115jd of income tax act

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Amended and updated notes on section 115JC of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to special provisions for payment of tax by certain persons other than a company. Recently, we have discussed in detail Today, we learn the provisions of section 115JC of Income-tax Act 1961 as amended by the Finance Act 2022. The amended provision of section 115JC is effective for financial year 2022-23 relevant to the assessment year 2023-24. In this article, you will learn detail of the provisions of section 115JC of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India. Table of Contents • • • • • • Section-115JC: Special provisions for payment of tax by certain persons other than a company Section 115JC (1): Notwithstanding anything contained in this Act, where the regular income-tax payable for a previous year by a person, other than a company, is less than the alternate minimum tax payable for such previous year, the adjusted total income shall be deemed to be the total income of that person for such previous year and he shall be liable to pay income-tax on such total income at the rate of eighteen and one-half per cent. Section 115JC (2): Adjusted total income referred to in sub-section (1) shall be the total income before...

Section 115JD of the Income Tax Act: Tax credit for alternate minimum tax (1) The credit for tax paid by a person under (2) The tax credit of an assessment year to be allowed under sub-section (1) shall be the excess of alternate minimum tax paid over the regular income-tax payable of that year: Providedthat where the amount of tax credit in respect of any income-tax paid in any country or specified territory outside India under (3) No interest shall be payable on tax credit allowed under sub-section (1). (4) The amount of tax credit determined under sub-section (2) shall be carried forward and set off in accordance with the provisions of sub-sections (5) and (6) but such carry forward shall not be allowed beyond the fifteenth assessment year immediately succeeding the assessment year for which tax credit becomes allowable under sub-section (1). (5) In any assessment year in which the regular income-tax exceeds the alternate minimum tax, the tax credit shall be allowed to be set off to the extent of the excess of regular income-tax over the alternate minimum tax and the balance of the tax credit, if any, shall be carried forward. (6) If the amount of regular income-tax or the alternate minimum tax is reduced or increased as a result of any order passed under this Act, the amount of tax credit allowed under this section shall also be varied accordingly. (7) The provisions of this section shall not apply to a person who has exercised the option referred to in

Section 234B touches upon fines and penalties that the income tax department can impose in case of a default. Liability under section 234B can also arise when there is a delay in paying advance tax. Refer to our guides for interest under What is an advance tax? If you have to pay Rs 10,000 or more in Who needs to pay advance tax? All assesses including salaried employees, self-employed professionals, businessmen, etc. are required to pay advance tax, where the tax payable even after reducing TDS already is Rs 10,000 or more. Interest under Section 234B: Default in payment of advance tax Interest under section 234B is applicable when: • Your tax liability after reducing TDS for the financial year is more than Rs 10,000 and you did not pay any advance tax. • You paid advance tax, but advance tax paid is less than 90% of ‘assessed tax’. • If the taxpayer files an updated ITR, the amount of advance tax paid is lowered only once for calculating the interest payable under section 234B (inserted in Budget 2023). In any one of the above cases, interest under section 234B shall be applicable. Interest is calculated at 1% on assessed tax less advance tax. Part of a month is rounded off to a full month. The amount on which interest is calculated is also rounded off in such a way that any fraction of a hundred is ignored. What is assessed tax? Assessed tax is the total income tax on taxable income less the following deductions: • Tax deducted at the source versus tax collected at the ...

The Finance Act of 2021 incorporated Section 148A in the Income Tax Act, 1961, effective for the 2021-22 tax year. Its purpose is to require the assessing officer to make any necessary inquiries, with the express permission of clearly defined powers, about data that suggests that tax-payable income has escaped assessment before sending a notice under Section 148A was added to the Income Tax Act as part of Budget 2021. Now, let’s say that the tax collector knows that the taxpayer has hidden money for any year in which tax is due. Under the new rule, before sending a notice, the Table of Contents • • • • • • • Section 148A of Income Tax Act: Scope The assessing officer must give the person being taxed more than seven days but less than thirty days to give an explanation. The response from the taxpayer will help the income tax officer decide whether or not to send a notice for unreported income. A copy of the ruling and a notification (under Section 148) must be sent to the taxpayer if the income tax officer chooses to reopen the matter. Discrepancies in the assessment of taxable income are disclosed in the notification. The person doing the assessment will also have to prove his or her point. Show cause notices are only sent out after an assessing officer has looked into evidence that the taxable income hasn’t been taxed, with the approval of the designated authority. All about Section 148A of Income Tax Act: Specifics The time limit says that no notice can be given more tha...

Amended and updated notes on section 115JB of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to special provision for payment of tax by certain companies. Recently, we have discussed in detail In this article, you will learn detail of the provisions of section 115JB of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India. Table of Contents • • • • • • • • • • • • • Section-115JB: Special provision for payment of tax by certain companies Section 115JB(1) of Income Tax Act Notwithstanding anything contained in any other provision of this Act, where in the case of an assessee, being a company, the income-tax, payable on the total income as computed under this Act in respect of any previous year relevant to the assessment year commencing on or after the 1st day of April, 2012, is less than eighteen and one-half per cent of its book profit, such book profit shall be deemed to be the total income of the assessee and the tax payable by the assessee on such total income shall be the amount of income-tax at the rate of eighteen and one-half per cent: Provided that for the previous year relevant to the assessment year commencing on or after the 1st day of April, 2020, the provisions of this sub-section shall have effect as if for ...

