As per Finance Act, 2023, where a private company* issues shares (equity or preference) to non-resident investors** in excess of FMV, such excess consideration is taxable in the hands of private company under the head 'Income from other sources'. Now CBDT notified below investor types as exempt from this angel tax scope.- Government and Government related … Continue reading Non-residents exempt from Angel tax
Category: Income Tax
Checklist for donations under 80G
Make sure not to make charitable donations exceeding Rs.2000 in cash Verify if Donee is registered under Sec. 80G at Income Tax Department Portal Collect proof of donation in Form no. 10BE Not to fall prey to unscrupulous tax evasion strategies. Remember it is us who are responsible for our tax return (not our tax … Continue reading Checklist for donations under 80G
TDS on Salary – You can choose between Old tax & New tax regimes
It is clarified by Income tax department (via Circular no. 4 dated Apr 5, 2023) that employee can choose either old tax or new tax regime for the purpose of TDS deduction on his salary and employer should follow accordingly. In case employee does not intimate his choice, employer shall follow New tax regime for … Continue reading TDS on Salary – You can choose between Old tax & New tax regimes
Why one need to check AIS
Annual Information Statement (AIS), developed by Income Tax Department, tracks 50+ types of income/transactions (eg. Salary, Rent, Dividend, Interest, Property transactions, Sale/purchase of securities, Cash deposits/withdrawals, Insurance policy proceeds, GST Sales & Purchases etc.) using our PAN. One can check all incomes & transactions (from FY 2020-21) which are being tracked under our PAN either … Continue reading Why one need to check AIS
Compliances & options to be made during March 2023
Updates March 31 is also last date for investments in Non-equity oriented Mutual funds (i.e. where <=35% of a MF proceeds are invested in Indian equity shares) who want to avail concessional tax treatment on LTCG. June 30 is last date for PAN-Aadhaar linking September 30 is last date for Nomination for Demat and trading … Continue reading Compliances & options to be made during March 2023
Bonus Stripping vs Bond Washing
Bonus Stripping Bonus Stripping is practice of buying securities in advance of bonus securities record date (i.e. usually buying happens after bonus announcement but before record date) and selling original securities after ex-date thereby booking short term capital loss on original securities. Under Sec. 94(8) of Income tax act, this short-term capital loss will be … Continue reading Bonus Stripping vs Bond Washing
Income Tax Proposals – Budget 2023
Individuals: No changes in old tax regime Changes in New tax regime: Income tax slabs were changed (see below table). Limit for 100% Rebate on Income tax is enhanced from 5 lac to 7 lac. Standard deduction for salary (50K) and family pension (15K) can be claimed henceforth. Scope of assesses eligible for new tax … Continue reading Income Tax Proposals – Budget 2023
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?
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
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