Category: Legal


NITI Aayog- ‘Think Tank’ of the Government of India

Through a resolution of Union Cabinet the ‘National Institution for Transforming India’, also knows as NITI Aayog, was formed on January 1, 2015 as the premier policy ‘Think Tank’ of the Government of India. NITI Aayog provides both directional and policy inputs and also provides relevant technical advice to the Centre and States while designing strategic and long term policies and program....


Importance of Trademark for Start-ups

A trademark or popularly known as “brand name” in layman’s terms is a visual symbol which could be a word signature, name, device, label, numerals or combination of colors or alphanumeric used by a person’s enterprise on goods or services or other articles of commerce to differentiate and make it stand out distinctively from other similar goods or services originating from a different ente....


Tax Deducted at Source-TDS

The Income-tax Act has incorporated a system of deduction of tax at the point of generation of income for quick and efficient collection of taxes. This system is called “Tax Deducted at Source” commonly known as TDS. Under this system, tax is deducted at the point of origination of income. Tax is deducted by the payer and the same is directly paid to the Government by the payer on behalf of th....


Tax Collector (TCS)

Every person responsible for collection of tax at source (TCS) is required to obtain TAN i.e., Tax Collection Account Number (TAN). It is a 10 digit alphanumeric number (eg-DELM12345L) where first 3 alphabets of this number represent the jurisdiction code (here DEL for Delhi), 4th alphabet is the initial of the name of the TAN holder. The next 5 digits of TAN are system generated numbers between 0....


Understanding Non-Resident Indian & their Taxes

Non-Resident Indian is defined as a person who is not a resident and a tests of residency for different taxpayers are involved. To determine taxability of income earned by such a taxpayer, it is necessary to determine residential status of taxpayer. If the taxpayer is a resident of India all his income would be taxable in India, irrespective of the fact that whether the income is earned or has acc....


Understanding Trusts and its legal liability

Trusts formed for charitable or religious purposes which are not intended to do commercial activities are allowed various benefits under the Income-Tax Act, inter-alia, and exemption. The term “religious purpose” is not defined under the Income-Tax Act but “charitable purpose" is defined as to provide relief to the poor, education, medical relief, preservation of environment (including water....

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Understanding Foreign Company

Company that is not an Indian or any other company which, in respect of its income liable to tax under this Act and has not made the prescribed arrangements for the declaration and payment of the dividends within India i.e., a company which is not a domestic company is defined as ‘Foreign company’.   Tax rate & Payment Income Tax: Any payment received from Government or an In....


Understanding AOP/BOI

Association of persons (AOP) or body of individuals (BOI), whether incorporated or not, is treated as a ‘person’ under the Income-tax Act, 1961 whether or not, they were formed or established or incorporated with the object of deriving income, profits or gains. And thus for the purpose of assessment AOP or BOI is treated as a separate entity under the Income-tax Act. The fourth character ....

domestic company

All you want to know about a Domestic Company

An Indian or any other company which with respect to income is liable for taxation under the Income tax act and has made prescribed arrangement for the declaration of and payment of the dividends payable for the income within India is defined as ‘Domestic Company’. Effective from assessment Year 2017-18, a company is said to be resident in India in any previous year, if it is an Indian compan....

Partnership firm

Partnership Firm-Filing Returns

Under the Income-tax and Partnership Act “firm" is defined as “Persons who have entered into partnership with one another are called individually "partners" and collectively "a firm", and the name under which their business is carried on is called the "firm name". Tax Payment A firm is liable to pay income-tax at the flat rate of 30% on its total income. Surcharge: When total income exceeds....