CA.✍️ To Simplify Taxes & Legal Compliances for Individuals & Startups.
For Consultations, Tax Filings & Business Setup Services:
4 added to My Authors
Nov 26 • 13 tweets • 3 min read
Are you an Indian citizen going outside India for employment for the first time?
If yes, understand your residential status & tax implications for income tax purposes in India through this thread🧵
Before we proceed, I want to tell you that a person can fall into one of these "every year". Either he/she is a
To understand it simply, let us first know what is "Not E-invoicing."
❌Don't Confuse, E-Invoicing as generating invoices online or generating Invoices through electronic mediums.
Every person mostly create digital invoices only through app/software.
Jul 29 • 9 tweets • 2 min read
Consequences of not filing ITR on or before the due date i.e. 31st July for non-audit cases
A short thread and a practical tip 🧵
A. For income above 5L, the penalty would be Rs. 5000 till 31st Dec.
Further delay attracts a penalty of Rs. 10000 when filed between 1st Jan to 31 Mar
B. For income up to 5L, the penalty is Rs. 1000.
May 14 • 23 tweets • 5 min read
Want to know how you can do some tax cuts on your salary?
Trying to cover some possible areas of exemptions and deductions with this thread 🧵
Income from salary is charged to tax at your slab rates.
Salary includes allowances and perquisites some of which are fully taxable, partially taxable, and not taxable (exempt).
Let me break down various exemptions and deductions to reduce your salary for tax purposes.
Apr 18 • 10 tweets • 2 min read
Are you an IT Professional in India working as a Freelancer/Consultant?
I will cover tax aspects w.r.t.
1. IT Professionals working for Indian/Foreign Clients (Not as an employee) 2. How Tax Laws Playout for Different Slabs of Gross Receipts 3. Bonus Tax Tip
A thread 🧵
As per Income tax laws, certain professions (including IT professionals) can opt presumptive scheme of taxation if their gross receipts do not exceed Rs. 50 Lakhs in a year.
If you opt presumptive scheme, you need to disclose a minimum of 50% of gross receipts as your net profit
Mar 23 • 15 tweets • 3 min read
There are many options you may not know for investment under 80C and reduce your income by 1.5 lakhs every year.
An easy & simple thread on various such options.🧵
Investing in PPF - Public Provident Fund.
Min Investment - Rs. 500
Max Investment - Rs. 1.5L
ROI - 7.1% p.a.
Interest earned every year and gains on maturity are TAX FREE
Lock-in period - 15 Years
Low Risk Product with Big Lock In
Mar 15 • 22 tweets • 4 min read
Let us know about advance tax under income tax act, when to pay and more in this thread 🧵
Under Income Tax, Income earned in the current financial year is assessed for tax in the next financial year.
Hence, for Incomes that you earn in FY 2021-2022, you will assess its tax and file its Income-tax return in FY 2022-2023.
Feb 23 • 11 tweets • 3 min read
Mr. V. Vaidyanathan, MD & CEO, IDFC First Bank gifted shares worth 3.95 crores!
You too want to do philanthropy and save taxes at the same time?
Let's learn it The Vaidyanathan way :) 🧵
Say, you want to give financial help to Mr. RAMU for the purchase/construction of a House.
Now, most probably you will think to transfer money from your bank a/c to Mr. Ramu's a/c which he will use for the purchase/construction of the house.
Feb 19 • 16 tweets • 3 min read
Looking to start a manufacturing business?
It might be a great time to do so.
A thread on manufacturing companies from tax perspective. 🧵
TAX ON INCOME OF NEW MANUFACTURING COMPANIES
To promote make in India, tax rates on newly setup manufacturing companies are 17.16% (Effective rate - 15% tax + 10% compulsory surcharge + 4% cess)
Jan 22 • 11 tweets • 2 min read
Let's discuss about the incredible strategy you can use w.r.t. Buyback of shares to pay NO TAX at all.
