Category: Income Tax

How to Convert Black Money to White in India

In four easy steps, We will show how you can convert huge amounts of Black Money into White. Using this simple procedure and loopholes in Indian Legal system, you can convert any amount of Black Money to White. How to Convert Black Money Step 1: Create a Political Party and get it Registered under People’s […]

ICDS & AS Differences (Applicability for CA IPCC & CA Final)

Checkout whether ICDS are applicable for May 2017 CA IPCC and CA Final Exams. ICDS Refers to Income Computation and Disclosure Scheme. Below we have provided the fundamental differences between Accounting Standards and ICDS. Income Tax Department has issued Income Computation & Disclosure Scheme (ICDS) under Sec 145 of IT Act w.e.f 2015-16. Sec 145 provides […]

Section 44AD Income Tax Act (Sec 44ADA 6% & 44AD 8%)

Section 44AD of Income Tax Act deals with presumptive taxation. Section 44AD was introduced in Income Tax Act to reduce Administrative burden on the Government. One of the important targets of Section 44AD are Small and Medium Sized businesses in India. You should note that, Section 44AD is not applicable to Income from Brokerage or […]

Tax Audit Limit AY 2018-19 | Ceiling For FY 2017-18 |

The Tax Audit limit for AY 2018-19 and FY 2017-18 is to remain the same as the previous year for CA Professional and Businesses. The Tax Audit is covered under Section 44AB of the Income Tax Act. We have already provided the detailed analysis of Section 44AB in our previous article. For calculating the Tax […]

Pradhan Mantri Garib Kalyan Yojana (PMGKY)

Pradhan Mantri Garib Kalyan Yojana (PMGKY) is a new scheme introduced into the Income Tax Act. PMGKY Scheme is aimed at using Black Money on Poor. Once taxes and certain penalties have been paid on the declared black money under PMGKY, the person will have future immunity on the declared amount from any Penalties or Imprisonment. PMGKY also specifies more […]

Section 188 & 189 Income Tax Act | Firm Succession |

Section 188 of the Income Tax Act lays down provisions in case of a Firm Succession. Section 189 applies when the Firm is Dissolved. When all the partners in the predecessor firm are replaced by new partners in the successor firm, it is known as succession of one firm by another firm. If a firm […]

AOP Taxation India | Formation & Tax Calculation of AOP

Below we have covered few important issues regarding an AOP like The Taxation of AOP Trusts, Maximum Marginal Rate for an AOP, Tax Rate etc. Association of persons’ has not been defined in the Income-tax Act. However in the case of CIT v. Indira Balkrishna [(1960) 39 ITR 546] the Supreme Court has defined it […]

HUF Tax Calculation | Karta | Tax Benefits | Tax Slab |

The term ‘Hindu undivided family’ has not been defined in the Income Tax Act. However, in general parlance HUF means an undivided family of Hindus. Creation of a HUF is a God-gifted phenomenon. As soon as a married Hindu gets a child, a new HUF comes into existence. It is not at all necessary that every […]

Section 64 Income Tax Act | Clubbing Spouse Income |

Section 64 of the Income Tax Act deals with Clubbing provisions relating to Income of one’s Spouse. Section 64 covers situations where Income of wife has to be added in the husband’s income and vice versa. These clubbing provisions were introduced with Section 64, in order to eliminate tax evasion by distribution of Income among […]

Error Code 31 Under Section 139(9) | Income Tax Return |

Certain Assessees are receiving Error Code 31 through Intimation under section 139(9) of the Income Tax Act. The Error Code 31 is sent for only assessees who have filed their Income Tax Return (ITR 4) with ‘Income from Business or Profession’. Until last year, there is no such Error Code 31 for Returns filed. Error Code 31 […]

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