by section 15 of the Income tax Act. Hence, remuneration received by MLAs/MPs/elected representatives is taxes as ‘Income from other sources’.
  • I have a loss under the head of ‘Short term capital gains’. Can I set it off against income from salaries?
    No. It cannot be set off against income from salaries.
  • How are perquisites taxed?
    The perquisites or perks received by an employee are valued in monetary terms as per the computation provided in Income Tax Act and Rules and such a value or amount is included in Income under the head ‘Salaries’. These are also included for the purpose of computation of TDS.
  • What are allowances?
    An allowance is a financial benefit allowed by the employer to an employee with a specific purpose attached to such amount of allowances. Some of such allowances are for incurring expenses in the discharge of duties by the employee.
  • What is Form No. 16B?
    When a taxpayer sells an immovable property for a sale consideration more than Rs. 50 lakhs, the person purchasing is required to deduct tax at the rate of ONE percent of such sales consideration. After such deduction., the purchaser has to issue Form 16B to the seller indicating the details of such a transaction of immovable property.
  • I have a loss under the head of ‘Income from business and profession’. Can I set it off against income from salaries?
    No. It cannot be set off against income from salaries.
  • I have capital loss in this year and I think my income from Salary may be reduced on account of that, should I inform my employer about the same?
    Loss other than loss from house property is not eligible to be considered for set off against tax liability on the income from Salary. Hence the information would be irrelevant to the employer.
  • What is Tax Free Salary?
    When the employer agrees to pay tax on the Salary paid to the employee without applying any cap on the amount of tax to be paid, it can be said to be a Tax Free Salary.
  • Can the income of remuneration, commission, and bonus received from a partnership firm by a partner be taxed as income from ‘Salary’?
    No. It has to be treated as and taxed as income from Businesses and Professions.
  • I receive a certain income from someone regularly at certain intervals. How do I determine whether it is income from Salary, other sources, or business income?
    An income can be taxed as income from Salary only when there is an employer-employee relationship. Your relation with the person paying income to you may be tested on the parameters: 1. Whether the payer is in complete control of your activity 2. Whether he controls how you carry it out, 3. Whether the payer has unquestioned right to control the manners and method of your activity and you have to obey him. If the answers to these questions are ‘YES’ then the income may be taxed as income from ‘Salary’, and if the answer to any of these or all of these is’ NO’ then the income may not be taxed as income from ‘Salary’.
  • My employer paid me Salary for a part of the financial year but my services were rendered for the full year. Do I need to pay tax on the entire amount of Salary due to me from the employer?
    Clause(a) of section 15 provides that any Salary due from an employer or a former employer to an assessee in the previous year whether paid or not, is chargeable to income-tax under the head ‘Salaries’. In other words, the Salary accrued or which becomes due need not be actually paid in order to make it chargeable income. What is relevant is whether the Salary is due to an employee from an employer. Income from ‘Salary’ is chargeable to tax on “due basis” or “receipt basis” whichever is earlier.Clause(a) of section 15 provides that any Salary due from an employer or a former employer to an assessee in the previous year whether paid or not, is chargeable to income-tax under the head ‘Salaries’. In other words, the Salary accrued or which becomes due need not be actually paid in order to make it chargeable income. What is relevant is whether the Salary is due to an employee from an employer. Income from ‘Salary’ is chargeable to tax on “due basis” or “receipt basis” whichever is earlier.
  • How do I inform my employer about my estimated tax liability of a particular assessment year?
    As per Rule 26B, you may inform about your other incomes, your loss or TDS deducted somewhere else through a statement prepared with requisite proofs.
  • In the hospitality and entertainment Industry, customers often pay tips to waiters and artistes who often are employees of a certain organisation. Is this income by way of tips taxed as income from ‘Salary’?
    Since the basic ingredients of employer-employee relationships are missing in this scenario, the income from tips is not to be taxed as income from Salary but is to be taxed as income from other sources. But if such tips are paid by an Employer to an Employee, this income is to be taxed as Income from ‘Salary’.
  • In case of Tax Free Salary, is the amount of income tax paid by the employer required to be included in the taxable income from Salary?
    Yes. The amount of tax paid or payable by the employer must be included in the income from salaries.
  • What is the tax treatment of amount of compensation received on Voluntary Retirement (VRS)
    Compensation on account of VRS is taxable as profits in lieu of Salary as per section 17(3) of the Income Tax Act. But in case of VRS by employees of Government/Semi-Government/Local Authorities/PSUs etc, this compensation is exempt up to the amount of Rs. 500,000/-. However, no exemption under any other section for this amount is admissible to the taxpayer nor is he eligible to claim the benefits u/s 89(1) of the Act.
  • What is meant by Perquisites?
