#tax deduction at source in income tax

[infinityservicesblog]

Section 194O of the Income Tax Act

Section 194O of the Income-tax Act, 1961 deals with Tax Deducted at Source (TDS) on payments made to e-commerce participants. It was introduced in the Union Budget 2020 and came into effect on 1st October 2020.

Here's a summary of the key points of Section 194O:

Who is responsible for deducting TDS? 

 E-commerce operators like Amazon, Flipkart, Meesho, etc., are responsible for deducting TDS at the rate of 1% on the gross amount of sales made through their platform by sellers (e-commerce participants).

What transactions are covered? 

The TDS applies to sales of goods, provision of services, or both facilitated through the e-commerce platform. This includes professional and technical services as well.

When is the TDS deducted? 

The TDS is deducted at the time of crediting the seller's account, irrespective of the mode of payment, or at the time of making payment to the seller, whichever is earlier.

Threshold limit: 

There is no threshold limit for e-commerce companies. They are required to deduct TDS on all transactions facilitated through their platform. However, for individual/HUF e-commerce participants, no TDS is deducted if the gross amount of sales during the previous year does not exceed Rs 5 lakh and they have furnished their PAN or Aadhaar.

Purpose of Section 194O: 

This section aims to improve tax compliance by bringing e-commerce participants under the TDS net. Many small sellers operating on e-commerce platforms often miss filing their income tax returns. By collecting TDS at the source, the government ensures that some tax is collected upfront even if the seller doesn't file their returns.

I hope this summary is helpful. If you have any further questions about Section 194O or its implications, feel free to ask!

Gaurav Sharma

8878797882

Infinityservices2018@gmail.com

Infinityservices2018.com

[cadeveshthakur]

Follow the CA Devesh Thakur channel on WhatsApp: https://whatsapp.com/channel/0029Va6GOVE9MF92Ylmo7e0L

[edunextgenindia]

4 lecture income tax act I income tax on salary I how to save income tax...

[tomorrowusa]

Good economic news doesn't always win votes. The electorate is not made up of doctoral candidates who carefully weigh evidence from credible sources and then vote accordingly after pondering the options. 🤣

The reptilian brain plays a greater role in elections than many liberals are comfortable admitting. Don't just say how wonderful your candidate is, get voters to understand that the other candidate is an utter disaster – and don't let up with that message. Repetition is your best friend in political campaigns.

In 2024, what Democrats need to do is remind voters that...

Trump tanked the economy with his horrifically botched response to the onset of the COVID-19 pandemic. Not only did hundreds of thousands of Americans die because of Trump's incompetence, but the US economy went into recession.

The Trump tax breaks for the filthy rich widened the income gap in the US.

Trump eliminated a number of mortgage interest tax deductions and lowered the amount of state and local taxes which people could deduct from federal income tax. This is Trump’s Trillion-Dollar Hit to Homeowners.

Trump used regulations to weaken labor unions to keep wages low.

Trump tried to repeal Obamacare and replace it with nothing.

In short, Trump tried to screw anybody who isn't filthy rich. Several links give more details on how Trump hurt middle class and low income voters...

How Trump Took the Middle Class to the Cleaners

Trump’s Economy: 7 Broken Promises to Working Americans

Two years after Trump tax cuts, middle-class Americans are falling behind

12 Ways the Trump Administration Has Deepened Inequality

And Trump wants to do it all over in a second term...

Trump Revives Plan to Dismantle Obamacare if Elected in 2024

What happens cyclically is that Republicans screw up the economy, lose office as a result, and then complain that Democrats aren't cleaning up the GOP mess fast enough. And we're still cleaning up much of Trump's mess.

[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.

[financeprincess]

advice for people just wanting to be educated in the finance field?

