digilekha

  In India, there are two different sorts of taxes: direct and indirect. In terms of direct taxes, they are assessed on the revenue that various corporate organisations generate over a fiscal year. The Income Tax Department registers many types of tax entities, and each of these tax entities pays taxes as per the tax rates prescribed in the law. The methodology of calculation of taxes is also different as per the entity status. Direct taxes mainly Income Tax are divided into: Corporate Tax: Refers to the income tax paid by corporate entities Other than Corporation tax- Refers to the income tax paid by all other entities (Other than corporate entities) The Government gets about 53% of all direct tax collection from corporate tax and the balance, while 47% from others. Corporate Tax in India A corporate is an entity, which is an independent and separate legal entity from its stockholders. Both domestic and foreign businesses are required to pay corporate tax under the Income-tax Act....

  In Budget 2020, Nirmala Sitharaman, the finance minister, announced a new tax system with more tax slabs and lower tax rates. The majority of taxpayers have long requested this, but there is a catch: all deductions and exemptions from the previous tax system must be removed. The finance minister added to the confusion by giving taxpayers the option of choosing between the new regime and the existing one, leaving it up to them to make their own decision. Due to the combined factors of all these variables, tax rules have become more complicated rather than simpler. And if you’re wondering how to decide whether to choose the new or the old tax regime, this blog provides the information you need. We look at the new regime carefully, weigh its advantages, and compare it with the current tax structure. So, let’s begin. More tax slabs and a lower tax rate, but no option to lower taxes under the new tax regime. The new tax system differs from the previous one in two ways. One, under the ...

Filing income tax returns is of utmost importance as you can avoid added interest, and penalties, and most importantly safeguard credit if you need it in the future (in this case loans) and owing to any foreign assets if any. Accounting and tax compliance companies always recommend that you need to be vigilant in filing the tax years every year as a responsible taxpayer. However, during filing our income tax returns, one can unknowingly make errors that can include mentioning the wrong account number, spelling mistakes of name, errors in declaring interest income and claiming the wrong deduction. It can also happen due to some unforeseen emergency in your house that you have forgotten to pay the taxes. However, there is no reason to worry as now there is a provision to correct your income tax return if you have made an error in it. The good news is that the current income tax laws by the Indian government allow you to correct the returns if you have made any mistake. Under sec...