Determination of residential status is equally as important as the calculation of income tax liabilities. Even before the calculation of income tax an individual taxpayer has to first determine his residential status as per the income tax act 1961. Section 6 of the income tax act specifically deals with residential status. It prescribed the way …
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Facts of the case: Mais India Medical Devices Private Limited (MAIS India) was incorporated in the year 2012 under a joint venture agreement between M/s Sysmech Industries LLP, a resident of India and M/s Demas Company, a non-resident. MAIS India developed in-house all the Assembly Machines & Packing Machines used in the product manufacturing like …
Facts of the case The assessee is an NRI and he has deposited cash of Rs.1144000 in his bank account. He has been a resident of Auckland, New Zealand since 2003. There was a mismatch in the time of deposit of cash in the bank account. The assessing officer has the doubt the cash was …
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The residential status of the company is determined as per section 6(3) of the income tax act 1961. Residential status is important because the determination of income and income tax liability all depend on the residential status. It is a first step that every taxpayer must follow either a resident or non-resident. Indian company An …
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Freelancing is a particular assignment done by an individual of a company. You may call it a self-employed person who works either individually or hires a few more people to work with him on a particular assignment. Freelancing is a commercial term, but under the income tax act, there is no term like freelancer and …
Income tax provisions for the non-resident are not straightforward. There are many provisions which in itself are difficult to understand. To understand the provision applicable to non-residents it is important to first determine the residential status. The residential status is divided into 3 categories- Non-Resident (NR) Resident and Ordinarily Resident (ROR) Resident but not Ordinarily …
Tax deduction at source (TDS) is an income tax liability that is deducted from salary of the employee. It is similar to advance tax liability which is deducted from the salary of the employee by the employer and deposited it to the central government. Liability to deduct TDS is cast on the employer (person who …
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TDS on digital payment has always been a contentious issue. Taxpayers and income tax department have been fighting for taxability on digital payments for many years since the digitalization of business has taken place. The income tax department tries to make the digital payments taxable in India as a Fees for Technical Services (FTS), Royalty, …
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A salaried person knows that House rent allowance (HRA) is a tax planning/tax saving tool. For salaried person HRA is primary part that save hefty amount of income tax. Often company makes a structure in a way that can save more income tax. Few companies allow its employees at the time of joining to structure …
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Section 111A of the income tax act has specific rate of tax on short term capital gain. This section was inserted by finance act 2004 to provide special rate of 10 per cent on short term capital gain. In 2008 rate of 10% was increased to 15%. Section 111A is application on few transactions elaborated …
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