In your business whether it is big or small, besides to focus on sales & maintain business one more important aspect in any business will be the queries related to the Tax.
Virtual Splats income tax software which has been specially designed and developed to prepare computation of Income under the provisions of Income Tax Act, 1961.
Virtual Splats maintains the complete information of your clients in a database, computes taxable income under different heads and provides economical printing of Computation Statement, Saral Form and various other reports.
Virtual Splats income tax software has been developed under expert guidance of reputed Tax Consultants, Advocates and Chartered Accountants.
- Income Tax is basically based on the followings:
- Tax Primer
- Deductions and Rebate
- Double Taxation Avoidance Agreements (DTAA)
- Penalties under Income Tax Act
- Non-residents& Taxation in India
- Tax Free Incomes(Exemptions)
- Permanent Account Number(PAN)
- Heads of Income
Tax Primer :
Here, we give to update you regarding "fill & file" forms and also to familiarize you about your general rights and obligations on Direct Tax Laws. The Tax Primer aims at familiarizing you with some of the common aspects of direct tax that impact your investments and savings. The Tax Primer will inform you of how to file the Annual returns and to know about other complex aspects of tax
Deductions and Rebate:
After the income is computed as per the provisions of the Income-tax Act, a further deduction is allowed of certain amount from the tax computed on the income earned by the assessee. This deduction is termed as Rebate. Rebate is a reduction from income tax liability and not a deduction from income.
According to the provisions of Section 246 any assessee who is aggrieved by an order, passed by the Assessing Officer may prefer an appeal to the Commissioner of Income-tax (Appeals).
Double Taxation Avoidance Agreements (DTAA) :
Double taxation can be defined as the levy of taxes on income / capital in the hands of the same tax payer in more than one country, in respect of the same income or capital for the same period. Double taxation may arise when the jurisdictional connections, used by different countries, overlap or the taxpayer may have connections with more than one country.
Non-residents& Taxation in India :
A person, who has been nonresident in India in 9 out of the 10 preceding previous years a person, who has been in India for less than 730 days in the 7 years, preceding the year in question.
In the past, if a person was non-resident for 2 years, he could stay in India for as many as 9 years and be treated as Resident but Not Ordinarily Resident for those 9 years. Now, this has been reversed. Only a person, who has been non-resident for 9 years, will be entitled to the facility of Resident. He will be granted the status of Not Ordinarily Resident only after 2 years
Penalties under Income Tax Act :
Failure to pay tax; i.e., non-payment of tax required by notice u/s 156 -penalty
- Amount of tax in arrears :
- Non-compliance with notice u/s. 142(1) to file returns or to produce documents required by assessing officer or u/s. 143(2) to produce evidence on which assessee relies or u/s. 142(2A) to get accounts audited.-penalty Rs. 10,000.
- Concealment of the particulars of income, or furnishing inaccurate particulars thereof.-penalty 100 % to 300 % of tax sought to be evaded
- Failure to maintain books or documents u/s. 44AA.-penalty Rs. 25,000.
- Failure to keep and maintain information and documents u/s. 92D.-penalty 2% of International transaction
- Failure to get accounts audited and furnish Tax Audit Report as required u/s. 44AB-penalty 0.5% of total sales, turnover or gross receipts, or Rs. 1,00,000 whichever is less.
- Failure to furnish a report as required u/s. 92E.-penalty Rs. 1,00,000
- Failure to deduct the whole or part of the tax as required by or under Chapter XVII-B (Ss. 192 to 196D) or failure to pay the whole or part of tax u/s. 115-O.-penalty Equal to the amount failed to be deducted
- Contravention of the provisions of S. 269SS; i.e., by taking or accepting any loan or deposit otherwise than by ways specified therein.-penalty Equal to the amount of loan or deposit so taken or accepted
- Failure to furnish Return of Income under sub-section (1) of S. 139 before the end of the relevant Assessment Year.- penalty Rs. 5,000
- Failure to furnish Return of Income under proviso to sub-section (1) of S. 139 by the due date.- penalty Rs. 5,000
- Failure to furnish information or document u/s. 92D (3).-penalty 2 % of such default.
