As soon as the Assessment year comes, the salaried class gets agitated about their tax returns. For you it is foremost to understand the tax slab and what is the meaning of each of your salary breakup component. By acknowledging this, you can figure out how to save tax. Let us understand about your salary components and how you can save tax on your salary income point by point.
Today in this blog, we will discuss the ISO certification and its benefits to your business. ISO standards improve your business or brand’s credibility and help organizations run tier business processes effectively. It is proof from a third party that your business concurrence with the standards of ISO management to keep their services & products of better quality is crucial for any business to sustain in the industry market.
Though this term has not been explained under GST, if we refer to accounting, reconciliation is the process of securing that two sets of records i.e. the balances of two accounts are in alignment. Reconciliation is used to ensure that the money deducting from an account matches the actual money spent which is done by making sure that the balances match at the end of a particular accounting period. Reconciliation holds importance under taxation because it can give rise to tax under paid or over paid or not paid.
Planning to start a business? There are many questions revolving inside your head. Some question that strikes everyone’s mind while starting a business. Whether to go for a private limited company or not? What are the pros and cons of a private limited company? Is it a good idea to go for a private limited company?
Deferred tax is the tax for those items which are accounted in Profit & Loss A/c but not accounted in taxable income which may be accounted in taxable income in future & vice versa. It shall either be paid or has already been settled due to momentary inconsistency between an organization’s income statement and tax statement. The word Deferred has been derived from the word “Deferments” which means setting out for something to happen at a future date.
This article covers the concept of conversion of private limited company into LLP. LLP is a body corporate and a legal entity being separate from its partners. It can continue its existence even after the retirement, insolvency or even death of one or more partners. LLP is an organization which acts as a hybrid between a company and a partnership firm. The concept of LLP was introduced in India by way of the Limited Liability Partnership Act, 2008. It is a form of a business that offers benefits of limited liability to partners. LLP is a legal body liable for full extent of its assets but the liability of partners is limited. It gives the freedom of a partnership firm as well as the limited liability feature of a company so that one partner is not liable for another partner’s misconduct or negligence.
An HUF is a family which consists of all male lineal descendants from a common ancestor, and also the spouses and unmarried daughters of the descendants. While the male members are called coparceners, the females are referred to as members.
The senior-most male member is called the karta, and a typical HUF consists of a karta, his sons, grandsons, and great-grandsons (all of whom are coparceners), and their wives and unmarried daughters (all of whom are members). Even Jain, Buddhist and Sikh families can have HUFs.
When there is a sale of long term capital asset, the gains are usually quite large and are taxed at 20 %. Therefore, the tax amount comes out to be a large amount liable to be paid as Long term Capital Gain tax.
However, Govt. has given the option of claiming exemption from long term capital gains tax if the taxpayer reinvests the amount in certain specified forms of investment and can thereby save tax as per following sections:
- Section 54
- Section 54 EC
- Section 54 F
W.e.f. 13th August 2020, the e-assessment scheme of 2019 is amended to be known as “Facelesss Assessment Scheme”.
In case of individuals, income tax is applicable on the slab system on total income. As the income increases, the applicable tax rate increases. Some taxpayers in higher income slab may tend to divert some portion of their income to minimize tax burden. Therefore to prevent such tax avoidance, clubbing of income provisions have been incorporated.
So, if you are planning to transfer assets or income to another person in order to avoid tax implications, then such transfers could also be taxable in your hands.
Even genuine gifts to friends and family can also attract clubbing provisions under Income Tax Act. So, it is important to have insight knowledge of clubbing provisions to avoid any tax implications or penalties.
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