CBDT Instruction 5/2014 : No Appeal to Tribunal if Tax Affect is Below Rs 4 Lakh

Here is the new CBDT instruction no 5/2014 to  tackle the the menace of huge number of pending tax cases in ITAT, High Courts and Supreme Court . This jamming of various courts with frivolous appeal from revenue department caught everyone’s attention as the courts started imposing costs on the income tax department and in...

Three Principles of Mutuality Simplified !

That a person can not trade with himself is one of the foundation of the principle of mutuality and because of this various societies, clubs, associations, organizations have knocked the door along with tax department to establish that the various types of income earned by those Association of Person or AOP are not taxable on...

Business Turnover : What to Deduct & What Not ?

The computation of turnover is important for any business, because two major provisions under Income Tax Act apply on the basis of turnover of the business. For example, if a business is having turnover of more than one crore ( 10 million) not only it will have to get its accounts audited u/s 44AB, but...

Why & How to Create Private Trust for Daughter or Handicapped Children for Better Future

Private Trust can be good future planning for any child, wife or loved ones about whom you may be concerned with questions like “what happens to them after my demise “. There can be a number of circumstance or should I say , many unfortunate circumstances , which can be aptly dealt by creation of...

Appeal by Income Tax Department Proved Costly . Contempt Proceeding With Heavy Cost If Charges Are Proved : Mumbai High Court

That casual approach of the income tax department of filing appeal is no secret and again and again CBDT is issuing guidelines and circulars for streamlining the system of filing appeal in Tribunal, High Courts & Supreme Court. A few days back , this blog had posted on the menace of high number of appeals...

Amazing Residential Status Calculator !

Are you resident or non resident? That is what will be computed by the residential calculator . As per Income Tax Act , the first thing for deciding your tax liability is to find whether you are resident or non resident in India in a previous year ( financial year) .You must be aware that...

How Tax Residency Certificate (TRC) Can be Obtained by Resident of India?

The tax residency certificate is an important document for seeking tax relief by a tax resident of one country from another country with which there exists Double Taxation Avoidance Agreement. This document- Tax Residency Certificate – is an authentic document that certifies your claim of being a resident of the country. While Section 90 and...