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PKM Section Heading particulars Section: 207 & 208 Liability & payment of Advance Tax Advance tax shall be payable during a F. Y. in every case where the amount of such tax payable by the assessee during that year is Rs. 10000/- or more (after adjusting TDS/TCS) However, no advance tax shall be payable … Read more
Section 194 BA has been inserted by the Finance Act, 2023, w.e.f. 1-4-2023Â which deals with the TDS on Winning from Online Games which may be read as follows: Any person responsible for paying to any person any income by way of winnings from any online game during the financial year shall deduct income-tax on the … Read more
Assessment of AOP/BOI 1.  As per section 40(ba), while computing the income of AOP/BOI under the PGBP, any interest, salary, bonus, commission or remuneration by whatever name called, paid by such Association or body to a member thereof, shall not be allowed as deduction. 2.  However, while disallowing such interest paid, if any interest is … Read more
Provision and liability are two accounting concepts that represent different aspects of financial obligations or potential expenses for a business. Followings are differences between provision and liability: Provision: As per Ind AS 37,  provision is a liability of uncertain timing or amount. In simple words provision is an estimated liability or expense that is … Read more
Organization may incur two different sorts of expenses: revenue expenditure and capital expenditure. Their nature and effect on the financial accounts are where they differ most from one another. An explanation of each follows: Revenue Expenditure: Revenue expenditure refers to expenses incurred by a business that are related to its day-to-day operations and are consumed … Read more
Heads of income. [Section 14] Salaries. Income from house property. Profits and gains of business or profession. Capital gains. Income from other sources. Salary: The following income shall be chargeable to income-tax under the head “Salaries”—  (a) any salary due from an employer or a former employer to an assessee in the previous … Read more
While computing total income under the Act, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to exempt income (i.e. income which does not form part of the Total income). Calculation of expenditure to be disallowed AO is empowered to determine the amount of expenditure incurred in … Read more
    Leave Encashment Notification no 31/2023 dated 24.05.2023 In exercise of the powers conferred by sub-clause (ii) of clause (10AA) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government, having regard to the maximum amount receivable by its employees as cash equivalent of leave salary in respect of … Read more
Background: MCA by notification dated 24.03.2021, inserting provision in company (accounts) rule 2014 had made audit trail in accounting software mandatory with effect from 01.4.2021. Provision regarding audit trail may be read as follows: “every company which uses accounting software for maintaining its books of accounts shall use every such accounting software which has features … Read more
 1.  Applicability of CARO, 2020 CARO 2020 is applicable to all companies including foreign companies. However, the following are the exceptions: The threshold limit for small companies has been revised recently through a press release dated 16th September 2022. The earlier threshold limit for share capital was INR 2 Crores and Gross turnover … Read more