Rupakula & Associates

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...

                  As we all aware Deductions are available U/s 80C towards contribution to Provident/Pension Funds, Life Insurance Premiums, Mutual Funds, Tax Saving Fixed Deposits, Children Education Expenses, Housing Loan Principal repayment, etc to save income tax.  However the aggregate deduction, for the said items is limited to Rs.1,50,000/- only.                                    Section 80CCD of Income Tax Act, 1961 has been in amended in the Finance Bill, 2015 so as to provide following benefit under sub section (IB):  “ All Individual assessees shall be allowed a deduction in computation of their total income,  if they deposit, in their account, under a pension scheme notified by the Central Government upto fifty thousand rupees”   Our views are detailed under: 1....