- Failure to answer questions, sign statements, attend summons u/s. 131(1), apply for permanent account number u/s. 139A.-penalty Rs. 10,000
- Failure to:
- Comply with notice u/s. 94(6) furnishing information regarding securities
- Give notice of discontinuance of business S. 176(3)
- Furnish in due time returns, statements, or particulars u/s. 133, 206 or 285B
- Allow inspection of any register(s) S. 134
- Furnish returns u/s. 139(4A)
- Deliver in due time a declaration mentioned in S. 197A
- Furnish a certificate u/s. 203.
- Deduct and pay tax u/s. 226(2)
- Furnish returns/ statements/ certificate u/s. 206C
- Furnish a statement of particulars of perquisites and profits in lieu of salary u/s. 192(2C)-
penalty Rs. 100 for every day during which the failure continues.
- Failure to furnish the prescribed information required u/s. 133B (Refer to Form No. 45D).-
penalty Rs. 1,000
- Failure to apply for Permanent Account Number (PAN) -
penalty Rs. 10,000
- Failure to apply for Tax Deduction Account No. (TAN) (S. 203A) -
penalty Rs. 10,000
- Failure to apply for Tax Collection Account No. (TCN) -
penalty Rs. 10,000
- Note: No penalty is imposable for any failure u/ss. 271(1)(b), 271A, 271AA, 271B, 271BA, 271BB, 271C, 271D, 271E, 271F, 271G, 272A(1)(c) or (d), 272(2), 272AA(1), 272B, 272BB(1) and 272BBB(1), if the person or assessee proves that there was a reasonable cause for such failure (S. 273B).
Tax Free Incomes(Exemptions):
- 10(1)- All assessees -Agricultural income
- 10(2)- A member of HUF being individual -Amount received out of family income, or in case of impartible estate, amount received out of income of family estate
- 10(2A)- Partner of a firm -Share of profit in total income of the firm
- 10(4)- (1)-Non-resident (2)Person resident outside India (as defined in FEMA) and person who has been permitted to maintain said account by RBI -
Interest on securities or bonds notified by the Central Government including premium on redemption of such bonds
Interest received on Non-resident (External) Account
(C.G. will not specify any bonds after 1-6-2002)
- 10(5)- Salaried employee (See Salary )- Leave travel concession or assistance
- 10(7)- Citizens of India -Foreign allowances or perquisites paid or allowed by Government to its employees posted abroad
- 10(8)- Individual -Foreign income and remuneration received from foreign Government for services rendered in connection with any co-operative technical assistance programmes and projects in accordance with agreement entered into by Central Government and foreign Government
- 10(10)- Salaried employee (See Salary ) -Death-cum-retirement gratuity received by employees
- 10(10A)- Salaried employee (See Salary )- Payment in commutation of pension received from Government/Private employer/ LIC Fund u/s 10(23AAB)
- 10(10AA)- Salaried employee (See Salary ) -Amounts by way of encashment of unutilised earned leave on retirement
- 10(10B)- Workman (See Salary)- Retrenchment compensation upto maximum of Rs. 5,00,000
- 10(10BB)- Any Assessee -Payments made under Bhopal Gas Leak Disaster (Processing of Claims) Act, 1985
- 10(10C)- Salaried Employee (See Salary )- Payment received on voluntary retirement in accordance with approved.
- 10(10CC)- Salaried employee- In case of perquisite not provided for by way of monetary payment, tax on such income actually paid by the employer.
- 10(10D)- All assessee- Any sum received under a life insurance policy other than amounts received under a Keyman insurance policy
- 10(11)- Individual/ Hindu undivided family -Payment from public provident fund/statutory provident fund
- 10(12)- Salaried employee - Accumulated balance payable to employee participating in recognised provident fund (subject to certain conditions)
- 10(13)- Salaried employee - Payment from approved superannuation fund in specified circumstances and subject to certain limits
- 10(13A)- Salaried employee (See Salary )- House rent allowance (subject to certain limits)
- 10(14)- Salaried employee (See Salary )- Prescribed allowances or benefits
- 10(15)- Individual/HUF- Income from notified securities (C.G. will not specify any bonds after 1-6-2002)
- 10(16)- Individual- Scholarship granted to meet cost of education
- 10(17A)- Any assessee -Amount received in cash or in kind as award instituted by Central/ State Government or reward instituted by C.G. approved body
- 10(18)-Individual-Central/ State Government employee or his family member- Pension received by individuals as stated above.
- 10(20)- Local authority -Specified incomes of a local authority
- 10(21)- Scientific Research Association -Income of approved scientific research associations approved u/s. 35
- 10(22B)- News agencies -Income of notified news agency set up in India.
- 10(23)- Sports and games associations and institutions (upto A.Y. 2002-03) -Income of notified sports or games associations or institutions.
- 10(23A)- Professional associations -Income of approved professional bodies other than income from house property, income received for rendering specific services and income by way of interest or dividends.
- 10(23AAA)- Any person on behalf of employees welfare fund - Any Income
- 10(23AAB)- Fund set up by LIC -Income of fund set up by LIC under an approved pension Scheme
- 10(23B)- Public charitable trust/registered society -Income of institution existing solely for development of khadi or village industries
- 10(23BB)- Khadi and Village Industries Board- Any Income
- 10(23BBA)- Body/Authority established, constituted or appointed under Central, State or Provincial Act -Income of a body or authority established for administration of public religious or charitable trusts or endowments.
- 10(23C)- (1) University/ other educational institution (2 ) Hospitals/nursing home (3 ) Charitable/Religious trusts and institutions- Certain Incomes of the said institutions subject to certain conditions.
- 10(23D)- Mutual Fund registered under SEBI Act, 1992, and Notified Mutual Fund set up by public sector bank or financial institution or authorised by RBI -Income of Mutual Fund subject to notified conditions
- 10(23F)- Approved venture capital fund/ venture capital company- Dividends or long-term capital gains of approved venture capital fund/venture capital company from investments made before 1-4-1999
- 10(23FA)- Approved venture capital funds/ venture capital companies - Any income by way of dividends (Other than referred to in s. 115-O) or long-term capital gains of approved venture capital funds and venture capital companies from investments made before 31.3.2000 by way of equity shares in a venture capital undertaking
- 10(23FB)- Venture capital company/fund- Income of a venture capital company or venture capital fund set up to raise funds for investment in a venture capital undertaking
- 10(23G)- Infrastructure capital fund or infrastructure capital company- Dividends (Other than referred to in s. 115-O), interest or LTCG from investment in shares or L.T. Finance
- 10(32)- Any individual- Income of minor child clubbed u/s 64(1A) to the extent of Rs. 1,500 per child
- 10(33)- All Assessee (upto A.Y. 2002-03) -
Dividends declared/ paid by domestic companies excluding dividend u/s. 2(22)(e)
Any income from units of UTI
Any income from units of mutual fund specified under section 10(23D).
- 10A Industrial undertaking in (1) Free Trade Zone (FTZ) (2) Electronic Hardware Technology Park (EHTP) or Software Technology Park (STP) w.e.f. A.Y. 1994-95 or Special Economic Zone (SEZ) w.e.f. A.Y.2001-2002.
Income for any 5 consecutive years out of first 8 years from the year of commercial production.
W.e.f A.Y. 2000-2001 income for 10 years from the year of Commercial Production.
W.e.f. A.Y. 2001-2002, income from exports eligible for deduction for 10 year of commercial production or up to A.Y.2009-2010, whichever is earlier.
For A.Y. 2003-04, the deduction would be 90% of the profits derived by an undertaking.
- 10B- Undertaking as a 100% Export-oriented Undertaking (100% EOU)- As Above in s. 10A
- 10C- Industrial undertaking in any Integrated Infrastructure Development Center or Industrial Growth Centre in North Eastern region- Income of ten consecutive A.Y.s from the year of production.
- 11- Charitable/religious trust / institution -Income from property held for charitable or religious purposes
Permanent Account Number(PAN):
A Permanent Account Number is required to be obtained by every person mentioned below:
A person whose total income under the Act exceeds the maximum amount not chargeable to tax
A person whose Total sales, turnover or gross receipts is likely to exceed Rs. 5,00,000/-
A person who is required to furnish return of income on account of receipt of income under trust or other legal obligation for charitable or religious trust.
