business income - My Tax Support

“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,

How does the complete tax treatment differ for gains arising from shares held as stock-in-trade vs. those held as capital assets for investment?

In the world of capital gains taxation, the treatment of gains arising from the sale of shares is influenced by whether those shares are classified as stock-in-trade or capital assets. This classification plays a significant role in determining the

“Section 45(2): What Happens When a Capital Asset is Converted to Stock-in-Trade?” Complete Guide

The Income Tax Act, 1961 contains provisions that help govern how various assets are taxed when they are transferred or converted. Section 45(2) specifically addresses the scenario where a capital asset is converted into stock-in-trade. This provision is crucial

“GST’s Role in Business Income Taxation: A Complete Guide”

Introduction The Goods and Services Tax (GST) is a significant reform in indirect taxation in India. While GST governs the taxation of goods and services, it has a substantial impact on the computation and taxation of income under the

“Maximizing Tax Benefits Under Section 44AD and Section 44AE” Complete

Introduction For small traders and businesses, complying with tax regulations can be overwhelming. To simplify compliance, the Income Tax Act, 1961, provides presumptive taxation schemes under Section 44AD and Section 44AE. These schemes allow small traders to calculate and

A Complete Discontinued Business Income: Tax Treatment and Compliance”

Introduction Employee welfare is an essential aspect of running a business, and some companies extend this welfare to include family planning expenses for employees. While promoting family planning initiatives is commendable, business owners often wonder whether such expenses are

“Are Unclaimed Lottery Prizes for Agents Taxable?” A Complete

Introduction In the lottery business, agents play a key role in selling tickets and distributing prizes. Sometimes, prizes remain unclaimed by winners, and the amounts may revert to the agents. This raises questions about the taxation of such unclaimed

“Is Insurance Compensation for Stock-in-Trade Loss Taxable?” A Complete

Introduction Insurance compensation received for the loss or damage of stock-in-trade is a significant aspect of business taxation. Stock-in-trade refers to the inventory held by a business for sale. When such stock is lost or damaged, businesses often receive

How to Treat Pre-Incorporation Profits for Tax Purposes”

Introduction When starting a company, certain profits or gains may be earned during the pre-incorporation period—before the company is formally registered or incorporated. These pre-incorporation profits need to be treated carefully under accounting and taxation laws to ensure compliance.

“How Are Gains from Commodity Trading Taxed?” A Complete

Introduction Commodity trading involves buying and selling goods such as gold, silver, crude oil, agricultural products, and other resources through commodity exchanges. A common question arises: Are the gains or losses from commodity trading classified as speculative income under

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