    As an employee, you tend to receive certain benefits from your employer like rent-free accommodation, motor car, interest-free loans, advances, etc. Such benefits received on account of the employer-employee relationships are ‘perquisites’ or ‘perks’.
  • Inadvertently, I have given wrong PAN to my employer deductor. What are the consequences?
    The consequences of providing wrong PAN are identical to those of not providing the PAN.
  • How is the remuneration received by Chief Ministers treated and taxed?
    Pay and allowances received by the Chief Ministers are assessable as Salary and not as income from other sources, in view of the provisions of article 164 of the Constitution.
  • I am an employee of the Central/State Government in India. I am deployed on official duties outside India. Is my Salary paid to me in India taxable as income from Salary?
    If a Citizen of India renders services outside India, and receives Salary from the Government of India, it would be taxable as Salary deemed to have accrued in India. (Sec. 15 & 9, Income Tax Act)
  • I am a professional tutor. Incidentally, I teach regularly at a school as per the offer made by them and I get paid as per my hours of teaching work. Is my income liable to be taxed as income from Salary?
    No. On these facts, there doesn’t exist an employer-employee relationship since you get paid for your services and time spent. The income may be liable to be taxed as business income.
  • Why do businesses need accounting services?
    Businesses require accounting services to maintain accurate financial records, comply with tax regulations, make informed financial decisions, and assess their financial health.
  • What are accounting services?
    Accounting services encompass various financial activities, including bookkeeping, financial statement preparation, tax compliance, auditing, and financial consulting, offered by professionals or firms.
  • What is the difference between bookkeeping and accounting services?
    Bookkeeping involves recording financial transactions, while accounting includes interpreting and analyzing financial data to provide insights and make financial decisions.
  • What are the basic principles of accounting?
    The basic principles of accounting include the principles of consistency, conservatism, materiality, and others. These principles provide a framework for recording and reporting financial information accurately and transparently.
  • How do I choose the right accounting service provider for my business?
    Consider factors like expertise, reputation, pricing, and the specific services offered when choosing an accounting service provider.
  • Do I need to register an HUF?
    No, there is no formal registration process required to create an HUF. It comes into existence automatically when there is a Hindu joint family. However, it's advisable to have a separate HUF bank account and maintain proper records.
  • How is income taxed in an HUF?
    In an HUF, the income of all members is usually clubbed together and taxed as a single entity. This includes income generated from HUF assets and properties. However, there are exceptions, and not all income may be taxable in the hands of the HUF.
  • Can an HUF file income tax returns?
    Yes, an HUF is a separate taxpayer and is required to file income tax returns if it has taxable income. It should file returns using the appropriate ITR form, such as ITR-2 for HUFs with income from sources other than business or profession.
  • How can I obtain a PAN card for my HUF?
    You can apply for a PAN card for your HUF online through the Income Tax Department's website. The process is similar to applying for an individual PAN card.
  • What is the procedure for partitioning an HUF?
    If the family decides to partition the HUF, it should be done legally and documented. Partition results in the division of assets and income among the members, and each member becomes a separate taxpayer.
  • Can an HUF receive gifts or assets from its members?
    Yes, an HUF can receive gifts or assets from its members. However, there are tax implications, and gifts above certain limits may be taxable in the hands of the recipient HUF.
  • What documents are required for filing income tax returns for an HUF?
    You will need documents like the HUF's PAN card, bank statements, details of income earned, and expenses incurred by the HUF. Additionally, maintain records of any gifts received by the HUF, as these may be taxable.
  • Are there any recent changes in HUF taxation laws I should be aware of?
    Tax laws can change, so it's essential to stay updated with any recent amendments or notifications related to HUF taxation.
  • What is a HUF?
    HUF stands for Hindu Undivided Family, which is a legal entity recognized under Indian income tax law. It consists of a family of Hindu, Sikh, Jain, or Buddhist members who are living together and sharing a common income and property.
  • Should I seek professional assistance for HUF taxation?
    It's advisable to seek the assistance of a tax consultant or chartered accountant who specializes in HUF taxation to ensure compliance with tax laws and optimize tax planning.
  • How can I withdraw my PF balance after leaving my job?
    You can withdraw your PF balance by submitting a withdrawal application through the Employee Provident Fund Organization (EPFO) portal. You can also use the UAN (Universal Account Number) portal for online withdrawal.
  • Can I withdraw the entire PF amount before retirement?
    Yes, you can withdraw the entire PF balance if you are unemployed for two months or more. However, if you withdraw the full amount before retirement, it may be subject to taxation if the service period is less than five years.
  • Is there any tax on PF withdrawal?
    Generally, if you withdraw your PF balance before five years of continuous service, the withdrawn amount may be taxable. However, if you withdraw it after five years, it is usually tax-exempt.
