Rupakula & Associates

      Filing of Updated/ Income Tax Return for the Financial Years 2021-22 and 2022-23     Background:   The Finance Minister, Mrs Nirmala Sitharaman, in her Budget Speech of 2022 has  mentioned:   “India is growing at an accelerated pace and people are undertaking multiple financial transactions. The Income Tax Department has established a robust framework of reporting of taxpayers' transactions. In this context, some taxpayers may realize that they have committed omissions or mistakes in correctly estimating their income for tax payment. To provide an opportunity to correct such errors, I am proposing a new provision permitting taxpayers to file an Updated Return on payment of additional tax. This updated return can be filed within two years from the end of the relevant assessment year.   In this context, it is also equally important to note that some of the Assessees have not filed or failed to or forgot to fil...

Section of 80JJAA of Income Tax Act, 1961 has been amended with effect from 1st of April 2017 with the following objectives: To facilitate job creation and employment generation. To promote cashless economy by mandating the employers to make payments by banking channels. To achieve better profitability by helping the Organisations reduce their Employee Cost by providing additional deduction. Applicability : The Section is applicable to all the assesses who are earning income under the head Business and Profession and Tax Audit Provisions under section 44AB are applicable i.e., Gross Sales should be more than Rs.1.00 Crore in a financial year. Benefit: The assessee can claim deduction of 30% of additional employee cost incurred   during the year as expenditure, for a period of 3 assessment years. Conditions: 1.         New Recruitments should be made in the previous year starting i.e.: from financial year ...

The Provisions of Transfer Pricing would be applicable to all transactions entered with ‘Associated Enterprises’ and such transactions are to be made at ‘Arm’s Length Price’.  Two enterprises shall be deemed to be associated enterprises, if one enterprise or its Shareholders/Members/ their relatives are interested in other enterprise directly or indirectly, through  advancing loan, share holding, supply of technical know how, supply of raw material, influencing prices, other conditions, etc.  Arm’s Length Price is the amount of consideration for a transaction between two unrelated parties. Regarding Arm’s Length Price, Section 92C prescribes following Methods for determining the arm’s length price and Company has to apply most appropriate method for determination of price. a)        Comparable Uncontrolled Price Method : Comparable Uncontrolled price is the  price charged for goods sold or services rendered in respect of a c...