Fundamental accounting assumptions is the basic assumption followed by every entity. If nothing has been written about the fundamental accounting assumption in the financial statements then it is assumed that they have been followed in their preparation of financial statements.…
TDS on fees for professional or technical services As per section 194J of income tax act, 10% TDS is to be deducted on fee for professional or technical service, if the payment exceeds Rs.30,000. Points covered: What is section 194J…
Inquiry Notice before Assessment Section 142(1) of income tax act states that inquiry notice before assessment. And this notice can be issued by assessing officer (A.O.) to any person. Further, notice under section 142(1) of income tax act is issued…
Revised return u/s 139(5) of income tax act means if a person having furnished the ROI within the time allowed under section 139(1) OR 139(4) and discovers any error or omission or any wrong statement . Then he may…
What is bookkeeping and accounting? Bookkeeping: Bookkeeping is an activity which means recording of financial data relating to business operation in significant and orderly manner.It covers the procedural aspects of accounting work and embraces record keeping function. Further, bookkeeping procedures…
Intimation u/s 143(1) is a communication that the income tax department send to the taxpayer after processing the income tax return and informing them about result. Content 1.What is intimation u/s 143(1)? Section 143(1) requires processing of return of income…
What is accounting and its objectives? Accounting means system of classifying, summarizing and recording of financial and business transactions. Further, it is communication of financial and non-financial information. What is Accounting? According to American Institute of Certified Public Accountants- “Accounting…
What is Assessment Year ? Assessment year means period in which income earned during financial year is assessed and taxed. Assessment year begins when financial year ends.For example for financial year 2022-23 the assessment year is 2023-24. Further, A.Y. starts…
Applicability and due date of filing income tax return Every person who is earning income above the basic exemption limit is require to file income tax return on or before due date. Section 139(1) of income tax act deals with…
Income tax refund Meaning and how to claim refund? Income tax refund is a repayment made to taxpayer for any excess amount paid in taxes to income tax department. Refund can be expected if you have paid more than actually…