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Indian tax forms are used to document information in compliance with the Income Tax Act of 1961 and in accordance with the Income Tax Rules (codified in 1962), which govern the process of filing income tax returns in India.
Form 10BA is a document that is used by a certain section of assessees while filing income tax returns in India. The form is a declaration by the assessee. The format is specified by the Income Tax Department of India.
Form 10BA applies to a certain section of assessees who are required to claim deductions under section 80GG. This declaration is filed by the assessee himself. Rule 11B specifically applies to the use of Form 10BA. [1]
Form 10BA has a limited number of details to be filled in by the assessee wishing to make a declaration towards claiming a deduction as per Section 80GG. [2]
Through Form 10BA the assessee also makes a declaration that no other residential property is owned by the assessee, the assessee's spouse, the assessee's minor child, and in the case of a Hindu undivided family, by a family member in the place where the assessee resides or carries out his business or profession.
Form 15CA is a form used during the process of remittance to a foreign entity and is required to be presented as per rules laid down by the Income Tax Act of 1961. This form is directly related to the process of making a payment to a non-resident entity and deduction of Tax Deduction at Source (TDS) on the payment made, at the rates in force at the time. [3]
As per Sub-Section (6) of Section 195 of the Income Tax Act of 1961, Form 15CA is required to be presented to the Reserve Bank of India before a remittance is made. It relates to the remittance of payment that is made to a non-resident individual or a foreign company.
NOTE: 15CA form filing is only processed, if it is accompanied by a 15CB certificate from an authorized chartered accountant (CA) in practice. Whereas, there are specific conditions as per rule 37BB of the Income Tax Act 1961, where there is no requirement to obtain certificate from Chartered Accountant (CA) in practice.
The first section contains the name and additional information of the remitter. The PAN number and the TAN number along with the address of the remitter are required to be furnished. The principal place of business is also required to be mentioned. [4]
The second section contains details of the recipient of the remittance. The name, the complete postal address, details of the place of business, the PAN number, as well as the name of the country to which the remittance has been made are required to be mentioned. The status of the entity, whether it is a company, a firm, or others, is represented by the numerals 1, 2, and 3.
The third section refers to details of the accountant. The name of the accountant, the name of the firm or proprietorship concern the accountant is representing, the address, the registration number and the certificate details are mentioned here. The certificate number and the date of the certificate are important mentions in this section.
Form 15CA is required to be duly filled out, signed, and submitted to the Reserve Bank of India or an authorized dealer before the remittance mentioned is made. [5]
The form is also required to be furnished at the official website of the Tax Information Network. [6]
The details in the form should be valid, especially in the case of the PAN and TAN number. The details for the remitter, the remittance, and the recipient of the remittance are required to be mentioned.
The accountant handling the furnishing of the form and the accompanying TDS certificate should be fitting the definition laid down by Section 288 of the Income Tax Act of 1961.
Form 15G and 15H are self-declaration forms that an individual submits to the bank to request that TDS on interest income for that financial year not be deducted because their income falls below the basic exemption limit. Form 15H is to be filled by resident individual with an age 60 years or above i.e. senior citizens and form 15G can be filled out by a resident individual, a HUF, a trust, or any other assessee, but not by a company or a firm under the age of 60 years. [7]
In general cases, banks are liable to charge TDS (Tax Deducted at Source) on the interest amount being paid on FD (Fixed Deposit) upon maturity. Form 15G is a self-declaration form that can be filed by a bank FD holder of age less than 60 years for getting a rebate from TDS on FD interest. Form 15H is similar to Form 15G, except for the fact that the Form 15H is to be filed only by senior citizens of age 60 years or more. To be eligible to file this form, the tax liability of the person must be nil for the particular fiscal year. [8]
A Form 16 is a certificate issued to salaried class to acknowledge the deduction of TDS from their salary by the employer. [9] It must be issued by 15 June of the following year for which it is being issued. For the F.Y. 2017–18, the due date for issue of Form 16 shall be 15 June 2018. Further, if any employer delays or fails to issue Form 16 by 15 June, then he shall have to pay a penalty of Rs. 100 per day till the time the default continues. The Form is especially important to employees working in a company or firm.
The following features make Form 16 an important part of the entire process of filing Income Tax Returns in India:-
Following are few key components that are found in Form 16: [10]
Form 16 is an important document and Employers are especially required to ensure that every rule related to it is followed meticulously. This is not only in the interest of the Employer and Employee but is also required by law under the Income Tax Act, 1961.
Though the onus of providing the Form 16 document lies with the employer, the employee is also required to fulfill certain conditions.
Form 22 [12] relates to the tax deducted at source on an approved superannuation fund set up for the benefit of employees. This amount is exempt from taxes if the payment is made on death, retirement, or in lieu of or as an annual payment.
