MANY OF THE ‘MIDDLCE CLASS’ INDIANS HAVE THE HABIT OF SAVINGS TO MEET THEIR, SUCCESSORS’ FUTURE NEEDS, SINCE WE ARE LIVING UNDER UNSECURE FUTURE CIRCUMSTANCES. THEY WOULD LIKE TO KEEP THEIR SAVINGS IN LIQUID FORM OF CASH, RISK FREE DEPOSITS WITH POSTAL DEPARTMENT, BANKS, FINANCIAL INSITUTIONS SO THAT THEY CAN MEET THEIR NEEDS ON TIME […]
Read MoreTDS on Income offered only will eligible for credit As for as TDS is concerned, the credit will be available only in respect of income offered for assessment. Thus in the case of your client if cash method is adopted credit for TDS will be available in respect of Rs. 36 lacs and on the […]
Read MoreDescription: Bank of Maharashtra v.ITO[2010] 6 ITR [Ahd-Trib] 824 The board has clearly clarified the position and the facts are exactly identical In the present case that the interest credited as per notional entry was only provisioning in the accounts for the purposes of macro- monitoring and it was not actual credit or payment of […]
Read MoreIn ITO v. Shankar [2010] 127 ITD 316{Chennai] Description: Deduction of tax at source was mandatory under section 194C in every case where the payment to a sub-contractor exceed Rs.50,000 in aggregate for a given year. Source: 1. www.tpcc.in 2. The Tax Referencer .Volume117. Issue No.2 10 January2011 Page No.15 Our comment: If a payments […]
Read MoreDescription: In case where service were rendered outside India and there was no PE, The same was not assessable to tax in India. Even under the Act, by virtue of Carborandum Co 108 ITR 335 (sc), Circular No.17 of 1953 dated 17-7-1953 & Circular No.786 dated 7-2-2000, commission paid to agents for services rendered outside […]
Read MoreDescription: Whether contracts of firm executed by partners to be taken as sub-contracts for attracting application of section 194C? The provisions of section 194C will not apply for the payments received and passed on to the partners. Hence, provisions of section 40(a)(ia) will not apply. The commission earned by the firm forms part of its […]
Read MoreDescription: Where the tribunal has recorded a categorical finding fact that there was no material on recorded to prove any written or oral agreement between the assessee and recipients of goods for transportation and that such payment of freight had not been shown to have been made in purchase to a contract of transportation of […]
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The excess paid, credited Income tax will be refunded to the tax payer by the Income Tax Department. The refund arises when: Advance Tax: Excess Advance Tax paid by the tax payer voluntarily. TDS: The deductor deducts the tax when he pays the consideration to the Tax payer. TCS: When the deductor collects Tax from […]
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The Department Is More And More Depending Upon Tcs, And Tds To Collect The Taxes In Advance From The Duductors, Payers Of Income. This Step Will Reduce Tax Avoidance By The Income Earners. Also This Step Is Acting As Safety Against Loss Of Revenue. Tds, Tcs Constitutes More Than 40%Of Total Tax Collections Of The […]
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