समृद्धि की पाठशाला

All about HUF HUF (Hindu Undivided Family ), Basic purpose of creating a HUF is to save Income Tax arising out of family Income .This is new form of Tax saving tool. In India there are many Hindu families who live jointly and their properties are ancestral as well as self acquired. Income arising out of such properties can be shown as separate income and to be taxed separately. Basically, HUF account can be created by right of birth and not by an agreement between two parties. Any individual covered under Hindu personal law that is Hindu,Sikh, Jain or Buddhist can create an HUF account, if they have property income and want to save income tax. Benefit of creating HUF By creating HUF one can save substantial amount of Income tax , this is because HUF is treated as distinct entity , separate from Individual forming the HUF. Let me give you a live example question asked by a client : Sir, I am working in govt job and my total income is around Rs. 12 Lakh per ...

What are documents required for GST registartion ?? For different categories of entity , different documents are required for Registration of GST 1. For Sole Proprietorship – Photo of sole proprietor; Copy of PAN card; Copy of bank statement or cancelled cheque or first page of the pass book of owner. Copy of address proof for registered office; Electricity bill, water bill, landline bill etc. of owner; Copy of legal ownership document or municipal bill copy (in case of owned premises) Rent agreement and No Objection Certificate (NOC) from the owner of the premises (in case of rented premises). 2. Partnership Firm – PAN card of partnership firm and designated partners; Photograph of all the partners; Identity proof of all the partners; Copy of address proof for registered office; Electricity bill, water bill, landline bill etc.; Copy of legal ownership document or municipal khata copy (in case of owned premises) Rent agreement and No Objecti...

What is Presumptive Taxation  (Section 44AD) We all know that in order to calculate Tax payable by a business house or Professionals like Doctor , lawyers, CA etc , we have to check their Books of accounts , Find out his Turnover or Income and assess Income tax payable by Them. However in order to save them from complexities , Govt has launched a scheme for such Business man whose annual turnover is less than 2 crore per FY  and Professionals whose Income is less than 50 lakh per FY to avoid keeping books of Accounts and pay tax on Presumption basis as follow : A person adopting the presumptive taxation scheme can declare income at a prescribed rate and, in turn, is relieved from tedious job of maintenance of books of account. in case of a person adopting the provisions of  section 44AD , income will be computed on presumptive basis,  i.e.,  @ 8% of the turnover or gross receipts of the eligible business for the year. Income shall be calc...

What is Digital Signature and why you need it ?? A Digital signature is simply your own signature in digital form . you can use it like you use your pen for your signature in signing various documents like rent agreements, Income Tax returns, GST returns , e-tender, Your letter, your email etc etc. in paper form .Simply said it is your Digital Pen. Digital signatures are easily transportable and cannot be imitated by someone else. The ability to ensure that the original signe d message arrived means that the sender cannot easily disclaim it later. Now you will say if I can sign with my pen why should I have a Digital Signature . Well , take this simple example , you have entered into an agreement ( for Business, Rent , Sale deed or anything like) with someone living at some other place. He sends you the agreement copy by email for your signature . How will you do it ??? a. you will download the document from your mail box b. print it , c. Sign on it d. Scan it and upload...

What is reverse charge in GST  What is Reverse Charge in GST We all know that it is usually seller who has to collect GST and pay it to govt. However in Reverse Charge it is the Purchaser who has to pay GST and not the supplier. Such situation arise when Supply is made by an unregistered dealer to a registered dealer. Then registered delaer will have to pay GST Supply of certain Goods & Services listed by CBES service through E commerce If an e-commerce operator supplies services then reverse charge will be applicable to the e-commerce operator. He will be liable to pay GST. For example, Amazon provides Goods & services etc. Amazon   is liable to pay GST and collect it from the customers instead of the registered service providers.

What is GST In simple word GST is an Indirect Tax levied on supply of Goods and services . It is unified tax system introduced in India from July 1 , 2017. All the earlier taxes like  State sales tax, Central Sales tax,  Octrai, Entry tax, Excise duty and various other local taxes has been merged into one Tax called Goods & Service Tax (GST) Who should Register for GST?? Individuals registered under the Pre-GST law (i.e., Excise, VAT, Service Tax etc.) Businesses with turnover above the threshold limit of Rs. 40 Lakhs* (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh and Uttarakhand)  Casual Taxable person / Non Resident Taxable Person Agents of a supplier & Input service distributor Those paying tax under the  Reverse Charge mechanism Person who supplies via e-commerce aggregator Every e-commerce aggregator Person supplying online information and database access or retrieval services from a place outside India to a ...

Importance of PAN Card & How to Apply It The PAN card includes the permanent account number and provided by the  Income Tax Department  to all the citizens of India and the taxpayers under the command of the Central Board of Direct Taxes. It is an alpha-numeric that also allots each citizen of this country with a unique identity. Apart from this, you have to provide this card during major financial transactions such as purchase of property, investments, and also receiving salary from your employer. The key objective of this card is to have a unified approach to track the financial transactions of the citizens of India . Any citizen of India with taxable income and the foreign national who qualify to pay tax in India must apply for PAN card. The self-employed professionals with a turnover that exceeds five lakhs must also apply for PAN card. The following are some of the reasons that demonstrate the importance of PAN card. • Opening a new bank account You have...