I would start dipping your toe in the finance sections of reputable sources (i.e. Financial Times, Wall Street Journal, Harvard business review, MarketWatch, etc.) and start researching terms and companies you don’t know. I treat myself with a Bloomberg Businessweek subscription sent to my home because I love their design team and it’s actually very informative. You can also sign up for the Morning Brew finance newsletter, it’s free and I read it every morning to get a brief overview of what’s going on. Even just being informed of current events is helpful in learning about finance because all major events effect the market and businesses. Look at stock performance charts. Learn about different types of investment accounts and different kinds of investments. There are a lot of really great courses on platforms like Coursera as well, I just took one called Private Equity & Venture Capital from Università Bocconi. Flirt with equity crowdfunding platforms (I accidentally made a lot of money on one of these as an early investor with less than $1k). If you live in the US start looking into personal and business tax deductions. Even credit card rewards can actually get you a lot, I’ve gotten free hotel rooms and free flights from money I would have spent anyway. Investments also mean more than just individual stocks: could be index funds, mutual funds, bonds, CDs, REITs, forex, precious gems & metals, real estate, even some designer goods retain and increase in value if bought strategically and handled correctly. Even just having the fundamentals of a maxed out retirement account (a Roth IRA or a backdoor Roth IRA is my personal preference) full of index funds and mutual funds that are balanced well, a fully funded emergency fund of 3-12 months personal expenses, any debt above 7% interest paid off, and sinking funds for various expenses automatically set up in a high yield savings account will have you very well off. When you have a foundation like that you have the breathing room to change careers, take time off, buy investment properties, invest in volatile but potentially profitable ventures, start businesses, and set up additional streams of income.

[ingek73]

I thought I knew royal greed – but King Charles profiting from the assets of the dead is a disgusting new low

For decades, parliament has been far too lenient about the royal family’s finances. This avaricious practice needs to end

Norman Baker Fri 24 Nov 2023 13.08 CET

Over the centuries, the royals have continually bleated poverty and demanded more money from the taxpayer.’ Photograph: Reuters

As a royal author, I have come across plentiful examples of royal greed. It is standard practice for the royals to seek to minimise their personal expenditure while maximising their income from other sources, normally the public purse.

But the revelation that King Charles III’s personal slush fund, the Duchy of Lancaster, is having its already bulging coffers augmented by the estates of people who die in parts of England with historical links to the royal estate plumbs new depths of disgusting avarice.

Like many so-called traditions, the feudal hangover that is bona vacantia should have been consigned to the dustbin of history centuries ago, but it has been all too tempting for successive royals to preserve this royal fruit machine that pays out again and again. Over the past 10 years, it has collected more than £60m in the funds.

Under this system, the Duchy of Cornwall, owned by Prince William, can claim the assets of people who die in Cornwall intestate – without a will – if no relatives can be found. Charles’s��Duchy of Lancaster does the same when their last known residence is within what was historically known as Lancashire county palatine.

Edward VIII found cash from those who died intestate in the boundaries of the duchy was sitting in an account in case claims arose against it. He simply stole a million pounds from it, leaving almost nothing in that kitty.

George VI did very well out of the loyal servicemen who died serving their country in the second world war, who originated from within the confines of the duchy and had no will. “For king and country” took on a whole new meaning.

As disquiet about the practice of bona vacantia grew after the war, the royals announced that moneys collected would henceforth be given to charity – after processing costs had been deducted, of course. In the case of the Duchy of Lancaster, this came to about 4% compared to 15% for the Duchy of Cornwall.

Yet a Guardian investigation now reveals that matters are even worse than we have been led to believe. Put bluntly, we have been lied to. Monies we all thought were going to charity have instead been used to improve properties owned by the duchy, increasing the income stream that flows from them into Charles’s pockets.

We have the most expensive monarchy in Europe by far in terms of state support, and one that benefits from unique tax treatment available to nobody else. No inheritance tax is paid. The so-called private estates of the duchies of Cornwall and Lancaster are not private enough to pay corporation tax or capital gains tax. Even income tax is only paid voluntarily – if it all – no receipts have ever been made public.

The civil list, which in 2011 gave the royals £7.9m a year, was replaced, after palace lobbying, with the sovereign grant, which 12 years later is up to £86m a year. Over the centuries, the royals have continually bleated poverty and demanded more money from the taxpayer, while at the same time refusing point blank to reveal the extent of their accumulated wealth.

They even refused to provide this information to the last government that seriously tried to dig into this – the Labour government of the mid-1970s, with the then home secretary Roy Jenkins pursuing the matter.

Back in Queen Victoria’s reign, the government was told she was desperately short of cash to undertake her duties so a big uplift was provided. She was not short of cash, and the money provided by the then government was instead used to buy Sandringham and Balmoral. I recognise that behaviour from my time in parliament. It’s called fiddling your expenses.

