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
Income Tax
How a sole proprietorship business is taxed in India
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
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
Understanding Tax Deduction at Source (TDS) in India: A Comprehensive Guide
Understanding taxes in India can be tricky, especially if you’re new to the topic. One important way the government collects taxes is through Tax Deducted at Source (TDS). This system helps ensure that taxes are paid regularly, making the process smoother for both individuals and businesses.In this simple guide, we’ll break down everything you need to know about TDS, how it … [Read more...] about Understanding Tax Deduction at Source (TDS) in India: A Comprehensive Guide
How Does Income Tax Apply to EPF Withdrawals in India?
To discourage premature withdrawals from the Employee Provident Fund (EPF), the government has introduced Section 192A. According to this section, tax deducted at source (TDS) must be deducted from EPF withdrawals if certain conditions are met.The Employees' Provident Fund (EPF) is a savings plan for workers to help them save for retirement. Each month, 12% of an employee's … [Read more...] about How Does Income Tax Apply to EPF Withdrawals in India?