Form 22 is related to the superannuation fund (SAF) and is governed by the rules and regulations laid down by the Fourth Schedule of the Income Tax Act of 1961. It is the statement of tax deducted at source (TDS) from the amount that is being repaid to employees with relations to a superannuation fund. [13]
Form 22 is related to the Tax Deducted at Source in the event of payments being made from a superannuation fund. This form is valid only in the case of the fund being an approve done. [14]
The use of Form 22 and the rules and regulations related to a superannuation fund is related but not restricted to the following laws [15]
Form 2E is a document used by a certain section of assessees in India to file their income tax returns. The Income Tax Department of India clearly specifies the use of this form and lays down the associated rules as to its functions through the Income Tax Act of 1961 and the Income Tax Rules of 1962.
Form 2E is part of the process of filing of income tax returns in India. The form is also known as the NAYA SARAL Form or ITS-2E. The Income Tax Act, 1961, and the Income Tax Rules, 1962, lay down the rules and regulations regarding Form 2E. The specific rule that applies to the use of Form 2E can be found in the second proviso to Rule 12(1)(b)(iii) of the Income Tax Rules, 1962.
Though most of the forms involved in the process of filing tax returns in India do not allow the attachment of any documents as annexure, Form 2E is required to be submitted in duplicate and also requires to be attached to the relevant document.
Form 2E should be used to file income tax returns only by those assessees who are resident individuals [16] and Hindu undivided families (HUFs). Only those assessees who do not have any income from a business or profession or through capital gains or agricultural income are eligible to use the Form 2E to file tax returns. Therefore, Form 2E can be used only by Individuals and HUFs who earn their income through salary, house property, and other specific legitimate sources. [17]
Form 2E is one of the few income tax return forms that has provisions for the attachment of documents along with the form during submission to the Income Tax Department of India. Form 16 and the respective challans for the Advance Tax paid and the Self Assessment Tax paid may be attached to the form. [18]
Form 2 is required to be filled in duplicate. Upon submission to the Income Tax Office, one copy is returned to the assessee upon acknowledgment. This acknowledgment is to be treated as intimation and a separate intimation is forwarded to the assessee only if a refund is to be made or if the assessee makes a special demand for intimation.
Form 3CA is a document used in the process of filing income tax returns in India. The document is Audit Report and is in accordance with the format specified by the Income Tax Department of India.
The Income Tax Department of India has a list of forms that are to be used by assessees when filing income tax returns. The Income Tax Act, 1961, and the Income Tax Rules, 1962, lay down the rules related to the use of each of these forms.
Form 3CA is an audit report and is submitted when the business or profession of the assessee goes through an audit by a chartered accountant recognized by law. This use of the Form is governed by the rules and regulations that are laid down under Section 44AB of the Income Tax Act, 1961. Rule 6G(1)(a) of the Income Tax Rules, 1962, lays down the rules for use of the form.
Form 3CA has important components that are necessary to gain details of the audit that the business or profession has been subjected to. [19]
The Income Tax Act, 1961, and the Income Tax Rules, 1962 clearly state the following with regards to the signing authority for Form 3CA. [20]
Form 3CB is the specified format of an audit report as per the rules laid down by the Income Tax Department of India. The use of the form applies only to a certain section of assessees as per a set of rules and provisions related to the process of filing tax returns.
Form 3CB is associated with certain processes associated with the filing of income tax returns in India. The rules and regulations of the Income Tax Act, 1961, and the Income Tax Rules, 1962, govern the process of filing tax returns with the Income Tax Department of India and Form 3CB is particularly governed by the provisions of Rule 6G(1)(b). The form is an audit report for a person as per Clause (b) of Sub Rule (1) of Rule 6G under the provisions of Section 44AB of the Income Tax Act, 1961. [21]
Form 3CB is an audit report required to be submitted by an auditing authority on behalf of a person who operates a business or profession and is not required to get the accounts of the enterprise audited as per any other law except the Income Tax Act, 1961.
The various components of Form 3CB are majorly declarations by the chartered accountant or auditing authority who has examined the books of the assessee and declares his findings. [22]
Form 3CD is a format of the Audit Report required to be filed by tax auditors of a certain section of Assessees in India. The Income Tax Department of India clearly lays down the rules associated with the use of this form.
Form 3CD is a Form in accordance with Rule 6G(2) and Section 44AB of the Indian Income Tax Act, 1961. The Form is a part of the process of filing Income Tax Returns in India and is an Annexure to the Audit Report. Form 3CD contains 41 Clauses. [23]
The Form 3CD is to be checked by the Tax Auditor and then submitted to the Tax Auditing Authority. The Auditing Authority then verifies and authenticates the furnished information. The Management of the enterprise is responsible for preparation of Form 3CD.
Form 3CE is a prescribed format for an Audit Report and is part of the process of filing Income Tax Returns for a certain section of Assessees in India. The Income Tax Department of India specifies the use of the Form and various rules and regulations are associated with it.
The Income Tax Act, 1961, and the Income Tax Rules, 1962, govern the process of filing Income Tax Returns in India. Form 3CE is a part of this process and is an Audit Report format and is required by Section 44DA. [24]
Section 44DA Sub-Section 2 of the Income Tax Act, 1961, and Rule 6GA are specifically related to the use of Form 3CE.