My calculations suggest that the king is worth as much as £2bn and probably more. The bulk of this has come from excessive generosity on behalf of the taxpayer, either through direct handouts or indirectly through unique tax exemptions. But antiquated and indefensible arrangements such as bona vacantia have played their part too.

Parliament, which over the decades has been far too deferential, far too trusting, far too easy going, needs to get a grip. The disgusting existence of royal windfalls from dead people should be ended forthwith. The duchies of Cornwall and Lancaster should be transferred immediately to the publicly owned crown estate; they only escaped from being transferred along with other royal lands in 1760 because they were then deemed worthless. Plainly, this is no longer the case. The public accounts committee should begin a thorough investigation into the funding and wealth of the royals.

Monarchists should worry. Opening the doors on royal finances and practices will reveal a terrible stench.

in regards to:

[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

[dontmeantobepoliticalbut]

A proposal to add new tax brackets and increase rates for wealthier Mainers was vetoed by Gov. Janet Mills on Friday.

In her veto message, Mills listed multiple reasons for her veto. Because the bill started as a concept draft — a document without substantive text that is often used as a placeholder before the full bill language is drafted — she said the legislative process didn’t have enough transparency or opportunity for public input. She also said the bill wouldn’t provide meaningful relief for low-income taxpayers and fears it would have unintended consequences for the state budget.

The bill, LD 1231, passed in the Maine House of Representatives 88-57 and in the Senate 22-12. The proposal would have increased the income threshold for current tax brackets starting in 2025 and created three new income brackets with higher tax rates for wealthier residents.

It was put forward by Rep. Meldon Carmichael (R-Greenbush) because he said he wanted to specifically help out middle class workers, who he described during the House debate as a “segment of hardworking Maine families that have been continually left behind economically” because of circumstances out of their control.

Carmichael quoted the governor, who in her annual address said “the state of the state is strong,” but, he added, “the state of hard working families is not.”

Under LD 1231, most earners would have seen the same or lower tax rate while those at the top of the pay scale would contribute a greater portion of their income.

Currently, any single individual making more than $58,050 is taxed $3,686 plus 7.15% of excess over that amount. Couples filing jointly making $116,100 or more are taxed $7,371 plus 7.15% of excess over $116,100.

Under the proposal, there would be three new brackets for individuals making $144,500 and more that would be taxed at progressively higher rates.

Mills, a Democrat, said she shares the “worthy goal” of reducing the tax burden for lower-income people, but she said this bill wouldn’t actually achieve that because of the state’s many exemptions, deductions and credits that more people have become eligible for in recent years.

“The cumulative impact of these changes is that low-income individuals in Maine have little or no tax liability,” Mills said in her veto message. “As a result, this bill would have little or no impact on the taxpayers it is intended to benefit.”

In a statement following the veto, Garrett Martin, president and CEO at the Maine Center for Economic Policy, also said there wouldn’t have been much benefit to low-income taxpayers, “but asking the wealthy to pay more was a step in the right direction.”

“When multimillionaires pay the same income tax rate as a Mainer making just $62,000 a year, it should be obvious that change is needed,” Martin said. “The Maine Legislature should continue to work towards a fairer tax code, and Governor Mills should join the bipartisan effort to do so.”

However, Mills said she fears the bill would have had unintended consequences for the state budget by increasing the reliance on less than one percent of taxpayers. She said those taxpayers’ incomes are “disproportionately composed of highly volatile sources such as capital gains and business income.”

“At a time when we are already keeping a close eye on Maine’s budget because of increased spending and flattening revenues, there is concern from budgeting officials that relying on more volatile forms of revenue may inadvertently jeopardize the State of Maine’s fiscal standing,” she said.

[mariacallous]

In a famous conversation, the author F. Scott Fitzgerald is credited with saying that “the rich are very different than you and me,” to which Ernest Hemingway replied “Yes, they have more money.”

Our work highlights another key difference: the most affluent Americans not only have more income; they receive it—and pay taxes on it—in vastly different ways than the rest of us.

For policy makers concerned about long-term fiscal shortfalls and high levels of economic inequality, our work reinforces the notion that raising the tax burden on the wealthy requires a special focus on how those households gain wealth and skirt taxes. We highlight four ways to effectively raise taxes on the wealthiest Americans.