  • Is there a specific period I need to wait before withdrawing my PF after leaving a job?
    No, you can withdraw your PF balance after leaving your job, whether you have worked for a few months or several years.
  • Can I partially withdraw my PF balance before retirement?
    Yes, you can partially withdraw your PF balance for specific purposes such as medical emergencies, home purchase, education, or marriage. These withdrawals are subject to certain conditions and limits.
  • What is the purpose of TDS?
    The primary purpose of TDS is to collect tax at the source and ensure that taxpayers pay their taxes in a timely manner. It helps in the steady collection of revenue for the government and reduces tax evasion.
  • What is the TDS threshold limit?
    The TDS threshold limit is the minimum amount at which TDS needs to be deducted. If the payment does not exceed this limit, TDS is not required. Threshold limits vary based on the nature of the payment.
  • What are the common types of payments on which TDS is deducted?
    TDS is deducted on various types of payments, including salaries, interest, rent, professional fees, commission, winnings from lottery or horse races, and more.
  • Who is responsible for deducting TDS?
    Typically, the person or entity making a payment (payer) is responsible for deducting TDS and remitting it to the government. The deducted amount is then credited to the account of the payee.
  • How is the rate of TDS determined?
    The rate of TDS is determined by the government and varies depending on the type of payment, the nature of income, and the income level of the recipient. The rates are specified in the Income Tax Act and are subject to change through amendments.
  • What is TDS?
    TDS stands for Tax Deducted at Source. It is a mechanism through which the government collects taxes at the time of income generation rather than at the end of the financial year.
  • Against which orders can appeals to CIT (A) be made?
    Appeal can be filed before CIT(A), when an assessee is adversely affected by Orders passed by various Income tax authorities. Section 246A of the Income Tax Act lists the appealable orders. Some of the orders against which appeal can be preferred are listed below: Intimation issued u/s 143(1) making adjustments to the returned income Scrutiny Assessment Order u/s 143(3) or an ex-parte assessment Order u/s 144, to object to income determined or loss assessed or tax determined or status under which assessed Re-assessment Order passed after reopening the assessment u/s 147/150 Search Assessment Order u/s 153A or 158BC Rectification Order u/s 154/155 Order u/s 163 treating the taxpayer as agent of a Non-Resident etc.
  • What is Form 35?
    If you are aggrieved by an order of an Assessing Officer (AO), you can file an appeal against the same before the Joint Commissioner (Appeals) or Commissioner of Income Tax (Appeals) by submitting duly filled Form 35 online on the e-Filing portal.
  • Appeal Filing Fee Amount
    Assessed total income – Rs.1 lakh or less -Rs 250.00 Filing Fee Assessed total income – more than Rs.1 lakh but not more than 2 lakhs – Rs 500.00 Filing Fee Appeals involving total assessed income- More than Rs.2 lakhs – Rs 1000.00 Filing Fee Appeals involving any other matter – Rs 250.00 Filing Fee
  • What is the time period within which Appeal can be filed before CIT(A)?
    The assessee has to file Appeal within 30 days from the date of service of order or demand as the case may be.
  • What is the fee payable at the time of filing an Appeal with CIT(A)?
    Fees to be paid before filing an Appeal to the CIT (A) depends upon total income determined by the Assessing Officer. Fees as under is to be paid and proof of payment of fee is to be attached with Form.
  • Can an Appeal be filed after 30 days?
    Income Tax Law has provided a period of 30 days for filing Appeal before CIT (A). However, in exceptional cases where assessee has reasonable cause, due to which he is not able to file Appeal within prescribed time, then CIT (A) has power to condone the delay.
  • Who can use Form 35?
    Any assessee/ deductor who wants to prefer an appeal against the Order of an AO can use Form 35.
  • Is there a fee for filing Form35?
    Every appeal is accompanied by payment of an appeal fee which is required to be paid before filing of Form 35. The quantum of appeal fees is dependent on the total income as computed or assessed by the AO.
  • Who can use Form 36?
    Form 36 is a crucial document in the context of income tax appeals in India. It is used by taxpayers who wish to file an appeal against an order or decision made by the income tax authorities. Any taxpayer who is aggrieved by an order passed by the Income Tax Department can file an appeal with the ITAT. This includes individuals, companies, firms, and other entities.
  • What is ITAT?
    The Commissioner of Income-Tax (Appeals) is the first appellate authority and the Income Tax Appellate Tribunal (ITAT) is the second appellate authority. Appeal to the ITAT can be filed by any of the aggrieved party either by the taxpayer or by the Assessing Officer. The ITAT is constituted by the Central Government and functions under the Ministry of Law. ITAT consists of two classes of members – Judicial and Accountant. In this part you can gain knowledge about various provisions relating to appeals to the ITAT.
