#tax deducted at source on salary

[pastel-charm-14]

how to create a budget: for beginners

budgeting doesn't have to be daunting, especially if you're just starting out. here are some simple steps to help you create a budget as a beginner:

track your expenses: start by tracking all of your expenses for a month. this includes everything from rent and groceries to dining out and entertainment. use a spreadsheet, budgeting app, or pen and paper to record your expenses and categorize them.

calculate your income: determine how much money you bring in each month after taxes and other deductions. this includes your salary, freelance income, side hustle earnings, and any other sources of income.

set financial goals: think about what you want to achieve with your money, whether it's saving for a vacation, paying off debt, or building an emergency fund. set specific, achievable goals that align with your values and priorities.

categorize your expenses: organize your expenses into categories such as housing, transportation, groceries, utilities, entertainment, and savings. this will help you see where your money is going and identify areas where you can cut back if needed.

create a spending plan: based on your income and expenses, create a spending plan that outlines how much you'll allocate to each category. aim to prioritize essentials like housing, food, and transportation, while also setting aside money for savings and debt repayment.

track your progress: regularly review your budget and track your spending to see how well you're sticking to your plan. make adjustments as needed to stay on track with your financial goals.

build an emergency fund: aim to set aside money each month in an emergency fund to cover unexpected expenses like car repairs, medical bills, or job loss. start with a small amount and gradually work your way up to having three to six months' worth of living expenses saved.

be flexible and patient: budgeting is a learning process, and it's okay to make mistakes along the way. be patient with yourself and stay flexible as you adjust to your new financial habits. remember, every step you take towards managing your money better is a step in the right direction.

[beesmygod]

Yeah I pretty much agree however I take a little issue with saying they are raking it in. Going off the numbers you used 12k time 5 is 60k, minus 45% is 33k. Thats one persons salary. Not a bad salary, but just one. Id bet that the 5 dollar tier probably brings in the most money, but even if we assume each tier brings in 1 salaries worth of money, how many tiers do they have? 5? 8? Youtube adds couldnt have been a major source of income for them if they were willing to pull videos off youtube. And this little fermi problem were doing here doesnt even touch on production costs. Again, I do agree with your points, but I think the boys were in a no win scenario. They were probably hurting for money, which is what motivated this. Its a shame some fans think they are being greedy when they probably just want to expand, while still paying their employees above market rate!

presumably the majority of their tax payments would be write offs or deductions because it's directly for the business. wait lol hold on my patreon math was fucked. its been a while since ive looked over the fees rates and shit. where did i get 30%. it's closer to 20.

i dont know when their patreon started, but its possible that they have the sweetheart deal that i do because i got in early. patreon fees range from 5% to 12% depending on which plan you choose. that's platform fees. then there's payment processor fees (2.9% + 0.30USD or 3.9% for outside the U.S.) and then a currency conversion fee (if applicable) and VAT (if applicable). closer to 20%. setting the record straight.

i think its unlikely that each tier brings in a salary's worth of income. im not sure i understand why they need an office in LA or large production costs considering my understanding is that most of what they do is talking to each other over a table.

im not sure why the conclusion is that youtube wasnt ever a source of income. it seems that it was (freakishly so, if its anything like other people at their scale) up until recently, due to complicated factors that i sincerely hope is heralding the end of advertising-based monetization.

it seems obvious to me that when money is tight, as would have been expected when let go from buzzfeed, you scale down and do a donation drive. instead of, you know, not throwing money into a guaranteed failure of an idea

if the audience feels like they're being nickeled and dimed its for a reason: they are

[jjtax]

Understanding Tax Refunds: JJ Tax made it easy

Handling tax refunds can seem overwhelming, but having a clear grasp of the process can make it straightforward. This newsletter aims to demystify tax refunds by covering key aspects: eligibility criteria, claiming procedures and tracking your refund status.

What is a Tax Refund?

A tax refund represents the amount returned to taxpayers who have overpaid their taxes over the fiscal year. This situation arises when the total tax deducted or paid exceeds the actual tax liability determined based on their income.

In India, tax payments are made through TDS (Tax Deducted at Source), advance tax, or self-assessment tax. When the total tax paid or deducted surpasses your tax liability as calculated in your Income Tax Return (ITR), the excess amount is refunded. This mechanism ensures taxpayers are reimbursed for any overpayments.

Who is Eligible for a Tax Refund?

Eligibility for a tax refund depends on various factors:

Excess Tax Payments If your TDS or advance tax payments exceed your tax liability, you’re eligible for a refund. This often applies to salaried employees, freelancers, and individuals with taxable investment income.

Claiming Deductions If you claim deductions under sections like 80C, 80D, etc., and these deductions lower your tax liability below the total tax paid, a refund may be due.

Filing an Income Tax Return Only those who file their Income Tax Return can claim a refund. The return must accurately reflect your income, deductions, and tax payments to establish if a refund is warranted.

Losses to Set Off If you have losses from previous years or the current year that can be carried forward and set off against current year income, you might be eligible for a refund if these losses reduce your tax liability.

Who is Not Eligible for a Tax Refund?

Certain situations or individuals may not qualify for a tax refund:

Income Below Taxable Threshold If your total income is below the taxable limit, a refund may not be applicable.

Salary Below Government Criteria Individuals earning below the minimum threshold specified by the Government of India may not qualify for a refund.

No Overpayment If your tax payments match your tax liability or you haven’t overpaid, a refund will not be available.

Non-Filers or Incorrect Filers Those who fail to file their Income Tax Return or file it incorrectly will not be eligible for a refund. Proper filing is essential for initiating the refund process.

Invalid Deductions Claims for deductions that do not meet tax regulations or lack valid documentation may result in a refund rejection.

Incorrect Bank Details If the bank account information provided in your ITR is incorrect or incomplete, the refund may not be processed.

How to Claim Your Tax Refund

Here’s a step-by-step guide to claiming your tax refund:

File Your Income Tax Return (ITR) Access the Income Tax Department’s e-filing portal. Choose the correct ITR form based on your income sources and eligibility. Accurately complete all required details, including income, deductions, and tax payments.

Verify Your ITR Verify your ITR using Aadhaar OTP, net banking, or by sending a signed ITR-V to the Centralised Processing Centre (CPC). Verification must be completed within 120 days of filing your ITR.

ITR Processing The Income Tax Department will process your return, assess your tax liability, and determine the refund amount. This process can take a few weeks to several months.

Refund Issuance After processing, the refund will be credited directly to your bank account. Ensure your bank details are accurate and up-to-date in your ITR.

Update Bank Account Details (if needed) If your bank details change after filing your ITR, promptly update them on the e-filing portal to ensure correct refund crediting.

How to Check Your ITR Refund Status for FY 2024-2025

To check your refund status, follow these steps:

Visit the Income Tax E-Filing Portal Go to the official Income Tax Department e-filing website.

Access the 'Refund Status' Section Navigate to the ‘Refund Status’ page, typically under the ‘Services’ tab or a similar heading.

Enter Required Details Input your PAN (Permanent Account Number) and the assessment year for your filed return.

Review the Status The portal will show the status of your refund, including whether it has been processed, approved, or if further action is needed.

