Income Tax

Computation of income is a systematic presentation of all gains, exemptions, rebates, reliefs, deductions, and the computation of taxes in connection with the calculation of taxes. The computation of income technique is an assessment approach used to estimate an estate, produced by dividing the amount by the net computation of income of the rental amounts. However, investors use the computation of income to calculate the value of assets depending on how profitable they are. This strategy focuses on the distribution of national income. The computation of income is the total value of goods and services produced by a country for a financial year. It is the monetary equivalent of the net product of all economic activity in a nation. The computation of an individual’s income, expenditures, and product value calculates the national income. National or gross national income is the total cost (value) of money earned by all citizens and businesses in a country during a given time.

The income-tax paid by domestic companies and foreign companies on their income in India is corporate income-tax (CIT). The CIT is at a specific rate as prescribed by the income tax act subject to the changes in the rates in the union budget every year. A corporate is an entity that has a separate and independent legal entity from its shareholders. Domestic as well as foreign companies are liable to pay corporate tax under the Income-tax Act. While a domestic company is taxed on its universal income, a foreign company is only taxed on the income earned within India i.e. is being accrued or received in India.

Income tax filing in India is a direct tax which is levied on the income and profit of individual or organization. It covers all income like salary, pension, PPF, rental income, the capital gain on sale of immovable property/movable property/shares/mutual funds, interest, royalty, technical fee, profit from business/profession, etc. Every individual (resident or non-resident) who earns income in India is liable to pay tax in India. That person shall file an annual income tax return to report that income and pay his tax liability (if any) in India. Filing income tax return in India becomes mandatory when income exceeds the exemption limit

PAN is assigned to all the taxpayers in India as an identification number. PAN number is a single number which is an electronic system and has all the tax related information for a company or for a person. This act as a primary key for storing information and it can be shared all over the country. PAN card can be issued to an individual, NRI (Non-Resident Indians), companies or anyone who is paying tax in India. PAN Number is a 10 letter alpha numerical number and the each number represents clear information of the cardholder. In India, under Central Government, the Income Tax Department issues 10digit Alphanumeric Number to every person who has responsibility of TCS (Collecting Tax at Source) or TDS (Deducting Tax at Source). The number which is given is really unique and it is called as TAN. As per Section 203A of the Income Tax Act, 1961, the TAN number shall have to be written on every TDS returns filed. TAN Number can be issued to an individual, company, enterprise, or a firm and in case of company or organization they will be treated as an individual.

Tax planning is the logical analysis of a financial position from a tax perspective. Tax Planning allows a taxpayer to make the best use of the different tax exemptions, deductions and benefits to minimize his tax liability each financial year. The use of tax payers is to guarantee tax to be effective. Investments are the best way to reduce tax liability substantially and tax payers consider it to be a good way to save tax. There are many options available to save more and reduce taxes. If an individual has done proper financial & tax planning then deductions would be subtracted from the gross total income and income tax would be levied on the balance income as per the income tax slabs. Individuals, businesses and organizations do tax planning to assess their financial profile and save on the taxes paid on their annual income and profits earned.

In case of certain prescribed payment (e.g. interest, commission, brokerage, rent, etc.) the person making payment is required to deduct tax source (TDS) at prescribe rate. Payer is known a deductor and the payee, who receives the net payment is called the deductee. TCS is Tax Collected at Source by seller from buyers at the time of selling some prescribed goods. Seller is called ‘Collector’ and the buyer is called ‘collectee’. Every person deducting/collecting tax at source is required to obtain Tax Deduction Account Number (TAN) and Quote it in every correspondence related to TDS/TCS

In India, any profit or gain arising from the sale of a capital asset is deemed as capital gains and is charged to tax under the Income-tax Act, 1961.  According to the Act, a capital asset is any kind of property held by an individual, such as buildings, lands, bonds, equities, debentures, and jewelry. It excludes stock-in-trade, agricultural land, and certain specified bonds. Profits arising out of sale of capital assets are classified as Short-Term Capital Gains (STCG) or Long-Term Capital Gains (LTCG), depending on the period for which the capital asset has been held.

ITR is a tax return form used by taxpayers to report their income and assets to the Indian Income Tax Department (Indian Revenue Authorities). It has details related to the taxpayers’ personal and financial data. ITR is essentially a type of self-declaration by the taxpayer of their income, assets and applicable taxes paid. While it is mostly filed in the electronic mode, there is an option for senior citizens to file it manually as well. Every person real or artificial, incorporated or otherwise subject to certain exemption limits is liable to file ITR. As per the law, a taxpayer may be a person, artificial judicial person, body of individuals (BOI), Hindu undivided family (HUFs), association of persons (AOP), firm, trust, company, or a society. Since ITR forms are attachment-less forms, taxpayers are not required to attach any documents such as proof of investments, tax deducted at source (TDS) certificates, etc., along with return of income filed electronically or manually. However, it is advisable to maintain these documents and furnish them before the tax authorities when required, especially in situations like assessment, inquiry, etc. The process is completed when the ITR filed by the taxpayer is e-verified through OTP generated using the Aadhaar registered mobile number or using internet banking.