  • Disposal of appeal
    ITAT shall dispose off the appeal within a period of four years from the end of the financial year in which appeal is filed The member of bench of the ITAT hears the appeal. After hearing the appeal the ITAT will pronounce its order and will communicate the order to the taxpayer as well as the Assessing Officer. The ITAT may, at any time within 6 months from the end of the month in which the order was passed, rectify any mistake apparent from record, amend any order passed by it if the mistake is brought to its notice by the taxpayer or Assessing Officer. Appeals involving any other matter – Rs 250.00 Filing Fee
  • What Documents to be submitted?
    Form No. 36 – in triplicate. Order appealed against – 2 copies (including one certified copy) Order of Assessing Officer – 2 copies Grounds of appeal before first appellate authority – 2 copies Statement of facts filed before first appellate authority – 2 copies In case of appeal against penalty order – 2 copies of rele­vant assessment order In case of appeal against order under section 143(3), read with section 144A – 2 copies of the directions of the Joint Commissioner under section 144A. In case of appeal against order u/s 143, read with section 147-2 copies of original assessment order, if any. Triplicate copy of challan for payment of fee.
  • Can an ITAT Appeal be filed after 60 days?
    Appeal to ITAT is to be filed within a period of 60 days from the date on which order sought to be appealed against is communicated to the taxpayer or to the Principal Commissioner of Income - Tax or Commissioner of Income - Tax (as the case may be). The ITAT may admit an appeal even after the period of 60 days if it is satisfied that there was sufficient cause for not presenting the appeal within the prescribed time. (Condonation of Delay)
  • Is there a fee for filing Form 36?
    In case of appeals to ITAT on or after 1-10-1998 (irrespective of the date of initiation of assessment proceedings), the following fees is payable : Assessed income is up to Rs. 1,00,000 or less – Rs. 500 Assessed income is more than Rs. 1,00,000 but not more than Rs.2,00,000 – Rs.1,500 Assessed income is more than Rs. 2,00,000 – 1% of assessed income subject to a maximum of Rs. 10,000 Where subject-matter of appeal relates to any other matter – Rs. 500 Where application is for stay of demand – Rs. 500 Where application is under section 254(2) – Rs. 50
  • Against which orders can appeals to ITAT be made?
    When a taxpayer is unhappy with a decision made by the Commissioner of Income Tax, they can appeal to the Income Tax Appellate Tribunal (ITAT) for the following types of orders: Decisions made by the Commissioner of Income Tax (Appeals) u/s 250/271/ 271A/272A. Orders for correcting mistakes under Section 154. Decisions about the registration of charitable or religious institution under Section 12AA. Decisions made by the Commissioner to revise assessments under Section 263. Decisions by the Assessing Officer regarding Block Assessment for certain past years. Exclusion from the tonnage tax scheme by the Assessing Officer. Orders by the Commissioner under Section 154. Penalty orders by the Chief Commissioner under Section 272A. Orders by the Assessing Officer under Section 143(3)/147, following Dispute Resolution Panel directions. First appeals against decisions made by the CIT under Section 263 and orders from the Assessing Officer based on directions from the Dispute Resolution Panel under Section 144C. The ITAT also handles various requests like recalls, corrections, and stay petitions related to its orders.
  • Who can file appeal?
    Both the Tax Department and the assessee can file appeals. If the Tax Department files an appeal, the taxpayer has 30 days from the receipt of the notice to file a “cross objection.” When assessee filing an appeal with the Appellate Tribunal, he have 60 days from the date the order you’re appealing against was issued.
  • Procedure of Filing ITAT Appeal
    Indeed, ITAT appeals can be filed using both offline and online methods. However, it’s important to note that in most cases, physical documents need to be submitted by visiting the ITAT branch or office. For the detailed procedure of filing an appeal online, you can refer to the following link: https://itat.gov.in/files/uploads/new/E-Filing-SOP-2021-06-24.pdf This document provides step-by-step instructions on how to file your appeal electronically, making the process more convenient and efficient.
  • How do I pay my tax on demand?
    Paying online is an easy way to clear your tax on demand. You can do it by accessing the e-filing website of the IT department and logging into your account. Check the amount of outstanding tax demand and pay directly under the "Response to Outstanding Tab" on the web portal.
  • What is the communication of the proposed adjustment u/s 143(1)(a)?
    It refers to any information by the IT department regarding adjustment against refund claimed in your income tax return, such as incorrect claim, arithmetical error, or disallowance of loss claimed. Such adjustment could relate to the outstanding demands of previous assessment years.
  • Does a salaried person get an income tax notice?
    Salaried professionals can also get an income tax notice. Most notices come up when there is a mismatch with 26AS/AIS/TIS or any omission of income.
  • How can you rectify the discrepancy in u/s 143(1)?
