Introduction When an Indian customer makes payment to a Non-resident, say a company from USA, they are under an obligation to deduct appropriate tax from such payments. In order to assess the tax rate, that can vary from 0 – 35%, they are required to assess if the recipient is eligible for Tax Treaty benefit. … Read more
Introduction The Indian government has recently amended the rules under the Foreign Exchange Management Act (FEMA) for international credit card spending outside India under the Liberalised Remittance Scheme (LRS). This change has led to an increase in the Tax Collected at Source (TCS) rate to 20% on overseas credit card transactions, effective from July 1, … Read more
Introduction: The Assessing Officer can assess or reassess the income of any person subject to certain conditions prescribed. The assessment or reassessment of any income is subject to the due procedure established by the Income Tax Act, 1961. The Assessing Officer must give notice to the person regarding the assessment of income which has escaped … Read more
Introduction: Tax Filing Deadlines for Assessment Year 2023-2024: Income tax is a compulsory tax imposed on individuals and businesses by the government. It is used to fund government programs and provide services to the public. The amount of income tax that an individual or business pays is based on their income. Incomes are always taxed … Read more
Introduction Section 151A is an important provision of the Income Tax Act, 1961, which provides for faceless assessment proceedings. With the rise of digital technologies and the need for streamlining the assessment process, the government of India has introduced this provision. The section empowers the Central Board of Direct Taxes (CBDT) to issue notification for … Read more
Introduction The TDS/TCS return, which is the statement of tax deducted or collected at source, must be submitted within the deadlines specified. In case of failure to do so, a penalty is imposed under Section 271H, and the Assessing Officer may order to pay a fine in accordance with 271H. Penalty for Failure under … Read more
Introduction Section194LA of the Income Tax Act,1961 is a provision that deals with the deduction of tax at source (TDS) on payment of compensation for the acquisition of particular immovable property. The section aims to ensure that taxes are collected at the source on any compensation paid for the acquisition of immovable property, which is … Read more
Introduction Section 271DA of the Income Tax Act is a provision that was introduced with effect in 2017 by the Government of India to promote digital transactions and curb the circulation of black money. This section lays down the provisions for imposing a penalty on any person who receives a sum of INR 2 lakh … Read more
Introduction Section 194D of the Income Tax Act, of 1961 is a provision that deals with the deduction of tax at source (TDS) on insurance commission payments. In this article, we will take a closer look at the provision and understand the implication for taxpayers. Applicability of Section 194D The provision of Section 194D applies … Read more
Introduction Section 272BB of the Income Tax Act, 1961 is a provision that deals with the penalty for failure to comply with the requirements of obtaining a Tax Deduction and Collection Account Number (TAN). The Income Tax Department issues these unique identification numbers to tax deductors/collectors. These numbers are mandatory for filing Income Tax returns, … Read more