Income Tax

What are Micro, Small and Medium Enterprise? The existing MSME classification was based on the criteria of investment in plant and machinery or equipment. So, to enjoy the MSME benefits, the MSMEs have to limit their investment to a lower limit, as mentioned below:                                 Existing MSME Classification Sector Criteria Micro Small Medium Manufacturing Investment  < Rs.25 lakh < Rs.5 crore < Rs.10 crore Services Investment  < Rs.10 lakh < Rs.2 crore < Rs.5 crore These lower limits are killing the urge to grow as they are unable to scale their businesses further. Also, there has been a long-pending demand for the revision of MSME classification so that they can further expand their operations while continuing to avail the MSME benefits. Now, under the  Aatmanirbhar Bharat Abhiyan  (ABA), the government revised the MSME classification* by inserting composite criteria of both investment and annual turnover. Also, the distinction between the manufactu

1. Easy Loan Approval Filing the ITR will help individuals, when they have to apply for fora vehicle loan (2-wheeler or 4-wheeler), House Loan etc. All major banks can ask for a copy of tax returns 2. Claim Tax Refund If you have a refund due from the Income Tax Department, you will have to file an Income Tax Return to claim the refund. 3. Income & Address Proof Income Tax Return can be used as proof of your Income and Address. 4. Quick Visa Processing Most embassies & consulates require you to furnish copies of your tax returns for the past couple of years at the time of the visa application. 5. Carry Forward Your Losses If you file a return within due date, you will be able to carry forward losses to subsequent years, which can be used to set off against income of subsequent years. 6. Avoid Penalty If you are required to file your tax returns but didn’t, then the tax officer deserves the right to impose a penalty of up to Rs.5,000.

Highlights of the 39th GST Council Meeting 1. Deferment of the new GST return system and e-invoicing The implementation of the new GST return system has been postponed to 1st October 2020. Also, the implementation of e-invoicing and the QR code has been deferred to 1st October 2020. The present return system (GSTR-1, GSTR-2A & GSTR-3B) will be continued until September 2020. 2. Changes in the GST rates GST on mobile phones and specified parts was increased from 12% to 18%. This decision was taken to avoid difficulties due to the inverted duty structure. All types of matches have been rationalised to a single GST rate of 12%. Till now, the handmade ones were taxed at 5% and the rest was taxed at 18%. GST on Maintenance, Repair and Overhaul (MRO) service in respect to aircraft was reduced from 18% to 5% with full ITC. All these rate changes will come into effect from 01 April 2020. 3. Interest on delayed payments Now, the interest for delayed GST payment will be ca

1. What is Reverse Charge? Normally, the supplier of goods or services pays the tax on supply. In the case of Reverse Charge, the receiver becomes liable to pay the tax, i.e., the chargeability gets reversed. 2. When is Reverse Charge Applicable? A. Supply from an Unregistered dealer to a Registered dealer If a vendor who is not registered under GST, supplies goods to a person who is  registered under GST , then Reverse Charge would apply. This means that the GST will have to be paid directly by the receiver to the Government instead of the supplier. The registered dealer who has to pay GST under reverse charge has to do self-invoicing for the purchases made. For Inter-state purchases, the buyer has to pay IGST. For Intra-state purchased CGST and SGST has to be paid under RCM by the purchaser. B. Services through an e-commerce operator If an e-commerce operator supplies services then reverse charge will apply to the e-commerce operator. He will be liable to pay GST.

નાણાકીય વર્ષ 2020-21 (એવાય 2021-22) માટે લાગુ. વ્યક્તિગત કરદાતાઓની ત્રણ કેટેગરી છે: વ્યક્તિઓ (60 વર્ષથી ઓછી ઉંમરની) જેમાં રહેવાસીઓ તેમજ બિન-રહેવાસીઓનો સમાવેશ થાય છે નિવાસી વરિષ્ઠ નાગરિકો (60 વર્ષ અથવા તેથી વધુ પરંતુ 80 વર્ષથી ઓછી ઉંમર) નિવાસી સુપર વરિષ્ઠ નાગરિકો (80 વર્ષથી વધુની વયના)  આવકવેરા સ્લેબ ટેક્સ                         દર અ 2.5ી લાખ રૂપિયા સુધીના                   0% 2.5 લાખથી રૂ. 5 લાખ                           5% (કલમ 87 એ અંતર્ગત રૂ. 12,500 ની વેરાની છૂટ ઉપલબ્ધ છે) 5 લાખથી રૂ. 7.5 લાખ                          10% 7.5 લાખ રૂપિયાથી 10 લાખ                  15% 10 લાખથી રૂ .12.5 લાખ                      20% 12.5 લાખથી 15 લાખ                           25% 15 લાખ રૂપિયા અને  ઉપર                    30% આવા દરોના આધારે ગણતરી કર કર 4% ના આરોગ્ય અને શિક્ષણ ઉપકરને આધિન રહેશે. નાણાંકીય વર્ષ 2020-21 થી નવા કર શાસન હેઠળ કર લાદવાની કોઈપણ વ્યક્તિગત પસંદગી માટે કેટલીક છૂટ અને કપાત છોડી દેવી પડશે. પ્રકરણ VI-A કપાત (80C, 80D, 80E અને તેથી વધુ) (કલમ 80 સીસીડી (2) અને 80JJA

What is Tax Planning? Tax planning is the activity undertaken by a taxpayer who could be an individual, a business or an organisation to reduce the total tax liability by optimally utilising all the allowances, deductions, rebates, concessions and exclusions available well within the legal framework. Simply put, tax planning is the art of managing your income and taxes efficiently so that you pay the least amount of tax on your total income. However, one of the biggest problems in India while doing tax planning is that most of the taxpayers tend to restrict tax planning to just tax-saving investments, but in reality, tax planning is a much broader concept. Tax planning  is an important aspect of financial planning and a process which cannot be carried out as a one-time activity. As a taxpayer, you should make use of all the tax exemptions, deductions and the benefits available to you to help you minimize your total tax liability and enhance your financial position. Efficient ta