How Americans make money

Most Americans receive almost all their income through wages and retirement income (pensions, 401(k)s, social security, and individual retirement accounts). The most recent available IRS data (2014) shows that wages and retirement income made up 94% of adjusted gross income (AGI) for households in the bottom 80% of the income distribution. Even for households in the 98th to 99th income percentile, wages and retirement income accounted for 71% of AGI.

At the very, very top, though, these sources are less important, accounting for just 15% and 7% of the income of the top 0.01% and the top 0.001% of households, respectively. These households  receive most of their income from investments (interest, dividends, and especially realized capital gains) and businesses (including sole proprietorships, partnerships, and S corporations). These items constituted 82% of income for the top 0.01% and 88% for the top 0.001%, compared to just 7% for the bottom 80% of households.

These patterns are robust over time and data sources. And in practice, the tilt toward capital income at the top is even larger than these figures suggest because AGI does not include the massive unrealized capital gains and very sizable inheritances that accrue to many affluent households.

How that money gets taxed

Wages face heavier taxation than capital income, even though wages go mainly to low- and middle-income households and capital income goes mainly to high-income households. Most federal revenues are collected from wages. Payroll taxes account for 33% of federal revenues and are imposed solely on wages. Income taxes account for another 52% of federal revenues, and studies show that the share of income tax revenues that derive from capital income is quite small. These studies were performed before the enactment of the Tax Cuts and Jobs Act of 2017, which further diminished the taxation of capital via special deductions for business and cuts in the top income tax rate, the corporate tax rate, and the estate tax.

Moreover, the highest effective marginal income tax rates on wages exceed 40%, whereas much business income is taxed at a top rate below 30%, dividends and realized capital gains are taxed below 25%, and unrealized gains are not taxed until they are sold. As a result, the tax share of income paid by the very highest-income households is often lower than for middle-class households.

How to fix it

There are many ways to raise taxes on the wealthy without  harming economic growth.  Here we highlight four options.

Capital gains reform may be necessary if policymakers want to increase tax burdens on wealthy households. The simplest policy here would be the elimination of the step-up basis at death. Heirs would pay capital gains taxes on the taxable basis of the decedent who acquired the asset, instead of the basis of the asset at death. In 2020, the Joint Committee on Taxation (JCT) staff calculated that terminating step-up that year would raise $104.9 billion over the next 10 years. Alternatively, capital gains could be taxed at death, and treated as though the decedent had sold that asset. Batchelder and Kamin (2019) used 2016 JCT predictions to estimate that taxing accrued gains at death and raising the capital gains rate to 28% would raise $290 billion between 2021 and 2030.

Taxing intergenerational wealth transfers can make taxes more progressive and offset disparities in opportunity across income classes. Currently, less than 0.1% of all estates are subject to the estate tax, down from 7.65% in 1977.  As baby boomers die, they are set to pass down $72.6 trillion in assets to heirs. Taxing these transfers more heavily would reduce inequality, increase opportunity, and raise revenues.  The estate tax could be converted to an inheritance tax on recipients, with a reduced threshold of a million dollars for all gifts and inheritances (compared to the current threshold of almost $13 million) coupled with a tax rate that would equal the heir’s income tax rate plus some amount. This combined tax rate would integrate income and estate taxes. Since the heirs to wealthy estates are already usually in high tax brackets, the distributional impact would be similar to (though slightly less progressive than) the estate tax. This change has the political advantage of focusing on wealthy heirs, who were lucky enough to be the beneficiaries of wealthy relatives or friends, instead of targeting those who accumulated wealth.

Eliminating the Section 199A deduction for qualified business incomes would target another key component of income for the wealthy.  The Tax Cuts and Jobs Act (TCJA) reduced the top income tax rate from 39.6% to 37%, and the deduction brought the effective rate on qualified business income down to 29.6%. In 2020, the Tax Policy Center (TPC) estimated that the deduction would lower federal revenues by $417 billion over the following 10 years. The deduction is inequitable: the TPC estimated that 55% of the direct tax benefits in 2019 would go to families in the top 1% of the income distribution and 26% of the benefits would go to the top 0.1%. Although the deduction was intended to increase employment and investment, the incentives for both are actually quite low given the complicated structure and non-targeted nature of the deduction.  Additionally, its complexity creates an opening for business owners to reduce their taxes by re-arranging and relabeling their investments and expenses, a practice which is further incentivized  by the increased difference between the effective tax rates on wages and business income.

