Category: Blog

Rural agricultural land in India holds a unique status when it comes to income tax. Understanding where and how to report the sale of such land in your income tax return is crucial to ensure compliance with tax laws and to avoid unnecessary complications. This article will guide you through the process of reporting the sale of rural agricultural land in your income tax return, explaining the relevant provisions and steps in a clear and easy-to-understand manner. What Qualifies as Rural Agricultural Land? Before diving into the reporting process, it’s important…

Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) are integral components of India’s tax regime, ensuring the collection of taxes at the source of income. Timely filing of TDS and TCS returns is crucial for compliance and avoiding penalties. This article provides a detailed guide on the due dates for e-filing TDS and TCS returns for the Financial Year (FY) 2023-24, along with step-by-step instructions and best practices to ensure seamless compliance. Understanding TDS and TCS TDS: Tax Deducted at Source is a means of collecting tax by…

When purchasing property in India, one critical financial obligation you must fulfill is the payment of Tax Deducted at Source (TDS). This measure was implemented by the Indian government under Section 194-IA of the Income Tax Act to combat tax evasion. TDS on property applies to all transactions exceeding ₹50 lakh and ensures that taxes are collected at the source. Here’s a step-by-step guide on how to pay TDS on purchase of property. Understanding TDS on Property Purchase Eligibility for TDS: TDS is applicable when the transaction value of the property…

Understanding a company’s financial health is crucial for investors, analysts, and stakeholders. One of the key documents that provide insight into the financial status of a business is the balance sheet. This article will guide you through the process of obtaining a balance sheet, using practical examples and even providing a sample table to illustrate typical balance sheet entries. What is a Balance Sheet? A balance sheet is a financial statement that summarizes a company’s assets, liabilities, and shareholders’ equity at a specific point in time. It provides a snapshot of…

When navigating the complex world of business structures, two common terms you’ll encounter are “holding company” and “subsidiary company.” These terms are pivotal in corporate finance and business strategy, influencing how companies are structured and managed. This article will explore the differences between holding and subsidiary companies, breaking down their roles, relationships, and strategic importance in an easy-to-understand format. What is a Holding Company? A holding company is a type of parent company that doesn’t engage in its own operations, activities, or services. Instead, its primary purpose is to own shares…

Directors Identification Number (DIN) is a unique identification number assigned to anyone who intends to be a director or an existing company director in India. The concept of a DIN was introduced in India with the Companies Amendment Acts of 2006 under the provisions of Sections 266A to 266G of the Companies Act, 1956. It’s an 8-digit unique identification number that has a lifetime validity. Here’s your step-by-step guide to finding your DIN number. What is a DIN? Before we delve into finding a DIN, let’s understand what it stands for…

When filing Income Tax Returns (ITR) in India, House Rent Allowance (HRA) can be a significant benefit for salaried individuals. HRA is a component of a salary that employers provide for the rented accommodation of the employee. The Income Tax Act allows for deductions on HRA for individuals paying rent for their living. Claiming HRA can reduce your taxable income substantially if done correctly. Here’s how you can claim HRA in your ITR with detailed, step-by-step information. Understanding HRA Before you claim HRA, it’s essential to understand the conditions under which…

The imposition of Tax Collected at Source (TCS) on high-value transactions, including car purchases, has been a topic of much discussion and scrutiny among buyers in India. As a part of the Income Tax Act, 1961, TCS applies to the sale of goods exceeding a specified limit. This article delves into the nuances of TCS on car purchases, elucidating whether buyers can claim a refund on this tax and guiding them through the process of doing so. What is TCS on Car Purchases? Tax Collected at Source (TCS) is a tax…

When it comes to managing your Goods and Services Tax (GST) account in India, keeping your information up to date is crucial. One of the changes that businesses might need to make is updating the name of the proprietor on the GST portal. This guide will help you navigate the process smoothly and ensure that your GST-related documents are accurate and compliant, whether it’s due to a legal name change or any other reason. Understanding the Necessity for Change Proprietor Name in GST Portal Before initiating the process, it’s important to…

When it comes to the world of accounting, there are numerous terms and accounts that businesses need to be familiar with. One such fundamental concept is the “trading account.” It’s a term that often causes eyebrows to furrow in confusion. So, let’s unfold the layers of the trading account and understand how platforms like filewithca.com can be of assistance. What is a Trading Account? A trading account is the first financial statement prepared during the accounting cycle. This account is used to determine the gross profit or gross loss of a…