FINANCE

People are always get confused as to who all are require to file Income tax Return mandatorily. Since our assessment year 2020-21 has been started and now all will be geared up for filing their income tax return. Hence today I am covering this topic. Following taxpayers shall file their return of income only through e-filing mode: (1) Individual/HUF who is less than 60 years of age and has an annual income more than Rs 2.5 lakh i.e. above basic exemption limit has to file income tax returns, according to the Income Tax Act.  For senior citizens, the basic exemption limit is Rs 3 lakh, and for those who are more than 80 years old, the basic exemption limit is Rs 5 lakh. (2) For companies it is mandatory to file income tax return irrespective of profit or loss. Further in case of company E -filing is mandatory. (3) A firm or an individual or a  Hindu Undivided Family (HUF)  whose books of account are required to be audited under  section 44AB  shall furnish the re...

Ramesh Damani's Advice to New Investors Understanding the power to compounding early in the life is v imp It is very important to hav independent thinking with integrity One should have their own thought process Make investment decision based on your own investment decision Making money is more enjoyable than actually spending it. One should maintain individual frugality. You don’t need a 180 I.Q. in the stock market, it is fine to have I.Q. of 110-120. (Warren Buffett) People try to be super smart, time the market, & stumble along the way. You should approach it the right way. The market values Integrity, Intellectual independence, & Patience. Too clever by half people lose more than what they bargain for, by trying to be very smart. The market is graveyard, with tombstones of people who failed. The successful people are those who buy good business & keep them. It is not a place to get rich quick – one in a million might do it. Market is a place to creat...

A Teacher was writing table of 5 on the board: 5X1=3 5X2=10 5X3=15 5X4=20 5X5=25 5X6=30 5X7=35 5X8=40 5X9=45 5X10=50 After writing she turned back towards students and found that everybody was laughing at her. On asking the reason for laugh, couple of  students got up and told: Ma’am- first line of the table is wrong…It should be 5 Hearing this Teacher (smiling) explained I wrote the first line wrong on purpose, because I wanted u to learn something important. This was for u to learn how the real world will treat u. I wrote 9 correct lines but nobody congratulated me but 1 mistake & everybody pointed at it. Moral: The world will never appreciate billion right things you do but will criticize for one wrong doing. Therefore, never ever get disheartened if somebody criticizes you. Take it positive and rise above all criticisms. Thanks for reading ... ✍️ SIVASANKARREDDY. 📧  sankarasr9@gmail.com

When filing Income Tax Return (for FY 2020-21), you have to calculate tax by adding up income from all sources and subtracting deductions under Section 80C/ 80D/ standard deduction, etc. I am a first-time taxpayer with annual income of Rs 8 lakh. My employer deducts TDS of Rs 4,000 every month. How do I claim benefits under Section 80C for PPF, NPS etc? —Deepak Kumar TDS is a ‘pay as you earn’ measure and is only provisional tax. The final tax liability is determined at the end of the financial year. When filing Income Tax Return (for FY 2020-21), you have to calculate tax by adding up income from all sources and subtracting deductions under Section 80C/ 80D/ standard deduction, etc. The TDS deducted by your employer (as reflected in Form 26AS) can then be claimed as credit in the ITR form. Any excess of TDS paid over the final tax liability shall be refunded. However, if you furnish the details of any tax-saving investments/ expenses made in Form 12BB, to your employer, at the beginni...

This leaves taxpayers in a fix - GST notice demands money in 16 decimal points, even though bank systems do not recognise more than 2 decimal points Faced with a revenue crisis of sorts, the government seems to have become penny-wise, especially when it comes to GST collection. The government is sending notices to taxpayers for dues as low as a few paise.However, that puts taxpayers in a jam. The government recently clarified that those filing returns after the due dates should also be paying interest on the taxes due and ordered recovery of Rs 46,000 crore as interest from those who filed their returns after the due dates. Now the taxpayers have been receiving notices asking for payment of interests, which in some cases could be as low as Rs 2 or Rs 6. In one such notice sent to a brokerage firm, the notice reads: "Records indicate that you have filed your GSTR-3B return for the period 2019-20 after due dates, in which you have not calculated and paid your interest liability unde...

Dear Sir/Madam, Late Fee for TDS Payment for March, April, May 2020 is a little different than usual as Finance Minister announced that Interest to be calculated at 9% instead of Regular 18%. This can be well achieved using Excel Formula. But many of customers found it little tricky, we have developed a simple calculation page, where you can Find the Exact Late Payment Calculation with month on month calculation details. Please visit https://officeanywhere.io/incometax/tds_interest_calculator, in case if you want to find TDS Late Payment. Also, don’t hesitate to share links with your contacts in case if you feel, it is helpful.

Employer's contribution for provident fund, NPS and superannuation worth more than 7.5 lakh a year will be taxable The new income tax rules affects only those in a high salary bracket Those with high salaries might soon have to shell out income tax on employers contribution under employees' provident fund (EPF), National Pension System (NPS) and superannuation fund. In the  Union Budget 2020 , finance minister Nirmala Sitharaman has introduced a cumulative upper ceiling of  ₹ 7.5 lakh for the three investments which give tax benefits. With effect from 1 April, 2021, the combined upper limit of  ₹ 7.5 lakh in respect of employer's contribution in a year to NPS, superannuation fund and recognised  provident fund  and any excess contribution will be taxable. The Budget has also proposed that even interest and dividend earned during the previous year would also be taxable. Interest is treated as perquisite to the extent it relates to the employer’s contributio...