Types of Losses Eligible for Carry Forward Business losses excluding speculative losses can be carried forward. Speculative business losses are separately tracked and carried forward. Capital losses (short-term and long-term) are also eligible. Unabsorbed depreciation...
Understanding GST and Corporate Income GST refers to Goods and Services Tax levied on the supply of goods and services. Corporate income refers to the net profit earned by a company after expenses. GST is an indirect tax, while corporate income tax is a direct tax....
Basic Definition A Permanent Establishment (PE) is a fixed place of business through which the business of a foreign enterprise is wholly or partly carried out. A branch is a formally registered office of a foreign company established in a host country. PE is a...
Meaning of DTAA DTAA stands for Double Taxation Avoidance Agreement. It is a bilateral tax treaty between two countries. The purpose is to avoid taxing the same income twice in both countries. It defines the taxation rights of each country over cross-border income....
Concept and Applicability of TDS TDS stands for Tax Deducted at Source under the Income-tax Act, 1961. Companies are required to deduct tax before making specific payments. It applies to payments like salary, rent, contract fees, professional services, and interest....
Financial Statements and Audit Reports Audited balance sheet and profit & loss account for the financial year. Notes to accounts and schedules forming part of the financial statements. Tax audit report in Form 3CA or 3CB and Form 3CD, if audit is applicable....
Online Filing Eligibility Yes, corporate tax returns must be filed online in India. All companies, including private limited and public limited, are required to e-file. Offline submission is not permitted for corporate taxpayers. The online mode ensures accuracy,...
Preparation of Financial Statements Companies must first finalize their profit and loss account and balance sheet. Books of accounts must be prepared according to applicable accounting standards. All incomes, expenses, deductions, and tax provisions must be accurately...
Deductibility Under Section 80G Yes, donations are deductible under section 80G of the Income-tax Act, 1961. The deduction is allowed for donations made to approved funds, trusts, and charitable institutions. Only donations made by cheque, demand draft, or digital...
Allowability of Depreciation Yes, depreciation is allowed as a deduction under corporate tax laws in India. It is permitted under section 32 of the Income-tax Act, 1961. Depreciation is claimed on tangible and intangible assets used in business. It reduces taxable...