Track Refund Processing Keep an eye on any updates or notifications from the Income Tax Department regarding your refund.

Understanding the tax refund process can simplify the experience. By following these steps and staying informed about your eligibility, you can make sure that you have a smooth process and quickly receipt of any excess tax payments. For expert guidance and personalized assistance, consult with JJ Tax. Visit our website or contact us today to get the support you need for all your tax-related queries.

JJ Tax

[seemabhatnagar]

The Case of the Missing TDS: A Story of Tax Evasion and Justice

Harshdip Singh Dhillon v. Union of India Through Commissioner of Income Tax TDS

WP©10828/2019

Before Delhi High Court

The bench of Hon’ble Mr. Justice Girish Kathpalia & Hon’ble Mt. Justice Rajiv Shakdher allowed the Writ and set aside the demand notice dated 04.02.2019.

The Respondent were directed to allow credit of TDS deducted by his employer for the Assessment Year 2013-14 to the petitioner vide judgment dt. 04.01.2024.

Background

The petitioner-Harshdip Singh Dhillon has prayed for setting aside demand letter dated 04.02.2019 qua outstanding tax liability pertaining to the Assessment Year 2013-14 and for allowing credit to the petitioner against the Tax Deducted at Source (TDS) for the assessment year 2013-14 by his employer.

Respondent entered appearance through counsel and filed counter affidavit.

Facts

The petitioner was employed with Tulip Telecom Ltd. as Associate Vice-President during the period November 2011 to May 2013 and he resigned from service on 07.05.2013 with effect from 09.05.2013.

For assessment years 2011-12 and 2012-13, the employer of the petitioner deducted Tax at Source (TAS) on the salaries paid to petitioner but the deducted tax pertaining to the assessment year 2012-13 was not deposited by the employer with the Income Tax authorities.

The employer of petitioner also failed to issue the requisite TDS certificate, so the petitioner informed the concerned Income Tax Officials about the default, but no action was taken.

The petitioner filed a petition seeking winding up of the employer company by way of Company Petition under Section 433(e)&(f) read with Section 434 of the Companies Act, in which liquidator was appointed.

Instead of granting credit of the TDS pertaining to the assessment year 2012-13, the respondent issued intimation dated 03.12.2015, thereby raising demand of Rs.15,77,240/- against the petitioner towards outstanding tax liability.

The petitioner made various representations to the respondent/revenue informing them about the defaults on the part of his employer. Ultimately, the respondent/revenue issued the impugned demand notice dated 04.02.2019, thereby again raising a tax demand of Rs.15,36,220/- against the petitioner. Since the respondent/revenue did not clarify the situation despite being approached by the petitioner, the present petition was filed.

Submission of the Respondent

The respondent/revenue in its counter affidavit did not dispute that the petitioner had received salary after deduction of tax.

The amount due to the petitioner towards salary for the months of December 2012, January 2013 and March 2013 was not actually paid to the petitioner by his employer, so the employer had no obligation to deduct tax at source and consequently the respondent/revenue is under no obligation to allow credit of the same.

Issue

Whether any recovery towards the outstanding tax demand can be effected against the petitioner in view of the admitted position that the tax payable on his salary was being regularly deducted at source by his employer who did not deposit the same with the authorities.

Observation of Court

Since the petitioner accepted salary after deduction of income tax at source, it is his employer who is liable to deposit the same with the revenue authorities and on this count, the petitioner cannot be burdened.

We find no substantial question of law to be considered by us in this appeal.

Seema Bhatnagar

[360accounting]

How to Make Sure You're Withholding and Reporting Your Taxes Correctly

Taxes are an inevitable part of life for most individuals and businesses. Whether you're a salaried employee, a freelancer, or a business owner, understanding how to withhold and report your taxes correctly is crucial to avoid potential legal troubles and financial headaches down the road. In this article, we will explore the key steps and considerations to ensure that you're handling your taxes in a responsible and compliant manner.

Know Your Tax Obligations

The first and most critical step in ensuring you're withholding and Outsource Management Reporting your taxes correctly is to understand your tax obligations. These obligations vary depending on your employment status and the type of income you earn. Here are some common categories of taxpayers:

1. Salaried Employees

If you're a salaried employee, your employer typically withholds income taxes from your paycheck based on your Form W-4, which you fill out when you start your job. It's essential to review and update your W-4 regularly to ensure that your withholding accurately reflects your current financial situation. Major life events like marriage, having children, or significant changes in your income should prompt you to revisit your W-4.

2. Freelancers and Self-Employed Individuals

Freelancers and self-employed individuals often have more complex tax obligations. You are responsible for estimating and paying your taxes quarterly using Form 1040-ES. Keep detailed records of your income and expenses, including receipts and invoices, to accurately report your earnings and deductions.

3. Small Business Owners

If you own a small business, your sales tax responsibilities extend beyond your personal income. You must separate your business and personal finances, keep meticulous records of all business transactions, and file the appropriate business tax returns. The structure of your business entity (e.g., sole proprietorship, partnership, corporation) will determine the specific tax forms you need to file.

4. Investors and Property Owners

Investors and property owners may have to report income from dividends, interest, capital gains, or rental properties. These income sources have their specific tax reporting requirements, and it's essential to understand and comply with them.

Keep Accurate Records

Regardless of your tax situation, maintaining accurate financial records is essential. Detailed records make it easier to report your income and deductions correctly, substantiate any claims you make on your tax return, and provide documentation in case of an audit. Here are some record-keeping tips:

Organize Your Documents: Create a system to store your financial documents, including receipts, invoices, bank statements, and tax forms. Consider using digital tools for easier record keeping.

Track Income and Expenses: Keep a ledger or use accounting software to record all income and expenses related to your financial activities. Categorize expenses correctly to maximize deductions and credits.

Retain Documents for Several Years: The IRS typically has a statute of limitations for auditing tax returns, which is generally three years. However, in some cases, it can extend to six years or indefinitely if fraud is suspected. To be safe, keep your tax records for at least seven years.

Understand Deductions and Credits

Deductions and credits can significantly reduce your tax liability. Deductions reduce your taxable income, while credits provide a dollar-for-dollar reduction of your tax bill. Familiarize yourself with common deductions and credits that may apply to your situation:

Standard Deduction vs. Itemized Deductions: Depending on your filing status and financial situation, you can choose between taking the standard deduction or itemizing your deductions. Itemizing requires more documentation but can result in greater tax savings.

Tax Credits: Explore available tax credits, such as the Earned Income Tax Credit (EITC), Child Tax Credit, and Education Credits. These credits can provide substantial savings, especially for low- to moderate-income individuals and families.

Business Expenses: If you're self-employed or a small business owner, be aware of deductible business expenses, including office supplies, travel expenses, and home office deductions.

Seek Professional Assistance

Tax laws are complex and subject to change. Seeking professional assistance from a certified tax professional or CPA (Certified Public Accountant) can be a wise investment. Tax professionals can help you:

Maximize Deductions: They are well-versed in the intricacies of tax law and can identify deductions and credits you might overlook.

Ensure Compliance: Tax professionals can ensure that you are complying with current tax laws and regulations, reducing the risk of costly errors or audits.

