A. A person who is earning commission or brokerage may not be able to adopt section 44AD. Hence, insurance agents and real estate brokers are ineligible for section 44AD.
A. Section 44AD gives relief to SMB taxpayers doing business in any category except the following businesses:
A. ITR-3 is recommended, as even a modest amount constitutes business (trading) income. It is important to review your AIS thoroughly. If this income is reported there, it is likely that the system will identify it. Income tax compliance focuses on intent. By engaging in intra-day trading, you are considered to have generated business income, which is why filing ITR-3 is expected. The quantum of business income is not relevant for this requirement.
A. This is a common query among professionals. The recommended ITR form is ITR4, which accommodates reporting both salaried income (from Company A) and freelance consulting income (from Company B).
A. Yes, if it is from one self occupied, or let out property, and you do not have more than one property.
A. Yes. LTCG under Section 112A up to ₹1.25 lakh can be reported in ITR 1.
A. No. If your total income exceeds ₹50 lakh, you cannot use ITR‑1 or even ITR‑4. You must use ITR‑2 or ITR‑3, depending on whether you have business income.
A. No. If you are a director in a company, you cannot use ITR‑1 or even ITR‑4. You must use ITR‑2 or ITR‑3, depending on whether you have business income.
A. It is taxed under Income from House Property after allowing:
A. No. Both ITR1 and ITR4 allow only one house property. Please use ITR 2 or ITR 3 depending on whether you have business income.
A. No. Please use ITR 2 or ITR 3 depending on whether you have business income.
A. The following documents are required when submitting a tax return that includes rent income and/or House Rent Allowance (HRA).
A. If you fail to pay 90% of your total tax liability as advance tax.
A. Simple interest at 1% per month or part of a month.
A. On assessed tax minus advance tax paid. For tax computation, TDS is treated as an advance tax. Kindly ensure that TDS is deducted from the assessed tax prior to determining interest under section 234B.
A. Sure. Assume a total TDS of ₹10,000 is deducted from your income (salary or otherwise), and the overall tax payable on this income amounts to ₹20,000. You make a payment of ₹20,000 as advance tax (self-assessment tax) on July 31, 2025, for Assessment Year 2025-26 (Financial Year 2024-25). Since advance tax was deferred and not paid in full by the end of the financial year (on or before March 31, 2025), provisions of section 234B are applicable. The calculation is as follows:
A. If you delay instalments of advance tax.
A. For example, in relation to FY 2025-26, adherence to the following dates is required to prevent interest charges on the assessed tax (i.e., net tax after deducting TDS). The net tax amount accounts for cess and reflects any applicable rebates.
A.
A. A presumptive taxpayer may fulfil their advance tax liability by making payment in full during the final installment on 15 March. This approach considerably reduces the interest applicable under section 234C, as missing the 15 March installment results in only a 1% interest levied on the outstanding tax liability.
A. Presumptive Taxation Scheme is a simplified scheme where income is declared at a fixed percentage of turnover, without maintaining detailed books.
A. Individuals engaged in certain businesses or professional activities are eligible to participate in the presumptive taxation scheme.
A.
A. No. Unless you declare income lower than the presumptive rates as mentioned above in an answer to another question, you are permitted to carry on your business without the need to maintain books.
A. Sure. Let's assume the FY to be 2024-25. Arvind owns an engineering consultancy firm. His total tax liability for the year amounts to Rs. 54,000. He has made the following advance tax payments: