Applicability: Any assessee carrying on business of prospecting or extraction or production of mineral oil. Condition: The Government of India or any person authorized by it should have entered into an agreement with such an assessee and the same is duly approved by the parliament. Admissible expenditure: Allowance specified in the agreement in relation to- […]
Read MoreApplicability: The assessee has acquired any capital asset from abroad for the purpose of his business or profession. The purchase of capital asset is on credit or on deferred payment or on loan in foreign currency. Adjustment: If there is an increase or reduction in liability at the time of making payment- Towards the whole […]
Read MoreProcedure for computation of income of a firm having income chargeable u/s 44AD/AE/AF Step 1: Compute presumptive income u/s 44AD/AE/AF. Step 2: Deduct interest allowable u/s 40(b) Step 3: Book Profit = Step1 Less Step2 Step 4: Compute allowable remuneration u/s 40(b) Step 5: Income of the firm = Step 3 Less Step 4 Presumptive […]
Read MoreA. Nature of expenses Any sum payable by an employer by way of contribution to PF or superannuation fund or other fund for the welfare of the employees Tax, Duty, Cess or any fee payable Bonus or commission payable to employees Interest payable on loan or borrowing from a public financial institution or interest on […]
Read MoreIncome earned by a mutual concern from mutual activities is no taxable whereas income earned from non-mutual activities is chargeable to tax. Applicability: Applicable to trade or professional or similar associations, which do not distribute any part of income to its members. Exception: Association for the purpose of control, supervision, regulation or encouragement of the […]
Read More1. Applicability: Assessee carrying on any business where Total Sales or Turnover or Gross receipts exceeds Rs.60 lakhs. Assessee carrying on profession where gross receipts exceeds Rs.15 lakhs. Assessee carrying on business referred to u/s 44AD/AE/AF/BB/BBB and declaring lower income than prescribed 2. Audit: The audit shall be conducted by an accountant as explained u/s […]
Read More1. Applicability: Paid by Government or Indian Concern. Received by Non-resident (not being Company) or a Foreign Company. 2. Conditions: Agreement entered after 31-3-2003 The non-resident carries on business in India through a permanent establishment in India or performs professional services from a fixed place of profession. Maintain books of accounts u/s 44AA and gets […]
Read MoreApplicability: Business reorganization of a Co-operative bank. Allowable deduction: The deduction u/s 32, 35D, 35DD or 35DDA shall be allowed in accordance with the provisions of this section. Where transfer of the undertaking takes place before the expiry of the period specified u/s 35D or 35DD or 35DDA successor Co-operative bank is entitled to the […]
Read More1. Applicability: The amount of deductions available in respect of commission income earned by life insurance agents, UTI agents, post office/Government securities agents, agents of notified mutual funds are laid down. 2. Categories: These agents may be broadly divided into the following two groups: Commission earned is less than Rs.60,000: If the aggregate commission from […]
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