Objectives of Accounting Standards

Accounting is a language in itself. It communicates the financial statements of an enterprise. It speaks its financial status. But, as common with any other language, this language also suffers from ambiguity. Words and figures can be interpreted differently from what the author of such report intends to express. It is not different to errors that use of words...

Settlement of Tax Cases under Income Tax Act, 1961

We all know that Income Tax Laws are very complex. Often, knowingly or unknowingly there are many lapses in compliances. Income Tax is a source of revenue for the government. It makes it harder for the government to have any leniency for such defaults. However, Government also doesn’t want one time evaders and innocent defaulters to go to harsh...

Overview of Prevention of Money Laundering Act, 2002

Prevention of Money Laundering Act, 2002 is also commonly known as PMLA 2002. This Act applies to the whole of India and it came into force with effect from 1st July 2005. It’s silent features are – It aims at combating chanellising of money into illegal activities, Provides for attachment and seizure of property and records Has stringent punishment,...

Procedure of making application for advance ruling under Income Tax Act, 1961

Provisions related to Advance Ruling under Income Tax Act, 1961 are contained in section 245N – 245V. For brief contents of the section, you can read here. had been framed under powers conferred by section 245V of Income-tax Act, 1961. An applicant can make application by submitting a duly signed copy of the application. Such application should be signed...

Provisions related to advance rulings under Income Tax Act, 1961

Chapter XIX-B consists of sections related to Advance Rulings. Section 245N to 245V provide a scheme for giving advance rulings. These rulings are for transactions involving non-residents and specified residents. These provisions are necessary to avoid litigations and promote better taxpayer relations. Below are links to sections related to Advance Rulings – What does this section provide? This section provides...

A brief information about Income Tax Authorities

Income Tax Act, 1961 is the main law dealing with Income Taxes in India. There are several rules made under this Act and are collectively known as Income Tax Rules, 1962. Like any other law, this Act and rules also require authorities to regulate it. These authorities are defined under the Income Tax Act, 1961. Let's take an overview...

Jurisdictions of Income Tax Authorities

Section 120 deals with Jurisdictions of Income Tax Authorities. Income tax authorities shall exercise all or any of powers and functions conferred upon it by CBDT. CBDT can in accordance with section 120(1) issue directions to such income tax authorities. Also if CBDT directs, all such high-rank authorities can exercise powers and perform functions of such lower ranked authorities....

Overview on Powers of Income-tax Authorities

Section 131 to 136 deal with powers of Income-tax Authorities. Below are the headings of these sections. Sections Heading 131 Power regarding discovery, production of evidence, etc. 132 Search and seizures 132A Powers to requisition books of account, etc. 132B Application of seized or requisitioned assets 133 Power to call for information 133A Power of survey 133B Power to collect certain information 133C Power to call for information by prescribed income-tax authority 134 Power to inspect registers...

Residence in India as per Income Tax Act, 1961

The residential status of an individual is very important as per Income Tax Act, 1961. Provisions relating to residential status is in section of Income Tax Act. Taxability of any income depends upon residential status under this Act. Residential Status has nothing to do with Citizenship of India. Even foreign citizens can be resident in India for tax...

Taxation as per Residential Status in India

Residential Status is very important for determining taxability in India. Provision related to residential status is in Section of Income Tax Act, 1962. If you don't know how to determine residential status, read our article on a status of residence in India as per Income Tax Act, 1962. Resident and Ordinary Resident In India, Residence determines the taxability of Income....