A tax rebate is a tax relief provided to individuals, particularly those in the lower-income bracket to ensure that they are not burdened with income tax if their income is below a certain threshold. A tax rebate is available on income up to Rs. 7 lakh under the new tax regime and up to Rs. 5 lakh under the old regime.In this article, we will discuss about the following:Income Tax RebateRebate AllowedSteps to claim RebateImportant pointsEligibilityRebate limit for different FYsFAQsRebate u/s 87A for FY 2024-25 (AY 2025-26)The rebate under Section 87A is available to individual taxpayers whose income does not exceed the specified threshold. The limit is Rs. 7 lakh under the new tax regime and Rs.

The income tax is a direct tax which follows a progressive slab rate, where the rate of tax increases as the taxpayer's income rises. The Income-tax Act, 1961 provides for two tax regimes: the old regime, which allows various deductions and exemptions, and the new regime, which offers lower tax rates without exemptions. In this article, we will learn about:Income Tax Slabs under the old regimeIncome Tax Slabs under the new regimeComparison of Tax slabs under both the regimesHow to calculate income tax under both tax regimesMeaning of Surcharge Consequences of not filing ITR within the due dateBudget 2024 Update: Tax Slabs Under New Regime UpdatedThe Budget 2024 has revised the tax slabs in the New Regime, providing taxpayers with an extra opportunity to save Rs. 17,500 in taxes. Additionally, the standard deduction has been raised to Rs.

Section 194O has been introduced in the Union Budget 2020. According to Section 194O, an E-Commerce operator is required to deduct TDS for facilitating any sale of goods or providing services through an E-Commerce participant. TDS on E-commerce operators under section 194-O is applicable from 1 October 2020. Dive into this blog for a better understanding of the following:Recent Budget Update in section 194-OIntroduction to E-commerce operators and participantsScope of Section 194-OTime of deduction of TDSPurpose of Section 194-OExceptions to Section 194-OLaw Before Section 194-OE-commerce vs OIDARConclusionBudget 2024 UpdateThe TDS rate has been proposed to be decreased to 0.1% from 1% with effect from 1st October, 2024.Who Are E-Commerce Operators And Participants?E-Commerce Operator An E-commerce operator is a person who owns, operates, or manages a digital/electronic facility for the sale of goods and services. He is responsible for making payments to the e-Commerce participant on such sales.E-Commerce Participant An E-commerce participant is a person who sells goods, services, or both through an electronic facility provided by an E-commerce operator. He must be a resident of India.Scope Of Section 194OE-commerce operators shall deduct TDS @ 1% (This rate is reduced to 0.1% with effect from 1st October, 2024) of the gross amount of the sale of goods, provision of services, or both made by the e-commerce participant on the platform facilitated by the e-commerce operators.E-commerce Participant Being a Resident Individual or HUF E-commerce operators are not required to deduct TDS if the gross amount of sale of goods, services, or both during the previous year does not exceed Rs 5 lakh and if the E-commerce participant has furnished his PAN or Aadhaar.If the E-commerce participant does not furnish his PAN or Aadhaar, TDS must be deducted at the rate of 5%, as per provisions of Section 206AA.E-Commerce Participant Being a Non-residentAs stated earlier, an e-Commerce participant must be a resident of India.

People think of a lottery ticket as only a fortune bag bringing in money. However, not everyone is aware of the tax liability that comes along with the fortune bag. Section 194G provides for the particulars of TDS on the purchase, distribution, and other activities associated with lottery tickets. Let’s discuss the following in detail to have a better grasp of the section 194G:Recent Budget Update on the rate of TDSScope of Section 194GRate of DeductionTime of Tax DeductionDue Date to deposit TDSCertificate of No or Lower TDSResponsibilities of the DeductorBudget 2024 UpdateThe rate of TDS has been reduced to 2% from 5%, effective 1st October 2024.Scope Of Section 194GAny income earned by a person in the form of commission, remuneration, or prize on lottery tickets (deductee) who has been selling lottery tickets (also stocking, distributing, and purchasing) is liable to pay taxes. The person responsible for making such a payment (deductor) for an income exceeding Rs 15,000 must deduct income tax before making the payment.Rate Of TDS Under Section 194GA tax deduction of 5% will be made at the source for such income.

