If you did not file your income tax return for the previous year, there may be some good news for you. The government has extended the deadline to file income tax returns again from October 31st to November 7th 2017. Tax payers whose returns are required to get audited for financial year 2016-17 Assesement year…Read More Tax Audit Due Date Extended to Nov 7th 2017 for A.Y 2017-18 F.Y 2016-17
New Delhi: The finance ministry informed Lok Sabha on Friday in a written response to a question that the government was considering syncing the April-March financial year to the calendar year. It, however, did not specify from when this might happen. In response to a question from Member of Parliament Pankaj Choudhary, the ministry said, “The…Read More Govt considering to change financial year to January-December : Finance Ministry
NEW Section for professionals from F.Y 2016-17, A.Y 2017-18 For whom the presumptive taxation scheme of section 44ADA is designed? The presumptive taxation scheme of section 44ADA is designed to give relief to small taxpayers engaged in specified profession. Eligible persons who can take advantage of the presumptive taxation scheme of section 44ADA A person resident in India engaged in following professions can take advantage of presumptive taxation scheme of section 44ADA:- 1) Legal 2) Medical 3) Engineering or architectural 4) Accountancy 5) Technical consultancy 6) Interior decoration 7) Any other profession as notified by CBDT Manner of computation of taxable income in case of a person adopting the presumptive taxation scheme of section 44ADA In case of a person adopting the provisions of section 44ADA, income will be computed on presumptive basis, i.e. @ 50% of the total gross receipts of the profession. However such person can declare income higher than 50%. In other words, in case of a person adopting the provisions of section 44ADA, income will not be computed in normal manner but will be computed @50% of the gross receipts. The presumptive income computed @ 50% is the final income and no further expenses will be allowed A person who adopts the presumptive taxation scheme is deemed to have claimed all deduction of expenses. Any further claim of deduction is not allowed after declaring profit @ 50%. While computing income as per the provisions of section 44ADA, separate deduction on account of depreciation is not available. However, the written down value of any asset used in such business shall be calculated as if depreciation as per section 32 is claimed and has been actually allowed. Payment of advance tax in respect of income from professions covered under section 44ADA A person opting for the presumptive taxation scheme of section 44ADA is also liable to pay advance tax. Maintenance of books of account if a person opts for presumptive taxation scheme of section 44ADA In case of a person engaged in a specified profession as referred in section 44AA(1) and opts for presumptive taxation scheme of section 44ADA, the provision of section 44AA relating to maintenance of books of account will not apply. In other words, if a person opt for the provisions of section 44ADA and declares income @50% of the gross receipts, then he is not required to maintain the books of account in respect of specified profession. Provisions to be applied if a person does not opt for the presumptive taxation scheme of section 44ADA and declares his income from profession at lower rate (i.e. less than 50%) A person can declare income at lower rate (i.e. less than 50%), however, if he does so, and his…Read More Section 44ADA – Presumptive Taxation Scheme for Professionals
In Budget-2017 ,Major change has been made regarding calculation of Capital gain. One of them is that base year of cost inflation index has been shifted from 1981 to 2001.By doing this capital appreciation during 1981-2001 has been effectively exempted. For capital assets acquired before 01.04.2001,Market price or cost price as on 01.04.2001 is to…Read More COST INFLATION INDEX 2001 SERIES RELEASED
With effective from 1st July, 2017 it is mandatory to link Aadhaar number with PAN. As per the Finance Bill 2017, all PAN applications will require the Aadhar card number to be mentioned and all PAN card-holders must ensure that their PAN cards are linked to Aadhaar card, failing which PAN cards will be invalidated.…Read More How to link Aadhaar Number with PAN in three simple steps?