New vs Old Tax Regime The new tax regime under the Income Tax Act in India, introduced in the Union Budget 2020-21, offers taxpayers an alternative tax structure with lower tax rates but without various deductions and exemptions available under the old tax regime. New tax regime: 1. Lower Tax Rates: The new tax regime… Read More »
Public Provident Fund(PPF) The Public Provident Fund (PPF) is a long-term savings and investment scheme introduced by the Indian government. It is one of the most popular and tax-efficient savings options available to Indian residents. Overview of the Public Provident Fund: 1. Purpose: PPF is design to encourage small savings and long-term wealth… Read More »
Tax Deductions for Organizations Charitable Tax Deductions for Organizations Charitable, and Social Service entities in India can avail various while filing their Income Tax Return (ITR). These deductions help reduce their taxable income, resulting in lower tax liability. Here are some key deductions available: 1. Section 11: Charitable and Religious Trusts (Section11) – Under this… Read More »
Capital Gain capital gain Introduction: Tax planning plays a crucial role in managing one’s financial affairs and maximizing after-tax income. which arise from the sale of assets such as stocks, real estate, or businesses, are subject to taxation. However, with effective tax planning strategies, individuals and businesses can optimize their capital gains tax liability… Read More »
Asset depreciation: Yes, assets can be depreciated. Depreciation serves as an accounting technique employed to distribute the cost of an asset throughout its useful lifespan. It signifies the gradual decline in the worth of an asset caused by factors such as wear and tear, obsolescence, or other relevant elements. Depreciation typically apply on tangible assets… Read More »
How LLP can save tax Limited Liability Partnerships (LLPs) can potentially benefit from specific tax advantages and strategies, subject to the jurisdiction and individual circumstances in place. These advantages and strategies have the potential to contribute to tax savings. Here are some potential ways which can explain How LLP can save tax: Pass-through… Read More »
ITR Filing Important ITR filing is important for several reasons: 1. Legal Requirement: It is a legal obligation imposed by the Income Tax Act, 1961 for individuals and entities meeting certain income criteria to file their income tax returns. Failure to comply with this requirement may attract penalties and legal consequences. 2. Income Verification:… Read More »
Importance of Bookkeeping for Businesses Bookkeeping plays a crucial role in helping businesses manage their financial records and make informed decisions. Here are some Importance of bookkeeping for businesses: 1. Accurate Financial Records: Bookkeeping ensures that all financial transactions of the business are accurately recorded, classified, and organized. This includes recording income, expenses, assets,… Read More »
ITR Filing is Mandatory Income tax return (ITR) filing is mandatory in several situations in India. Here are ten common scenarios where individuals are required to file their ITR: ITR filing is mandatory in 10 situations: 1. Income above Basic Exemption Limit: If your total income before claiming any deductions exceeds the basic exemption… Read More »
HUF for NRI A Hindu Undivided Family (HUF) can also be formed by Non-Resident Indians (NRIs) under Indian tax laws. NRIs, who are of Hindu descent, can create and operate an HUF structure similar to resident Indians. Here are some key points to consider regarding HUF for NRIs: 1. Eligibility: NRIs who are of… Read More »