December, 2024 - My Tax Support

Breaking Down Penalties and Prosecutions in the Income Tax Act

The Income Tax Act, 1961, encompasses comprehensive provisions to ensure compliance with tax laws in India. Among its mechanisms to deter non-compliance, two significant tools are penalties and prosecutions. While both serve as deterrents, they differ in their nature,

“What You Need to Know About Taxing Unexplained Assets and Money”

Income from undisclosed sources refers to income or assets for which the taxpayer cannot provide satisfactory evidence or explanation about their origin. Under the Income Tax Act, 1961, such income is classified and taxed to ensure accountability and compliance.

“Simplified Tax Guide for Composite Letting of Machinery and Property”

Composite letting of assets refers to a situation where an individual or entity lets out multiple assets together, such as a building along with machinery, furniture, or other equipment, as part of a single agreement. The Income Tax Act,

“What You Need to Know About Taxing Unexplained Income and Assets”

Unexplained credits, investments, and expenses arise when a taxpayer cannot provide satisfactory evidence for the source of funds, transactions, or expenditures. These amounts are brought into the tax net under the head 'Income from Other Sources' as per the

“How to Handle Unexplained Income Under ‘Income from Other Sources'”

Unexplained income refers to income or assets for which the taxpayer cannot provide satisfactory evidence or explanation regarding their source. Under the Income Tax Act, 1961, such unexplained amounts are brought to tax under 'Income from Other Sources,' ensuring

Practical Examples of Income Taxed Under ‘Income from Other Sources’

The category of Income from Other Sources under the Income Tax Act, 1961 serves as a residual head to tax incomes that do not fall under specified categories like salary, business income, or capital gains. This head covers a

“Landmark Tax Cases: Income from Other Sources in Focus”

The concept of Income from Other Sources under the Income Tax Act, 1961, acts as a residual head, capturing incomes that do not fall under specific categories like salary, business income, or capital gains. Over the years, various judicial

“How to Handle Taxes on Bonus Shares and Share Buybacks”

Bonus shares and share buybacks are unique methods of rewarding shareholders. Under the Income Tax Act, 1961, these transactions are subject to specific tax treatments to ensure compliance and fairness. While bonus shares represent additional shares issued to shareholders,

“A Complete Guide to Deemed Dividend Taxation Under Sections 2(22)(a)-(e)”

The concept of deemed dividends under the Income Tax Act, 1961 ensures that certain transactions benefiting shareholders are taxed as dividends, even though they are not formally declared by the company. Sections 2(22)(a) to 2(22)(e) outline the types of

“What You Need to Know About Deemed and Actual Dividends”

Dividends represent a return on investment for shareholders, typically paid out of a company’s profits. However, under the Income Tax Act, 1961, dividends can be categorized into two types: Actual Dividends and Deemed Dividends. Understanding the distinction between these

Month: December 2024