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Even small size firm are to get its accounts audited if income offered for taxation is less than 8%

TAX TALK
CA. NARESH JAKHOTIA Chartered Accountant

Amendment so as to not allow the deduction towards interest/remuneration to partners from 8% (or 6%) of turnover would defeat the very purpose of providing ease of business option to small firms. It is sure to hamper & carry adverse tax impact for the firms having small turnover/receipts. Smaller size firms would be left with no other options but to get its books of accounts audited if its income is less than 8% (or 6%) of the turnover.

Even small size firm are to get its accounts audited if income offered for taxation is less than 8%
Query 1] We have 2 small Partnership Firms, one doing trading and other doing profession. Turnover in both the firms is far less than audit limit. Whether for A.Y. 2017-18 audits of all partnerships having even small turnover is compulsory? [Shreyas V. Moghe-shreyasmoghe45@gmail.com] Opinion: There are numerous instances where an attempt to simplify the tax laws & provide ease of doing business ends up w…

NRI & taxation of mutual fund investments

TAX TALK-11.10.2017-THE HITAVADA
TAX TALK
CA. NARESH JAKHOTIA Chartered Accountant

The tax treatment for the short-term and long-term capital gain on mutual fund is same for Residents and Non Resident Indians (NRIs).

NRI & taxation of mutual fund investments
Query 1] My daughter purchased shares of Persistent Systems Ltd in 2009. She became NRI since FY 2011-12. The shares continue to be held in same Dmat a/c till date. She now wishes to gift her shares to her mother/father out of natural love. What are the tax implications/other complications, if any? She had invested in lump-sum in few mutual funds while serving in India and also in SIP. If she sells them now, what are the implications? She has no other income in India.(SIP were continued for 2/3 years but installments were paid by mother/father). Please guide. [Arvind Deshpande-arvisneha2000@gmail.com] Opinion: 1.Gift of shares by your daughter to her mother/father will not carry any tax implications. 2.NRI’s income would be taxable in …

Advance tax calculation of involves estimation of tax liability which is impossible to predict in businesses where high fluctuations, uncertainties, contingencies & speculation prevail. CBDT should further exclude few categories of taxpayers from the purview of advance tax provision: Tax Talk

TAX TALK-04.10.2017-THE HITAVADA
TAX TALK
CA. NARESH JAKHOTIA Chartered Accountant

Advance tax Rules:
Calculation of advance tax purely involves estimation of tax liability. It is purely impossible to predict the profit in businesses where high fluctuations, uncertainties, contingencies & speculation prevail.  To this extent, the provision is illogical & need consideration. CBDT should further exclude few categories of taxpayers from the purview of advance tax provision. Till it is done so, taxpayers don’t have any other alternative but to make a wild guess.

Tax benefit on donation to approved trust
Query 1] I am Govt. Pensioner, senior citizen past 80 years age. My gross income during F.Y.2016-17 is Rs. 9,15,536/- I can claim deduction of Rs. 1,60,000/- under 80C & 80TTA. My donation to Public charitable Institutions is Rs. 3,00,000/- during F.Y. 2016-17. Can I claim deduction under 80G amounting to Rs. 75,554/- (i.e., 50% of three lakh restricted to 10% of Rs. (915536-160000)=…