Tax Consultant

  PROFITS AND GAINS OF BUSINESS OR PROFESSION BUSINESS As per section 2(13) of the Act, “Business” includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture. PROFESSION As per section 2(36) of the Act, “Profession” includes vocation. PROFITS AND GAINS OF BUSINESS OR PROFESSION Sections 28 to 44DB deals with computation of income under the head “Profits and gains of business or profession”. The sections may be classified into: Sections 28 to 44DB deals with computation of income under the head “Profits and gains of business or profession”. The sections may be classified into: Chargeability – Section 28 Computation – Section 29 Specific deductions – Sections 30 to 36, section 38 General deduction not specifically covered – Section 37 Amount not deductible – Section 40 Expenses or payments not deductible in certain circumstances - Section 40A Deductions only on actual payment – Section 43B Special cases of profits chargeabl...

  TAXATION OF DIVIDEND INCOME 1.1. TAXATION OF DIVIDEND INCOME WITH EFFECT FROM AY 2021-22 a. Dividend from Domestic Company Dividend declared by a domestic company on or after April 1, 2020 (i.e., assessment year 2021-22) is taxable in the hands of all the recipients of the dividend income irrespective of the status of the assessee (subject to exemption from income-tax otherwise available under any provisions of the Income-tax Act, 1961 (‘the Act’)). The dividend income is chargeable to tax under the head ‘Income from Other Source’ u/s. 56 of the Act at the rate of taxation applicable to the assessee. b. Dividend from Foreign Company Dividend income received from a foreign company is also taxable in the hands of all the Indian resident shareholders irrespective of their status (subject to exemption from income-tax otherwise available under any provisions of the Act). The dividend income is chargeable to tax under the head ‘Income from Other Source’ u/s. 56 of the Act at the rate o...

  INCOME FROM OTHER SOURCES SYNOPSIS Section 2(24) defines the term “income” under the Act, and the same is charged to tax by section 4 of the Act. Section 14 enumerates the different heads under which the income of an assessee is classified, viz. Salaries, Income from house property, Profit and gains of business or profession, Capital gains, and Income from other sources. Income of every kind which is not to be excluded from the total income under the Act, and if it is not charged to tax under the heads A to D specified in section 14, shall be charged under the head Income from other sources. Thus section 56 deals with this residuary head of income and covers all such taxable income. NATURE OF INCOME AND THE BASIS OF CHARGE Sub-section 2 to section 56 enumerates various types of income which would be chargeable to tax under the residuary head, viz. Income by way of dividends [which includes deemeddividend as has been referred to in section 2(22) of the Act]. Although section 8 of ...