Figyan

CA Bigyan Kumar Mishra

is a fellow member of the Institute of Chartered Accountants of India.He writes about personal finance, income tax, goods and services tax (GST), company law and other topics on finance. Follow him on facebook or instagram or twitter.

Presumptive taxation scheme for businesses – Section 44AD

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In presumptive taxation scheme, an individual, HUF and partnership firm is required to disclose certain percentage or amount as their income instead of actual profit or loss.We have following three sections under which presumptive business income can be calculated;Section 44AE - Applicable to the business of playing, hiring or leasing og goods carriage Section 44ADA - … [Read more...] about Presumptive taxation scheme for businesses – Section 44AD

Tax deduction for Remuneration to partners in a partnership firm

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Partnership firm is taxable in India as a separate business entity. After creating a deed of Partnership, the managing partner has to apply for a permanent account number with the tax department.Every year, tax return has to be filed with the government on or before the due date of filing by calculating taxable business income of the firm.While calculating tax … [Read more...] about Tax deduction for Remuneration to partners in a partnership firm

Tax deduction for interest on partner’s capital

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Interest is calculated and paid to each partner based on the capital contributed to the firm. Capital contribution and interest on it has to be specified in the deed of Partnership.After preparing Partnership deed, partners are required to apply for firm's permanent account number by filing form 49B. Only document to be attached with form 49B is the certified copy of firm's … [Read more...] about Tax deduction for interest on partner’s capital

How a sole proprietorship business is taxed in India

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There is no magic rule that says corporate form of business will save you more tax in comparison to proprietorship. Tax can be saved through proper tax planning.In this article, we will discuss how a sole proprietorship business is taxed in India and applicability of tax audit, TDS provisions and presumptive taxation scheme to a proprietor.Proprietorship means the … [Read more...] about How a sole proprietorship business is taxed in India

Is Life insurance policy payout taxable in India

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Typically, Life insurance payouts are received by the beneficiary when the insurer has died and the nominee has filed a death claim by submitting death certificate along with the application. In this case, entire amount received by the beneficiary is not taxable.Any amount received by the insurer at the time of maturity of the life insurance policy is also tax exempted. … [Read more...] about Is Life insurance policy payout taxable in India