Permanent Account Number (PAN) is a ten-digit alpha-numeric number, issued by the Income Tax Department. Each assessee (e.g., individual, firm, company, etc.) is issued a unique PAN. PAN enables department […]
In my business, it is impossible to issue bills for every transaction. How can I be expected to maintain proper accounts? Sec 44AD & 44AE
Sec 44AD There can be no excuse for not maintaining bill books. However, if you are a small time retail trader with your annual turnover less than 1 Crore, then […]
Do I have to keep an accountant to maintain my account?
This depends upon your ability and need. You may even prefer to use the accounting software available in the market. However, you should remember that in case of turnover exceeding […]
Where should the books of account of my business be kept and for how long?
All the books of account and related documents should be kept at the main place of business, i.e., where the business or profession is generally carried on. These should be […]
I am a small time trader. Do I need to maintain any accounts?
Any business or profession that has an annual turnover / gross receipts exceeding rupees ten lakh and net profit of rupees one lakh twenty thousand must maintain such books of […]
What is the procedure for depositing tax?
A form called challan available at Income Tax Department, in banks and on the IT department website should be filled up and deposited in the bank along with the money. […]
How does the Government collect Income Tax
Taxes are collected by three means: Voluntary payment by persons into various designated Banks. For example, Advance Tax and Self-Assessment Tax Tax Deducted at Source (TDS) on your behalf from […]
I own shares of various Indian companies and receive dividends. Is it taxable?
No. Dividend declared by Indian companies is not taxable in the hands of the shareholders because taxes on distributed profits have already been borne by the company.
How is resident / non-resident status relevant for levy of income tax?
In case of resident individuals and companies, their global income is taxable in India. However, non-residents have to pay tax only on the income earned in India or from a […]
How can I know whether a company is resident or non-resident?
A company is considered as resident if it is incorporated under the Indian Companies Act. A foreign company can also become a ‘resident’ if the control and management of its […]