Fake IT Refund Cons & Pros
Cases of misreporting of income include: –
(a) misrepresentation or suppression of facts;
(b) failure to record investments in the books of account;
(c) claim of expenditure not substantiated by any evidence;
(d) recording of any false entry in the books of account;
(e) failure to record any receipt in books of account having a bearing on total income; and
(f) failure to report any international transaction or any transaction deemed to be an international transaction. to know more about it click here to watch and subscribe.
Analyse your Income, Deductions and Decide under which regime you have to file your Return
Deciding which Income Tax Return (ITR) form to file depends on various factors, including the nature of your income, your residential status, and the applicability of specific tax provisions. Here are the general guidelines to help you determine the appropriate ITR form:
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Identify your residential status: Determine whether you are a resident, non-resident, or resident but not ordinarily resident for tax purposes. The residential status is determined based on the number of days you have spent in India during the financial year.
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Categorize your income: Classify your income into different categories such as salary, house property, business or profession, capital gains, and other sources (like interest, dividends, etc.).
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Match your income with the appropriate ITR form: Once you have categorized your income, refer to the Income Tax Department’s guidelines to find the ITR form applicable to you. The forms are numbered as ITR-1, ITR-2, ITR-3, etc. Most of IRS are encouraging tax payer to file their return get the refund.
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ITR-1 (Sahaj): This form is for individuals being residents (other than not ordinarily residents) having income from salary, one house property, other sources (except lottery winnings and income from race horses), and total income up to INR 50 lakh.
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ITR-2: Individuals and Hindu Undivided Families (HUFs) not having income from business or profession can file this form. It covers all the categories mentioned in ITR-1 and also includes capital gains and foreign assets/income.
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ITR-3: This form is for individuals and HUFs having income from a proprietary business or profession. Partnerships firms also use this form.
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ITR-4 (Sugam): Individuals, HUFs, and firms (other than Limited Liability Partnerships) having presumptive income from business or profession can file this form. It is applicable for small taxpayers under certain conditions.
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ITR-5: This form is for entities such as firms, LLPs, Association of Persons (AOPs), and Body of Individuals (BOIs) other than those eligible to file ITR-7.
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ITR-6: Companies that are not claiming exemption under section 11 (income from property held for charitable or religious purposes) should file this form.
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ITR-7: This form is for persons including companies who are required to furnish a return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) (charitable or religious trusts, political parties, etc.).
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Review form-specific requirements: Each ITR form has its own set of requirements and schedules. Make sure you understand the instructions and fill in the details accurately.
It is recommended to consult a qualified tax professional or refer to the official Income Tax Department website for the most up-to-date information and to ensure you choose the correct ITR form based on your specific circumstances. Click Here to analyze your income and deduction available which will help you to decide under which regime you have to file ITR.
What Do You Mean By MSME
The Micro, Small and Medium Enterprises (MSMEs) support industries as ancillary units, thereby contributing enormously to the overall industrial development of the country. These enterprises are engaged in the production, manufacturing and processing of goods and commodities.
MSMEs provide several benefits to the development of the economy. They provide room for employment for millions of artisans and workers. They also promote entrepreneurship and the development of specialised skills. Additionally, they support the development of modernised technology, infrastructure and the development of the sector as a whole. They help in harnessing the growth of domestic as well as international markets.
MSMEs are playing a major role in the Government’s ‘Make in India’ initiative to give an impetus to manufacturing in India and make India a global manufacturing hub.
Classification of MSMEs
Section 43B plays a pivotal role in determining the allow ability of deductions on an actual payment basis. It outlines specific conditions under which expenses can be deducted when calculating income from business or profession.
The amendment to Section 43B of the Income Tax Act, 1961, through the Finance Act of 2023, brings forth crucial changes with the addition of clause (h). This amendment aims to streamline payments to micro and small enterprises (MSMEs), ensuring their financial stability amidst potential delays in payments.
Section 43B(h) :- Notwithstanding anything contained in any other provision of this Act, a deduction otherwise allowable under this Act in respect of any sum payable by the assesse to a micro or small enterprise beyond the time limit specified in section 15 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006),
shall be allowed (irrespective of the previous year in which the liability to pay such sum was incurred by the assessee according to the method of accounting regularly employed by him) only in computing the income referred to in section 28 of that previous year in which such sum is actually paid by him.