General FAQs on 'Income Tax'- IT |
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FAQs on the Income Declaration Scheme, 2016 |
Q.1 |
Where an undisclosed income in the form of investment in asset is declared under the Scheme and tax, surcharge and penalty is paid on the fair market value of the asset as on 01.06.2016, then will the declarant be liable for capital gains on sale of such asset in the future? If yes, then how will the capital gains in such case be computed? |
Q.2 |
Where a notice under section 142(1)/ 143(2)/ 148/ 153A/ 153C of the Income-tax Act has been issued to a person for an assessment year will he be ineligible from making a declaration under the Scheme? |
Q.3 |
As per the Scheme, declaration cannot be made where an undisclosed asset has been acquired during any previous year relevant to an assessment year for which a notice under section 142, 143(2), 148, 153A or 153C of the Income-tax Act has been issued. If the notice has been issued but not served on the declarant then how will he come to know 4whether the notice has been issued? |
Q.4 |
In a case where the undisclosed income is represented in the form of investment in asset and such asset is partly from income that has been assessed to tax earlier, then what shall be the method of computation of undisclosed income represented by such undisclosed asset for the purposes of the Scheme? |
Q.5 |
Can a declaration be made of undisclosed income which has been assessed to tax and the case is pending before an Appellate Authority? |
Q.6 |
Can a person against whom a search/ survey operation has been initiated file declaration under the Scheme? |
Q.7 |
Where a search/ survey operation was conducted and the assessment has been completed but certain income was neither disclosed nor assessed, then whether such unassessed income can be declared under the Scheme? |
Q.8 |
What are the consequences if no declaration under the Scheme is made in respect of undisclosed income prior to the commencement of the Scheme? |
Q.9 |
If a declaration of undisclosed income is made under the Scheme and the same was found ineligible due to the reasons listed in section 196 of the Finance Act, 2016, then will the person be liable for consequences under section 197(c) of the Finance Act, 2016? |
Q.10 |
If a person declares only a part of his undisclosed income under the Scheme, then will he get immunity under the Scheme in respect of the part income declared? |
Q.11 |
Can a person declare under the Scheme his undisclosed income which has been acquired from money earned through corruption? |
Q.12 |
Whether at the time of declaration under the Scheme, will the Principal Commissioner/Commissioner do any enquiry in respect of the declaration made? |
Q.13 |
Will the declarations made under the Scheme be kept confidential? |
Q.14 |
14. Is it necessary to file a valuation report of an undisclosed income represented in the form of investment in asset along with the declaration under the Scheme? |
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FAQs on Tax on ‘Presumptive Taxation Scheme’ |
Q.1 |
What is the meaning of presumptive taxation scheme? |
Q.2 |
Who is eligible to take advantage of the presumptive taxation scheme of section 44AD? |
Q.3 |
Which businesses are not eligible for presumptive taxation scheme? |
Q.4 |
Can an insurance agent adopt the presumptive taxation scheme of section 44AD? |
Q.5 |
Can a person engaged in a profession as prescribed under section 44AA(1) adopt the presumptive taxation scheme of section 44AD? |
Q.6 |
Can a person whose total turnover or gross receipts for the year exceed Rs. 2,00,00,000 adopt the presumptive taxation scheme of section 44AD? |
Q.7 |
What is the manner of computation of taxable business income under the normal provisions of the Income-tax Law, i.e., in case of a person not adopting the presumptive taxation scheme of section 44AD? |
Q.8 |
What is the manner of computation of taxable business income in case of a person adopting the presumptive taxation scheme of section 44AD? |
Q.9 |
As per the presumptive taxation scheme of section 44AD, income of a taxpayer will be computed @ 8% of the turnover or gross receipt and from the income of 8% can the taxpayer claim any further deductions? |
Q.10 |
If a person adopts the presumptive taxation scheme of section 44AD, then is he required to maintain books of account as per section 44AA? |
Q.11 |
If a person adopts the presumptive taxation scheme of section 44AD, then is he liable to pay advance tax in respect of income from business covered under section 44AD? |
Q.12 |
What provisions will apply if a person who is eligible for the presumptive taxation scheme of section 44AD declares his income at a lower rate (i.e. less than 8%)? |
Q.13 |
If a person adopts the presumptive taxation scheme but he opts out from the scheme in any of the subsequent five years, then what are the consequences? |
Q.14 |
Who is eligible to take advantage of the presumptive taxation scheme of section 44ADA? |
