INCOME TAX COMPLIANCES

INCOME TAX COMPLIANCE

Income Tax Services

Income earned in a financial year a part of which is taxable as per the rates prescribed for that year. A financial year means a period of one year from 1st April to 31st March.

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Sources / Heads of Income

Income from Salary

It includes such income which is received in form of wages, salary, bonus, perquisites, gratuity, annuity, Fees, commission, profits in lieu of or in addition to salary

Income from House Property

Income received or receivable from any household property that contains rent from the usage of residential/commercial properties.

Income from Business or Profession

any income is shown in the profit and loss account after taking into account all the allowed expenditures by an Assessee.

Income from Capital Gain

Any Income that is received through the sale of a capital asset. It can be of Long-term Capital Gain (LTCG) and Short-term Capital Gain (STCG).

Income from Other Sources

Any income remains that does not come under the above-mentioned heads will be counted as income from other sources like interest income.

Tax Rate Applicable for FY 2021-22 (AY 2022-23) to Individuals as per old Tax Regime

If the entities are selling goods and/or services with an annual aggregate turnover of more than Rs.20 lakhs in most states then they are required to do GST Registration.
Only in the cases of special category, Goods & Services tax (GST) registration is required if the aggregate turnover (annually) of the business is 10 lakhs.
In case a business organization is involved in any of the following cases mentioned below, the entity is subjected to do GST registration.

NOTE:- Rebate u/s 87A will be given to an individual whose income after deduction under VI is not more than ₹ 5 Lakh. Rebate will be available which is the least of the tax computed before cess or ₹ 12,500.

Tax Rate applicable to companies

Tax Audit Limit

The provisions relating to tax audits are provided under Section 44AB of the Income Tax Act. According to Section 44AB, a tax audit is required for the following persons:

What AVS & Associates Offers

Preparation of Income-tax Return
Representation before Authorities in India
Consultancy in Tax Planning & Tax Saving
Withholding Tax Compliances
Income Tax Appeals before CIT.

Business

In the case of a business, a tax audit would be required if the total sales turnover or gross receipts in the business exceeds Rs.1 crore in any previous year. Under the Income Tax Act, “Business” simply means any economic activity carried on for earning profits. Section 2(3) has defined the business as “any trade, commerce, manufacturing activity or any adventure or concern like trade, commerce, and manufacture”.

Profession

In the case of a profession or professional, a tax audit would be required if gross receipts in the profession exceed Rs.50 lakhs during the financial year. A profession or professional could be any of the following as per Rule 6F of the Rules, 1962:

Architect
Accountant
Authorised representative
Engineer
Film Artist – Actor, Cameraman, Director, Music Director, Editor, and so on
Interior Decorator
Legal Professional – Advocate or Lawyer
Medical Professional – Doctor, Physiotherapist, or Nursing and Paramedical Staff
Technical Consultant

Presumptive Taxation Scheme

If a person is enrolled under the presumptive taxation scheme under section 44AD and total sales or turnover is more than Rs. 2 crores, then a tax audit would be required. Also, any person enrolled under the presumptive taxation scheme who claims that the profits of the business are lower than the profits calculated following the presumptive taxation scheme would be required to obtain a tax audit report.