At present MSMEs engaged in manufacturing and services (having Udyam registration) are eligible for various benefits*. Classification of an enterprise into Micro or small or medium category is determined based on level of a) investment in plant and machinery or equipment (other than land and building, furniture and fittings) & b) domestic turnover (i.e. excluding exports) **. For … Continue reading MSME benefits to continue for 3 yrs post reclassification
Author: SC
Will India introduce Water Derivatives?
As per today's ET edition (Sep 23, 2022), Niti Aayog is working on draft recommendations for introduction of water futures in India among others. Water futures, part of commodity derivatives, helps water users such as agriculturists, governments, water intensive sector players etc. in water price discovery and hedging price risk arising from climate change. Btw, Water … Continue reading Will India introduce Water Derivatives?
FEMA rules on transactions in Agricultural land by NRI/OCI
Acquisition- With respect to agricultural land/plantation property/farm house in India, NRI or OCI can neither acquire from anyone (even jointly or in the name of other person by transferring money to him) nor receive by way of gift. However, he can acquire by inheritance from a) Indian resident or b) resident outside India who acquired … Continue reading FEMA rules on transactions in Agricultural land by NRI/OCI
When a Senion Citizen need not file ITR?
Section 194P: Any resident senior citizen (aged =>75 years) having pension income and interest income only. The bank in which you are receiving your pension income should be the same from which you receive interest income too. In this scenario, one can choose not to file ITR by submitting Form 12BBA with the bank so … Continue reading When a Senion Citizen need not file ITR?
Small company’s turnover and paid-up capital thresholds are increased
With effect from 15-09-2022, MCA revised definition of Small Company as a company whose turnover is <= 40cr and paid-up capital <=4cr (for the immediately preceding FY). Few benefits/exemptions available to Small Companies under Companies Act, 2013 are: No need to prepare cash flow statement as part of financial statement - Sec. 2(40) Advantage of … Continue reading Small company’s turnover and paid-up capital thresholds are increased
Income tax deduction for medical expenses incurred for specified diseases or disabilities
Section 80DDB (Deduction basis actual payment in case of Specified Diseases, to the extent not reimbursed under insurance policy) If you incur any medical expenditure in respect of specified diseases on behalf of self or your dependent family members (i.e. spouse/children/parents/brother/sister), you can avail deduction upto 40K per FY (100K in case of Senior citizen). … Continue reading Income tax deduction for medical expenses incurred for specified diseases or disabilities
All about Sovereign Gold Bonds
SGBs are bonds issued by RBI on behalf of GOI. Here are few key features of SGBs: Who can Invest: Resident individuals, HUFs, Trusts, Universities and Charitable Institutions (max limit is up to 4 kgs per financial year in case of Individuals/HUFs and 20kg per FY in case of others). SGBs will be issued in … Continue reading All about Sovereign Gold Bonds
Do you consider ‘Yield to Call’ while investing in bonds/debentures?
You might hear Yield to Maturity (YTM), which is annual pre-tax rate of return (IRR) one would receive on a bond if it is held till its maturity (of course assuming Issuer of bond does not default on its obligations). Yield to Call (YTC) is slight variation of YTM, which is applicable in case of callable … Continue reading Do you consider ‘Yield to Call’ while investing in bonds/debentures?
Single Premium Life Insurance Policy – Tax Considerations
1) Section 80C deduction is available only in the year of payment. In other words, one can't claim deduction across policy term similar to regular premium insurance policy. (Max limit under 80C is Rs. 1.5 lakh which includes insurance premium among other investment/saving avenues) 2) Where premium is more than 10%* of sum assured, a) … Continue reading Single Premium Life Insurance Policy – Tax Considerations