The tax department examines the returns filed and if it has any reason to believe that the information declared by the assessee is incorrect or incomplete then the case is taken up for scrutiny assessment. The assessee is informed through issue of a notice and is supposed to take the required action as communicated by the department. Income-tax scrutiny refers to the act of summoning taxpayers for making enquiries about the returns filed in relation to an assessment year. The provision regarding Income Tax Scrutiny is invoked if the concerned tax officials have a reason and evidence to believe that the expenses and income declared in the returns have been incorrectly stated. The scrutiny is aimed at providing taxpayers with an opportunity to substantiate the accuracy of the filing through documentary evidence. The provision of scrutiny is initiated with the issue of a scrutiny notice to the concerned taxpayers, who are in turn required to respond. The notice is issued under a particular section or clause and would include the reason for such scrutiny. Post this stage, the officer may conduct inquiries with the assessee as considered necessary. As already stated, the notice is meant to facilitate the assessee with an opportunity to substantiate the relevant particulars declared while filing the returns

Form 15CA is available to all persons who have to file declaration form of the foreign remittance made outside India. This form is filed for each remittance made by a person responsible for such remittance, before remitting the amount and can be submitted in both online and offline modes. This service enables the registered users to file Form 15CA online through the e-Filing portal. This form enables the users to file Information to be furnished for payments to a non-resident not being a company, or to a foreign company. Form 15CA is filed for each remittance made by a person responsible for such remittance, before remitting the amount. In some cases, a Certificate from Chartered Accountant in form 15CB is required for uploading the Form 15CA online. Any category of taxpayer, Authorized Signatory and Representative Assessee can use Form 15CA to furnish information regarding payment made to a Non-Resident, not being a Company, or to a Foreign Company.


Any Goods & Service business whose turnover exceeds 40lacs, 20lacs respectively & 10 lakhs for North Eastern states and Hill stations should go for compulsory GST registration. This process of tax registration is called GST registration. Once the registration process has been completed, the GSTIN is provided. The 15-digit GSTIN is provided by the Central Government. GST registration can be easily done on the online GST portal. Business owners can fill a form on the GST portal and submit the necessary documents for registration. It is a criminal offense to carry out operations without GST Registration and heavy penalties are levied for non-registration.

Under the GST regime, regular businesses having more than Rs.5crore as annual aggregate turnover (and taxpayers who have not opted for the QRMP scheme) have to file two monthly returns and one annual return. This amounts to 25 returns each year. Taxpayers with a turnover of up to Rs.5crore have the option to file returns under the QRMP scheme. The number of GSTR filings for QRMP filers is 9 each year, which include 4 GSTR-1 and GSTR-3B returns each and an annual return. Note that QRMP filers have to pay tax on a monthly basis even though they are filing returns quarterly. There are also separate statements/returns required to be filed in special cases such as composition dealers where the number of GSTR filings is 5 each year (4 statement-cum-challans in CMP-08 and 1 annual return GSTR-4).

Goods & Service Tax (GST) is the largest indirect  tax reform in India since independence. GST is a pan-India single unified tax on both Goods and Services, levied only on ‘value added’ to goods and services at each stage in the economic supply chain. GST is not just a change in tax, it is expected to have a far reaching impact on each facet of business operations in the country such as pricing of products and services, supply chain optimization, IT, accounting and tax compliance systems. It will impact the tax structure, tax incidence, tax computation, tax payment, compliance, credit utilization and reporting, leading to a complete overhaul of the current indirect tax system. We have been closely involved in monitoring the developments on GST. We help businesses in anticipating policy changes and assessing impact on their operations. We offer a host of specialized GST advisory services which includes analyzing its impact on business of our clients, scenario analysis including alternative business models, legislative business level implementation assistance, transition management and undertaking key compliances.

In simple term, revocation means reversal. Under Goods and Services Tax (GST) revocation application in Form GST REG-21 means applying for reversal of cancellation of GST registration. Only the taxable person, whose GST registration is cancelled by the proper officer, can apply for revocation of cancellation of GST registration in Form GST REG-21. As per provisions of section 30 of the Central Goods and Services Tax Act, 2017, the taxable person, whose registration is cancelled by the proper officer, can apply for revocation of cancellation of GST registration. Thus, revocation application in Form GST REG-21 is applicable only when the GST registration is cancelled by the proper officer. The revocation application in Form GST REG-21 can be filed only after the pending returns are furnished and pending amount of tax, interest, late fee or penalty, if any, is paid.

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