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Though many working days of the Supreme Court have lost due to continuous lockdown, the Supreme Court has pronounced some important Judgments in 2020. Here is the Complete list of the Tax Judgments by Supreme Court in the Year 2020.  Skill Lotto Solutions Pvt. Ltd vs Union of India  The Supreme Court upheld the validity of imposing Goods and Service Tax (GST) on Lotteries and Gambling. The Court granted the petitioner the liberty to challenge notification by which rate of GST for lottery run by the State and lottery organized by the State have been made the same.  Union of India &Ors vs. M/s G S Chatha Rice Nills&Anr   The Supreme Court rescued importers who were required to pay an elevated customs duty of 200% on import of products from Pakistan due to the Centre’s unexpected tariff enhancement on imports after the 2019 Pulwama terror attack and directed them to pay the duty on import below the older tariff.  National Co-operative Developmen...

Meaning :  Section 139 of the income tax Act, 1961 has provided the limit for every type of assessee who is required to file an income tax return. For filing of the return, every person should comply with the income tax act. Although if he made certain mistakes while filing the return then such return shall be deemed as defective return. In this article, we will discuss all those cases in which a return shall be called a defective return and how to deal with such a  defective return notice . A return shall be considered as a defective return unless it has contained all the following documents : Return in the Prescribed form:  Department has specified the income tax form as per the type of income and type of assesse. For example: if the person is having a salary income only then he is required to file ITR-1 if he has filed his return in any other form, then such return shall be considered as defective return.   Statement of computation of tax payable: ...

After filing the Income Tax returns by the assessee, the Income Tax department processes the return and verifies the correctness of the same and issues Income tax notices if necessary. The Taxpayers need to study and analyze the income tax notices and should take the needful action within the stipulated time provided. In this article, we will discuss such situations or reasons which lead to raise  income tax notices . Following are the few major reasons because of why taxpayers may get Income Tax Notice Defective Return Failure to file Return Mismatch with Form- 26AS Hiding Income/ Not Disclosing Income High-Value Transaction Scrutiny Adjusting Refund due against the Outstanding Tax Payable Escaping Income from Assessment Defective Return The Assessee may get a defective return notice u/s 139(9) of Income Tax act if his return has not accompanied by the documents, which are defined in this section. For Example, the Person files his income tax return ...

Udyam Registration introduced by the Government of India for the enterprises which are engaged in the production or manufacturing or processing or preservation of goods or in the provision or rendering of services. In other words, which are engaging in only trading i.e., buying, selling, importing, or exporting goods are not even eligible for the Udyam Registration. The Ministry of Micro, Small, and Medium Enterprises has made the announcement regarding the new classification of MSME Enterprises launched on July 1, 2020, under the name of  Udyam Registration  by the notification on June 26, 2020. The Ministry also launched the new portal for Udyam Registration which is www.udyamregistration.gov.in. The portal established is in a very simplified form where the entrepreneur can know all the details of the registration step of what should know and what they should do. While establishing the new portal the Central Government has set up the advisory board for the recomm...

Most of the investors are not aware of how income tax is calculated and the basic understanding of tax related concepts when they start their career. In this guide, you will learn how to calculate income tax in a very simple and easy to understand way without involving any complicated way. What is Income tax? Income tax is a tax imposed by the government on the income of an individual in every financial year. To calculate your income, all the income sources like salary, business income, rent, dividends, etc are considered. Every citizen of the nation or even a non-residential individual also has to pay this tax to the government if he is earning any income in India. The govt of any country has various kinds of expenses like paying pension to govt employees, building roads and infrastructure, start various schemes for the citizens benefit etc etc. For all this, they need money and income tax is one of the ways for the govt to earn the money. The same money eventually is used...

Most of the Indians are obsessed with gold. But are you aware of the restriction on how much gold can you hold even the worth of gold does not match your income status? In this article I will exactly touch base on that How much gold can you have without receipts? Have you ever wondered what will happen if govt starts raiding all households in India and demands the proof of how you bought all that gold you have? Often we do not keep a track of receipts and proof of how we paid for that gold bought very long ago. In that case, how much gold can you hold without any proof, even if it does not match your income status? As per Central Board of Direct Taxes (CBDT), this limit is different for a married woman, unmarried women and a man. This might sound strange, but here is the limit A Married woman 500 gms Unmarried woman 250 gms A Man 100 gms What type of proofs is required in case of any enquiry? These above limits include both the inherited and the self-bought gold jewelry. In...

