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Income Tax on Housing Society Explained. Paying income tax is imperative and ensures the smooth running of the government machinery.
But, there is a misconception among people that housing societies are exempt from paying taxes. In reality, there are several ways in which housing societies earn their income and most of these are subject to direct taxation. Let us examine in detail the income tax levied on housing societies. Contribution from the members The society needs money to keep its operations running. Rent received from advertisement hoardings and mobile towers Any money that is collected as rent from advertisement hoardings and mobile towers is subject to tax under the head income from other sources and head income from House Property, respectively.
Ways in which GST has affected E-commerce. The Good and Services Tax (GST) is one of the crucial initiatives to liberate the Indian economy from complications.
It follows the ideology of introducing one single tax system to make the system more easily manageable. The need for sellers to register with multiple tax platforms and file multiple tax returns has also been eliminated after the launch of GST. Among the various sectors, the E-commerce sector witnessed tremendous changes. Mentioned below are a few points to discuss the impact of the GST Act on any online seller’s business: Reach. 6 Tax Saving Options Beyond Section 80C - CCHTaxOnline - Quora. When someone mentions tax savings or deductions under the Income Tax Act, the first thing that pops in our head is Sec 80C and its limit which does not exceed INR 1,50,000.
However, CCHTAXonline which serves as an online ready reckoner for clarifications on both direct & indirect tax law lists down some other options under direct taxation to help you plan or manage your taxes better. Let’s explore - 1. Donations & deductions - Any contributions made to certain relief funds, charitable institutions, NGOs or temples provide tax benefits on the amount donated u/s 80G. Only donations made to prescribed funds via cash, cheque or draft qualify for 100% or 50 % deductions. 2.
How to Prepare for Financial Statements and Tax Returns. Every business whether big or small, manufacturing or trading, retail or wholesale is required to prepare its annual financial statements, and file tax returns.
These financial records are an expression of all the activities undertaken by an entity during a financial year; income and expenses pertaining to it and the current state of the business. Financial statements include profit & loss statement, income statements, balance sheet, notes and schedules and cash flow statements. Usually prepared by an accountant regulated by corporate and allied law, financial statements can easily be prepared using various software and spreadsheets after all the adjusting entries and basic accounting is done.
Preparing a Balance Sheet Also called as a statement of financial position, a balance sheet is a snapshot of the business at a given date in time listing your assets, your liabilities and the difference between the two i.e. owner's net worth. Latest GST Related Questions Answered. All You Need To Know About Blocked Credit Under... - CCHTaxOnline - Quora. A registered person is entitled to take credit of tax charged on any input supply of goods or services or both which are used or intended to be used in the course of furtherance of his business.
Input tax credit is one of the most important cogwheels in the GST legislation in India. However, there are certain supplies for which Input tax credit cannot be granted. Cchtaxonline.kinja. Thom Browne said, ‘When people have too many options they make bad decisions.’
March is ending which means the financial year 2018-19 is also coming to an end and time to save taxes is running out. With a plethora of options available, tax saving could turn into a tedious task, but we are here to help you make some wise decisions but within time. Sec 80C of the Income Tax Act allows deduction of up to INR 1.5 lacs per annum on eligible investments and specified investments, some of which have been discussed below – Home Loan Principal Repayments: Home loan principal amount payments are an eligible deduction under Section 80C, however, principal repayment for under construction property is still out of ambit. Stamp Duty & Registration Charges: Some major expenses such as stamp duty and registration charges are incurred while purchasing a house property. Senior Citizens Saving Scheme: What the GST Rate cut means – Real Estate. What to do if GST is paid under the wrong head? by CCH Tax Online. Cchtaxonline.kinja. Who can opt for Composition Scheme?
A taxpayer whose turnover is less than Rs 1.0 crore can opt for Composition Scheme. For North-Eastern states and Himachal Pradesh, the limit is Rs 75 lakh. (CBIC has notified the increased threshold limit from Rs 1 Crore to 1.5 Crores) As per the CGST (Amendment) Act, 2018, a composition dealer can also supply services to an extent of ten per cent of the turnover, or Rs.5 lakhs, whichever is higher.
All about Cash Transactions Exceeding ₹2 lacs - CCHTaxOnline - Quora. To curb black money circulation in the economy and boost digitization, Section 269ST was introduced by Finance Act 2017.
It provided restrictions on cash receipt of Rs. 2 lacs or more. As per the provisions of Section 269ST of the Income Tax Act, 1961no person shall receive an amount of two lakh rupees or more: a) in aggregate from a person in a day; or. All You Need to Know about Taxation on Alimony. With divorce comes hand in hand another concern known as Alimony and its taxability.
While divorce is the legal method of putting a relationship to an end, usually monetary compensation is provided to the financially weak party by the financially stronger one for them to maintain the same standard of living after separation. The term used for such compensation is “Alimony” which is a legal obligation in most countries. In our country alimony is governed according to the personal laws and the provision of the Special Marriage Act. Another law regarding alimony is laid down in section 125 CrPc. What to Expect from Budget 2019? - CCHTaxOnline - Quora. In terms of our nation, a new theory gets evolved every second day, be it about the Lok Sabha elections or the most awaited series finale season.
