Furnishing of TCS Statement Persons responsible for collecting tax at source (TCS) must file quarterly statements in Form 27EQ by specified due dates. Government collectors depositing TCS without a challan must file Form 24G. Forms for Filing TCS Returns Form 27EQ: Quarterly TCS statement for all collectors. Form 24G: For Government collectors depositing TCS without challans. A “Book… Read More »

Deposit of Tax Collected at Source (TCS) Due Dates for Depositing TCS Government Collectors o Without Challan: TCS must be deposited on the same day it is collected. A statement in Form 24G must be submitted to the income tax department. o With Challan (ITNS 281): Deposit by the 7th of the next month in which tax is collected. Other Collectors… Read More »

TCS Rates The rates of TCS vary based on the transaction type and buyer’s compliance: Rates for Specified Transactions Nature of Transaction Standard Rate Rate if PAN/Aadhaar not furnished Sale of alcoholic liquor 1% 5% Tendu leaves 5% 10% Timber 2% 5% Other forest produce, if obtained under a forest lease 2% 5% Scrap 1%… Read More »

Tax Collection at Source (TCS) Tax Collected at Source (TCS) is a tax mechanism under Section 206C of the Income-tax Act, 1961, requiring sellers to collect tax on specified transactions from buyers/licensees/lessees. The collected tax is deposited with the Central Government. Applicability of TCS Sale of Specified Goods [Section 206C(1)] Alcoholic liquor for human consumption. Tendu leaves,… Read More »

Advance Tax AY 2026-27 Introduction Advance Tax, also known as the “Pay-As-You-Earn” scheme, requires taxpayers to pay income tax during the same financial year in which the income is earned. The scheme of advance tax helps maintain a regular flow of revenue to the government. Under this scheme, every taxpayer is required to estimate the… Read More »

Unexplained Income Unexplained income refers to incomes, investments, or expenditures which are either not disclosed in a taxpayer’s books of account or in respect of which no satisfactory explanation is provided. It is taxable at a special rate of 78% (including surcharge and cess) under Section 115BBE, along with penalties. The benefit of the basic exemption… Read More »

Tax on Buyback of Shares (from 01-10-2024) Introduction With effect from 01-10-2024, when a domestic company buys back its shares, the consideration paid is treated as deemed dividend under Section 2(22)(f) and taxed under “Income from Other Sources” in the hands of shareholders. The cost of acquisition of shares results in a capital or business loss, depending… Read More »

Income Computation and Disclosure Standard (ICDS) X – Provisions, Contingent Liabilities, and Contingent Assets ICDS-X provides guidelines for recognizing and measuring provisions, contingent liabilities, and contingent assets for tax computation purposes. Scope –ICDS-X applies to all provisions, contingent liabilities, and contingent assets except those arising from:  Financial instruments  Executory contracts  Insurance contracts with policyholders  Revenue… Read More »

Income Computation and Disclosure Standard (ICDS) IX – Borrowing Costs ICDS-IX provides guidelines for the recognition, measurement, and treatment of borrowing costs. It specifies when such costs should be capitalized as part of an asset’s cost and when they should be charged to profit and loss. Scope– Borrowing costs include: Interest expense on loans and… Read More »

Income Computation and Disclosure Standard (ICDS) VIII – Securities ICDS-VIII governs the valuation of securities held as stock-in-trade. It does not apply to securities held as capital assets, which are governed by capital gains provisions. Scope –ICDS-VIII applies to securities as defined under Section 2(h) of the Securities Contracts (Regulation) Act, 1956, including shares (listed… Read More »