VIJAY SHANKAR VYAS BLOG

Article discusses the treatment of expenditures incurred by an assessee in excess of Rs. 10000/- in cash or bearer cheque under section 40A(3) of the Income Tax Act, 1961 The income tax department in its endeavor to plug in tax evasion mechanisms has introduced section 40(A)(3) . This section provides that any expenditure incurred by an assessee (whether individual, company, firm etc.) above Rs. 10000/- other than by account payee cheque or draft or use of electronic clearing system through a bank account or through such other electronic mode as may be prescribed shall not be allowed as a deduction. Simply put, this section covers those payments over Rs. 10000/-  made by bearer cheque or cash. However, if the payments are made for hiring or leasing carriages for goods such as lorries, trucks etc then the limit is extended to Rs 35000/-. To further counter any tax evasion, the Income Tax department has specified that this section extends to single payments or aggregate of payments m...

  5 Things NRIs need to know when filing Income Tax Returns in India The income that NRI earn abroad is not taxable in India. Nevertheless, some NRIs also have an earning in their aborigine country, India in the form of interest from deposits, property rent, etc. This income has a basic limit of exemption, which is Rs2 lakhs. If the NRI earnings from such native sources cross the fixed limit of two lakh, then they should file their tax return. In addition to the income sources mentioned above, if these NRIs carry out transactions in shares, mutual funds and/or similar securities, the monetary gains from the same are also tax accountable, for which they are supposed to file returns. The due date for this, only in case of NRIs, is July 31. However, there are certain things that NRIs filing returns must take into consideration. By considering the following practical scenarios, one can ease out his/her tax-return filing process in India. When should an NRI file for the return? Th...

  1. Hindu Undivided Family (HUF) is treated as a separate entity for the purpose of assessment under the Income Tax Act. 2. HUF does not arise from a contract. HUF is a creation of law. After marriage, as soon as a child is born, HUF come into existence. HUF consist of father, sons and daughter. Wife is not the part of the HUF. 3. Sons and daughter and the father i.e. karta are the co-parceners in the joint family and have a right to demand partitioned. 4. If the partition of HUF is made by court, the courts will always award equal partition. However, the family may mutually effect partition without going to the court and mutual partition can be unequal. 5. Partition has to be total partition. Partial partition is not recognised under the Income Tax Act. 6. HUF cannot make any gift of HUF property to co-parcener and non-coparceners. Any gift made by HUF are void-ab-initio. Therefore, if HUF property is gifted by HUF, then such gift are void-ab-initio. The gifted property shall be ...

  1.       This section is applicable to domestic companies   2.      This section is applicable from the AY 2020-21   3.      Effective Tax rate under this section is 17.16% (Tax 15% plus, Surcharge 10%, and Cess 4%)   4.      The company should be incorporated and registered in India on or after 1st October 2019   5.      The company should commenced manufacturing or production of an article of thing on or before 31st March 2024   6.      The company should not be formed by virtue of splitting up, reconstruction   7.     It should not use Plant & Machinery previously used for any purpose, however the company can use old plant and machinery, the value of which does not exceed 20% of the total value of the plant and machinery used by the company   8.      It should not use Building previously used f...