Frequently Asked Questions (FAQ)
Tax and e-Filing
TDS means Tax Deducted at Source.
Yes
You can file a self-declaration to the banker in form 15H stating that your income is below taxable limit.
It is an offence to misuse the tax deducted at source.
Please inform the department.
Yes
The Employee to pay tax.
The employer to pay interest and penalty for failure to deduct tax.
No. You are required to take a separate Tax Deduction Account Number [TAN].
No, there is no TDS on reimbursement of Expenses.
Yes
e-TDS return is a TDS return prepared in form in electronic media.
All corporate and government deductors.
A TDS certificate is to be issued by the person deducting tax at source.
OLTAS means – Online Tax Accounting System.
Permanent Account Number (PAN) is a ten-digit alpha-numeric number, issued by the Income Tax Department.
Yes. In case the person does not have PAN, tax should be deducted at the rate of 20% or higher.
Yes
It is an indirect tax levied on the transaction of certain specified services by the Central Government under the Finance Act.
At present, the rate of service tax is payable at 12% on the “Gross value of taxable service”. In addition to this educational cess is charged at 3% on the service tax amount. A total of 12.36% is charged on the value of the taxable service.
CFC refers to Certified Facilitation Centre.
Balance Sheet is a statement showing financial position of the business on a particular date.
It is prepared to know the exact financial position of the business on the last date of the financial year.
An asset is anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value.
A liability is an obligation or debt of your business from past transactions or events.
Equity is the owners claim on the assets of the business.
A long-term asset owned by firm for production of its income and is not expected to be consumed or liquidated in next 12 months.
Accounts payable are debts are payable in a given period.
Long term liabilities are liabilities with a tenure of over one year.
Trial Balance is a list of closing balances of ledger accounts on a certain date.
Retained earnings are non-distributed profit earmarked for creative investments.
Prepaid expense is making payment in the current financial year for expenditure related to next financial year.
Outstanding expense is making provision for the expenses relating to current year for payment in the next financial year.
Capital Expenditure is an amount incurred for acquiring the long term assets such as land, building, equipment which are used for the purpose of earning revenue.
Revenue Expenditure is the expenditure incurred in an accounting year, the benefits of which are enjoyed in the same accounting period.
Deferred Revenue Expenditure is a revenue expenditure incurred in an accounting year, the benefit of which is extended to a number of years.
Following are the basic rules of double entry book keeping for various types of accounts:
•Personal Account: Debit the Receiver, Credit the Giver
•Real Account: Debit what comes in, Credit what goes out
•Nominal Account: Debit all the Expenses, Credit all the Incomes
Depreciation is a permanent, gradual and continuous reduction in the book value of the fixed asset.
Profit and Loss Account is a periodic statement which is prepared to show the profit or loss incurred by the Organization in a specific period.
The dictionary meaning of the term “audit” is check, review, inspection, etc.
For an assesse covered by section 44AB, on or before 30th September of the relevant assessment year
For an assesse, who is required to furnish a report in Form No. 3CEB under section 92 the due date is 30th November of the relevant assessment year.
Date on which the report is physically signed by the Auditor shall be the date of audit report.
e-filing of ITR and Tax Audit report are independent actions.
Statutory audits are conducted in order to report the state of a company’s finances and accounts to the Indian government.
Internal audits are conducted for internal management in order to assess the financial and operational health of the organization.
Tax Audits
Tax audits are required under Section 44AB of India’s Income Tax Act 1961.
Company Audits
Every company, irrespective of its nature of business or turnover, must have its annual accounts audited each financial year, which is known as Company Audit.