At present, the payments made by a firm (partnership firm or an LLP) to a partner are not subjected to TDS. Currently, the TDS is applicable only in the case where the payments are made to an employee of a firm. However, if you draw remuneration from firm as a partner or if you are taking payments in the form of interest, bonus or commission then the TDS provisions were not applicable on the said payments.Introduction Budget 2024 inserted a new provision in the Act stating that certain payments made to a partner by a firm shall be liable for TDS deduction in accordance with the provisions of Section 194T. Read along this blog to get a better understanding of the section 194T:Type of Payments covered in section 194TRate of deduction of TDS and the limit applicableWhen is the TDS deducted under section 194TApplicability of the provisions of Section 194TPractical Implication of Section 194TWhat are the Payments Covered in Section 194T?Payments by a firm to a partner that are covered in Section 194T are as under:SalaryRemunerationCommissionBonus orInterest on any account (It can be on a loan account or on a capital account)Rate of Deduction of TDS and Limit for Section 194TThe rate at which TDS is to be deducted is 10%. The TDS is to be deducted only in the cases where the aggregate payments to a partner exceeds Rs.

The Finance Act 2023 inserted Section 43B(h), which stipulates that any sum owed to Micro and Small enterprises for goods supplied or services given may be deducted in the same year if it is paid within the deadline stipulated by the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006.This amendment aims to address the issue of working capital scarcity in the MSME industry and promote prompt payments to micro and small businesses. The assessment year 2024–2025 and any following years will be covered by this change, which will come into effect on April 1, 2024.Read along this blog to gain important insights about the section 43B(h) of the IT Act:New MSME 45 days payment ruleMSME Turnover LimitSection 43B(h) applicabilitySection 43B(h) applicability on tradersEffective date of 43B(h) Time Limit to pay MSMEsExamples of Section 43B(h)Penalties for failure to pay MSMEsBenefits of Section 43B(h)Process to Check MSME Registration StatusMSME Section 43B(h): New MSME 45 Days Payment RuleThe newly added clause (h) states that any sum payable by the assessee to a Micro & Small Enterprise beyond the time limit specified in Section 15 of the MSMED Act shall be allowed as a deduction only in the previous year in which the sum has been actually paid (irrespective of the accounting method employed).MSME Turnover LimitMicro and Small Enterprises are classified on the following basis:Micro Enterprises, means an entity having an investment in plant & machinery not exceeding 1 Crore and turnover not exceeding 5 Crores. Small Enterprises, on the other hand, should invest in plant & machinery not exceeding 10 Crores and turnover not exceeding 50 Crores.Section 43B(h) ApplicabilityThis clause is applicable when an enterprise is buying goods or taking services from Micro and Small enterprise registered under the MSMED Act, 2006. Notably, the registration of the buyer under the MSMED Act, 2006 is not mandatory. Clause (h) of Section 43B comes into effect from April 1, 2024.Example: Mr A (Unregistered under the MSMED Act) purchased Goods from Mr B (Registered under the MSMED Act).

Did you know that people engaged in various professions such as legal, medical, interior decorators, freelancers etc. can pay income tax on just half of their income. Well, in order to make tax filing simplified for all the professionals,  a scheme for presumptive taxation was introduced under section 44ADA from the FY 2016-17.To make the most of the presumptive taxation, get an understanding of intricate details of the topic here:What is Presumptive TaxationLatest Budget Update 2024Introduction to section 44ADA of the IT Act, 1961Assessee eligible for section 44ADAProfessions eligible for section 44ADAMaintenance of books of accounts and audit applicabilityPresumptive Income CalculationExamples on Presumptive Income Implications of choosing Presumptive TaxationWhat is presumptive taxation? A presumptive taxation is a system in which a government assumes a certain percentage of your turnover/gross receipts as your taxable income irrespective of the expenses incurred. Section 44ADA provides a simple method of taxation for small professionals. Section 44ADA offers a scheme of presumptive taxation for profits and gains arising from professions mentioned under Section 44AA(1) of the Income Tax Act, 1961.The benefit of section 44ADA can be taken only by those specified professionals whose annual gross receipts are under Rs.50 lakh (This limit is Rs.75 lakh, provided 95% of the receipts are through recognised banking channels).Latest UpdateThe Budget 2023 revised presumptive taxation limits under Sec 44AD and Sec 44ADA from FY 2023-24 (AY 2024-25) as follows:CategoryPrevious limitsRevised limitsSec 44AD: For small businessesRs.