Q.15 |
What is the manner of computation of taxable income in case of a person adopting the presumptive taxation scheme of section 44ADA? |
Q.16 |
Can a person who adopts the presumptive taxation scheme of section 44ADA claim any further deduction of expenses after declaring profit @ 50% of gross receipts? |
Q.17 |
If a person adopts the presumptive taxation scheme of section 44ADA, then is he liable to pay advance tax in respect of income from profession covered under section 44ADA? |
Q.18 |
If a person adopts the presumptive taxation scheme of section 44ADA, then he is required to maintain books of account as per section 44AA? |
Q.19 |
What provision will apply if a person opt for the presumptive taxation scheme of section 44ADA and declares his income from profession at lower rate (i.e. less than 50%)? |
Q.20 |
For whom the presumptive taxation scheme of section 44AE is designed? |
Q.21 |
Who is eligible to take advantage of the presumptive taxation scheme of section 44AE and which business is eligible for the presumptive taxation scheme of section 44AE? |
Q.22 |
Can a person who owns more than 10 goods vehicles adopt the presumptive taxation scheme of section 44AE? |
Q.23 |
What is the manner of computation of taxable business income in case of a person adopting the presumptive taxation scheme of section 44AE? |
Q.24 |
As per the presumptive taxation scheme of section 44AE, income of a taxpayer will be computed at the rate of Rs. 7,500 per goods vehicle per month and in such a case can the taxpayer claim any further deductions from the presumptive income declared at the prescribed rate? |
Q.25 |
If a person adopts the presumptive taxation scheme of section 44AE, then is he required to maintain books of account as per section 44AA? |
Q.26 |
If a person adopts the presumptive taxation scheme of section 44AE, then is he liable to pay advance tax in respect of income from business covered under section 44AE? |
Q.27 |
What provisions will apply if a person does not opt for the presumptive taxation scheme of section 44AE and declares his income at a lower rate? |
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FAQs on ‘Gifts Received by an Individual or HUF’ |
Q.1 |
Are monetary gifts received by an individual or Hindu Undivided Family (HUF) taxable? |
Q.2 |
Are there any cases in which sum of money received without consideration, i.e., monetary gift received by an individual or HUF is not charged to tax? |
Q.3 |
Apart from marriage are there any other occasions in which monetary gift received by an individual will not be charged to tax? |
Q.4 |
Are monetary gifts received from friends liable to tax? |
Q.5 |
Are monetary gifts received from abroad liable to tax? |
Q.6 |
An Individual received different gifts (cash) from his friends, none of the gift exceeded Rs. 50,000 but the total of the gifts received during the year exceeded Rs. 50,000. What will be the tax treatment in such a case? |
Q.7 |
If the aggregate value of gift received during the year by an individual or HUF exceeds Rs. 50,000, whether total amount of gift will be charged to tax or only the amount in excess of Rs. 50,000 will be charged to tax? |
Q.8 |
Are gifts of immovable property received by an individual or HUF charged to tax? |
Q.9 |
Are there any cases in which the value of immovable property received by an individual or HUF without consideration (i.e. by way of gift) is not charged to tax? |
Q.10 |
An individual received gift of three properties from his friend. The value of none of the property exceeded Rs. 50,000, but the aggregate value of these three properties exceeded Rs. 50,000. What will be the tax treatment of gift in this case? |
Q.11 |
Are gifts of immovable property located abroad liable to tax? |
Q.12 |
An Individual received gift of a flat from his friend. The stamp duty value of the flat is Rs. 84,000. In this case whether the total value of gifted property will be charged to tax or only the value in excess of Rs. 50,000 will be charged to tax? |
Q.13 |
Would any taxability arise if an immovable property is received for less than its stamp duty value? |
Q.14 |
Are there any cases in which immovable property received by an individual or HUF for less than its stamp duty value is not charged to tax? |
Q.15 |
Are gifts of movable property received by an individual or HUF charged to tax? |
Q.16 |
Are there any cases in which the value of prescribed movable property received without consideration, i.e., received as gift by an individual or HUF is not charged to tax? |
Q.17 |
An individual received gift of jewellery from his friends. The total value of jewellery received during the year as gift from all the friends amounted to Rs. 84,000. What will be the tax treatment of gift in this case? |
Q.18 |
Does any taxability arise if prescribed movable property is received by an individual or HUF for less than its fair market value? |
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