Have you ever wondered why does an individual file his Income Tax Return? Simply, people earn some income during a particular year and generally make couple of investments in various schemes and undertake several expenses related to their business or profession. On such income earned by the individuals, they need to pay some amount of tax to the government. Hence, in order to declare the income and make such payment of tax, the Income Tax Return is filed.
 

 

As the tax filing season for Assessment Year 2021-22 begins, many crypto investors may be concerned about the tax implications of their earnings from cryptocurrency trading and investments in the previous financial year. Although income tax department has not yet clarified the tax implications on the gains earned from the crypto transactions, it is not advisable to avoid paying income tax on such gains.
 
In the absence of any clarification regarding the taxability of gains arising from transactions in cryptocurrencies, the taxability of such transactions would have to be determined based on the interpretation of the Income Tax law.

Have you filed ITR for the previous two years? If not, then this article can disappoint you. This is the hard truth that income tax department has introduced a new section 206AB effective from 01.07.2021 that ensures higher deduction of TDS of the payees who has defaulted in filing their return of income for the preceding 2 years.
 

Considering the tendency of taxpayers to evade the payment of taxes, Income Tax provisions provide for the collection of tax from the very source of income. Under this mechanism, the person responsible for making the payment is liable to deduct tax before making the final payment to the recipient at the rates specified by the department under the applicable sections of Income Tax Act, 1961.

Are you someone who runs a trust or plans to start one? Do you know that the law gives you special rebates under section 12A and 80G? Are you grasping this opportunity, or you wish to, but……..don't know how?
 
The government introduced specific provisions in the Finance Act, 2020, making it mandatory for charitable/religious/educational institutions/trusts to re-register /re-approval/provisional registration under the sections mentioned earlier. It has been made effective from 1st April 2021 by CBDT vide its notification number 19/2021 dated 26th March 2021.