Tax Consultancy

  PROFITS AND GAINS OF BUSINESS OR PROFESSION BUSINESS As per section 2(13) of the Act, “Business” includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture. PROFESSION As per section 2(36) of the Act, “Profession” includes vocation. PROFITS AND GAINS OF BUSINESS OR PROFESSION Sections 28 to 44DB deals with computation of income under the head “Profits and gains of business or profession”. The sections may be classified into: Sections 28 to 44DB deals with computation of income under the head “Profits and gains of business or profession”. The sections may be classified into: Chargeability – Section 28 Computation – Section 29 Specific deductions – Sections 30 to 36, section 38 General deduction not specifically covered – Section 37 Amount not deductible – Section 40 Expenses or payments not deductible in certain circumstances - Section 40A Deductions only on actual payment – Section 43B Special cases of profits chargeabl...

  TAXATION OF DIVIDEND INCOME 1.1. TAXATION OF DIVIDEND INCOME WITH EFFECT FROM AY 2021-22 a. Dividend from Domestic Company Dividend declared by a domestic company on or after April 1, 2020 (i.e., assessment year 2021-22) is taxable in the hands of all the recipients of the dividend income irrespective of the status of the assessee (subject to exemption from income-tax otherwise available under any provisions of the Income-tax Act, 1961 (‘the Act’)). The dividend income is chargeable to tax under the head ‘Income from Other Source’ u/s. 56 of the Act at the rate of taxation applicable to the assessee. b. Dividend from Foreign Company Dividend income received from a foreign company is also taxable in the hands of all the Indian resident shareholders irrespective of their status (subject to exemption from income-tax otherwise available under any provisions of the Act). The dividend income is chargeable to tax under the head ‘Income from Other Source’ u/s. 56 of the Act at the rate o...

  TAXABILITY OF GIFTS — SECTION 56 SECTION 56* - TAXABILITY OF GIFTS Particulars Section 56(2)(x) Recipient Any Person Giver Any Person Period covered On or after 1 April 2017 Amount to be taxed Consideration Amount to be taxed a. Sum of money received without consideration, the aggregate value of which exceeds INR 50,000/- Whole of the aggregate value b. Immovable property     Received without consideration, the stamp duty value of which exceeds INR 50,000/- Stamp duty property   Received for a consideration, where stamp duty value exceeds such consideration by more than higher of the following: INR 50,000; and an amount equal to — 10% (w.e.f 1-4-2021 of the consideration) in case of immoveable property other than that covered at below (b) 20%(w.e.f 1-4-2021 of the consideration) in case of purchase of residential unit during 12 November 2020 to 30 June 2021 by way of first- time allotment to any person for consideration not exceeding INR 2 crore Stamp duty value on...