Income Tax

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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

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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

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In this article we compiled information / How to register Aadhaar in ITD e-Filing website, Solution to errors in linking of Aadhaar, Aadhaar in case of HUF/Corporate login, reset password through Aadhaar, Validity of OTP sent from Aadhaar database, How to check Aadhaar number linking, Is it mandatory to link Aadhaar number, De – Linking…

Read More 19 FAQs on AADHAAR Number Linking in ITD e-Filing website

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CBDT Press Release on Operation Clean Money dated 14-04-2017 1. Operation launched on 31-01-2107 2. In first phase , online response was requested from 17.92 lakh persons 3. Response received from 9.46 lakh persons 4. Online queries raised from 35000 cases 5. Online verification completed in more than 7800 cases. 6. In cases where the…

Read More CBDT Press Release on Operation Clean Money dated 14-04-2017

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INDIVIDUALS / HUF / AOP / BOI No change in income tax rates, no increase in tax exemption Limit.First-time home buyers to get additional deduction of Rs 50,000 on interest for loan upto Rs 35 lakh. The cost of house should not be more than Rs. 50 lakh. Surcharge on income tax for those with…

Read More Changes in Income Tax for Filing Of Income tax return for AY 2017-18, FY 2016-17