Understanding the nature of the notice The first step in handling a tax notice is identifying the section and reason under which it is issued. Notices may relate to scrutiny, reassessment, non-filing, or mismatch in returns. Carefully read the section mentioned, such...
Revenue expenditure on scientific research Revenue expenses related to in-house R&D are allowed as deductions under section thirty five. These include day-to-day expenses incurred wholly for scientific research. Salaries of scientists and technical staff are...
Income from unexplained cash credits Any sum found credited in the company’s books without explanation is treated as income. If the company cannot establish the nature and source of the credit, it is deemed taxable under section sixty eight. Includes loans, advances,...
Eligibility under business expenditure provisions Professional fees are generally deductible as business expenses under the Income Tax Act if incurred wholly and exclusively for business purposes. The expense must be genuine and related to the business operations....
Nature of gst input tax credit GST input tax credit allows businesses to claim credit for the GST paid on purchases or services used for business. It helps reduce the overall GST liability payable to the government. Credit is available only for eligible inputs and...
Definition and objective of equalisation levy The equalisation levy is a tax introduced to address the issue of taxing digital transactions conducted by non-resident entities in India. It aims to tax the income generated from Indian users through online platforms. It...
Definition and scope of export services Export of services refers to the supply of services from India to a recipient located outside India. These services must meet specific conditions under GST and income tax laws. The supplier must be located in India and the...
Basic criteria for tax audit applicability Under section 44AB of the Income Tax Act, companies are required to undergo a tax audit if their turnover or gross receipts exceed the specified threshold in a financial year. However, exemptions are available in specific...
Meaning and structure of esops Employee Stock Option Plans are schemes that allow employees to buy company shares at a predetermined price. ESOPs are issued as part of employee compensation and linked to performance and retention. Employees receive the right to buy...
Types of income from mutual funds Companies can earn income from mutual funds through dividends and capital gains. The tax treatment depends on the nature and period of the holding. Dividend income is received periodically from the fund house Capital gains arise when...