COVID-19 Relief Measures in Income Tax

On 24th March 2020, the Union Finance Minister announced several measures taken by the Government of India in view of the COVID-19 outbreak and nationwide lockdown. The relief measures related to Income tax are detailed below.

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Submitting Tax Saving Proofs to Employer

Why Employers Ask for Tax Saving Investment Proofs?
Employers are responsible to deduct income tax (TDS – Tax deduction at source) from salary paid to its employees and deposit the same to income tax department. But income tax is complicated and the final tax depends on the tax saving investments a person makes or if the person lives on rent or if he has a house. So to compute your taxes correctly your employer asks for a declaration at the start of financial year (in April). The TDS is deducted based on this declaration. Continue reading “Submitting Tax Saving Proofs to Employer”

Equalization Levy

The digital economy in India is growing at a rapid pace by each passing year. Till recently, most of the Non Resident companies, which form an integral part of providing digital services did not have to pay any tax in India. Neither were they subjected to any withholding taxes, since the performance for the services were not executed in India. Moreover, as they do not have a Permanent Establishment in India, their revenue cannot be attributed to the operations in India. Hence, no tax applies on the same. Continue reading “Equalization Levy”

Taxation of Bitcoins or Crytocurrencies in India

Cryptocurrency in simple terms is “digital money” and Bitcoin is the first decentralized digital currency. It is not yet centrally administered or regulated by any specific body like the RBI which administers physical currency in India. The system works without a central bank or single administration. Continue reading “Taxation of Bitcoins or Crytocurrencies in India”

Income Tax Return (ITR) Filing

Be it startups or salaried persons, most people are faced with certain challenges when it comes to managing taxes. Most of us know the basics of it but only a few of us are actually conscious about the nitty-gritties and the best practices.

As a consequence, there is a common misconception among taxpayers that once TDS or advance tax has been paid, the filing of returns is not a very important exercise. However, it is essential to know, you have an unfinished job at hand until you have filed your tax returns. It is in fact our constitutional obligation to file returns at a stipulated time of the year. Continue reading “Income Tax Return (ITR) Filing”