Provide Tax Planning: They can help you create a tax-efficient strategy to minimize your tax liability in the long term.

Represent You in Audits: If you face an audit, a tax professional can represent you and help navigate the process.

File Your Taxes on Time

Filing your taxes on time is crucial to avoid penalties and interest charges. The tax filing deadline for most individuals is April 15th. However, if you need more time, you can file for an extension, which typically gives you until October 15th to submit your return. Keep in mind that an extension to file is not an extension to pay any taxes owed, so pay as much as you can by the original deadline to minimize interest and penalties.

Consider Electronic Filing

Electronic filing (e-filing) is a secure and convenient way to submit your tax return to the IRS. It reduces the risk of errors and ensures faster processing and quicker refunds, if applicable. Many tax software programs offer e-filing options, making it easy for individuals and businesses to submit their returns electronically.

Stay Informed and Adapt

Tax laws can change from year to year, so staying informed is essential. Follow updates from the IRS and consult outsourcing sales tax services professionals or resources to understand how changes in tax laws may affect you. Be proactive in adapting your tax strategies to maximize savings and remain compliant with current regulations.

In conclusion, withholding and reporting your taxes correctly is a responsibility that should not be taken lightly. Understanding your tax obligations, keeping accurate records, leveraging deductions and credits, seeking professional assistance when needed, and filing on time are essential steps to ensure a smooth and compliant tax-filing experience. By following these guidelines, you can navigate the complexities of the outsourcing sales tax services system with confidence and peace of mind. Remember that taxes are a fundamental part of our society, and paying them correctly ensures that essential public services and infrastructure are funded for the benefit of all.

[simplysolvedagency]

Federal Corporate Tax in UAE – Published Official CT Legislation

In the wake of the public announcement regarding the benefits of Corporate Tax in UAE (CT) and the frequently asked questions (FAQs) on January 31, 2022, as well as the publication of the Public Consultation Document in April 2022, the Federal Decree-Law no. 47 of 2022 regarding the Taxation of Corporations and Businesses Corporate Tax Law has been released on December 9, 2022.

The UAE Corporate Tax Law is Federal Decree-Law No. 47 of 2022, issued on October 3, 2022, and becomes effective 15 days following its announcement in the Official Gazette. The Corporate Tax law applies to the profits of businesses for fiscal years that begin on or after June 1, 2023.

This article gives brief highlights of the new rules, which were it was announced by The Ministry of Finance (“MoF”) and the Federal Tax Authority (“FTA”). It is important to note that the new rules align with the Public Consultation Document.

More details are awaiting Cabinet and Tax Authority Decisions, and further guidelines are expected to be issued to finalize all Corporate Tax Legislation in areas such as the Free Zone and Director compensation guidelines. Following the publication of Corporate Tax Legislation, the MoF has confirmed that its introduction is scheduled for June 2023.

Scope of Corporate Tax in UAE

Corporate Tax in UAE applies to the adjusted net profit of the worldwide accounting of the company.

The Corporate Tax in UAE Regime has two rates of different types:

A tax-free rate applies to tax-deductible earnings up to a     certain amount that is to be set in a Cabinet Decision (the FAQs relate to the threshold of AED 375,000)

The tax standard for the statutory rate is 9 percent.

Confirming the minimal tax burden of just 9% aims to ensure that the UAE has a competitive tax rate worldwide.

The Corporate Tax Law is silent in Article 3 on aspects governing the global minimum of 15% tax rate. That applies to MNEs that fall within the definition of Pillar Two, which is part of BEPS Pillar 2. OECD BEPS project and applies to multinational corporations (MNCs) that have consolidated worldwide revenues exceeding EUR 750 million (c. the equivalent of AED 3.15 billion) at any time in two of the last four years. The FAQs address the possibility of adopting within the UAE of BEPS Pillar 2.

Individuals:

Individuals are affected by corporate taxation if they engage in business activities that are in line with an overall VAT concept for business activities. A Cabinet decision is anticipated regarding how to apply Corporate Tax in UAE to natural people. That means that Corporate Tax does not apply to a person’s salary and other earnings earned through employment. However, those earning income through part of a business venture would be covered by Corporate Tax in UAE.

Free Zones

A specific and defined regime (subject to a further Cabinet decision) is provided for all businesses in UAE-free zones. These zones:

Maintain sufficient substance and

Earn qualifying income.

What is a sufficient income will be defined by a Cabinet decision. According to the Public Consultation Document, this could refer to the requirement not to do Business with the mainland UAE. It is stated that Free Zone companies can choose to be taxed as a corporation at a rate of 9 percent.

A wide range of UAE rules for sourcing is in force and essential for businesses in the Free zone who want to satisfy the requirements of substance.

Withholding Tax

There will be no withholding tax on specific categories of UAE State Sourced income produced by a non-resident. In turn, foreign investors who don’t carry any businesses in the UAE, in general, will not be taxed within the UAE.

Foreign Entities

Foreign entities can be residents of the UAE if they are operated and controlled in the UAE. Foreign entities who aren’t considered to be residents in the UAE, however, may have a permanent establishment in the UAE. The Definitions of Permanent Establishment have been clarified as fixed PE and the term “agency PE. Further details on PEs will be subject to a Ministerial decision.

Exempt Entities

The UAE Corporate Tax Law retains the exemption for Investment Managers exempted from Public Consultation Documents. Rules apply to Partnerships, and Family Foundations can also use to increase tax transparency.

Government entities and government-controlled entities, as well as qualifying public benefit entities and investment funds, will be exempt from the UAE Corporate Tax Law. Extractive companies (upstream oil and gas companies) are exempt if they earn revenue from their extractive businesses.

Banking operations are affected by Corporate Tax in UAE (unless an institution falls located in a Free Zone and is eligible for the zero-interest rate).

Implementation Date

Article 69 of the UAE Corporate Tax Law provides that the Law will apply to Tax Periods that begin on or after June 1, 2023.

Businesses with a financial year that begins on January 1 are subject to CIT starting on January 1, 2024.

Financial records & Requirement to Maintain Audited Statements

Taxpayers must create and keep financial statements backed by all records and documents to support Corporate tax returns. The forms must be kept for a minimum of seven years.

This obligation will apply to every UAE entity (unless included in the Corporate Tax Group).

Every entity must create its financial statements. However, only some entities may be audited for financial information. A subsequent Cabinet Decision(s) will define the types of tax-paying individuals that must keep certified or audited accounting statements.

Small Business Tax Relief

Reliefs for small-scale businesses with revenues or gross income below the threshold of a specific amount are made. Qualifying businesses will be considered to have no tax-deductible income and must comply with a simplified set of requirements.

The threshold is determined by the revenue, not the earnings or taxable income. That is likely to be confirmed by an upcoming Cabinet Decision.

Deductible / Non-Deductible Expenses

The expenses incurred solely and exclusively for business reasons (and which are not to be capitalized) can be deducted.

Deductions are not allowed when expenses are incurred to earn tax-free income. In the case of any expenditure with a mixed purpose, removal is not permitted. Interest expense is deductible subject to a limit of 30% of EBITDA.

Financial assistance rules are in effect and prevent companies from getting funding to pay dividends or distribute profits.

Entertainment costs are set at 50 percent.

