To enhance transparency and accountability within the operations of the Income Tax (IT) department, Finance Minister Nirmala Sitharaman had implemented a new regulation mandating that all communications with taxpayers must include a computer-generated DIN. Later in this article, we delved deeper into these developments....
Understanding the Minimum Alternate Tax (MAT) is crucial in the context of Indian taxation. MAT is a pivotal provision in the realm of indirect taxation, obligating businesses to pay a minimum level of tax regardless of their exemptions. Instituted initially in response to a surge...
Dividends serve as a means for corporations to distribute a portion of their profits to shareholders. In the past, a dividend distribution tax (DDT) was imposed on corporations, regulating the payment of dividends to shareholders. However, the Finance Act of 2020 brought significant changes, abolishing...
Taxation serves as a crucial mechanism for governments to generate revenue, encompassing levies on wages, profits, goods, services, and transactions. The process of tax auditing, conducted by bodies like the Internal Revenue Service (IRS), scrutinizes individuals' or businesses' tax returns for compliance. This article delves...
When the Assessment Officer (AO) encountered undisclosed cash receipts or deposits in the taxpayer's bank account without satisfactory explanation, a common tactic was for the taxpayer to assert that these deposits originated from withdrawals noted in the same account or cash book. Section 68 of...
Tax Deducted at Source (TDS) is a crucial aspect of the Income Tax Act, 1961, mandating the deduction of income tax from certain payments at the time of disbursal. This article aims to elucidate the essentials of TDS as per the provisions of the Income...
Agriculture stands as the predominant occupation in India, often serving as the sole income source for a significant portion of the rural populace. Given the vital role agriculture plays in meeting the country's food needs, various governmental initiatives, including tax exemptions, aim to bolster this...
For individuals surpassing the basic exemption limit in a fiscal year, filing an Income Tax Return (ITR) becomes mandatory, detailing income, deductions, and relevant information. Once filed, the Income Tax Department processes these returns, occasionally subjecting them to assessment based on Central Board of Direct...
In today’s dynamic business landscape, enterprises often operate across diverse sectors, managing multiple undertakings simultaneously. This diversification may lead to scenarios where companies possess distinct assets and liabilities within each business segment. Consequently, companies may consider divesting either a portion or the entirety of a...
The Indian government had enacted Section 44AD of the Income Tax Act to alleviate the tax burden on small taxpayers through a presumptive taxation scheme. This scheme applied to taxpayers engaged in any business other than those specified in Section 44AE, such as hiring, rent,...
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