Advantages and disadvantages Advantages and disadvantages Advantage of Direct Taxes: 1.Fairness: Direct taxes are base on a persson’s income or wealth, so those who earn more pay more, which is seen as fair. 2.Progressive: Direct taxes are design to be progressive, meaning that the tax rate increases as the income or wealth of the taxpayer… Read More »
Section 194Q of Income Tax Act Section 194Q of the Income Tax Act, introduced in the Union Budget 2021 and effective from 1st July 2021, is a provision that specifically applies to buyers making payments to resident sellers for the purchase of goods. To visit:https://www.incometax.gov.in According to this provision, if a buyer makes payments exceeding… Read More »
Difference between TDS vs TCS Difference between TDS vs TCS, TDS and TCS are both types of tax collection mechanisms in India, but they differ in their nature, purpose, and applicability. TDS TDS (Tax Deducted at Source) is a tax collection mechanism that requires a person to deduct tax at a prescribed rate from the… Read More »
Tax Audit Tax Audit, The primary objective is to examine a taxpayer’s accounts and financial statements to ensure compliance with the provisions of the Income Tax Act, 1961, and to verify the accuracy and completeness of the tax returns. Conducted by a qualified chartered accountant, the tax audit aims to provide assurance to the tax… Read More »
Destination based tax When we refer to GST (Goods and Services Tax) as a destination-based tax. It implies that the tax is imposed at the final point of consumption for goods or services. The tax proceeds collecte by the state where the goods or services consumed, rather than the state where they produced. For more… Read More »
Which state does not accept GST in India The implementation of GST in India was a significant tax reform that aimed to streamline the indirect tax structure and create a unified market. The state does not accept GST in India replaced various central and state taxes, such as excise duty, service tax, and value-added tax… Read More »
Understanding One Time Tax “One Time Tax” does not have a universally defined meaning and can vary depending on the context. However, in general terms, understanding One Time Tax typically refers to a tax that levy only once on a specific transaction or event. For instance, during the purchase of a property, you may encounter… Read More »
Is the provision for taxation a liquid asset or not The provision for taxation is not considered a liquid asset. In financial terms, a liquid asset refers to an asset that can easily convert into cash without significant loss in value. While the provision for taxation represents an estimated amount set aside by a company… Read More »