Your Instasolv

  What is Section 89(1) It is a relief provided by the income tax department in relation to amount received in advance or in arrears in the form of salary which is related to any other financial year. Basically, when any person receive salary in arrears or in advance in any particular year then there might be chances that their income will falls in the higher slab and taxed at the higher rate, which would have not been the case if the same salary is receive in their respective year. Therefore, to avoid such higher tax due to timing difference, income tax department has provided relief under section 89(1) Steps to calculate the relief u/s 89(1) Step 1 Calculate the tax payable on total income including arrears of relevant previous year in which salary should have been received. (A) Step 2 Calculate the tax payable on total income excluding arrears of relevant previous year in which salary should have been received. (B) Step 3 Calculate difference between A-B=(C) Step 4 Calculate tax...

The Finance Act, 2021, has introduced many new provisions regarding deduction or collection of tax at source. One of them is: Section 194Q - TDS on purchase of goods Applicable from 01.07.2021 As per section 194Q(1), any person, being a buyer who is responsible for paying any sum to any resident (hereafter in this section referred to as the seller) for purchase of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year , shall, at the time of credit of such sum to the account of the seller or at the time of payment thereof by any mode, whichever is earlier, deduct an amount equal to 0.1% of such sum exceeding fifty lakh rupees as income-tax . **Rate increases to 5% in case of seller not having PAN, as per section 206AA of the Income Tax Act, 1961. Explanation – For the purposes of this sub-section, “buyer” means a person whose total sales, gross receipts or turnover from the business carried on by him exceed ten crore rupees during...

  Source:Google DUE DATE FOR QUARTERLY TDS STATEMENT Types of Quarterly TDS statements- 1)    Form 24Q – Statement of deduction of tax from salary under section 192. 2)    Form 26Q – Statement of deduction of tax under Section 193 to 196D in any other case. 3)    Form 27Q – Statement of deduction of tax under section 193 to 196D in respect of the deductee who is a non-resident (not being a company) or a foreign company or resident but not ordinarily resident. However, in case tax is deducted under section 194-IA and 194-IB, the deductor shall furnish a challan-cum-statement in Form 26QB and Form 26QC respectively  within a period of 30 days from the end of the month  in which the deduction is made. In this case, no statement shall be filed separately. DUE DATE FOR QUARTERLY TDS STATEMENT   (FOR FY 2020-21)        As Per Notification No.35 /2020/ F. No. 370142/23/2020 – TPL dated ...