    If any demand raised in the discrepancy in notice u/s 143(1) is correct, you should pay it. Conversely, you should file rectification u/s 154 (1) or a revised return if a mistake is apparent from the record. For a revision, click ‘e-file’ and choose ‘file income tax return’. For rectification, click ‘services’ and select the ‘rectification’ option from the menu.
  • How do you correct outstanding tax demand?
    Once again, you can do it by logging in to the official efiling website, going to the pending actions section, and selecting Response to Outstanding Tax Demand.
  • What happens if you don't respond to the tax notice?
    Not responding to the income tax notice may have different consequences according to the type of notice. Such consequences include penalties of up to INR 10,000 and imprisonment for up to one year.
  • What to do if I get a tax notice?
    Although an income tax notification can be stressful, you should stay calm and understand why it has been sent. If you have received it for missing out on information, you need to provide the details. Conversely, you will have to rectify errors if they are the reason for getting a notice. You must respond to the notice within the stipulated time to avoid possible penalties.
  • What happens if I don't respond to the notice within 30 days?
    Failing to respond to the notice within 30 days can get you in trouble. The IT department will adjust the outstanding demand without giving you an opportunity to respond.
  • How do I check my tax notice?
    An IT notice is delivered to the taxpayer’s registered email. It can also be checked through the income tax notification portal. However, the portal offers information only on some of the notices. For others, you have to visit the IT department. Remember to check the authenticity of the notices by using a quick link for “Authenticate notice/order issued by ITD” on the Income Tax website. At this point, it is also crucial to know your DIN to facilitate communication with the IT department.
  • How do I get my CPC income tax return?
    You get an ITRV (acknowledgment) on your registered mail ID soon after filing the ITR. You can also download it from your account on the official website.
  • How do you reply to notice?
    Replying to an income tax notice is easy as you can do it online by visiting the official website of the income tax department. Log in, navigate to the compliance section, and respond to the notice.
  • How long after filing tax returns can you expect an assessment notice?
    You can get a scrutiny assessment notice u/s 143(2) only up to six months from the end of the financial year.
  • What is an intimation letter from income tax?
    An intimation order/notice is issued by the income tax department under section 143(1) after the successful processing of your return. It includes the details of the information submitted at the time of tax filing and a corresponding column of the details available with the tax department. This intimation is sent within a year from the end of the financial year.
  • What does the code EXC 001 mean?
    EXC -001 means transactions beyond the permission of the IT Act. It is for monthly cash transactions higher than INR 10 lakh.
  • Do I get notices for current account transactions?
    Yes, you may get ITR notices for current account transactions. For example, any current bank account transaction exceeding Rs 50 lakhs in a financial year has to be disclosed. If you fail to do it, you may get notice for it.
  • Can a director file LUT (Letter of Undertaking) in GST?
    Directors and firms can efficiently file Letter of Undertaking (LUT) with TaxBuddy, simplifying the process for GST compliance.
  • Can a partnership firm file GST REG-16?
    Yes, partnership firms can easily file GST REG-16 with TaxBuddy's guidance, ensuring accurate and timely compliance with GST regulations.
  • Can a transporter file a nil GST return?
    Yes, a transporter can file a nil GST return with TaxBuddy, simplifying the process for compliance and record-keeping.
  • Are law firms exempted from filing GST?
    Law firms are not exempt from GST filing. TaxBuddy ensures law firms meet GST obligations and maintains compliance with tax authorities.
  • Can a refund application be filed after the cancellation of GST registration?
    Even after the cancellation of GST, TaxBuddy can help you with filing refund applications, ensuring that you maintain good standing with tax authorities.
  • Can a service provider file quarterly return in GST?
    Absolutely, service providers can file quarterly returns, and TaxBuddy offers convenient services tailored to this requirement, ensuring seamless GST compliance.
  • Can an authorized representative file GST returns?
    TaxBuddy provides a streamlined process for authorized representatives to file GST returns, simplifying compliance and record-keeping, ensuring an efficient filing process
  • What deductions are available for self-occupied properties?
    Deductions like the standard deduction (30% of annual value) and interest on a housing loan may be available for self-occupied properties.
  • How is vacant property taxed?
    Even if the property is vacant, it is taxable based on its potential rental income, which is calculated as if it were let out.
  • What are the deductions for house property income?
    The standard deduction is 30% of the annual value of the property, and it accounts for expenses like repairs and maintenance. Interest on a housing loan can be claimed as a deduction, subject to certain conditions.
  • What is the tax treatment for income from house property when there are multiple co-owners involved, and how are deductions distributed in such cases?
    When there are multiple co-owners of a property, the income and deductions are typically calculated based on their respective ownership shares. Each co-owner can report their share of the rental income and claim deductions proportionate to their ownership percentage. The share of income and deductions should be divided in accordance with the ownership agreement or deed. This approach ensures that each co-owners tax liability is determined based on their ownership interest in the property.