However, the latest buzz is about the Interim budget for FY 2019-2020 as it would have a direct impact on the upcoming elections. An interim budget is presented by the ruling government prior to the end of their term, just before the elections, ensuring that the changes proposed match the expectations of the voters while at the same time are not radical enough to be inviting criticism from the opponents. So, here’s a look at the key expectations from the upcoming budget. · It’s no secret that this government has a keen interest in making India digital, thus it won’t be surprising if incentives for digital payments are unveiled this February, which would encourage electronic payment as well as reduce the cash market. · Startup India campaign in 2016 gave the founders and entrepreneurs a new hope and much needed support.
A Brief – Cost Inflation Index and Taxation. Inflation can change the political scenario of a country. But what exactly is inflation in simple terms? Let’s take an example to understand inflation better – Often, the price of a commodity increases over time which leads to fall in purchasing power of money i.e. if 7 items can be bought for INR 700 today, tomorrow you may be able to buy only 5 items at the same price on account of inflation.
This brings us to the tax jargon i.e. Cost Inflation Index (‘CII’), which calculates the estimated rise in the cost of goods and assets year-by-year as a result of inflation. Guide to GST on Settlement of Funds. Every transaction of the taxpayer with the tax administration should be transparent, responsive and simple. To handle the receipt and payment process under GST, the settlement system is majorly based on Information Technology. Payment of Taxes, Interest, Late fee, Penalty or any other Amount. All about Export Refunds under GST. Refund refers to any amount that is due to the taxpayer from the administration owing to excess payment of taxes or any other reason.
In the current GST regime, the entire refund process has been clearly defined in law. It aims at keeping the issues due to which refund arises at a minimum level with the help of higher compliances and self-regulating mechanism. Scope of Refund i. Sale of Second Hand Vehicles & Impact of GST - CCHTaxOnline - Quora. When GST was introduced in 2017, same tax rates were applicable on sale of a vehicle, whether old and used (i.e. second-hand vehicles) or a brand new, which was 28% + cess (as applicable) that went up to 15%. This led to an increase in the effective tax rate on the sale of old vehicles to be as high as 43% which caused a slowdown in the business of used vehicles market.
A lot of GST Notifications and clarifications were issued later to provide relief to the traders of used vehicles. What you need to know about Mixed AND Composite Supply by CCH Tax Online. Diverse from bundled services yet on parallel lines, a new concept related to supply was introduced under GST which covers ‘supplies made together’, whether related or not. Supplies of two or more goods or services together can be termed as ‘composite supply’ or ‘mixed supply’. Here’s a quick GST guide on mixed and composite supply: This is how GST and Direct Tax are connected by CCH Online.
Your Guide to Section 194I of the Income Tax Act. Introduced by the Finance Act, 1994, the Section 194-I emphasizes that an entity, whether an individual or H.U.F. who receives rental income is liable for a tax deduction at source (‘TDS’) when the income credited is more than Rs.1,80,000 during a financial year. Inspection, Search & Seizure under GST - CCHTaxOnline - Quora. In any tax administration the provisions for Inspection, Search, Seizure and Arrest, are provided to protect the interest of genuine taxpayers and as a deterrent for tax evasion.
These provisions are also required to safeguard the government’s legitimate dues. All you need to know about GST Quarterly Returns. An Overview on Form GSTR 3B. Things you didn’t know about the new ITR Forms. Filing Income tax returns is a tedious task and to top that CBDT had released new income tax forms. If anything, the government is focusing a lot more on transparency and so are the latest forms. Changes are being introduced every year to capture as much information possible about the taxpayers, be it individuals, companies or other assesses. Supply and Applicability of Taxes under GST. Over 18 months have passed since GST came into existence, but the confusion concerning the basic terms such as CGST, SGST & IGST still continues. Let’s try and simplify it. Commodities under the GST Radar – Natural Gas and AFT. All you need to know about Stock Appreciation Rights (SAR) Taxation. Across the world many corporations, particularly multinational organizations, now favour ESOP (employee stock ownership plan) as a preferred mode of employee compensation.
Family Business – How to Save Income Tax. India is a land of complex tax systems and smart people. A taxpayer finds it easy to use the tax planning techniques and finds ways around the taxation rules at various levels. All you need to know about issuing a Credit Note under GST. Chapter VI deductions that ease your burden. An Evaluation — Government Reforms & their Impact on Direct Taxes. Coal Industry shines bright under GST regime. ExpertSpeak. Understanding the role of the AAR through recent GST rulings. BREAKING DOWN DIRECT AND INDIRECT TAXES. GST – a bane or boon for E-commerce. The Effects of GST on Hospitality & Travel. A brief on Tax Exemption for Child Education. Income Tax Guide – Indian Bloggers & Freelancers. How Will GST Change the Logistics Industry? All You Need to Know – Exempted Items In Transport & Logistics Under GST.
Your Guide to Handling GST Notices. Cloud Computing Services and Taxing. Salaried Employees – Tips to save Income Tax. Form 26AS — Why you need to verify before filing ITR? No Disallowance of Cash Payment Under Section 40A(3) of the Act if Transaction is Genuine and Meets Business Expediency Test. Supreme Court’s Decision to Augment Stressed Assets Revival. Taxability of Income During the Construction Gestation Period. Payment for Purchase Of Advertisement Space By Google India. GST Anti-Profiteering-Litigation Strategy. GST Turns One.