Professional Updates

In terms of safeguarding the personal assets from financial losses occurred during course of business, LLP is the best option. The following post enumerates the concept in detail. Any business owner shall think of continuity of business irrespective of the members joining or leaving the entity. The status of the entity should remain same in case of death or insolvency or bankruptcy of any member so that the interest of other members are safeguarded. Hence, LLP can be treated as best option that any business owner can choose. WHAT IS A PARTNERSHIP FIRM? An association of two or more persons who have agreed to share the profits of a business which they run together. The liability of partners is unlimited with respect to capital. The losses can be recovered from the personal assets of partners. WHAT IS A LIMITED LIABILITY PARTNERSHIP? A business entity in which the partners liability is restricted to the capital contribution by them. Let us understand various concepts under Private limite...

Common FAQs about income tax return filing and processing .   1. How long does it take for the return to be processed? Ans: There is NO DUEDATE for the processing to be completed. 2. Do you have any update on processing? Ans: CA will not get update on the returns. You can check the status of the return in the website. 3. How does the department pick a file for processing? Ans: The file shall be picked by the system randomly and there is NO known logic regarding the same. 4. My friend/relative who has filed after me has received the refund but I did not. Why is that so? Ans: System picks the file randomly and it does not know that both of you are related. 5. What is the tentative time for refund credit after receiving Intimation mail u/s.143(1)? Ans: As per mail, the refund will be credited within 15 working days, provided the bank account is verified. 6. What is the tentative time for refund processing as per your experience over years? Ans: I have seen variou...

Let us understanding the tax-ability of proceeds received from withdrawal of Provident Fund. Condition 1: Withdrawal of PF after completion of 5 years of service. Proceeds received from withdrawal of PF from the fund accumulated over a period of more than 5 years is EXEMPT from tax. Period of employment with all the previous employers shall be included in calculating the 5 years period provided, the old PF account is merged with the new employer.  Condition 2: Withdrawal of PF before completion of 5 years of service. Proceeds received the withdrawal of PF before completion of 5 years of employment shall be TAXABLE. Let us understand the taxability of PF in details. PF withdrawn shall have 4 components namely, Employer's contribution, Employee's contribution, Interest on Employer's contribution, Interest on Employee's contribution. a) Employer's contribution Contribution made by employer in the accumulated balance shall be TAXED under the head INCOME FROM SALARY.  ...

 As the new financial year has commenced, all the employees who are liable for tax deduction shall submit the details of savings and eligible expenses. In this post, I would like to elaborate on such declarations to be made by the employees. Which type of tax regime should we choose? With the changes in laws, there are 2 types of tax regimes that an employee should opt out of them. The tax regimes are typically called OLD and NEW regimes. Both provide for different exemptions and tax rates. An individual shall select the Old OR New tax regime based on his individual inputs. I have prepared a comparative sheet for the same and it can be accessed at the following link. Employee once opted for a particular scheme with the employer shall not be able to change it till the end of the financial year. However, an assessee can opt to change a  particular tax regime at the time of filing the income tax return. https://drive.google.com/file/d/1oBF83gDzLJ_6Zn15czrFnWLcgwv4eqci/view?usp=sh...

  LINKING OF PAN AND AADHAR Every individual holding a valid PAN shall link PAN and AADHAR mandatory as per Income Tax Act,1961. Due date to link aadhar and pan with penalty is 30.06.2023. Where to link? https://www1.incometaxindiaefiling.gov.in/e-FilingGS/Services/LinkAadhaarHome.html?lang=eng Follow this link and fill in the necessary details. Do we need to login to income tax website for linking? No . We can link the Pan and Aaadhar without logging in. What are the details required? PAN number Aadhar number Name as per aadhar whether Aadhar has year of birth only Selecting I AGREE checkbox Captcha code Upon providing all the details, website shall publish result of linking on the screen. Effects of non-linking: A penalty of Rs.1000 shall be levied U/s. 234H for linking the PAN and aadhar  Such PAN will become in-operative and all the transactions involving PAN shall be hampered.

We can claim LTA without actual travel. Yes, you heard it right!! Many of us have not been on travel due to the pandemic. But we can still claim the LTA for the financial year 2020-21. Here is how..... Let us first understand the provisions under Section 10(5) of Income Tax Act,1961 relating to claiming Leave Travel allowance exemption by an employee. An employee is allowed tax exemption on the travel allowance received as part of salary.  Conditions: Travel should be domestic. Travel cost of self,spouse,2 dependent children, dependent parents,sisters and brothers will alone be allowed. Travel can be done through air,rail or road. Expenses relating to sightseeing, food, accommodation etc CANNOT be claimed. Travel expenses of any 2 journeys performed during the block of 4 calendar years can be claimed as deduction. Current block is 2018-2021. In case of underutilized LTA during a calendar year,  the unveiled LTA can be carried forward to next block and can be utilized in the fi...

This post brings out discussion on few of the points from the budget,2021 that might be a matter of interest to us. As a further measure which directly benefits Start-ups and  Innovators, I propose to incentivize the incorporation of One Person  Companies (OPCs) by allowing OPCs to grow without any restrictions on  paid up capital and turnover, allowing their conversion into any other type  of company at any time, reducing the residency limit for an Indian citizen to  set up an OPC from 182 days to 120 days and also allow Non Resident  Indians (NRIs) to incorporate OPCs in India. This amendment encourages the NRIs to incorporate One Person Company in India. Also the amendment relaxes the period of stay in India to 120 days to determine the residential status to be eligible for an NRI to incorporate OPC. I propose to consolidate the provisions of SEBI Act, 1992,  Depositories Act, 1996, Securities Contracts (Regulation) Act, 1956 and  Government ...