  • Can I claim a deduction for the principal repayment of a housing loan?
    No, the principal repayment of a housing loan is not deductible under the income from the house property. Section 80EEA offers extra tax advantages to homebuyers with house properties valued up to Rs 45 lakhs. This benefit applies to the interest paid on home loans, up to INR 1.5 lakhs, and is in addition to the deductions available under Section 24.
  • Is rental income from a commercial property taxed differently?
    The principles are similar, but the tax treatment may vary based on the specific circumstances.
  • Is rent from a family member taxable under this head?
    Rental income from a family member is taxable under the head House Property, but the actual rent received should be considered.
  • Who is liable to pay tax on income from house property?
    The owner of the house property is liable to pay tax on the rental income earned from it.
  • What does "Income under the head House Property" mean?
    Income under the head House Property refers to the rental income earned from a property owned by an individual or entity. It is one of the five heads of income in the Indian Income Tax Act.
  • What constitutes "House Property" for tax purposes?
    House property includes residential and commercial properties, as well as any land attached to the building.
  • What is the significance of "Deemed Let Out Property" in the context of income from house property, and how is it calculated?
    Deemed Let Out Property refers to a property owned by an individual that is not actually rented out but is treated as if it were rented for taxation purposes. The calculation is based on the potential rental income the property could generate if it were let out. This potential rental income is determined by factors like the property's location, type, and market rates. Even if the property remains vacant or is used for personal purposes, it is still considered for taxation, and the owner is required to pay tax on this notional income.
  • Can a co-owner of a property also claim deductions for the same property?
    Yes, if there are multiple co-owners, they can claim deductions proportionate to their ownership share.
  • Is there a deduction for municipal taxes paid on the property?
    Yes, the municipal taxes paid on the property can be claimed as a deduction by the person who has made the payment (Tennant or owners, as the case may)
  • What if I have more than one house property?
    Each house property is treated separately for tax purposes. You can calculate income and deductions for each property individually.
  • Is self-occupied property taxable under this head?
    Self-occupied properties are also considered under this head, but they may be eligible for deductions.
  • Are there any deductions available for expenses related to the maintenance and upkeep of a house property?
    Yes, there are deductions available for expenses related to the maintenance and upkeep of a house property. The most common deduction is the standard deduction, which allows for 30% of the annual value to be claimed as a deduction to account for expenses like repairs, maintenance, and other general costs. Additionally, interest on a housing loan can also be claimed as a deduction, provided the loan is used for the acquisition or construction of the property.
  • How is the "Annual Value" of a property calculated?
    Annual Value is determined based on factors like the property's location, type, and standard rent in the area. In some cases, the actual rent received may be considered.
  • Who needs tax planning?
    Tax planning benefits everyone, from salaried professionals to business owners and large corporations. Anyone who wants to reduce their tax liability and save money can invest in it.
  • What are some common mistakes people make when trying to save on taxes?
    Several common mistakes can hinder effective tax planning: Relying Solely on Tax-saving Mutual Funds: While these are popular, limiting oneself to these funds may not optimize tax savings. Diversifying across different tax-saving instruments is advisable. Procrastinating Investments: Delaying tax-saving investments until the last quarter can lead to hasty decisions. It's better to plan investments strategically throughout the year. Lack of Diversification: Placing all tax-saving funds into a single asset class is risky. Diversification helps manage risks and potentially enhances returns.
  • How can you save tax in India?
    Fortunately, there are several ways to save tax in India. You can claim tax deductions, invest in tax-saving instruments, and get legitimate credits. A tax planner can help you use these methods to get the lowest tax bills.
  • I know nothing about taxes; how can I start tax planning?
    The best way to do it is by working with a seasoned tax planner who understands your financial situation and offers personalised advice.
  • Apart from 80C, what other ways can I save on taxes?
    Beyond Section 80C, there are several avenues for tax savings. You can consider: Claiming tax-deductible expenses such as insurance premiums, tuition fees for children, rent payments, home loan/stamp duty payments, interest on home loans, and medical expenses for dependent family members. Exploring investment options like the National Pension Scheme (NPS) to optimize your income structure and minimize taxable income. Diversifying your tax-saving investments across various asset classes and leveraging a mix of deductions and exemptions is key to comprehensive tax planning.
  • When is the apt time to start tax planning?
    Tax planning should start at the beginning of a financial year, as it enables individuals and businesses to settle their financial affairs and take advantage of the best tax-saving opportunities. However, you can still benefit from it at any time during the year.
  • Why should I bother with Tax Planning?