Donations not tax-deductible include those made to a non-Qualifying Public Benefit Entity and bribes, fines, and dividends.

Notably, the amounts withdrawn from the Business by any natural person who is a tax-deductible individual are not deductible.

Exempt Income & Relief

The following income categories will be exempted from Corporate Tax in UAE (Article 22 of the UAE Corporate Tax Law):

Capital Gains and Dividends, and other distributions of     profits from a Resident

Capital Gains such as dividends, capital gains, and other     distributions from Qualifying shareholding in a legal entity of a foreign     country that is subject to a hold duration of 12 months, the minimum     contribution of 5 percent, and at the minimum, subject to 9 percent CIT     for the source country. From which they originate.

The income from a foreign PE is subject to certain conditions     and the option to apply an exemption (rather than credit)

Earnings of an individual who is not a resident of the     country come from operating ships or aircraft involved in international     transport.

These transactions can be subjected to a specific reduction, i.e., effectively an exemption from taxation:

Restructurings and intragroup transactions that qualify as     qualifying Entities will be eligible when they hold 75 percent common     ownership.

Restructuring relief for businesses under specific conditions.

Transfer Pricing

Related party’s transactions should be carried out under the arm’s-length principle as outlined in Section 34 under the UAE Corporate Tax Law. In addition, it states that the five conventional OECD Transfer Pricing strategies are suitable to help support the arm’s length character of arrangements with related parties and allows the use of alternative methods when needed.

Article 34 provides that when a tax authority adjusts to a foreign country that affects the tax structure of a UAE entity, the application must be submitted to the FTA to request a similar adjustment that allows the UAE firm to be exempt against double taxation. Any adjustments that result from domestic transactions do not require an application.

The requirements for documentation on transfer pricing are covered in Article 55. UAE businesses will have to follow the rules for transfer pricing and the documentation requirements set by OECD Transfer Price Guidelines, which lead to three-tier reports, i.e., master file, local file, and country-by-country reporting. A reference to a controlled transaction disclosure form is provided (details of which are still to be determined).

It should be noted that no thresholds for the materiality of the product are provided. Separate legislation will be released later. Advance pricing plans will become made available via the normal clarification process currently in place.

UAE has introduced provisions requiring the payment and benefits given to persons connected to be tax-deductible in their market value. The same rules are followed in Article 34 of the UAE CIT Law.

Administration & Enforcement

The MoF is the sole authority for purposes of multilateral     bilateral or multilateral agreements as well as for the exchange of     information between countries.

The FTA is accountable for the corporate tax system’s     administration, collection, and application. Fines and penalties are governed     under a law known as the Tax Procedures Law.

Companies will require a VAT Registration UAE from     the FTA.

Companies that are required to comply with UAE Corporate Tax     are required to submit the Corporate Tax return online for every financial     year within nine months from the date of the end of that Financial Period.     (A financial period generally refers to any financial period that is 12     months long)

Free Zone companies that are subject to CIT at 0 percent CIT     must also submit a CT Return.

Foreign Tax Credits

Tax credits for foreign taxation are allowed for Corporate Tax in UAE due as per the Public Consultation Document. Businesses can claim less corporate tax owing and the sum of tax withholding effectively removed. There is no way to carry forward. There will be no credit for taxes paid to the individual Emirate.

Tax Grouping

Fiscal unity or Tax Group: UAE companies can form a “fiscal unity” or Tax Group to serve UAE purposes. The main requirement for a Tax Group is to comply with the (in)direct sharing requirement, which is 95 percent. Free zone entities subject to zero percent cannot join the Tax Group. Additionally, the parent (which may be intermediate) must be a UAE company.

Losses

By article 37 of the UAE Corporate Tax Law, losses can be carried forward for up 75 percent of taxable income. Losses can be transferred between members of the same group of corporations if those entities have 75 percent direct or indirectly owned. Losses cannot be transferred from exempt individuals or entities that are free zone. Loss offsets are also subject to the cap of 75 for businesses that roll forward losses.

Tax-deductible losses may be lost in the event of an ownership change (50 percent or more) if the new owner runs the same or similar Business. The criteria to be considered for this have been established.

Anti-Abuse

UAE will adopt an Anti-Abuse General Rule, also known as “GAAR.” The GAAR applies to cases where one of the primary reasons for a transaction is to gain an income tax benefit for the corporation that is incompatible with the purpose or intent of the UAE Corporate Tax Law.

The FTA will deal with and alter or counteract the transaction. The GAAR only applies to agreements or transactions entered after the UAE Corporate Tax Law is published in the UAE Official Gazette on October 10, 2022, in issue #737.

Summary

With the publication of the UAE Corporate Tax Law and confirmation of a 9% tax rate and a 9% rate, UAE has established a globally competitive rate for Corporate Tax in UAE and confirmed its intention to implement Corporate Tax in June 2023.

It is expected that additional information to be released over the coming months to be fleshed out and provide more excellent knowledge of its implementation. Nevertheless, several key elements are already confirmed, including introducing compulsory transfer pricing rules.

[riccocpa]

Why Is Accounting a Service Industry?

Accounting has evolved from a traditional bookkeeping role to a critical service industry that supports the financial health and stability of businesses worldwide. Whether you're running a large corporation or a small business, accounting services play a key role in ensuring compliance, financial clarity, and growth. But why is accounting considered a service industry? In this blog, we'll explore the key reasons and dive into important aspects of accounting services.

The Role of Accounting as a Service

Accounting is classified as a service industry because it provides essential financial management, analysis, and reporting services. These services are intangible, meaning they are not physical products but valuable expertise, advice, and support provided by professionals.

Some of the main aspects that make accounting a service industry include:

Personalized Solutions: Accounting services are tailored to meet the unique needs of each business or individual.

Professional Expertise: Businesses rely on the knowledge of accountants to interpret financial data, comply with tax regulations, and develop financial strategies.

Ongoing Support: Accountants provide continuous support through audits, tax preparation, and advisory services.

Compliance and Regulation: Businesses need accounting services to ensure they follow local, state, and federal financial regulations.

Key Accounting Services for Small Business

Small businesses rely on accounting services to maintain financial stability and growth. Here are some key accounting services small businesses often use:

Bookkeeping: Recording daily financial transactions.

Tax Preparation: Ensuring compliance with tax regulations and filing accurate returns.

Payroll Services: Managing employee salaries, benefits, and deductions.

Financial Reporting: Generating financial statements like balance sheets and income statements.

Budgeting and Forecasting: Helping businesses plan for future growth and expenses.

Lear More - Source Page

[taxblgs]

Don’t Miss Out! TDS Payment Deadlines for FY 2024–25 Explained

Filing TDS (Tax Deducted at Source) returns can be straightforward if you know which forms to use. Here’s a concise breakdown of the essential forms required for different types of transactions.

1. Form 24Q

Purpose: This form is crucial for employers as it reports TDS on salaries.

Key Point: Employers must submit this quarterly to reflect tax deductions from employee salaries.

2. Form 27Q

Purpose: Use this form to report TDS on payments made to non-residents.

Examples: This includes payments such as interest, dividends, and other sums payable to foreign entities or individuals (excluding companies).

