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Income Tax

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We Are Providing  Following  Services   :

  • Registration Procedure for E-Filing of Income Tax Returns.
  • Advise on Tax Planning.
  • Advise on TDS / TCS
  • Facility for E-Payment of TDS.
  • Facility for filling of  TDS Returns in time.
  • Advise on Tax Consequences of Various Transactions, etc.
  • Advise on Tax Saving Investments Scheme.
  • Advise on Tax Strategies which would Minimize Tax Incidence.
  • Advise for  how to make E-Payment of Income Tax.
  • Facility for E-Payment of Income Tax.
  • Facility for Digital Signatures.
  • Prepare TAX Audit Reports by our  Chartered Accountants.
  • E-Filing of Income Tax Returns.
  • Representation before Income Tax Authorities in Assessment/ Scrutiny/ Appeal Proceedings.

Applicability for Filing Income Tax Return:
Who is liable to pay income tax in India ?

Well, this is the first topic that every student of tax studies. However, the answer to this simple question is not very simple. According to income tax act of India, every person who under the rules of income tax act is supposed to pay tax, has to pay tax .Confused ? Let’s make it a little simpler by giving a name to this person who is supposed to pay tax. Let’s name this person “assessee” . Now we know that , an assessee is the person who is liable to pay income tax in India. Now all we need to understand is who is this assessee .An assessee is a person.

A person, under the income means the following people.

1 . Individual: it means an actual person like you and me of any age or gender. It also includes a person of unsound mind.

2 Hindu undivided family: The definition of Hindu undivided family is missing from the income tax act. But as per Hindu law it means a family, which consists of all persons lineally descended from a common ancestor, including their wives and unmarried daughters . The senior most male member is known as karta/manager.

3 Company: it may be defined as an incorporated association, which is an artificial person having an independent legal entity, with a perpetual succession and common seal. A company may be Indian company or a foreign company, private company or a public company, etc

4 Firm: it means a partnership firm, as defined under the partnership act. “Relationship between two persons who have agreed to share to profits of a business carried on by all or any one of them acting for all ” . Individually, each person is known as a partner and collectively, it is known as a firm.

5 Association of persons or body of individuals, whether incorporated or not: association of persons means two or more persons who join for a common purpose, with a view to on any income. Therefore, if two or more persons join hands to carry on business, but do not constitute a partnership. They may be assessed as AOP. Association of persons may consist of non-individuals like form company etc . An association of persons does not mean any and every combination of persons. It is only when they associate themselves in an income-producing activity that they become an association of persons.
BOI means association of two or more individuals who come together for a particular venture, but do not constitute a fIrm. Such an association can only consist of individuals. Entities like companies or firms cannot be members of body of individuals as it is clear from the name.
Distinction between AOP and BOI

1 . An AOP may consist of non-individuals, but a BOI has to consist of individuals only. If two or more persons join then it is called an AOP, but if two or more individuals join then it is called a BOI . The point to be noted here is that a “person” can be any person being discussed in the seven points of this article.

2. An AOP is always formed with profit motive, whereas a BOI may or may not be formed for profit motive

6 Local authority: These are the entities which are authorised to manage local affairs . For example : municipal Corporation of Ludhiana
7 Every artificial juridicial person not covered under the above-mentioned points: Artificial judicial persons other persons who are not natural persons like human beings, but still are considered as separate legal entity in the eyes of law. Though they may not be sued directly in a court of law, but they can be through persons managing them. Therefore, God, idols and deities are artificial persons
Note: an assessee is always a person, but it is not necessary for every person to be an assessee.