Acts

Section 44AB vs 44ADA

Section 44AB vs 44ADA As Section 44AD is applicable on business (click here to read in detail), Section 44ADA applies on professionals. It says that if an eligible assessee (professional) who declares 50% or more than that of his gross receipts as profit, then he is not required to get his accounts audited under the Income Tax Act, 1961. But, this section has specified a limit on the gross receipts too. As per this section, the gross receipts should not be more [...]

Tax Audit & The Presumptive Taxation

Section 44AB vs 44AD Tax Audit & The Presumptive Taxation: When we talk about Presumptive Taxation, then it automatically relates to Tax Audit under Income Tax Act, 1961. At student level, I have seen students getting confused in Sections 44AB & 44AD because 44AB says about the limit of Rs. 1 crore while Section 44AD says about the limit of Rs. 2 crore. Don’t worry; today your doubt is going to be resolved permanently.   Let’s begin: Tax Audit comes under the purview of [...]

National Financial Reporting Authority – Constitution

Disclaimer: The views are personal and if it offends you then accept the reality because I am not writing any fascinating story. NFRA Part 1: Click here to read NFRA – Provisions: When it comes to provisions of a certain thing, a section comes into light. Here it is the Section 132 of the companies Act, 2013. Let us discuss it: The section firstly justifies that the Central Government may by notification, constitute a National Financial Reporting Authority to provide for matters relating to [...]

National Financial Reporting Authority – Intro & Criticism

Disclaimer: The views are personal and if it offends you then accept the reality because I am not writing any fascinating story. Introduction: Though it is coming into limelight now but the term is not unknown to anyone if he/she is pursuing a career in Chartered Accountancy / Company Secretaryship / Cost Accountancy / LLB as an accounting or taxation consultant / UPSC or leading as a professional in the above mentioned fields. Let’s recall it: National Financial Reporting Authority (NFRA) is a [...]

An Insight Into Tax Audit AY: 2018-19

Dear Readers, With Extreme Happiness, We are happy to announce that the 3rd edition of Atul Khurana's "An Insight Into Tax Audit" book has been released today in the market. This edition is little late due to some unavoidable situations but as it is said "It is better to be late than never", so we finally did it. The book is published under the publication of Young Global Publications, New Delhi. This handbook is equipped with the following features: Detailed Analysis of Applicability [...]

Income Tax Rules, 2018: Notification 33/2018

The Central Board of Direct Taxes (CBDT) on 20th July, 2018 released a notification stating the amendments/key changes in the Tax Audit Form 3CD. They shall come into force from the 20th day of August, 2018. CLICK HERE to Download the Notification.

46 Amendments proposed by the Govt in GST Laws

GST is one of the most dynamic tax structure of India in terms of amendments and the reason behind the same is the competitiveness of the industries which force the govt. to make the rules strict and as well as to make the law simpler. In this movement, the government has proposed 46 amendments in the GST Laws recently. The file has been attached for your reference. Click here to download the file

Become An Informer of Income Tax Dept. and Get Rewards up to Rs 5 Crore

The centre government has launched Income Tax Informants Reward Scheme, 2018, after superseding the 2007 award scheme, under which a person can get reward up to Rs 50 lakh for giving specific information about substantial evasion of tax on income or assets in India. Also, those informing the government about 'undisclosed black money' stashed abroad can win awards up to Rs 5 crore. Anyone who informs about Benami properties can get awards up to Rs 1 crore. The scheme comes [...]

International Taxation – Profit Level Indicators

Hello Readers, Hope you have read the previous parts. Click here to see the previous parts. Profit Level Indicators  A profit level indicator (PLI) is selected to test the profitability of tested party. PLIs are ratios that measure relationships between profits and costs incurred or resources employed. PLI should always have an untainted* base (denominator) like adopting cost as base for export transactions and revenue as base for import transactions. *A tainted income or expense would mean one that is received from an AE paid [...]

International Taxation – Computation of ALP

Hello Readers, Hope you have read the previous parts. Click here to see the previous parts. Let’s proceed further…. Computation of ALP: I had already discussed CUP method of computation of ALP, so now let us discuss other parts: Method 2: Resale Price Method The resale price method (RPM) is a method which compares the gross margins (i.e. gross profit over sales) earned in transactions between related and unrelated parties for the determination of the ALP. The RPM requires high level of functional comparability and [...]

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