Situation when Income of Wife is clubbed with income of Husband.

By proper planning you can file separate income tax return of both Husband and Wife. Under the income tax act husband and wife would be entitled to have separate income tax return, but in certain situations income of wife is clubbed with husband’s income. Section 64 of income tax act 1961 clearly defines the following[…..]

When bank can share your financial details with Income tax department?

It often said that how income tax department (ITD) came to know about my transactions done through banks. Did you ever heard about the Annual information report (AIR) which notifies the transactions to be reported by all banks to ITD. Here are your transactions reported to ITD: *Cash deposits Rs. 10 lakh or more in[…..]

Share valuation methods as per Income Tax Act

Before getting funds from Angel investors, either you need to get your business valuation done or investors do it yourself on the bases of current and future business perspective. Once you get funds in your company, you need to do comply with legal requirements. Income tax act has clearly notified in section 56(2)(viib) if a[…..]

Paying Salary to Partner is not always business expense

Being an employee everyone wants consideration for their efforts; similarly partners want remunerations for time they invest in firm. Every firm pays salary to their partners but they may not be aware about provision of income tax act. Merely passing an entry in books of accounts and withdrawal of salary is not enough. There are[…..]

Loan & Advances paid to shareholders are considered as Deemed Dividend

Dividend is a sum of money paid by company out of its profits to its shareholders. Dividends are decided by board of directors and approved by shareholders. Company distributing dividend pays Dividend Distribution Tax (DDT) to government.  These are the summarized few points of dividend distribution in india. One more important definition of Deemed Dividend[…..]

Tax planning through Hindu undivided family (HUF)

This might sound to be impracticable in real life, but it is not so, as this is made possible in actual practice by proper tax planning. You can make a tax planning through HUF, but before explaining it, let’s shed light on some important part of HUF law. – Only Hindu, Jains, Sikhs and Buddhists[…..]

Using Co-Working Space? Let’s see how GST has benefited us.

Initially freelancers and startups are worried for their fixed cost. Which are Office Rent, Employee Salary, etc. Everyone put their efforts to reduce this cost, But somewhere they have to compromise. Now in mega cities like Gurgaon, Delhi, Bangalore, you have facilities of using Coworking Space. Where all basic amenities available which everyone wants in[…..]