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Payments to SME for compliance u/s 43B(h) of Income Tax Act

Payments to SME for compliance u/s 43B(h) of Income Tax Act Section 43B[(h): any sum payable by the assessee to a micro or small enterprise beyond the time-limit specified in section 15 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006.),] shall be allowed (irrespective of the previous year in which the liability to pay … Read more

income Tax Dept launches ‘Know Your Refund Status’ on e-filing Portal

Previously, taxpayers had to check their income tax refund status on the TIN-NSDL website. However, the Income Tax Department has now launched a new functionality called “Know Your Refund Status” on the e-filing portal that allows users to check their refund status directly from the portal itself. This functionality allows taxpayers to check the status of their … Read more

Expenditure for any purpose which is an offence or which is prohibited by law shall not be deductible -Section 37 of I.T Act

General Deduction : Section 37 of the Income tax act 1) Any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee), laid out or expended wholly and exclusively for the purposes of the business or profession shall be allowed … Read more

Assessment of Association of person(AOP) and Body of Individual(BOI) under income Tax

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

Difference between Revenue and capital expenditure

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