3. Form 26Q

Purpose: This form covers TDS reporting in various scenarios, such as professional fees and interest payments.

Application: It's essential for a range of payments outside of salaries.

4. Challan-cum-Statement Forms

Form 26QB: For TDS under Section 194-IA (related to property sales).

Form 26QC: For TDS under Section 194-IB (applicable to lease payments).

Form 26QD: For TDS under Section 194M (payments made to contractors).

Timely Submission

Remember, these forms must be submitted within 30 days from the end of the month in which TDS was deducted. Ensuring timely filing can save you from penalties and maintain your compliance with tax regulations.

Conclusion

Understanding the specific forms for TDS filing is vital for smooth compliance. Choose the correct form based on your transactions to ensure hassle-free returns. Stay tuned for more updates on TDS regulations and best practices!

Read also: How to check your TDS Refund? , Books of account under section 44aa, Notice issue ? get expert help

[pagaar]

Why Your Business Needs Payroll Software: Benefits Beyond Just Paying Salaries

In today’s highly competitive business environment, efficiency is key to staying ahead. One area where businesses can streamline operations and improve accuracy is in payroll management. Traditionally, payroll has been a time-consuming, labor-intensive process, often involving manual calculations, paperwork, and compliance issues. But with the introduction of Payroll Software, companies now have a powerful tool that simplifies the entire payroll process, providing benefits that extend well beyond just paying salaries. Whether you are a small startup or a large corporation, implementing payroll software can enhance your business’s overall efficiency, ensure compliance, and even contribute to employee satisfaction. In this blog post, we will explore the numerous advantages of payroll software and why your business should consider investing in this essential tool.

What is Payroll Software?

Payroll Software is an automated system designed to manage, organize, and streamline the payroll process. It calculates employee salaries, deductions, taxes, bonuses, and other financial details. More than just a tool for salary payments, payroll software also handles tax compliance, record-keeping, and employee benefits management, reducing the need for manual intervention. By integrating payroll software into your business operations, you can automate tasks that were once time-consuming and prone to human error. But the benefits go much deeper than just paying employees on time.

Accuracy and Compliance

One of the most significant advantages of Payroll Software is the level of accuracy it brings to payroll calculations. Manually processing payroll can lead to errors in calculating overtime, taxes, and benefits, which can result in overpaying or underpaying employees. These errors can be costly, both in terms of financial penalties and employee dissatisfaction. Payroll software automates these calculations, ensuring that salaries, taxes, and deductions are processed correctly every time. It also updates in real-time to reflect any changes in tax laws or regulations, ensuring that your business remains compliant with local, state, and federal laws. This reduces the risk of incurring fines due to incorrect filings or late payments, making payroll software a crucial tool for compliance management.

Time and Cost Efficiency

Processing payroll manually can take hours, even days, especially for larger businesses with many employees. Payroll Software dramatically reduces the time spent on payroll processing by automating repetitive tasks such as calculating wages, generating payslips, and managing employee tax information. The software also allows for instant salary transfers, eliminating the need for cutting physical checks. This not only saves time but also reduces administrative costs. By automating these processes, your HR and finance teams can focus on more strategic initiatives, such as talent management or business growth, rather than being bogged down by administrative tasks.

Data Security and Confidentiality

Payroll information contains sensitive data such as employee salaries, social security numbers, and tax details. Keeping this information secure is a top priority for any business. Payroll Software offers advanced security features, including data encryption, access control, and secure cloud storage, to ensure that confidential employee information is protected from unauthorized access or cyber threats. Unlike manual payroll processes that involve physical paperwork, which can easily be lost or misplaced, payroll software securely stores all payroll-related data. Moreover, access to sensitive payroll information can be restricted to authorized personnel only, minimizing the risk of internal data breaches.

Enhanced Reporting and Analytics

Payroll is more than just a simple transaction; it’s a rich source of data that can provide valuable insights into your business operations. Payroll Software allows businesses to generate detailed reports and analytics on various payroll-related metrics, such as employee attendance, overtime, salary trends, and tax contributions. These insights can be used for budgeting, forecasting, and decision-making purposes. For instance, analyzing payroll data can help you identify patterns in overtime costs, enabling you to make informed decisions about workforce management. Additionally, detailed payroll reports can help streamline audits and make it easier to comply with government regulations.

Employee Self-Service Portal

One of the standout features of modern Payroll Software is the employee self-service portal. This portal allows employees to access their own payroll information, such as payslips, tax documents, and leave balances, without needing to go through the HR department. This not only improves transparency but also enhances employee satisfaction, as they can view and manage their payroll details on their own time. The self-service portal reduces the number of payroll-related queries to HR, freeing up time for your HR team to focus on other tasks.

Integration with Other Systems

Most Payroll Software solutions are designed to integrate seamlessly with other business systems, such as Human Resource Management Systems (HRMS), accounting software, and time-tracking tools. This integration ensures that employee data is consistently updated across all systems, reducing the risk of data discrepancies. For example, when an employee’s work hours are recorded through a time-tracking system, this data is automatically synced with the payroll software, ensuring that the correct wages are calculated. Similarly, any updates in employee information, such as changes in tax status or benefits, are reflected in both the HRMS and payroll systems. This level of integration improves overall operational efficiency, as it reduces the need for manual data entry and ensures that all systems are working with the most up-to-date information.

Scalability and Flexibility

As your business grows, so do your payroll needs. One of the great advantages of Payroll Software is its scalability. Whether you are adding new employees, expanding into new locations, or offering more complex compensation packages, payroll software can easily adapt to your changing needs. This scalability is particularly beneficial for businesses that are expanding globally, as many payroll software solutions can handle multi-currency payments and international tax compliance. Additionally, payroll software can accommodate different types of employee arrangements, such as full-time, part-time, and freelance workers, offering flexibility in payroll processing.

Tax Management and Compliance

Navigating tax regulations can be a headache for any business, especially when operating across different states or countries with varying tax laws. Payroll Software simplifies tax management by automatically calculating and deducting the appropriate taxes from employee wages based on their location and tax status. Additionally, payroll software generates accurate tax reports and ensures timely filing of payroll taxes to the appropriate authorities. This reduces the risk of errors that could lead to costly fines or audits. Some advanced payroll software solutions even offer built-in tax advisory services to help businesses stay compliant with ever-changing tax regulations.

Improved Employee Morale and Retention

Employees expect to be paid accurately and on time, and any issues with payroll can quickly erode trust and morale. Implementing Payroll Software ensures that employees are paid correctly and on schedule, reducing payroll-related issues and complaints. Moreover, payroll software offers transparency in compensation by providing detailed breakdowns of wages, taxes, and deductions, which can improve employee satisfaction. When employees feel confident that they are being compensated fairly and on time, they are more likely to remain engaged and loyal to the company.

Environmental Benefits

In a world where businesses are increasingly focused on sustainability, Payroll Software offers a way to reduce the use of paper and other physical resources. By digitizing payroll processes, companies can eliminate the need for printed payslips, paper checks, and other documents, contributing to a more environmentally friendly workplace. Additionally, the automation of payroll processes reduces the energy consumption associated with manual tasks such as printing, filing, and mailing. This not only benefits the environment but also helps businesses save on operational costs.

