Easy Tax Planner Blogs

Section 194Q of the Income Tax Act is added through the Finance Act of 2021 to implement the new TDS on the purchase of Goods requirements. This is now in effect as of 1/07/2021. There were some questions about the new regulations, thus the CBDT issued Circular No. 13 on June 30, 2021, to address those questions. What new regulations exist? According to the new Income Tax Act section 194Q, if the total annual value of the products the buyer purchases from a particular seller is Rs. 50,00,000 or more, the buyer of the goods must deduct the TDS of the seller of the goods, if you acquire any items from “X” and your annual purchases surpass Rs. 50,00,000, you must deduct TDS from your purchases. This will take effect on July 1, 2021. Who must make TDS deductions? Any Read more…

By means of the Gift Tax Act, the government instituted gift tax in 1958. The aforementioned Gift Tax Act was repealed in 1998. The Income Tax Act of 1961 now governs how gifts are taxed. Different kinds of Gifts: Gifts come in a variety of forms, including cash, mobile goods, and immovable property. Shares and securities, jewellery, archaeological collections, drawings, paintings, sculptures, and any other kind of artistic creation are all examples of movable property. Bullion is another option. Immovable property may take the shape of a building, a plot of land, or both. Under section 56(2)(vi), gifts: If the total amount of money received without consideration surpasses Rs. 50,000, the entire amount would be charged. If there is no consideration and the property’s stamp duty value exceeds Rs. 50,000, there will be a fee. The stamp duty value of Read more…

There are various types of provident funds that can be used by an individual for regular savings and investing objectives. These funds operate and are taxable in different ways from one another. Additionally, they are governed by various sets of laws. The Provident Funds fall into the following categories: The Provident Funds Act, 1925, which was passed by the Parliament, established the Statutory Provident Fund/General Provident Fund. Governmental and semi-governmental bodies look after this money. A portion of the government worker’s pay is contributed to this fund. At the time of retirement or superannuation, the government employee receives payments from the fund’s accumulations. This account is accessible to all government employees, however the GPF is not offered to the commercial sector. This account is available to all government employees, but personnel in the private sector are not eligible for the Read more…

It is your employer’s legal duty to withhold the appropriate amount of income tax (TDS) from employees’ salaries and remit it to the government’s account. The employer requests information about tax-saving investments and associated deductions in order to do that. In reality, for the majority of the year, this TDS is deducted at a fixed rate. However, in the last quarter, the employer makes an effort to match the correct annual TDS amount by varying TDS deductions based on an estimate of the total TDS for the year. This final TDS amount is determined by the employer after taking into account the employee’s pay income, additional reported incomes, tax-saving investments, and deductions. Investment Declaration Form: What Is It? In order for the employer to deduct the appropriate amount of TDS, an employee must self-declare their estimated tax liability. Income-tax Rules Read more…

Parents are busy making plans for their children’s entrance to the school of their choosing at this time of year, and kids are busy packing their bags and completing their schoolwork and assignments. However, this year’s Covid-19 scenario forced them to access their education via the internet. Emails are being sent to parents reminding them that school fees must be paid. We should be aware that paying for our children’s education lowers our tax liability, and we should be sure to deduct that expense from our taxable income. Therefore, please keep your receipts for school fees secure so that our tax professionals can deduct them when you file your I-T Return. How much of a deduction from the payment of school fees is allowed? You must be familiar with “80C” deductions. Yes? One of the deductions, along with insurance premiums, Read more…