A thread about taxation on buyback on shares 🧵
As the name suggests "Buy + Back" is a situation where companies purchase their own shares from the shareholders.
Jan 14 • 15 tweets • 3 min read
Are you planning to buy any property in India? If yes, you must know these TDS rules.
A thread 🧵
If you're buying a property in India and the consideration exceeds Rs. 50 lakhs, you need to deduct TDS i.e. (Tax deducted at source) at the rate of 1% and then, remit 99% amount to the seller.
TDS is attracted at the time of payment of consideration.
Jan 12 • 6 tweets • 1 min read
Supreme court provides a big relief by extending the period of limitation due to outbreak of omicron/3rd wave.
A short thread 🧵
What is a period of limitation?
A maximum period set by a particular law within which legal action can be brought or a right can be enforced.
For ex: If you need to file for a GST refund, it has to be done within 2 years from the due date of filing the relevant month's GSTR 3B
Jan 7 • 21 tweets • 4 min read
🧵Taxation on sale of listed equity shares and equity-oriented mutual funds(EOMF)
1. Nature of income earned? 2. Tax rates? 3. Books of accounts and audit requirements? 4. Simple strategies to lower your STCG/LTCG tax 5. Set off & carry forward of losses made in the sale
Broadly, In equity trading, people do:
This thread covers taxation on Intraday and Delivery Transaction.
Dec 24, 2021 • 24 tweets • 5 min read
Taxation of Futures and Options (F&O) and its other Income-tax compliances are simple but there is a lot of confusion around it like:
1. Nature of F&O Income? 2. How to compute turnover? 3. Who needs to prepare books & get their books audited? 4. To opt presumptive tax or not?
Let us start by knowing what is the nature of F&O income.
When you earn from F&O transactions, the income is chargeable under the head "business and profession" and is treated as normal business income or business loss.
No, not as capital gains! but as business income.
Dec 10, 2021 • 14 tweets • 3 min read
A thread on NPS (National Pension Scheme)
NPS is a retirement option plan and can be done by people falling in the age bracket of 18 to 65.
Dec 4, 2021 • 11 tweets • 3 min read
In last 2 threads, I have discussed on how you can create HUF, infuse capital and optimize your tax using HUF.
Now, Let us discuss about partition (dissolution) of HUF
In simple terms, partition means division of property. Partition can only be claimed by Co-parcener but members are also entitled to have a share in the property of HUF.
To understand who is a member and who is co-parcener, you can see this to understand.
Let's discuss post-forming HUF, how you can generate capital & optimize tax in this thread.
1. Generating capital & tax effects in HUF.
a) Ancestral Property of the individual can be trfd to HUF through a WILL. It must be specifically mentioned that the property in the WILL is being given to the HUF.
Tax - NIL
b) Gifts (cumulative) up to Rs. 50000 in a year.
Tax - NIL
Nov 19, 2021 • 8 tweets • 2 min read
Let's know what is HUF (Hindu Undivided Family) and why one should definitely use it for tax benefits?
HUF is not formed by contract but created by law. As soon as a person is married, HUF comes into existence. This is only applicable to Hindus, Jains, Sikhs, and Buddhists.
Nov 12, 2021 • 14 tweets • 3 min read
Why Choosing Old Regime of Taxation over the new regime (option available only Individual / HUF) under Income tax is beneficial for majority of the taxpayers?
Even though when you see this slab chart, you are excited and happy that you have to pay a lesser amount of tax from this year but generally, all good things from the government come with TnC applied. Lets discuss more on that going forward in the thread
Nov 2, 2021 • 9 tweets • 2 min read
Income tax department rolls out AIS (Annual Information Statement) on its website. Let’s understand what is AIS and what importance it holds for you.
AIS (Annual Information Statement) is a detailed statement containing details of all your financial transactions available with income tax department during the year. It was introduced in the budget 2020 but is rolled out now.