“With the great income, comes even greater tax” – No! Spiderman didn’t say that! But he might as well have! This is true most of the times because income tax is normally progressive tax – means more income, higher rate of tax. Fortunately, this is not true for tax on capital gains arising from sale… Continue reading Income Tax on Transaction in Stock Market
Category: Income Tax
Income Tax for Freelancers
India is witnessing emergence of generation of freelancers who would rather be their own boss, than work in an organization. Freelancers promote their services, follow leads, negotiate contracts and provide their technical and manual services to client/s. In this sense, they are business owners. This is exactly how their income is treated under Income Tax… Continue reading Income Tax for Freelancers
Equalization levy – Evolution from ‘Google tax’ to ‘Amazon tax’
Introduction: Rapid penetration of information and communication technology (ICT) across world has led emergence of new business models. Physical presence is no longer necessary to conduct business in any part of the world. These new virtual business models have created new challenges for tax authorities which so far relied on concept of jurisdiction to tax… Continue reading Equalization levy – Evolution from ‘Google tax’ to ‘Amazon tax’
Startup valuation – An inexact science?
In a recent judgment, Delhi High Court reminded taxmen that the valuation of startups in not an exact science. Taxmen ought not to interfere with valuation arrived at experts in the field unless they can demonstrate the flaw in method adopted for valuation. However, before taxability, an entrepreneur should understand popular valuation methodology. Startup Valuation:… Continue reading Startup valuation – An inexact science?
Exploring the New MSME Registration (UDYAM)
Meaning of UDYAM: The notification issued by the Government says that from July 01, 2020, an MSME will be known as UDYAM, and the enrolment or the registration process will be known UDYAM Enrollment Registration. Eligibility Criteria: Ministry of Micro, Small and Medium Enterprises vide its notification dated 1st June read with notification 26th June, 2020 has revised criteria for classification… Continue reading Exploring the New MSME Registration (UDYAM)
Company Fresh Start Scheme, 2020
In these testing times of the outbreak of the COVID-19 pandemic, businesses are the net sufferers. All companies are required to follow statutory compliances annually as per the provisions of the Companies Act, 2013. A company that fails to adhere to the compliances is called a defaulting company. Such companies are tagged as Non-Compliant by… Continue reading Company Fresh Start Scheme, 2020
Rationalising TDS on E-Commerce Transactions
Tax on E-commerce operators brought by Budget 2020 and its implications: Introduction: The advent of e-commerce platforms has radically changed the way consumers purchase goods or avail services. Nowadays, any goods or services can become available to any consumer at any place on a click of a few buttons. However, as easy it may seem… Continue reading Rationalising TDS on E-Commerce Transactions
Option To Avoid The Future Non-Compliance
Taxpayers especially those who are salaried but trade in Futures & Options (hereafter referred to as “F&O”), make the mistake of not reporting these in their tax return. You may receive a notice from the tax department for non-compliance. Trading in F&O must be reported as PGBP income unless you have only a few trades… Continue reading Option To Avoid The Future Non-Compliance
TECHNOLOGICAL CHANGES IMPACTING BUSINESSES
THIS IS HOW TECHNOLOGICAL CHANGES WILL IMPACT YOUR BUSINESS IN 2020 Section 269SU of the Income-tax Act, 1961: Applicability: February 01, 2020 Turnover Threshold: 50 crores As per section 269SU of the Income-tax Act, 1961 (“the Act”), “Every person, carrying on business, shall provide facility for accepting payment through prescribed electronic modes, in addition to… Continue reading TECHNOLOGICAL CHANGES IMPACTING BUSINESSES
E-Mobility: Watch It Happen Or Be Part Of It!
WHAT IS E-MOBILITY? As it is rightly quoted by Elon Musk, founder of Tesla Inc., “Some people don’t like change, but you need to embrace change if the alternative is a disaster”. Electric Mobility, or Electro Mobility, or E-Mobility for short, is that very change which the people shall embrace in the near future. Let’s… Continue reading E-Mobility: Watch It Happen Or Be Part Of It!