For businesses registered under the Goods and Services Tax (GST) system, GST return filing is a crucial compliance requirement. It is not just a routine tax procedure but an essential part of maintaining transparency with tax authorities and ensuring smooth business operations. Regular GST filing helps businesses remain legally compliant,
What is GST Registration? GST registration is the process through which a business obtains a GSTIN (Goods and Services Tax Identification Number) under India’s Goods and Services Tax system. Once registered, a business is legally permitted to collect GST from customers and claim Input Tax Credit (ITC) on eligible purchases.
Let us move straight to the subject. Understanding Updated Return (ITR-U) An Updated Return, filed in Form ITR-U, enables a taxpayer to: This mechanism was introduced to allow taxpayers a voluntary opportunity to correct past non-compliance by paying the applicable tax along with statutory additional charges, thereby regularising their tax
Double taxation is a frequent concern in cross-border situations. When income is taxed both in the country where it is earned (source country) and again in the country where the person or company is resident, it results in unnecessary tax burden. To avoid this, countries enter into DTAA – Double
The Income Tax Department has introduced a revised compliance framework for foreign remittances, replacing Form 15CA and Form 15CB with Form 145 and Form 146. This development represents a structural upgrade aimed at enhancing digital compliance, transparency, and traceability in outward remittances made by Non-Resident Indians (NRIs). This framework is
Tax payments in India are not always made at the end of the year. The system ensures taxes are collected throughout the financial year mainly through two mechanisms—TDS (Tax Deducted at Source) and Advance Tax. Although both serve the same purpose, they differ in responsibility, timing, and applicability. Understanding this
Tax Deducted at Source (TDS) on salary is governed by Section 192 of the Income Tax Act. Employers must calculate and deduct tax from employee salaries based on their estimated annual income and the applicable slab rates. Proper compliance helps avoid interest, penalties, and legal complications. TDS on salary does
When rent is paid to a resident landlord, TDS may apply depending on who the tenant is and the amount of rent paid. Under the Income Tax Act, 1961, two different sections govern TDS on rent—Section 194-I and Section 194-IB. Each section applies to a different category of tenant, with
Certain transactions in India require tax to be collected directly at the time of sale. This concept, known as Tax Collected at Source (TCS), ensures that tax is captured upfront on specified goods and transactions. For businesses, understanding TCS is important not just for compliance, but also to avoid interest,
Tax Deducted at Source (TDS) is a mechanism introduced by the Income Tax Department to ensure timely collection of tax at the point where income arises. Under this system, the person making a specified payment (the deductor) deducts tax before releasing the payment and deposits it with the Central Government.
A common misconception among taxpayers is that citizenship determines tax liability in India. However, under the Income Tax Act, 1961, it is your residential status that plays the deciding role. Whether you are living in India, working abroad, or frequently travelling, your residential status determines what portion of your income
Taxpayers often realise, after filing their Income Tax Return (ITR), that certain details were missed, wrongly reported, or require correction. In such situations, the Income Tax Act provides two corrective mechanisms—Revised Return and Updated Return (ITR-U). Understanding when to use each option is essential to remain compliant and avoid unnecessary