Conclusion

The benefits of Payroll Software go far beyond just paying salaries. From improving accuracy and compliance to enhancing employee morale and reducing administrative costs, payroll software is a vital tool for any business looking to optimize its payroll process. In today’s digital world, automating payroll tasks with payroll software is not just a convenience—it’s a necessity. By investing in a robust payroll software solution, your business can enjoy greater efficiency, reduced errors, enhanced security, and improved employee satisfaction. Whether you’re a small business or a global corporation, payroll software is an investment that will pay off in the long run.

[alishajoy059]

Major Compliance Requirements Under Income Tax India: A Complete Guide

Navigating India's complex income tax system requires strict adherence to various compliance requirements. This guide covers the essential compliance obligations for businesses and individuals, ensuring that taxpayers understand their responsibilities and avoid penalties.

1. Filing of Income Tax Return (ITR)

All taxpayers, including individuals, firms, and companies, are required to file their Income Tax Return (ITR) annually. Depending on the type of taxpayer, different forms apply:

ITR-1 (Sahaj): For individuals with income from salary, house property, and other sources.

ITR-2: For individuals and HUFs not having income from business or profession.

ITR-3: For individuals and HUFs with income from business or profession.

ITR-4 (Sugam): For those under the presumptive taxation scheme.

Returns are typically filed between July and September of the assessment year.

2. Advance Tax Payment

Those with significant income beyond their salary must pay advance tax in four installments throughout the year:

15% by June 15.

45% by September 15.

75% by December 15.

100% by March 15.

Failure to do so results in penalties under Sections 234B and 234C.

3. Tax Deduction at Source (TDS)

Employers, businesses, and other entities must deduct TDS for specific payments like salary, rent, and contractual payments. TDS should be deposited within the prescribed deadlines, with quarterly returns filed using:

Form 24Q for salary payments.

Form 26Q for non-salary payments.

Form 27Q for payments to non-residents.

4. Tax Audit (Section 44AB)

Businesses and professionals with turnover above specific thresholds must undergo a tax audit. This ensures that the accounts conform to tax laws and accurate tax liability is computed. The tax audit report is filed along with the income tax return.

5. Maintenance of Books of Accounts

Businesses and professionals are required to maintain detailed books of accounts if their turnover or income exceeds certain limits. Proper accounting helps ensure accurate tax calculations and compliance during audits.

6. Form 15CA/15CB for Foreign Payments

Payments to non-residents may require filing Form 15CA and 15CB. This ensures that any applicable tax is deducted before remitting payments overseas.

7. Furnishing of PAN

PAN is mandatory for numerous financial transactions, such as property purchases, mutual fund investments, and bank deposits. Failure to provide PAN may result in higher tax deductions or penalties.

8. Annual Information Return (AIR)

High-value transactions like property purchases, large deposits, or expensive credit card payments must be reported by financial institutions in the Annual Information Return (AIR). This helps the Income Tax Department detect unreported income.

9. Responding to Tax Notices

Taxpayers may receive notices for various reasons such as discrepancies in returns or scrutiny assessments. Timely responses to these notices are crucial to avoid penalties or legal action.

10. Transfer Pricing Compliance

Companies engaged in international transactions with related entities must comply with transfer pricing regulations to ensure transactions are at arm’s length. This includes filing Form 3CEB and maintaining documentation.

Conclusion

Being compliant with India’s income tax laws involves meeting various deadlines, maintaining accurate records, and understanding specific obligations. By staying informed and following these key requirements, taxpayers can avoid penalties and legal consequences.

[linneajospeh]

Navigating Financial Planning For Startups

Embarking on a startup journey is both exhilarating and daunting. Financial planning is crucial for steering your venture toward success. Here’s a comprehensive guide to help you navigate this essential aspect of startup management.

Understand Your Financial Needs

Start by assessing your initial capital requirements. This involves estimating costs for product development, marketing, staffing, legal fees, and operational expenses. Create a detailed budget outlining both one-time expenditures (like equipment or office space) and recurring costs (such as salaries and utilities). This will give you a clear picture of how much funding you need and when.

Develop a Robust Business Plan

A well-crafted business plan is more than just a roadmap; it’s a financial blueprint. It should include a comprehensive market analysis, competitive landscape, and detailed financial projections. Your financial projections should cover income statements, balance sheets, and cash flow statements for at least the next three to five years. These projections will guide your funding strategy and attract potential investors.

Choose the Right Funding Strategy

Decide on the best funding approach for your startup. Common options include:

Bootstrapping: Using your savings or revenue from initial sales. This method offers full control but may limit growth speed.

Angel Investors: High-net-worth individuals who provide capital in exchange for equity or convertible debt.

Venture Capitalists: Professional investors who offer substantial funding in exchange for a significant stake in your company.

Crowdfunding: Raising small amounts of money from a large number of people, often through platforms like Kickstarter or Indiegogo.

Each funding source comes with its own set of advantages and challenges. Consider your business model, growth potential, and the level of control you wish to maintain when making your decision.

Manage Cash Flow Effectively

Cash flow management is vital for startup sustainability. Ensure you have a system in place to monitor and manage cash inflows and outflows. Implementing a cash flow forecast can help you predict future cash needs and avoid shortfalls. Regularly review your cash flow statements and adjust your budget to address any discrepancies or unforeseen expenses.

Plan for Taxes

Understanding your tax obligations from the start is crucial. Familiarize yourself with tax laws relevant to your startup, including income tax, sales tax, and payroll tax. Consider consulting with a tax advisor to help you navigate these complexities and ensure compliance. Setting aside funds for taxes and leveraging tax credits and deductions can also improve your financial position.

Implement Strong Financial Controls

Establishing robust financial controls helps protect your assets and ensures accurate financial reporting. Implement internal controls such as regular audits, segregation of duties, and secure record-keeping practices. These measures help prevent fraud and financial mismanagement.

Monitor and Adjust Your Financial Plan

Financial planning is not a one-time task but an ongoing process. Regularly review your financial performance against your projections and adjust your plan as needed. Track key performance indicators (KPIs) such as revenue growth, profit margins, and customer acquisition costs. Stay agile and be prepared to pivot your strategy based on market conditions and business performance.

Seek Professional Guidance

Navigating the financial landscape of a startup can be complex. Consider working with financial professionals, such as accountants or financial advisors, who can provide expertise and support. Their insights can help you make informed decisions, avoid pitfalls, and optimize your financial strategy.

Conclusion

Effective financial planning is critical to the success and sustainability of your startup. By understanding your financial needs, developing a solid business plan, choosing the right funding strategy, managing cash flow, planning for taxes, implementing financial controls, monitoring performance, and seeking professional guidance from experts offering financial planning services in Fort Worth, TX, you can navigate the financial challenges and set your startup on a path to success.

[andalmartina]

Understanding the Role of Home Loan Without Form 16: A Comprehensive Guide

Form 16 is an important document that salaried employees in India receive from their employers, serving as proof of income and tax deductions. It is commonly used when applying for a home loan, as it provides financial institutions with a clear picture of the applicant's earnings and tax payments. However, not everyone has access to Form 16, especially self-employed individuals, freelancers, or those working in the unorganized sector. In such cases, many prospective homebuyers wonder if it's possible to secure a home loan without Form 16.