    Tax planning is crucial for optimizing your financial situation and reducing your tax burden. By strategically managing your finances, you can take advantage of various income tax rules and provisions to maximize your savings. Effective tax planning ensures that you make the most of available tax-saving options, leading to increased financial efficiency and long-term wealth accumulation.
  • Can I withdraw my PF amount online?
    Yes, PF withdrawal can be done online through the EPFO portal.
  • How long does it take for PF withdrawal online?
    The processing time for online PF withdrawal varies, but it is generally quicker compared to traditional methods.
  • What are the rules governing PF withdrawal?
    PF withdrawal rules are determined by the EPFO. These rules specify eligibility criteria, documentation requirements, and conditions under which members can withdraw their Provident Fund.
  • What is the PF withdrawal process?
    To withdraw PF, you need to fill out Form 19 (for EPF withdrawal) or Form 10C (for EPS withdrawal) and submit it along with supporting documents to the EPFO office. Alternatively, you can initiate the process online through the EPFO portal.
  • What documents are required for PF withdrawal?
    The documentation required for PF withdrawal includes a filled withdrawal form, KYC documents, and other specified proofs.
  • How many days does PF withdrawal take online?
    The online PF withdrawal process typically takes around 10 to 15 days, but the exact duration may vary based on the completeness of documentation and verification processes.
  • Can TaxBuddy assist in expediting the PF withdrawal procedure?
    TaxBuddy ensures a streamlined PF withdrawal assistance, guiding you through the necessary steps efficiently and expeditiously.
  • How can I withdraw my PF amount?
    You can withdraw your PF amount by submitting a duly filled withdrawal form either through your employer or directly on the EPFO portal.
  • What is the PF withdrawal limit?
    There is no specific limit for PF withdrawal. However, the amount you can withdraw depends on factors such as the purpose of withdrawal, length of service, and other criteria defined by the EPFO.
  • Are there any advantages to withdrawing PF online?
    Online PF withdrawal offers convenience and speed. TaxBuddy ensures you navigate the online process seamlessly, leveraging the benefits of digital withdrawal.
  • How can I withdraw the full PF amount?
    To withdraw the full PF amount, you need to submit Form 19 for EPF withdrawal and Form 10C for EPS withdrawal, either online or offline, based on your preference. Make sure to complete all required documentation accurately.
  • Are there any tax implications associated with PF withdrawal?
    Yes, tax implications may apply depending on factors such as the reason for withdrawal and the duration of PF contribution.
  • What is the PF withdrawal form number?
    The main form for PF withdrawal is Form 19, and for EPS (Employee Pension Scheme) withdrawal, it is Form 10C. Form 15G is submitted to declare that TDS should not be deducted.
  • How can I withdraw PF amount?
    PF withdrawal can be initiated through the online portal of the Employees' Provident Fund Organisation (EPFO) or by submitting a physical application to the respective regional PF office.
  • What is Form 15G for PF withdrawal?
    Form 15G is a self-declaration form that can be submitted to the EPFO to declare that your total income is below the taxable limit. This form helps you avoid TDS (Tax Deducted at Source) on your PF withdrawal.
  • What are the rules for PF withdrawal?
    Employees can withdraw their Provident Fund (PF) under certain conditions, such as retirement, unemployment for a continuous period of two months, or migration abroad.
  • How can I download Form 15G for PF withdrawal?
    Form 15G for PF withdrawal can be downloaded from the official EPFO website or obtained from the nearest EPFO office.
  • How can I withdraw PF amount online?
    PF withdrawal online can be initiated through the EPFO portal by logging in with your UAN (Universal Account Number) and completing the online withdrawal claim form.
  • How can I check my PF withdrawal status?
    You can check the status of your PF withdrawal online by logging into the EPFO portal and navigating to the 'Track Claim Status' section.
  • How can TaxBuddy assist in the PF withdrawal process?
    TaxBuddy provides comprehensive guidance and support throughout the PF withdrawal process, ensuring a smooth and hassle-free experience.
  • How can I create DSC on my own for GST e-filing?
    You can create DSC on your own for GST e-filing with the following steps: Access the GST portal with your member login Select your profile Register/update DSC using your DSC USB Token Select authorized signatory to register Select the certificate and sign Confirm DSC registration.
  • Where can the digital signature certificate be used?
    A digital signature certificate works as a valid legal instrument for digitally signing various documents. These include filing income tax returns, e-tenders, and regulatory company filings.
  • What is the validity of the Digital Signature Certificate?
    The validity of the DSC is 1 or 2 years depending upon the class of DSC. As a holder, you need to be aware of the validity period to avoid business loss.
  • What is the difference between a digital signature and a digital certificate?
    A digital signature verifies that a digital document, message, or transaction is authentic. Conversely, a digital certificate contains personal information to identify and trace the holder.
  • Can I renew the certificate?
