Author: Daniya Kurian

Deferred taxes are an essential aspect of financial accounting for several reasons: Understanding Future Tax Obligations: Deferred taxes help businesses and investors understand future tax liabilities or assets, which can significantly impact cash flow and financial planning. Accurate Financial Reporting: They ensure that a company’s financial statements accurately reflect its future tax obligations. Without accounting… Continue reading Deferred Taxes – Importance

When businesses receive advance payments, they don’t immediately record this money as revenue—instead, they treat it as a liability until they deliver the promised goods or services. Called deferred revenue, this approach ensures financial statements accurately reflect what the company owes and what it has genuinely earned. In subscription-based industries with software services, prepaid service… Continue reading Deferred revenue

· Section 194R does not apply to employees who receive benefits from their employers. Section 192 will apply to them.  When the recipient is a non-resident, the tax will be deducted under Section 195. · When there is no business relationship, this section will not apply. TDS should not be deducted when the total value involved does… Continue reading Non-applicability Of TDS Under Section 194R

Section 194-I is to deduct tax on rent payment for hiring plant, machinery or equipment at a rate of 2% and 10% for rent paid for use of land, building or furniture & fittings. TDS will be deducted if the rent exceeds the threshold limit of Rs 6 lacs in the financial year or Rs… Continue reading Section 194I – TDS on Rent

Section 194Q: TDS on purchase of goods Applicable to the Buyer whose Turnover/Gross Receipts in the preceeding Financial year exceeds 10Cr. and aggregate amount of purchases from such particular buyer exceeds Rs.50L. -TDS is required to be deducted @1% on the amount exceeding Rs.50L (The threshold limit of Rs.50L is to be reckoned from the… Continue reading Applicability of Section 194Q & 206AB under Income Tax Act

Rule 86B of the Central Goods and Services Tax (CGST) Rules, effective from January 1, 2021, imposes a restriction on the utilization of Input Tax Credit (ITC) for certain taxpayers.  Applicability of Rule 86B This rule applies to registered persons whose taxable supplies (excluding exempt and zero-rated supplies) exceed ₹50 lakh in a month. Under… Continue reading Rule 86B of the Central Goods and Services Tax (CGST)

Section 194C of the Income Tax Act states that any person making payment to a resident person, who is carrying out any ‘work’ in terms of the contract between the ‘specified person’ and the resident contractor, is required to deduct TDS. The ‘specified person’ mentioned above means the following – ·        The Central or State Government;… Continue reading Basic provisions of section 194C of the Income Tax Act

Finance minister has announced a hike in the standard deduction amount in new tax regime hiked to Rs 75000 in Budget 2024. Also, standard deduction limit for family pensioners have been hiked to Rs 25,000 from Rs 15,000  Presenting her seventh straight budget, the FM announced a hike in Standard Deduction to Rs 75,000 from… Continue reading Standard Deduction under the new regime Changes

The alternative minimum tax (AMT) was created in the 1960s to prevent high-income taxpayers from avoiding the individual income tax. This parallel income tax system requires high-income taxpayers to calculate their tax bill twice: once under the ordinary income tax system and again under the AMT. The taxpayer then needs to pay the higher of the… Continue reading Alternative Minimum Tax (AMT)

1. GSTR 1A is an additional facility provided to add any particulars of current tax period missed out in reporting in FORM GSTR-1 of current tax period or amend any particulars already declared FORM GSTR-1 of current tax period (including those declared in IFF, for the first and second months of a quarter, if any,for… Continue reading INSTRUCTIONS FOR FILING GSTR-1A