Tax Updates

Ques : What is Form 15G/H under Income Tax Act,1961 ? Ans : These are the Forms prescribed under Income Tax Act, where Payee being a person other than Company/Partnership Firm/LLP can furnish these forms to the payer of certain nature of incomes. These forms are the Kind of Declaration that tax on the total income will be nil.   Ques : What are the Prerequisites of Furnishing these Forms ? Ans : Following are the Prerequisites: ·         Form to be filled in Duplicate (2 Copies). ·         It should be Signed and Duly Verified. ·         Copy PAN of the Payee shall be attached with the Form. ·         It states that the Tax on the Total Income will be NIL.   Ques : Difference b/w Form 15G and 15H ? Ans : 1)     Form 15H is Furnished by the Senior Citizen ( means an Individual resident of India who ...

In view of the challenges faced by taxpayers in meeting the statutory and regulatory compliance requirements across sectors due to the outbreak of Novel Corona Virus (COVID-19), the Government brought the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 [the Ordinance] on 31st March, 2020 which, inter alia, extended various time limits. In order to provide further relief to the taxpayers for making various compliances, the Government has issued a Notification on 24th June, 2020, the salient features of which are as under: I.    The time for filing of original as well as revised income-tax returns for the FY 2018-19 (AY 2019-20) has been extended to 31st July, 2020. II.   Due date for income tax return for the FY 2019-20 (AY 2020-21) has been extended to 30th November, 2020. Hence, the returns of income which are required to be filed by 31st July, 2020 and 31st October, 2020 can be filed upto 30th November, 2020. Consequently, the date fo...

About the Section 194N This section is inserted in the Union Budget 2019 proposed on 5 th July, 2019. However, in this section certain amendment is incorporated by Union Budget 2020 proposed on 27 th March, 2020. Hence lets understand about this section including with amendment. According to this section, Every Person ( Payer ) being i.                     A banking Co. ii.                   Co-operative society (engaged in banking business) iii.                 A post office Who is responsible to paying cash, whether amount or aggregate of amounts, in exceeding rupees 1 Crore during the previous year to any person (i.e. recipient) from single account or multiple accounts?   Rate of Deduction of Tax Then the...

DEDUCTION U/S 80C In order to calculate total income of an Individual & HUF certain payments are very important to claim deduction u/s 80. Hence to know about which type of payment that are eligible to deduct from Gross Total Income so that assessee can pay least tax: Payment of Life Insurance Premium by an assessee for the life of self, spouse, dependent children and any member of HUF. Important thing is that if Policies Issued Amount Deductible On or before 31 st March, 2012 Max. 20% of Sum Assured After 31 st March, 2012 Max. 10% of Sum Assured     Contribution by an individual to Public Provident Fund , Recognized Provident Fund . Contribution by an employee to approved superannuation Fund . Subscription to notified securities or notified deposit scheme . Subscription to National savings certificate . (However, Interest earned on National saving cert...

In order to provide more funds at the disposal of the taxpayers for dealing with the economic situation arising out of COVID-19 pandemic, the rates of Tax Deduction at Source (TDS) for the following non-salaried specified payments made to residents has been reduced by 25% for the period from 14 th May, 2020 to 31 st March, 2021:-     S. No Section of the Income- tax Act Nature of Payment Existing Rate of TDS Reduced rate from 14/05/2020 to 31/03/2021 1 193 Interest on Securities 10% 7.5% 2 194 Dividend 10% 7.5%   3 194A Interest other than interest on securities 10% 7.5%     4 194C Payment of Contractors and sub-contractors 1% (individ- ual/HUF) 2% (others) 0.75% (indi- vidual/HUF) 1.5% (others) ...