A final option would be to create a value added tax (VAT) coupled with a rebate or Universal Basic Income (UBI). This would leave the net tax burden smaller or unchanged for most households but would impose higher tax burdens on the wealthy. Currently, wealthy households can finance extravagant levels of consumption without even paying capital gains taxes on the accruing wealth by following a “buy, borrow, die” strategy, in which they finance current spending with loans and use their wealth as collateral. By avoiding realizing their capital gains, they can avoid taxes at the same time they enjoy a luxurious lifestyle. A VAT would tax consumption and hence would force the affluent to pay taxes on their lifestyle, even if they did not pay much in income tax. A VAT of 10%, combined with a UBI payment of the federal poverty line times the VAT rate times two, would raise about $2.9 trillion over 10 years. The Tax Policy Center estimates that this system  would be extremely progressive: after-tax income for the lowest quintile would increase by 17%, the tax burden for middle-income people wouldn’t change, and incomes for the top 1% of households would be reduced by 5.5%. The VAT would also function as a 10% tax on existing wealth, since future consumption can only be financed with existing wealth or future wages.

Conclusion

Each of these proposals would undoubtedly face significant opposition from those who benefit from the challenge of taxing affluent households: the wealthy themselves. However, in order to face the dual concerns of ever-increasing national debt and rapidly growing inequality, it is a challenge that we must take on before it’s too late.

[pommunist]

(Twitchtracker anon back again)

Im not really super interested in finances or statistics as a job lol, im just a nerd who likes to dig through analytics sometimes. Pretty much my whole essay length ask was made by taking twitchtracker numbers and putting them into a spreadsheet (So i didnt have to do averages manually), with some manual counting by hand for things like the number of streams.

(Also something i realized i missed when i reread my ask, the count of minecraft streams actually starts on the first day of qsmp, not the first day of march 2023 like everything else. Not super important but i wanted to make that one thing clear.)

Yeah i definitely agree that quackity's money doesnt necessarily equal qstudios money. However i also don't think a lot of the people who try and use the idea that "Quackity couldnt afford to pay that many employees" think about things like that, they most likely see quackity as the face and sole person behind his company (it is named after him after all), because you don't ever see them saying "Quackity studios cant afford to pay that many employees".

I do think that it's possible that for quite a while quackity's streams and videos were seemingly the only income stream for the company, with qsmp merch sales only really starting to be available and pushed more recently, and as far as i remember i don't think any qsmp events had sponsors or advertisers involved (I could be wrong here though, im not sure as I don't keep up with all the streams). Again im not personally a quackity viewer myself, so im not sure if he had any personal (quackity branded) merch sales outside qsmp before the start (early 2023, i know he had some back during dsmp but that's a while ago now) or during the qsmp. But from what i understand, he seemingly was doing a lot of the funding of the qsmp on his own.

Of course i don't think all his money was being directly funnelled to qstudios/qsmp, he still needs to pay for housing and utilities and food like the rest of us, as well as his travel to conventions/to meet friends (not saying he shouldn't travel, networking is an important part of any job). But i personally do believe he was basically the sole entity funding qstudios otherwise, unless there's some other income source we aren't aware of.

In regards to twitch monetization, the majority of streamers have a 50/50 split with twitch. Some bigger streamers having a 70/30 split, following the changes in late 2022 this split only applied to the first $100k earned, with everything after that going to 50/50, with that cap then being removed january 24th 2024. There's some stuff with the partner plus program that I honestly don't really understand because again, im not a streamer myself. I have no idea what split quackity has, though he is a partner. (Streamer/twitch for all split numbers btw.)

For how the payouts work, Via Twitch Affiliate Program FAQ: "As explained in the Monetized Streamer Agreement, there are certain costs, taxes, and fees that must be accounted for before you receive subscription revenue. Before the 50/50 split between you and Twitch takes place, deductions are made from the full price of a subscription, including taxes, payment processing fees, bank fees, currency conversion fees, etc. After the split takes place, we still account for required tax withholding, which is reflected in the payout you ultimately see on your dashboard. Twitch does not set or control the rates or fees, and they vary from region to region and by each subscriber’s payment method." Presumably this also applies to the partner program and the other splits.