The Income Tax Department levies different types of interest on delays and defaults of income tax payments. If your total tax payable is more than Rs. 10,000 in a financial year, you are expected to pay advance taxes. Section 234C of the Income Tax Act levies a penalty if you miss one or multiple instalments of advance tax. So, what penalties are applicable for defaults on advance tax? Keep reading this article to find out more about Section 234C. What Are the Provisions of Section 234C? Section 234C of the Income Tax Act imposes interest on taxpayers who have not paid the instalments of advance tax fully/partly. This is a provision under Section 208 where you are required to pay your annual tax in four instalments if your estimated tax liability exceeds Rs. 10,000 in a financial year. Any assessee, including salaried employees, self-employed individuals, companies, and partnership firms with a total tax liability of the above amount, has to pay advance tax. However, senior citizens (60 years or older) residing in India with no income under ‘Income from business and profession’ are exempted. Taxpayers have to pay a certain portion of their advance tax within due dates specified by the IT Department. The presumptive taxation scheme allows you to skip instalments. The following table lists the due dates of these instalments. Due Dates For Taxpayers Opting for Presumptive Scheme u/s 44AD For All Other Taxpayers June 15 Nil Up to 15% advance tax September 15 Nil Up to 45% of a...

Section 115AD of the Income Tax Act: Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer (1) Where the total income of a specified fund or Foreign Institutional Investor includes— ( a) incomereceived in respect of securities (other than units referred to in ( b) income by way of short-term or long-term capital gains arising from the transfer of such securities, the income-tax payable shall be the aggregate of— (i ) the amount of income-tax calculated on the income in respect of securities referred to in clause (a ), if any, included in the total income,— (A ) at the rate of twenty per cent in case of Foreign Institutional Investor; (B ) at the rate of ten per cent in case of specified fund: Provided that the amount of income-tax calculated on the income by way of interest referred to in ] ( ii) the amount of income-tax calculated on the income by way of short-term capital gains referred to in clause ( b), if any, included in the total income, at the rate of thirty per cent : Providedthat the amount of income-tax calculated on the income by way of short-term capital gains referred to in ( iii) the amount of income-tax calculated on the income by way of long-term capital gains referred to in clause ( b), if any, included in the total income, at the rate of ten per cent: Providedthat in case of income arising from the transfer of a long-term capital asset referred to in ( iv) the amount of income-tax with which the spe...

The Finance Act of 2021 incorporated Section 148A in the Income Tax Act, 1961, effective for the 2021-22 tax year. Its purpose is to require the assessing officer to make any necessary inquiries, with the express permission of clearly defined powers, about data that suggests that tax-payable income has escaped assessment before sending a notice under Section 148A was added to the Income Tax Act as part of Budget 2021. Now, let’s say that the tax collector knows that the taxpayer has hidden money for any year in which tax is due. Under the new rule, before sending a notice, the Table of Contents • • • • • • • Section 148A of Income Tax Act: Scope The assessing officer must give the person being taxed more than seven days but less than thirty days to give an explanation. The response from the taxpayer will help the income tax officer decide whether or not to send a notice for unreported income. A copy of the ruling and a notification (under Section 148) must be sent to the taxpayer if the income tax officer chooses to reopen the matter. Discrepancies in the assessment of taxable income are disclosed in the notification. The person doing the assessment will also have to prove his or her point. Show cause notices are only sent out after an assessing officer has looked into evidence that the taxable income hasn’t been taxed, with the approval of the designated authority. All about Section 148A of Income Tax Act: Specifics The time limit says that no notice can be given more tha...

Section 234B touches upon fines and penalties that the income tax department can impose in case of a default. Liability under section 234B can also arise when there is a delay in paying advance tax. Refer to our guides for interest under What is an advance tax? If you have to pay Rs 10,000 or more in Who needs to pay advance tax? All assesses including salaried employees, self-employed professionals, businessmen, etc. are required to pay advance tax, where the tax payable even after reducing TDS already is Rs 10,000 or more. Interest under Section 234B: Default in payment of advance tax Interest under section 234B is applicable when: • Your tax liability after reducing TDS for the financial year is more than Rs 10,000 and you did not pay any advance tax. • You paid advance tax, but advance tax paid is less than 90% of ‘assessed tax’. • If the taxpayer files an updated ITR, the amount of advance tax paid is lowered only once for calculating the interest payable under section 234B (inserted in Budget 2023). In any one of the above cases, interest under section 234B shall be applicable. Interest is calculated at 1% on assessed tax less advance tax. Part of a month is rounded off to a full month. The amount on which interest is calculated is also rounded off in such a way that any fraction of a hundred is ignored. What is assessed tax? Assessed tax is the total income tax on taxable income less the following deductions: • Tax deducted at the source versus tax collected at the ...