Tax Updates

According to this section an individual can claim deduction of expenditure incurred in respect of furnished or unfurnished accommodation occupied by such individual for the purpose of his/her own residence to the extent as allowed by income tax department subject to such prescribed conditions or limitations. Conditions: Such individual does not receive House Rent Allowance (HRA) at any time during the year for which such individual are claiming deduction u/s 80GG. Such residential accommodation is not owned by the assessee or by the spouse, or minor child, or where such assessee is a member of HUF then not owned by such HUF at the place where he ordinarily resides or performs office duties or causes his business or profession. If you own any residential property at any place, for which your income from house property is calculated under applicable sections as a self-occupied property, no deduction u/s 80GG is allowed. The assessee is requi...

Introduction In any tax system registration is the most fundamental requirement for identification of tax payers ensuring tax compliance in the economy. Registration of any business entity under the GST Law implies obtaining a unique number from the concerned tax authorities for the purpose of collecting tax on behalf of the government and to avail Input tax credit for the taxes on his inward supplies. Without registration, a person can neither collect tax from his customers nor claim any input tax credit of tax paid by him. Need & Advantages of registration There are following advantages: 1.       Legal Recognition 2.       Authorized to collect tax from customers 3.       Claim input tax credit 4.       Seamless flow of input tax credit. Type of taxable person 1.       Normal taxable person: Registration for all but not include all mention...

Notification No. 59/2020 – Central Tax  (Dated 13th July, 2020) The Central Board of Indirect Taxes and Customs (CBIC) on July 13, 2020, extends the due date of filing form GSTR-4 till August 31, 2020 by amending the Notification No. 29/2019-Central Tax dated April 23, 2019, which specifies the guidelines for registered persons paying taxes under Section 10 of Central Goods and services Tax Act, 2017, which is related to composition levy. For extension, CBIC amends the first proviso of the third paragraph of the Notification to extend the due of form GSTR-4 till "August 1, 2020" instead of   "July 15, 2020" . The taxpayers whose turnover is below Rs. 1.5 Crore can opt for composition levy and have to file form GSTR-4 on yearly basis.

Seventh Proviso to section 139(1) of the income tax act, 1961 Finance (No. 2) Act, 2019 has inserted a new seventh proviso to section 139(1) to provide for mandatory filing of return of income for undertaking certain high-value transactions even though the person is otherwise not required to file a return of income due to the fact that total income is below the basic exemption limit. The provision is called the seventh proviso because it is placed after the existing sixth proviso to section 139(1). Currently, a person other than a company or a firm is required to furnish the return of income only if his total income exceeds the maximum amount not chargeable to tax, subject to certain exceptions. Therefore, a person entering into certain high-value transactions is not necessarily required to furnish his return of income. In order to ensure that persons who enter into certain high-value transactions do furnish their return of income, section 139 of the Income Tax Act, 1961 is amend...

Applicable Act: Limited Liability Partnership Act, 2008   Meaning: Limited Liability Partnership (LLP) allows for a partnership structure where each partner’s liability is limited to the amount they put into the business. It therefore can exhibit elements of partnership & corporation. In LLP each partner is not responsible or liable for another partner’s misconduct or negligence.   Advantages: LLP is separate legal entity to the members; hence liability of members is limited to the extend their contribution. Flexibility because of written agreement. Identification as a legal person, it can buy, rent, lease, own property, employ staff etc. if necessary. Corporate ownership: LLP can appoint two companies as members of the LLP. In a company at least one director must be real person. An LLP should have designated and non-designated members but at least two designate members. Protecting the partnership name. in other words, ...

Meaning of One Person Company One-person company means as its name says that only one person in a company as a member. In other words, we can say one-person company can be incorporated by having an only one member. The Companies Act, 2013 completely revolutionized corporate laws in India by introducing several new concepts that did not exist previously. On such game-changer was the introduction of One Person Company concept. This led to the recognition of a completely new way of starting businesses that accorded flexibility which a company form of entity can offer, while also providing the protection of limited liability that sole proprietorship or partnerships lacked.   Advantage: Main advantage of the one-person company is limited liability of Member . There are less compliances than a private limited company other than one-person company. Perpetual Status. The member can be exit easily by transferring his/her share.   Limitation:...