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Income tax and tax matters for NRIs

We provide a full range of services for private individuals or organisations regarding income tax matters in India (for any income derived from a real estate asset, income derived from a business or profession, income derived from salaries, income derived from capital gains, or any other income), including but not limited to an assessment of tax liability, payments of taxes based on applicable rules and statutes, handling of any income tax notices, arguing cases or appeals as per the case in appropriate courts or tribunals and negotiating settlements on behalf of our clients.

The Income Tax Act of 1961 is the main statute that controls the laws and regulations pertaining to income tax in India. Tax applicability and liability on the income of an individual person or a body corporate are determined under the Income Tax Act of 1961. It includes provisions for the assessment, management, collection, and recovery of income tax. The central government and the state governments impose taxes in India. However, the municipalities and other local government entities also levy a few small taxes. The top body responsible for managing taxes in India is the Central Board of Revenue, sometimes known as the Department of Revenue. It is a division of the Ministry of Finance, which was established by the Central Board of Revenue Act of 1924.

The following five heads of income are subject to taxation under the Income Tax Act of 1961:

– Revenue from immovable property (Real Estate holdings).

– Income from a person’s business or the income of a corporation.

– Earnings from wages

– Gained income from capital gains.

– Any other form of income.

As a result of the Indian economy’s liberalisation and globalisation, India’s tax rules are modernising quickly and going totally digital. Our services guarantee that we can provide top-notch, current tax advice on income tax concerns that is responsive to the constantly changing changes in tax regulations. With regard to the most recent circulars, exemption notifications, etc. issued by the appropriate government authorities regarding changes or interpretation of the applicable tax laws governing the country, our team of lawyers is fully up to date and completely up to speed. We are always on our toes in this regard.

FAQs

How does the Government collect the Income-Tax?

The government uses three methods to collect taxes: – voluntary deposits made by taxpayers into specific banks, including self-assessment tax and advance tax.  – TDS, or tax deducted at source, which is deducted from the recipient’s income.  – TCS, or tax collected at source.

If I have paid the excess tax, then how will it be refunded?

Filling out the income-tax return will allow you to receive a refund for the extra tax you paid. The person receives their money back by having it credited to their bank account via an ECS transfer.

Is Agricultural income taxable?

No, agricultural revenue is not subject to taxation.

What is a PAN?

PAN or permanent account number is a unique ten-digit alphanumeric number, that the Income Tax Department issues. This number is issued on a laminated plastic card.The department can connect all of the assessee’s transactions with the department due to a PAN Card. These transactions include correspondence, TDS/TCS credits, tax payments, income returns, defined transactions, etc. Additionally, it makes it easier to compare different investments, borrowings, and other commercial operations of an assessee and to quickly retrieve information about the assessee.

What is a Return of income?

The acronym ITR stands for income tax return. It is sent in the designated format. By completing an IT return, a person can inform the income-tax department about the specifics of their income generated during a financial year and the taxes they paid on it. ITR permits carrying over the loss and subsequently requesting refunds from the income tax division. For filing returns for varied Status and Nature of Income, multiple kinds of income returns are required.

What is a time period for which a person’s income is taken into account to calculate the Income -Tax?

The income tax is assessed on an individual’s yearly income, and the tax year, as defined by the income tax law, is the time frame beginning on April 1 and ending on March 31 of the following calendar year. According to the Income Tax Law, the year is classified as follows: 1.Previous year: The year in which the income was generated is referred to as the previous year. 2.Assessment year: This is the year in which tax is charged to the income.

What are exempted income and taxable income?

A tax-free income is not charged with taxes, and under the Income-tax law, such incomes are specifically exempted from paying taxes. The incomes that are subject to tax are referred to as taxable incomes.

What is Tax Deducted at Source?

To ensure prompt and effective tax collection, the Income-tax Law includes a system of tax deduction at the moment of income generation. “Tax Deducted at Source,” sometimes known as the TDS, is the name of this system. The tax is deducted from the income at the source under this TDS scheme. The payer is responsible for withholding the tax on behalf of the payee and remitting it to the government. Interest, salaries, commissions, brokerage fees, professional fees, royalties, contract payments, etc. are subject to the provisions of TDS.

What is the main objective of FEMA?

FEMA makes sure that external commerce and payments are in order, as well as that the foreign currency market in India develops and is maintained in an orderly manner. FEMA deals with every rule pertaining to the steps, formalities, transactions, etc. for foreign currency operations in India. Under FEMA, the transactions involving foreign exchange have been divided into two main categories namely Current Account Transaction and Capital Account Transaction.

What kind of incomes are charged to the tax under the head of “Capital Gains.”?

Any gain or profit resulting from the transfer of a capital asset throughout the year is charged to the tax under the heading “Capital Gains.”

Where does the appeal lie against the order of the Assessing Officer?

Within 30 days of the date of the order under Form 35, before the Commissioner.

Where does the appeal lie against the order of the Commissioner?

Within 60 days of the date of the order under Form 36, before the Income Tax Appellate Tribunal (ITAT).

Who is supposed to pay the Income-Tax?

Every person is required to pay income tax. The definition of “person” under section 2(3) of the Income-tax Act includes both natural and artificial persons as part of its scope. The following are included in the definition of “person” for income tax purposes: Individuals, HUFs are Hindu Undivided Families, AOPs or Association of Persons, BOIs or Body of Individuals, Firms, LLPs, Companies, Local authority, Artificial legal entities are not protected by any of the aforementioned provisions. As a result, it is clear from the definition of “person” that, in addition to a natural person, or an individual, any kind of artificial entity will also be required to pay income tax.

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