According to the Income Tax Act of 1961, if someone doesn't follow the tax rules, they may have to pay penalties. These penalties include interest on unpaid tax amounts. Section 234 outlines these penalties, and specifically, Section 234B deals with interest charged for not making advance tax payments on time, especially if the taxpayer fails to pay online.Understanding … [Read more...] about Interest on Late Advance Tax Payments: Section 234B Explained
Income Tax
Your Guide to Income Tax Notices: 8 Alerts Every Taxpayer Should Know!
The income tax department may send you a tax notice if they find any errors in your tax return. These notices are a way for the tax authorities to alert you about mistakes that need to be corrected. Depending on what the issue is and how you respond, the tax officer might take further action.It’s crucial to understand why you might get a tax notice and how to handle it. … [Read more...] about Your Guide to Income Tax Notices: 8 Alerts Every Taxpayer Should Know!
Understanding How New Share Buyback Tax Rules Impact Shareholders and Corporations
The Indian government's new tax rules for share buybacks have created quite a buzz since they came into effect on October 1, 2024. These changes, announced in Budget 2024, will affect both shareholders and corporate strategies in significant ways.If you're wondering how these changes might impact you or the companies you invest in, you're in the right place.This article … [Read more...] about Understanding How New Share Buyback Tax Rules Impact Shareholders and Corporations
Clubbing of Income: Paying Tax on Someone Else’s Earnings in India
In India, individuals are generally taxed only on their own income. However, there are situations where a person may have to pay taxes on someone else’s income. This is called clubbing of income, and it is designed to prevent people from avoiding taxes by shifting their income to others, especially family members, who are in a lower tax bracket.Why Do We Have Clubbing … [Read more...] about Clubbing of Income: Paying Tax on Someone Else’s Earnings in India
Understanding Section 143(1) Intimation and Your ITR Password: A Simple Guide
If you've filed your Income Tax Return (ITR) and received an Intimation under Section 143(1), don’t worry! It's not always a bad thing—it might even mean you're getting a tax refund! Let’s break down what this notice means and what steps you need to take.What is an Intimation Under Section 143(1)?When you file your Income Tax Return (ITR), the Income Tax Department … [Read more...] about Understanding Section 143(1) Intimation and Your ITR Password: A Simple Guide