Subs themselves are $5.99 USD, with other (usually lower when converted to USD) prices depending on the region of the subscriber. There's also ad revenue but I have no idea if quackity runs that many ads (or even runs them at all) seeing as his streams are usually 1.5-3 hours long (with the ads incentive program theres a 55/45 split of ad rev for a minimum of 3 minutes of ads per hour of stream, 30/70 otherwise), and again, not a viewer myself (I barely even watch streams live for streamers i do watch). And there's also bits, but those are a whole mess themselves so im not going to get into it.

I don't really know much about business running at all so of course everything is speculation based on the little i do know, and most of my twitch revenue info is directly from their help site, with some of the stuff about changes being from news articles about them.

Yeah that's pretty much it from me for now, glad you enjoyed my nerdy trawl through twitchtracker :)!

Follow up on this post :

[ileadtaxllc123]

The Role of Accounting and Bookkeeping in Tax Industry

Accounting and bookkeeping are tedious and arduous but are necessary for the company to gain an advantage over competitors and to make decisions. Bookkeeping is the recording of financial details of the company in an orderly manner over some time. Bookkeepers are people who maintain the accounts. Ileadtax LLC is one of the best tax preparation and planning companies based in New York, India, and California. It offers accounting and bookkeeping services and are adviser for many companies. This article discloses the importance of accounting and bookkeeping in the tax industry and how it is useful to a company.

Accounting and bookkeeping are dependent on each other. Bookkeeping is a sub-branch of accounting that organizes and summarizes financial data and it has accurate financial data. Bookkeepers have access to all financial data of the company and can track their transactions. They ensure the data is up to date and is complete. Bookkeeping helps the company with decisions related to investing and operations. IleadTax LLC is a global company that consists of tax accounting experts in India, New York, and California. They provide their tax experts for all companies which are in need. The accounting and bookkeeping services provided contain detailed records of past transactions.

The first step in achieving flawless tax preparation is keeping accurate financial records. The foundation of this process is accounting and bookkeeping. These tasks entail the meticulous documentation of financial transactions, which results in an accurate depiction of earnings, outlays, assets, and liabilities. Having structured financial records is essential for tax season. Identification of deductible expenses is made possible for people and organizations through accounting and bookkeeping. Taxpayers can properly minimize their taxable income by accurately categorizing their costs and keeping track of the necessary supporting records. This may lead to significant cost savings and a better tax situation.

Beyond tax time, accounting and bookkeeping are important. They serve as the cornerstone for budgeting, investments, and future tax planning, enabling both individuals and corporations to make well-informed choices. It's advantageous to obtain professional advice when dealing with the complicated realm of tax preparation. CPAs (Certified Public Accountants) and seasoned bookkeepers may provide priceless insights, ensuring that you successfully navigate tax season.

A thorough and accurate bookkeeping procedure gives businesses a reliable way to assess their success. It also serves as a benchmark for its income and revenue targets and information for general strategic decision-making. A trustworthy source for businesses to gauge their financial performance is bookkeeping.  Accounting and bookkeeping are more than simply administrative duties; they are also effective instruments that can lessen the strain of tax season and enhance your financial security. A sound accounting and bookkeeping system can result in significant savings, compliance, and financial peace of mind whether you're a business owner or an individual taxpayer. So, as tax season draws near, keep in mind that having a solid financial foundation is the key to success. ILeadTax LLC attempts to deliver results that meet the expectations of the client.

[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.

[dollsonmain]

I really, really hate how difficult it is to search for tax related stuff. I search specifically for state tax related info regarding hobby income and get ONLY federal tax info.

Also getting lots of things saying I’m wasting my time with the Form8949 because I can’t deduct hobby expenses no matter what.

It’s confusing as hell to have multiple sources all saying different things.

Regardless I’m going to keep tracking expenses and sales as though I am going to fill out the 8949 because it’s still a good thing to know how to do in case it does turn out I need to.

I still won’t be earning enough to have to pay income tax. I’m not even halfway there.