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Income Tax Laws

Section-14A: Expenditure in relation to Exempt income not deductible under income tax

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  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

Assessment of Firm under Income Tax Act,1961

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Section 184 to 189 deal with the provisions of income tax regarding assessment of firm.                                      Assessment of Firm under Income Tax Act,1961 184 ·       Assessment as a firm. A firm shall be assessed as a firm for … Read more

Presumptive Taxation(on 8% and 6% deemed income) under Section 44AD of Income Tax, 1961

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   Presumptive Taxation under Section 44AD of Income Tax, 1961   Applicability:  Eligible assessee engaged in an eligible business Eligible assessee means: o Resident  individual, HUF, firm other than LLP , and o  who has not claimed deduction under any of the sections 10A, 10AA, 10B, 10BA or deduction under any provisions of Chapter VIA under the heading “C. – Deductions in … Read more

CBDT extended the due date for charitable and religious Trust/ CBDT circular no. 6 dt. 24.05.2023

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CBDT circular no. 6 dt. 24.05.2023

Through circular no. 6 dt. 24.05.2023 CBDT has extended due date from 25.11.2022 to 30.09.2023 for furnishing the application by the charitable or religious trust and institution for re-registration/approval. further due date for regular registration has also been extended from 30.09.2022 to 30.09.2023.

CBDT extended the due date for charitable and Religious Trust

Important point of from the Circular may be read as:

(a) All the existing trusts were required to apply for registration/approval on or before 30.06.2021. However, on consideration of difficulties in the electronic filing of Form No. 10A, the Central Board of Direct Taxes (the Board) in exercise of the powers conferred upon it under Section 119 of the Act extended the due date for filing Form No. 10A in such cases to 31.08.2021 vide Circular No.12 of 2021 dated 25 .06.2021, to 3 1.03.2022 vide Circular No. 16 of 2021 dated 29.08.2021 and further till 25.11.22 vide Circular No. 22 of 2022 dated 01.11.2022. Such registration/approval shall be valid for a period of 5 years. Thus, existing trusts are required to apply for fresh registration/approval and once the registration/approval is granted it is valid for five years.

(b) New trusts are required to apply for provisional registration/approval at least one month prior to the commencement of the previous year relevant to the assessment year from which the said registration/approval is sought. Such provisional registration/approval is valid for a maximum period of three years.

(c) Provisionally registered/approved trusts will again need to apply for regular registration/approval in Form No. 10AB at least six months prior to the expiry of the period of provisional registration/approval or within six months of the commencement of activities, whichever is earlier. This registration/approval is valid for a period of five years. On consideration of difficulties in electronic filing of Form No. 10AB, the Board in exercise of its powers under section 119 of Act extended the due date for electronic fi ling of Form No. 10AB to 30.09.2022 vide Circular No 8 of2022 dated 31.03.2022

(d) The trusts once approved/registered for five years are required to apply at least six months prior to the expiry of the period of five years.

(e) The deduction under section 80G of the Act in respect of a donation made by a donor to a fund or institution referred to in sub-clause (iv) of clause (a) of sub-section (2) of section 80G, shall be all owed to the donor only if a statement of such donations is furnished by the donee in Form 10BD. The certificate of such donation is required to be provided in Form No. 10BE. Further, Form No. 10BD and Form No. 10BE are required to be furnished on or before the 31st May, immediately following the financial year in which the donation is received.

CBDT circular no. 6 dt. 24.05.2023 may be downloaded here     Download

Also read : Assessment of Charitable or Religious Trust under Income Tax Act, 1961

Meaning of salary, perquisites and profit in lieu of salary Under income Tax Act

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Section 17(1) : Salary includes (i) wages; any advance of salary; paid leave; any annuity or pension; any gratuity;  (ii) any fees, commissions, perquisites or profits in lieu of or in addition to any salary or wages;  (iii) the annual accretion to the balance at the credit of an employee participating in a recognised provident … Read more

Guide to New Tax Regime with Marginal Relief

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Section 115BAC of the Income Tax Act, 1961 New Tax Regime was introduced by the Finance Act, 2020 and became effective from the assessment year 2021-2022 (financial year 2020-2021). This section provides an optional tax regime for individuals and Hindu Undivided Families(now also made applicable to Societies, AOP, BOI Artificial Juridical person by finance Act … Read more

Income Tax Return

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Under the Income Tax Act of 1961, individuals and businesses are required to file an income tax return with the tax authorities in India. The income tax return must include details of the taxpayer’s income earned during the financial year, which runs from April 1 to March 31 of the following year. The Income Tax … Read more