Income Tax Compliance - My Tax Support

Section 271AAD Explained: New Rules for False Entries in Accounts

The Finance Act, 2023, introduced significant amendments to Section 271AAD of the Income Tax Act, which deals with penalties for false or omitted entries in books of accounts. These changes aim to deter fraudulent practices and ensure the integrity

A Taxpayer\u2019s Guide to Penalty Principles Under Income Tax

The Income Tax Act, 1961, lays down clear principles for the imposition of penalties to ensure taxpayer compliance and deter violations. These principles provide a structured approach for tax authorities while safeguarding taxpayer rights. Below is a detailed explanation

“What You Need to Know About Tax on Property Gifts and Inadequate Transactions”

The taxation of property received without consideration or for inadequate consideration is governed by Section 56(2) of the Income Tax Act, 1961. This provision ensures that such transfers, which may otherwise escape taxation, are brought into the tax net

A Complete “Understanding Tax Rules for Rural Development Grants”

Introduction Grants received for rural development play a significant role in funding projects aimed at improving infrastructure, education, healthcare, and livelihoods in rural areas. These grants can be received by individuals, companies, or non-profit organizations from government bodies, international

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.

“Understanding Section 44ADA: Tax Relief for Professionals” A Complete

Introduction Section 44ADA of the Income Tax Act, 1961, provides a presumptive taxation scheme for professionals to simplify their tax filing process. This scheme reduces the compliance burden for eligible professionals by allowing them to declare a fixed percentage

“Simplified Tax Rules for Small Businesses Under Section 44AD”

Introduction Small businesses often face challenges in maintaining detailed records and complying with complex tax regulations. To simplify the taxation process, the Income Tax Act, 1961, introduced presumptive taxation under Section 44AD. This scheme allows small businesses to calculate

“Taxation of Export Incentives: A Complete Guide”

Introduction Export incentives play a vital role in encouraging businesses to expand into international markets. These incentives, provided by the government, include various forms of financial assistance such as duty drawbacks, export subsidies, and remission schemes. While these benefits

“How to Deduct Scientific Research Expenses for Tax Savings”

Introduction Scientific research is a key driver of innovation and progress in any economy. Recognizing its importance, the Income Tax Act, 1961, provides deductions for expenses incurred on scientific research. These provisions incentivize businesses to invest in research and

When Is Compensation Received Under a Business Contract Taxable? Complete

Introduction In the course of business, contracts often include clauses for compensation due to breaches, cancellations, or modifications. The Income Tax Act, 1961, provides specific rules for taxing such compensation. Understanding the tax implications of compensation received under a

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