    Yes, you can renew the DCS within 7 days before the expiry of the existing one. However, the renewal has to be in the existing name. A holder applying with a different name means it will be considered a new application. The only changes allowed are for the postal address and contact details.
  • How long does it take to receive the DSC in India?
    Most CAs issue a digital certificate between three to seven days.
  • How many DSCs can a person hold?
    One person can hold two DSCs for a single email ID. You can utilize one for personal use and the second for professional use. If you need a third one, you can get it from a different email ID.
  • What are the classes for the Digital Signature Certificate?
    An individual or company must purposely select the DSC class while applying for it. These are: Class 1: It verifies the name and email address of individuals. Class 2: It is required by companies and other entities and can be used for filing tax returns. However, the Controller of Certifying Authorities discontinued Class 2 Certificates from 01.01.2021 and instructed the issuance of Class 3 Certificates in their place. Class 3: It is used by individuals or entities who need to sign online forms on government portals like company registration forms, EPF registration forms, and online auctions or tenders. It is the most secure form of a digital signature certificate.
  • Who should apply for a Digital Signature Certificate?
    Government agencies have adopted DSC after the popularity of e-commerce. It is a statutory requirement for several e-forms that need to be digitally signed by the authorised signatory. Therefore, individuals and entities must obtain a digital signature. Consider it like a passport and PAN card that enables you to prove your identity.
  • What Benefit user will get?
  • How to Calculate?
    Please click on the provided link which contains the calculator for calculation of leave salary tax benefit, which is been prepared to provide the user with the tax benefit amount
  • Let's understand the calculation with the help of an example.
    A) Exemption limit of Rs. 3 lakh as provided under the ITA is the maximum that a taxpayer can claim in a lifetime. e.g: Where an employee has claimed a tax exemption of Rs. 75,000 during a F/Y on receipt of Leave Encashment from his Employer, a maximum exemption of Rs. 2,25,000 can only be claimed in the future years.
  • What is leave encashment?
    It means encashment of un-utilised leave It is taxable if received while in service. Leave encashment received at the time of retirement is exempt in the hands of the Government employee. In the hands of non-Government employee leave encashment will be exempt subject to the limit prescribed in this behalf under the Income-tax Law.
  • What Benefit user will get?
    If you have received any portion of your salary in arrears or in advance, or your have received family pension in arrears, you are allowed some tax relief under section 89(1) read along with Rule 21A.
  • Know more about section 89 with the help of an example.
    A) Can my employer consider relief u/s 89 for the purpose of calculating the TDS from salary? Yes, if you are a Government employee or an employee of a PSU or company or co-operative society or local authority or university or institution or association or body. In such a case you need to furnish Form No. 10E to your employer.​​
  • How to Calculate?
    Please click on the provided link which contains the calculator for calculation of leave salary tax benefit, which is been prepared to provide the user with the tax benefit amount.
  • What is relief u/s 89 ?
    Tax is calculated on your total income earned or received during the year. If your total income includes any past dues paid in the current year, you may be worried about paying a higher tax on such arrears (usually tax rates have gone up over the years). To save you from any additional burden of tax due to delay in receiving income, the tax laws allow a relief under section 89(1). If you have received any portion of your salary in arrears or in advance, or your have received family pension in arrears, you are allowed some tax relief under section 89(1) read alongwith Rule 21A. In simple words you are saved from paying more tax because of delay in payment to you.
  • Is a separate TAN required for TDS and TCS?
    TAN allotted for TDS also works for TCS. In fact, it is illegal to possess more than one TAN.
  • How long does it take for TAN acknowledgment and DD/challan to reach the NSDL office in case of online payment?
    TAN acknowledgment and DD/challan take around 15 days for the online application to reach the NSDL office.
  • Is it possible to make changes or corrections in TAN data?
    Yes, you can make changes/corrections to your TAN data. To make such changes, you need to fill out the “Form for Change or Correction in TAN data for TAN Allotted”, which is available on the NSDL (Protean) website.
  • How is an applicant intimated about the new TAN?
    Protean e-Gov dispatches an allotment letter at the address provided in Form 49B.
  • What is the validity of TAN?
    TAN is a unique number valid for a lifetime.
  • What are the TAN registration documents?
    You need a legal ID, passport-size photograph, company's PAN card, proof of address for the registered office, and a TAN application form for the TAN registration process.
  • Are government deductors required to obtain TAN?
    Yes, TAN is required by both non-government and government deductors.
  • Do salaried individuals and HUFs need to get TAN?
    TAN is not required by salaried individuals and Hindu Undivided Families (HUFs).
  • How can I get a TAN user ID and password?
    Getting your TAN user ID and password is as simple as registering yourself as a tax deductor or collector on the TRACES (TDS Reconciliation Analysis and Correction Enabling Systems) website.
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