Tax on Leave Encashment Introduction Leave encashment during employment is fully taxable. However, leave encashment at retirement or upon the employee’s death is exempt up to Rs. 25,00,000. Taxability of Leave Encashment Death of Employee Leave encashment paid to legal heirs is exempt from tax as it is not considered a payment to the employee.… Read More »
Salary Income Exempt from Tax Certain categories of salary income are fully or partially exempt from tax under specific conditions, often applicable to foreign citizens or special circumstances. Exempt Salary Categories Teachers from SAARC Member States Exemption applies under DTAA agreements for teachers, professors, or research scholars visiting another SAARC country for teaching or research.… Read More »
Calculation of Income from Salary Introduction Section 17 provides a comprehensive definition of salary, covering wages, pensions, gratuity, fees, bonuses, perquisites, and profits in lieu of salary. It also includes advance salary, leave encashment, provident fund contributions, and contributions to the Agniveer Corpus Fund. Key Inclusions in Salary Components: Wages, annuities, pensions, gratuity Any fees, commission,… Read More »
Income under the Head ‘Salary’ Introduction Income under the head ‘Salary’ is computed on a due or receipt basis, whichever is earlier. It includes taxable allowances, perquisites, retirement benefits, and profits in lieu of salary, with permissible deductions. Tax Deduction at Source (TDS) TDS Deduction (Section 192):Employers deduct tax at the time of payment, based… Read More »
SBI For outward remittance from NRO account SBI For outward remittance from NRO account Based on the document provided, here are the key points regarding the SBI Request for Outward Remittance from NRO account (Form NRI-11.2): Purpose and Mechanism Transaction Type: This form is used to request a debit from an NRO savings or… Read More »
Suo Motu Adjustment of Erroneously Paid Tax: Limitation and Penalties Set Aside Facts The Audit Instruction: The assessee, a nationalized bank, was directed by an audit team to pay service tax on its share of profit from foreign exchange transactions. The Payment: Following these instructions, the bank paid the tax but later realized, upon internal… Read More »
Restoration of GST Registration: Pragmatic Approach vs. Non-Filing of Returns Facts The Parties: The petitioner was a registered person under the WBGST/CGST Act. The Trigger: The Proper Officer issued an order dated 27 May 2023, cancelling the petitioner’s GST registration on the grounds of continuous non-filing of returns. The Appeal: The Appellate Authority confirmed this… Read More »
GST Registration Cannot Be Cancelled Retrospectively Solely Based on Supplier Cancellation Facts The Action: The GST Department issued an order for the ab-initio (from inception) cancellation of the assessee’s registration under Section 29(2) and Rule 21. The Allegation: The cancellation was triggered by the allegation that the assessee had availed ineligible Input Tax Credit (ITC)… Read More »
Insurance Supplies to SEZ: Retrospective Application of ‘Authorized Operations’ Amendment Challenged Facts The Service: The petitioners (insurance companies) provided general insurance services to SEZ units between 2017 and September 2023. Zero-Rating: These supplies were initially treated as zero-rated under Section 16 of the IGST Act, as they were made to SEZ units. The Amendment: The… Read More »
GST Exemption for Printing of Examination Papers Supplied to Universities Facts The Service: The applicant is a printing specialist engaged in providing printing services for examination papers to various universities. The Workflow: The universities provide the highly confidential content, quality standards, size specifications, and design formats. The applicant is strictly prohibited from deviating from these… Read More »