As we all know if we had paid excess taxes than our income tax liability either by TDS/ TCS or in the form of Advance Tax, we can claim the refund of such excess tax paid by filing Income Tax Return u/s 139. The last date of filing of Income Tax Returns u/s 139(1) is July 31st of the relevant Assessment Year. However, Belated return can be filed under section 139(4) by the end of the relevant assessment year i.e. 31st March. So, if you want to claim a refund of the excess taxes paid, you must file your ITR maximum by 31st March to avoid the loss of your refund. But, there are many cases where the assessee missed this second deadline also and struggling to get their refund from the department. So, In this article, we will discuss in detail how you can get your old  Income Tax Refund  related to the previous year. Section 119(2)(b) of the Income Tax Act, 1961: Section 119(2)(b) confers the power to Central Board of Direct Taxes by which board if c...

Income Tax Assessment  under section 143(1) of IT Act is like preliminary checking of the  Income Tax Return. At this stage no detailed scrutiny of the Income tax return is carried out. At this stage, the total income (profit) or loss is computed after making the following adjustments (if any), namely:- any arithmetical error in the  income tax return ; or an incorrect claim, if such incorrect claim is apparent from any information in the income tax return; disallowance of loss claimed, if income tax return of the previous year for which set off of loss is claimed was furnished beyond the due date specified under sub-section (1) of section 139 of act disallowance of expenditure indicated in the  Tax audit  report but not taken into account in computing the total income in the  ITR ; disallowance of deduction claimed under sections 10AA , 80-IA, 80-IB, 80-IC, 80-ID or  section 80-IE  of act, if the Income tax return is furnished beyond ...

Capital Gain Under Income Tax – Gain arising on transfer of the capital asset is charged to tax under the head “Capital Gains”. Income from capital gains is classified as “ Short Term Capital Gains ” and “ Long Term Capital Gains ”. In this part, we will discuss the provision relating to the  Capital Gain Tax Rate . What is Capital Gain Before proceeding for anything, first discuss “ What is Capital Gain “. Under Income Tax, Profit or gains arising from the transfer of  capital assets  are called “ Capital Gain “. Capital Gain can be long term or short term. What is Capital Gain Tax On the Capital Gain arise, the taxpayers need to calculate tax which is called “ Capital Gain Tax “. This Capital Gain Tax needs to be paid by the taxpayer at a specified rate, in the year in which the transfer of  capital assets  takes place. What is Capital Gain Tax Rate It is a rate at which tax on capital gain income is calculated. There are two capital gain rate for ...

Presumptive Taxation-  To reduce the burden of compliance for small taxpayers, The Government provides for a scheme called  Presumptive Taxation Scheme.  Under this scheme, the taxpayer is not required to maintain any books of accounts, and their profit is presumed to be a certain percentage of sales. Presumptive taxation mainly covers the following 3 sections of the Income Tax Act. 1) Section 44AD  of Income Tax Act- Income presumed to be 8%/6% of the turnover. 2)  Section 44ADA  of Income Tax Act – Presumptive taxation @ 50% for Professionals. 3) Section 44AE  of Income Tax Act- Presumptive taxation for transporters. The following article explains in detail the provision of presumptive taxation for business  under section 44AD of The Income Tax Act, 1961 . Section 44AD of Income Tax Act Section 44AD  was introduced by the income tax law in order to ease the tax burden on small taxpayers or say, assessee. The scheme aims to provi...

Books of accounts-  Under Income Tax Act, you might have to maintain books of accounts. The Income Tax Act has specified the books of accounts that are required to be maintained for the purpose of Income Tax, the same has been prescribed  under section 44AA of Income Tax Act and Rule 6F. Who is required to maintained books of accounts As per  section 44AA  of the Income Tax Act, 1961 there is a list of professional who is required to maintained books of accounts, the same is listed here- As per section 44AA (1)  following professionals are required to maintain books of accounts. Interior decorates Technical consulting Engineering Accounting Legal Medical Architecture Other professionals, as mentioned below- a.  Movie artists include a producer, editor, actor, director, music director, art director, dance director, cameraman, singer, lyricist, story writer, screenplay or dialogue writer, and costume designers. b.  Authorized representative m...

Advance Tax-  Apart from the  Tax Deducted at Source  (TDS) the government collects tax in advance on a quarterly basis, which is called an  Advance Tax . This also reduces the burden of taxpayers by dividing the tax liabilities into parts and result in smaller cash outflow.  In this article, we will read about the provision of Advance Tax Payment. What is Advance Tax Advance Tax means  Income Tax , which needs to be paid by the assessee in advance before year-end. These payments have to be made in installments on or before the  due dates as provided by the department . Who has to make Advance Tax Payment for FY 2020-21 For every financial year, the assessee needs to pay tax in advance if his tax liability is expected to be Rs. 10,000 or more.  Advance Tax  applies to all taxpayers including salaried, freelancers, professional, and senior citizens. However senior citizens having the age of 60 years or more than 60 years and not ru...