The good news is that obtaining a home loan without Form 16 is entirely possible. Lenders are increasingly accommodating alternative forms of documentation to assess a borrower’s financial stability. This article will explore how individuals can apply for a home loan without Form 16, what alternative documentation can be used, and the critical factors that lenders consider in the absence of this traditional proof of income.

Why Form 16 is Important in Home Loan Applications

Before diving into alternative methods, it's essential to understand why Form 16 is so commonly required in home loan applications. Form 16 serves two primary purposes for lenders:

Proof of Income: It gives a clear record of an applicant's salary, bonuses, and tax deductions. This helps lenders assess the borrower’s ability to repay the loan.

Verification of Tax Compliance: Form 16 shows that the borrower has paid the necessary income taxes, which assures the lender that the borrower is financially responsible.

However, not all potential homebuyers work in salaried positions or receive Form 16 from their employers. Many individuals who work as freelancers, consultants, or small business owners do not receive this document, making it necessary to look for alternative ways to demonstrate income and creditworthiness.

Securing a Home Loan Without Form 16

For those without Form 16, lenders will require alternative documentation to verify income and assess loan eligibility. While the process may be slightly different or more rigorous, home loans can still be secured through the following methods:

Income Tax Returns (ITR): Income tax returns are one of the most common alternatives to Form 16. They provide a comprehensive overview of an individual’s annual income, including any additional income sources like investments or business earnings. Self-employed individuals or freelancers can use their ITRs for the past two to three years as proof of income when applying for a home loan.

Bank Statements: Many lenders accept bank statements as a substitute for Form 16. The borrower’s bank statements for the past six months to a year can help lenders evaluate regular income inflows, business revenues, and financial stability. Consistent inflows and healthy bank balances improve the chances of loan approval.

Salary Slips: If you are a salaried employee but do not receive Form 16, salary slips can also serve as proof of income. Lenders typically require the last three to six months of salary slips to verify monthly earnings. Combined with bank statements, these can serve as a strong indicator of financial capability.

Business Financials and Profit & Loss Statements: Self-employed applicants, such as small business owners, can provide their business financials to demonstrate income. This may include audited balance sheets, profit and loss statements, and other financial documents. These records help lenders understand the stability of the business and the borrower’s ability to repay the loan.

CIBIL Score and Credit History: While income proof is crucial, a borrower’s CIBIL score (or credit score) plays a significant role in determining home loan eligibility. Lenders often place considerable weight on an applicant's credit history when Form 16 is unavailable. A strong credit score, typically above 750, shows that the borrower is financially responsible and likely to repay the loan on time. Timely repayment of existing loans and credit cards contributes to building a solid credit profile, which can compensate for the lack of Form 16.

Factors Lenders Consider When Form 16 is Unavailable

When assessing home loan applications without Form 16, lenders may evaluate applicants on the following factors:

Loan-to-Value (LTV) Ratio: The loan-to-value ratio is the percentage of the property value that the bank is willing to finance. In the absence of Form 16, lenders may offer a lower LTV ratio, meaning the borrower may need to contribute a larger down payment. This is because the lender might see a higher risk in offering a loan to someone without standard income documentation.

Interest Rates: Some lenders may charge a slightly higher interest rate when Form 16 is not provided, as they view the borrower as higher risk. However, demonstrating a solid financial standing through other documentation can help negotiate better rates.

Co-applicant or Guarantor: In cases where an individual cannot provide sufficient income proof, adding a co-applicant or guarantor with a steady income and Form 16 can increase the chances of loan approval.

Conclusion

While Form 16 is a valuable document in the home loan application process, it is by no means the only way to secure financing. Lenders are increasingly flexible and willing to accept alternative documentation, such as income tax returns, bank statements, and credit history. If you don’t have Form 16, it’s essential to maintain detailed financial records and a healthy credit score, which will help improve your chances of home loan approval. With the right preparation and a clear understanding of the required documents, obtaining a home loan without Form 16 is entirely achievable.

[werindialive]

PAC to Investigate SEBI Chief Madhabi Puri Buch Over Conflict of Interest Allegations 

Madhabi Puri Buch, the Chairperson of the Securities and Exchange Board of India (SEBI), is under scrutiny after allegations surfaced regarding a conflict of interest during her tenure. The Parliament's Public Accounts Committee (PAC) has initiated an investigation into claims that Buch continued to receive payments from ICICI Bank while holding her regulatory position at SEBI. These payments, which included pensions and Employee Stock Ownership Plans (ESOPs), have raised questions about whether Buch’s financial ties to the bank compromised her impartiality as the head of the market regulator. 

The Congress party has been particularly vocal, accusing Bush of receiving substantial sums from ICICI Bank, amounts that allegedly exceeded her salary during her time at the bank. These payments reportedly varied in amount and frequency, sparking concerns about transparency and Buch’s potential conflict of interest. Congress leader Pawan Khera has pointed out that the bank even paid Tax Deducted at Source (TDS) on her ESOPs, a benefit he claims might not be extended to all employees, further intensifying scrutiny. 

The PAC, chaired by K. C. Venugopal, has added this issue to its agenda following demands from several members during a meeting in late August. They are expected to summon Buch later this month, along with officials from the finance and corporate affairs ministries, to delve deeper into SEBI’s functioning and Bush's involvement with ICICI Bank. 

In addition to these allegations, Buch has been linked to the Adani Group controversy through a report by Hindenburg Research. The report claims that Buch and her husband owned stakes in companies tied to a money syphoning scandal involving the group. These allegations were strongly denied by Buch, who maintains that all required financial disclosures were made to SEBI during her tenure. 

Buch, who became the first woman to lead SEBI in 2022, has built a reputation as a reformist leader, introducing stricter regulatory frameworks for India’s financial markets. However, the controversy surrounding her financial ties to ICICI Bank has cast a shadow over her accomplishments. While her supporters argue that the payments were legitimate retirement benefits, the investigation by the PAC will determine whether any ethical lines were crossed. 

The outcome of this inquiry is likely to have significant implications for Buch’s career and SEBI’s reputation, as the committee seeks to ensure that regulatory bodies maintain integrity and independence.

For more politics news in Hindi, subscribe to our newsletter.