Form 3CE is an Audit Report that is required to be submitted by non-residents or a foreign company doing business in the Indian Territory. These Assesses are required to maintain proper Books of Accounts and other documents for verification by a qualified Accountant or Auditing Authority. The Accounts should be Audited and presented along with the Income Tax Returns. The Audit Report, in this case, should be in the format specified in Form 3CE.
There are key components that are present in the format of Form 3CE. [25]
Form 3CE is attached with an Annexure that gives a detailed account of the Royalty or Fees that a Non Resident may have earned by way of offering Technical Services. [26]
Part A of the Annexure specifies details regarding the non-resident Assessee including Name, Address of the enterprise in India, permanent account number (PAN), Assessment Year and Status.
Part B specifies details of the Books of Accounts and as to whether they were duly verified or not. The names of the Books of Accounts, as well as the Method of Accounting, is mentioned in this section
Part C includes a copy of the Agreement with the Indian Government or the concerned body in India. Other details like the Nature of the Technical Services, details of Expenditure or Allowance, Nature of the connection of the said earnings with the place of business in India are also mentioned in this section.
Form 1040 is an IRS tax form used for personal federal income tax returns filed by United States residents. The form calculates the total taxable income of the taxpayer and determines how much is to be paid to or refunded by the government.
The United States of America has separate federal, state, and local governments with taxes imposed at each of these levels. Taxes are levied on income, payroll, property, sales, capital gains, dividends, imports, estates and gifts, as well as various fees. In 2020, taxes collected by federal, state, and local governments amounted to 25.5% of GDP, below the OECD average of 33.5% of GDP. The United States had the seventh-lowest tax revenue-to-GDP ratio among OECD countries in 2020, with a higher ratio than Mexico, Colombia, Chile, Ireland, Costa Rica, and Turkey.
In the United States, a 401(k) plan is an employer-sponsored, defined-contribution, personal pension (savings) account, as defined in subsection 401(k) of the U.S. Internal Revenue Code. Periodic employee contributions come directly out of their paychecks, and may be matched by the employer. This legal option is what makes 401(k) plans attractive to employees, and many employers offer this option to their (full-time) workers. 401(k) payable is a general ledger account that contains the amount of 401(k) plan pension payments that an employer has an obligation to remit to a pension plan administrator. This account is classified as a payroll liability, since the amount owed should be paid within one year.
The Tax Reform Act of 1986 (TRA) was passed by the 99th United States Congress and signed into law by President Ronald Reagan on October 22, 1986.
Tax deduction is a simplified word for meaning income that is able to be taxed and is commonly a result of expenses, particularly those incurred to produce additional income. Tax deductions are a form of tax incentives, along with exemptions and tax credits. The difference between deductions, exemptions, and credits is that deductions and exemptions both reduce taxable income, while credits reduce tax.
Under United States tax law, itemized deductions are eligible expenses that individual taxpayers can claim on federal income tax returns and which decrease their taxable income, and is claimable in place of a standard deduction, if available.
A pay-as-you-earn tax (PAYE), or pay-as-you-go (PAYG) in Australia, is a withholding of taxes on income payments to employees. Amounts withheld are treated as advance payments of income tax due. They are refundable to the extent they exceed tax as determined on tax returns. PAYE may include withholding the employee portion of insurance contributions or similar social benefit taxes. In most countries, they are determined by employers but subject to government review. PAYE is deducted from each paycheck by the employer and must be remitted promptly to the government. Most countries refer to income tax withholding by other terms, including pay-as-you-go tax.
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A corporate tax, also called corporation tax or company tax, is a type of direct tax levied on the income or capital of corporations and other similar legal entities. The tax is usually imposed at the national level, but it may also be imposed at state or local levels in some countries. Corporate taxes may be referred to as income tax or capital tax, depending on the nature of the tax.
A tax refund or tax rebate is a payment to the taxpayer due to the taxpayer having paid more tax than they owed.
Tax withholding, also known as tax retention, Pay-as-You-Go, Pay-as-You-Earn, tax deduction at source or a Prélèvement à la source, is income tax paid to the government by the payer of the income rather than by the recipient of the income. The tax is thus withheld or deducted from the income due to the recipient. In most jurisdictions, tax withholding applies to employment income. Many jurisdictions also require withholding taxes on payments of interest or dividends. In most jurisdictions, there are additional tax withholding obligations if the recipient of the income is resident in a different jurisdiction, and in those circumstances withholding tax sometimes applies to royalties, rent or even the sale of real estate. Governments use tax withholding as a means to combat tax evasion, and sometimes impose additional tax withholding requirements if the recipient has been delinquent in filing tax returns, or in industries where tax evasion is perceived to be common.
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Tax deduction at source (TDS) is an Indian withholding tax that is a means of collecting tax on income, dividends, or asset sales by requiring the payer to deduct tax due before paying the balance to the payee.
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