Direct Tax

What do you know about SFT transaction? (26AS)

SFT stands for Specified Financial Transaction, and it is a term used in the context of tax reporting in India. The concept of SFT was introduced to enhance transparency and curb tax evasion by capturing certain high-value transactions. These transactions are required to be reported by the parties involved to the Income Tax Department. SFT…...

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What is the limit for tax audit?

The Finance Act 2020 had increased the tax audit limit for a person carrying on business from ₹1 crore to ₹5 crore, subject to a condition that cash receipts and cash payments during the year do not exceed 5 per cent of the total receipts/payments. The Finance Act 2021 further increased this limit to ₹10…...

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Difference between 194Q v 206 1H?

Section 194Q: Section 194Q was introduced by the Finance Act, 2021, and it applies to certain buyers who purchase goods from a resident seller. The key points are: Applicability: This section applies if the buyer’s turnover or gross receipts in the preceding financial year exceed Rs. 10 crores. Transaction Type: It is applicable to the…...

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Difference between 115BAA and BAB?

Section 115BAA: Section 115BAA of the Income Tax Act pertains to the concessional tax regime for domestic companies. It allows domestic companies the option to pay income tax at a reduced rate of 22% (plus applicable surcharge and cess) if they do not claim certain deductions and exemptions. The reduced rate is applicable for companies…...

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Explain interest under 234C

Section 234C of the Income Tax Act imposes interest on taxpayers who fail to pay their taxes on time during the fiscal year. The interest is calculated on the amount of tax that should have been paid as advance tax. The following are the key points related to interest under Section 234C: Interest under Section…...

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Provisions of Sec 80M

The purpose of Section 80M is to provide relief from double taxation of dividends, which can occur when profits are taxed both at the company level (dividend-paying company) and at the shareholder level (dividend-receiving company). Under the provisions of Section 80M, when a domestic company receives dividends from another domestic company in which it holds…...

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