Tax Deduction At Source, its Provisions and its revise rates for FY: 2018-19 TDS: The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct […]
In the recent past it is observed that Income Tax Department is issuing show cause notices for launching prosecution u/s 276B of the Income Tax Act. Such notices are issued for defaults in payment of TDS. Prosecution has been launched even in cases where amount of default is low and period of default is of few days.
The new system would do away with the Assessing Officers’ discretionary powers to call for additional documents, records, and most importantly, ask the taxpayer to appear in person. Further, the new system will –
Long Term capital gain and its affect in AY 2019-20
MAT stands for Minimum Alternate Tax and AMT stands for Alternate Minimum Tax. Initially the concept of MAT was introduced for companies and progressively it has been made applicable to all other taxpayers in the form of AMT.
The biggest change implemented this financial year is the reintroduction of the long term capital gains tax on stock market investments. 10% Long Term Capital Gains (LTCG) tax will be imposed on profits exceeding `1 lakh made from the sale of stocks and equity-oriented mutual funds that have been held for over a year.
Under-reporting income or inflating deductions/exemptions in income tax return can attract heavy penalties ranging from 50% to 200% of tax evaded, say experts. An advisory issued by the income tax department has warned salaried tax payers against trying to evade tax by indulging in these malpractices and pointed out that these would attract penalties as per law.