[cadeveshthakur]

TDS New Rates applicable from 1st Oct 2024|Interest calculation| Rectification/Correction statement  @cadeveshthakur   #tdsrates #newtdsrates #tds #incometax #cadeveshthakur Understanding Tds: Complete Guide To Tax Deduction At Source | Part 5 | Tds Basics Index 00:00 to 04:44 Introduction 04:45 to 05:39 192 TDS on salary payment/ TCS 206C 05:40 to 08:59 194DA Payment in respect of Life Insurance Policy 09:00 to 11:42 194D Payment of Insurance commission (in case of person other than company) 11:43 to 12:18 194F Repurchase of Units of Mutual Fund or UTI 12:19 to 14:31 194G commission and other payments on sale of lottery tickes 14:32 to 16:20 194H Commission and Brokerage 16:21 to 19:00 194-IB Payment of Rent by Certain Individual of HUF 19:01 to 21:05 194M Payment to contractor, commission agent, broker or professional by certain Individuals or HUF 21:06 to 25:09 194O Payment by e-commerce operator to e-commerce participant 25:10 to 29:25 194T Payment in the nature of salary, remuneration, commission, bonus or interest to partners of the firm 29:26 to 31:16 Interest on late payment of taxes   31:17 to 35:11 Time limit to file correction statement in respect to TDS/TCS statements   Interest on late payment of taxes   To bring parity on the interest rates under TDS/TCS   Interest on late payment of tax to the CG Section   i.e., tax has been deducted but not deposited 201(1A)                                                                                 Interest on late payment of tax to the CG 206C (7) i.e., tax has been collected but not deposited Time limit to file correction statement in respect to TDS/TCS statements     Section 200 - Duty of person deducting tax under the provisions of chapter XVII-B   200(3) - After paying the tax deducted, file TDS statement within prescribed time period   Proviso - deductor to file correction statement for rectification     Section 206C - Collection of TCS   Priviso to 206C (3) - person collecting tax after paying to the CG, furnish TCS statement within prescribed time period   206C (3B) - to file correction statement for rectification   🎥 Hello, lovely viewers! Welcome back to the @cadeveshthakur channel! 🎉 YouTube Channel: https://www.youtube.com/@cadeveshthakur TDS ki कक्षा: https://www.youtube.com/playlist?list=PL1o9nc8dxF1RqxMactdpX3oUU2bSw8-_R E-commerce sellers: https://www.youtube.com/playlist?list=PL1o9nc8dxF1ShUNXkAbYrAYj2Pile1Rim GST Knowledge Bank: https://www.youtube.com/playlist?list=PL1o9nc8dxF1RjdRrG4ZKXeJNed6ekhjoR Goods & Services Tax: https://www.youtube.com/playlist?list=PL1o9nc8dxF1SlBw2kSpZ9ay1jnEOkbDYN TDS: https://www.youtube.com/playlist?list=PL1o9nc8dxF1RXi2GaEckeXGmJy_FYOj9q Shorts for Accountants, Professionals, Finance, Students: https://www.youtube.com/playlist?list=PL1o9nc8dxF1TqoRTWoA1_l0kmtsbyNEB5 Accounting concept, Entries, Final Accounts preparation: https://www.youtube.com/playlist?list=PL1o9nc8dxF1T4GSjBPboXxBgFgkVZmDbQ Direct Taxation: https://www.youtube.com/playlist?list=PL1o9nc8dxF1S7BBNeuL3fzV_fDl9V88C2 🎥 Hello, lovely viewers! Welcome back to the @cadeveshthakur channel! 🎉 I’m thrilled to have you here, and I want to connect with you beyond YouTube. Let’s take our journey together to the next level! 😊 LinkedIn: https://www.linkedin.com/in/cadeveshthakur/ Instagram: https://www.instagram.com/cadeveshthakur/ Twitter: https://twitter.com/cadeveshthakur Facebook: https://www.facebook.com/cadevesh Whatsapp Group: https://whatsapp.com/channel/0029Va6GOVE9MF92Ylmo7e0L #cadeveshthakur https://cadeveshthakur.com/ Remember, our community is more than just a channel—it’s a family. Let’s connect, learn, and grow together! Hit that Subscribe button, tap the notification bell, and let’s spread financial wisdom one click at a time. 🚀 Remember, knowledge empowers us all! Let’s learn together and navigate the complex world of finance with curiosity and diligence. Thank you for being part of the cadeveshthakur community! 🙌 Disclaimer: The content shared on this channel is purely for educational purposes. As a Chartered Accountant, I strive to provide accurate and insightful information related to GST, income tax, accounting, and tax planning. However, please note that the content should not be considered as professional advice or a substitute for personalized consultation. TDS New Rates applicable from 1st Oct 2024|Interest calculation| Rectification/Correction statement

[accountsnextgen]

Common Tax Filing Mistakes and How to Avoid Them

Filing taxes can be a daunting task, even for the most organized individuals. Every year, countless Australians make errors on their tax returns, leading to delayed refunds, penalties, or even audits. To help you navigate tax season with confidence, here are some common tax filing mistakes and tips on how to avoid them.

1. Misreporting Income: One of the most frequent errors is failing to report all sources of income. This includes not only your primary salary but also any freelance work, investments, rental income, or government payments. Remember, the Australian Taxation Office (ATO) receives information from various sources, so any discrepancies between your reported income and what the ATO knows can trigger an audit. To avoid this mistake, keep meticulous records and cross-check all income sources before filing your return.

2. Overlooking Deductions: While it’s essential to claim all deductions you're entitled to, many people either over-claim or forget to claim legitimate deductions. Common overlooked deductions include work-related expenses, charitable donations, and home office costs. Conversely, over-claiming, such as inflating work-related expenses, can also land you in hot water. To avoid these pitfalls, ensure you have receipts for all claims and consult with a tax professional if you're unsure about eligibility.

3. Incorrect Bank Account Details: After putting in the hard work of filing your tax return, the last thing you want is for your refund to be delayed due to incorrect bank account details. This simple mistake can cause significant frustration and delays. Double-check your account number and BSB to ensure your refund is deposited correctly and on time.

4. Ignoring Important Deadlines: Missing the tax filing deadline can result in hefty fines and interest charges. Many taxpayers procrastinate, leading to last-minute stress and mistakes. Mark the tax filing deadline on your calendar and start preparing your documents well in advance. If you think you might miss the deadline, consider lodging an extension request or engaging a tax accountant to assist you.

Conclusion

Avoiding these common tax filing mistakes can save you time, money, and stress. By being thorough, organized, and proactive, you can ensure that your tax return is accurate and compliant with ATO regulations. For personalized advice and assistance, consider consulting with the tax experts at Accounts NextGen. Our experienced team is here to help you maximize your refund and minimize your risk of errors.

[taxblgs]

TDS and TCS Under GST: A Comprehensive Guide for Businesses

The Goods and Services Tax (GST) regime in India introduces several mechanisms for efficient tax collection and compliance. Among these, Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) are vital components designed to enhance tax administration. In this guide, we will explore the nuances of TDS and TCS under GST, highlighting their differences, benefits, and the process of compliance to help your business navigate these requirements smoothly.

What is TDS Under GST?

Tax Deducted at Source (TDS) under GST is a mechanism where tax is deducted at the point of payment for certain types of transactions. The responsibility for TDS falls on entities making specified payments such as salaries, commissions, professional fees, and rent.

Rate of TDS: The standard TDS rate is 2%, comprising 1% CGST and 1% SGST, or 2% IGST for inter-state transactions.

Who Must Deduct TDS?: Government departments, local authorities, and certain public sector undertakings are mandated to deduct TDS.

What is TCS Under GST?

Tax Collected at Source (TCS) is collected by the seller at the point of sale for specific transactions. It primarily applies to e-commerce operators and sellers of goods like alcohol, scrap, and minerals.

Rate of TCS: The TCS rate varies from 0.1% to 5%, depending on the nature of the goods or services sold.

Who Must Collect TCS?: E-commerce platforms and sellers of specified goods are responsible for TCS.

Read more