Selling capital assets and making a profit will result in taxation on those profits as capital gains. Nevertheless, there is a way to avoid this tax by investing the profits into specific assets. This is typically known as Capital gains exemption. We will be discussing one such exemption given under Section 54EC covered in the following topics:Recent Update in Budget 2024 on Capital GainsIntroduction to section 54ECBonds eligible to claim exemptionKey facts to avail the LTCG exemptionCalculation of exemption under section 54ECHow to invest in 54EC bondsUpdate On Budget 2024In the Budget 2024 FM Nirmala Sitharaman has proposed changes in the tax rate on short-term capital gains from 15% to 20%. And long-term capital gains on financial and non-financial capital assets will attract tax at the rate of 12.5% instead of 10%, along with the same the tax exemption limit for the long term capital gains have been extended to Rs 1.25 lakhs.Section 54ECWhen a taxpayer sells long-term immovable property (land or building or both), they have the option to avail capital gain exemption under Section 54EC by investing in certain bonds.Section 54EC bonds, also known as Capital gain bonds are fixed income instruments which provide capital gains tax exemption under section 54EC to the investors. To be eligible for exemption under Section 54EC, the taxpayer must meet the following conditions:The exemption under Section 54EC can be claimed by any taxpayer, including individuals, Hindu Undivided Families (HUFs), companies, LLPs, firms, and others.The asset being sold should be a Long Term Capital Asset, which includes land or building or both.

It is a well-known fact that people tend to find ways to evade tax and this leads to accumulation of black money. Government has to tackle such tax evasion tactics and bring all the money under its umbrella. The Indian Income Tax Act has various provisions to track unexplained cash credit and investments. In this article, we will discuss in detail the following:Unexplained Cash CreditMeaningSpecial Provision in Case of CompaniesTax ImplicationsImportant pointsFAQsBackground of Unexplained Cash CreditIncome Tax is levied on five categories of income: salary, house property, business/profession income, capital gains, and income from other sources. The taxpayers are liable to pay tax on all the incomes that they earn during the financial year. However, some taxpayer try to evade taxes by not declaring their income.

The Municipal Corporation of Gurgaon (MCG) is responsible for collecting property taxes from property owners in the city, which play a vital role in funding infrastructure and urban development. For property owners, understanding this civic duty is not just about compliance; it’s also a way to contribute to Gurgaon’s growth. It is applicable to residential, commercial, or vacant properties, it’s important to know how property taxes are calculated, the rates that apply, and the various payment options available, including convenient online methods.In this article, we will discuss about the following:Calculation of MCG Property TaxSteps to pay property tax in GurgaonTax rates on different types of propertiesRebateExemptionConclusionFAQsMCG Property Tax CalculationThe Municipal Corporation of Gurgaon has simplified the property tax payment process. This enables property owners to calculate their tax liability based on rates applied to specific types of properties, making the MCG Gurgaon property tax calculation easy.Before we dive into the different rates for various properties, it is important to note that cities like Faridabad and Gurugram are classified as Type A1 cities, meaning the taxes on similar properties in these cities are identical. However, residential properties used for personal purposes, particularly small and medium-sized ones, are taxed at lower rates than larger or commercial properties.How to Pay Property Tax In Gurgaon?Property owners can pay their property tax through the following methods:Payment Using Online Method: The Gurgaon Property Tax can be paid online using the following steps:Visit the official MCG website.Login using your Mobile number or e-mail ID or property ID.Enter your unique property ID, locality, owner's name, and full property address.The system will automatically calculate and display the property tax amount for the selected year, including any outstanding arrears.Choose your preferred payment method, debit/ credit card or net banking, and complete the payment.A receipt will be generated after the payment is processed, which you can save for future use.Payment Using Offline Method:The Gurgaon Property Tax can be paid offline using the following steps:Visit the Municipal Corporation of Gurgaon office or any nearby property tax collection centre.