Record Retention Period for Companies in India for Tax Purposes Retention as per Income Tax Act Under the Income Tax Act, companies are required to retain their books of accounts and related records for a minimum period of six years from the end of the relevant...
Books of Accounts Companies Must Maintain Statutory Requirement under Companies Act All companies registered under the Companies Act must maintain specific books of accounts at their registered office. These records are essential for ensuring financial transparency...
Definition and scope of underreporting Underreporting of income occurs when a taxpayer declares lower income than what is assessed by the income tax department. It also includes cases of claiming excessive deductions or exemptions. Underreporting applies when income...
Levy of late filing fees under income tax act Non-filing or delay in filing the income tax return attracts a late fee under section two hundred thirty four F. The amount depends on the total income and the filing date. Fee up to five thousand rupees is applicable for...
Penalty for failure to maintain documentation Companies engaged in international or specified domestic transactions must maintain prescribed documentation. Failure to do so attracts a penalty under section two seventy one AA. Two percent of the value of each...
Definition of specified domestic transactions Specified domestic transactions are certain transactions between related parties within India that are subject to transfer pricing regulations. These transactions are governed by section ninety two BA of the Income Tax...
Meaning of transfer pricing in corporate taxation Transfer pricing refers to the pricing of goods, services, or intangibles transferred between associated enterprises. It is relevant for international and specified domestic transactions. It ensures that transactions...
Meaning of royalty income for foreign companies Royalty refers to payments made to a foreign company for the use of intellectual property or technical know-how. These payments are considered income that arises in India if the usage is within Indian territory. Includes...
Meaning and purpose of tax residency certificate A Tax Residency Certificate is an official document issued by the tax authority of a foreign country. It certifies that a person or entity is a resident of that country for tax purposes. TRC is required to claim...
Meaning of withholding tax for foreign entities Withholding tax is the amount deducted at source by an Indian payer while making certain payments to a foreign entity. This ensures that tax due on such payments is collected at the time of remittance. It applies to...