Heads of Income:
- House Property
- Income from Business & Profession
- Capital Gains
- Other Sources
Virtual Splatprovides best Tax Consulting Service :
We are experienced and knowledgeable in the tax laws and their interpretation. In your business, if you are facing tax related problems, then Virtual Splat provides tax consultants, who have specialized training and expertise in all matters of federal, state and local tax issues. They are constantly monitoring the ever changing tax laws and are available to research and render an opinion when clients are facing with a complicated tax issue. Virtual Splats tax specialists assist hundreds of businesses and individuals in solving their complex tax issues.Almost every business decision carries tax implications
Virtual Splat resolves tax issues on the matters such as :
- General business tax planning and assistance
- Advice on the tax effect of transfers of business ownership among family members or sales to unrelated parties
- Consultations on compensation, fringe benefits, and retirement plans
- Planning for changes in a corporations year end or accounting methods
- Planning for the purchase, sale or reorganization of a business
- Obtaining advance rulings from the IRS on the tax consequences of proposed transactions
- Selection of the proper business entity
- Analysis of tax implications of moving or expanding to another state Tax return preparation
Virtual Splats tax software, plays a significant role in your personal & financial goals.
Our tax professionals can assist you in developing personal planning strategies with beneficial tax consequences. Our personal tax planning services include:
- Analyzing the tax benefits of tax advantage investment opportunities
- Analyzing current financial affairs to assist in building and preserving assets
- Reviewing estate plans to minimize exposure to estate taxes
- Counseling with respect to financial settlements involved in divorce and separation agreements
- Retirement income planning with respect to distribution from pension and profit-sharing plans
- Preparing tax estimates to evaluate current tax planning alternatives
- Professional representation can make the difference
Professional representation at Federal and State tax examinations is often critical to the ultimate successful completion of such examination. Our tax department has represented many taxpayers at all levels of examination, appeal and hearing in both Federal and State matters.
- Computation of Income From :
- Income From Salary
- Income from Property
- Income from Business
- Income From Property
- Short Term Capital Gain
- Long Term Capital Gain
- Income from Other Sources
- Clubbing of Minors Income
- Agriculture Income for Rate Purposes
- Auto Calculation of :
- Tax Computation
- Interest under Section 234 A/B/C
- Standard deductions, Exempt Allowances & Taxable Perquisites
- Relief u/s 89
- Repair & Collection Charges under Property head.
- Depreciation under Business head.
- Index cost under Long Term Capital Gains.
- Interest on NSC, KVP and IVP.
- Deductions under Section 80CCC to 80U
- Rebate u/s 88,88B and 88C
- Automatic adoption of Lower Tax Rate under long term Capital Gain.
- Automatic set off of Current Losses and Unabsorbed Losses.
- Automatic transfer of relevant data to next assessment year
- MAT Calculation
- Adjustment of Tax Credit
- Computation of Income
- Form No. 1,2,3,2C,2D, 3A,30,49A, 49B,35,36,29B
- Form No. 10CCAC, 10CCAB
- Form No. 16,10E,12C
- Audit Forms 3CA, 3CB & 3CD
- Depreciation Chart
- Depreciation Chart as per Para14 of 3CD
- Filed Returns List
- Pending Returns List
- Refund Cases List
- Pending Fee List
- Assessee Register
- Advance Tax Register
- Comparative Year Wise List
- Tax Cases List
- Label Printing
- Power of Attorney
- Blue Book
- Letter to Assessee
- Gift Deed
- Refund Re-Validation Letter
- List of Assessee without PAN
- Billing & Receipt Register
- Income Tax Clearance Certificate
- Output on screen and Printer
- Configuration of Computation Statement
- Import of Transactional Data from Previous Year
- Auto Search by name or code
- Tax Planning
- Fast and Economical DOS Printing
- Check Return Utility
- Challan Printing
- Billing and Receipts
- Built in Comprehensive Accounting Model
- T-Shaped & Vertical P&L A/C and Balance Sheet
- Manually Editable Interest
- Completely Menu Driven
- Mouse Compatible
- Built in Calculator
- Calendar cum Diary
- Hot Keys
- Facility for Backup & Restore
- Birthday Reminder Utility
- Telephone Directory
Virtual Splats Income Tax software provides Income Tax Reports :
Additional Income Incentive, Reimbursement of HDFC Interest, Gratuity, Other Income
Exemptions HRA, Conveyance, Education, Medical, LTA, Leave Encashment
Perquisites Accommodation, Car, Domestic Help, Interest on Loan etc.
Deductions u/s 88, u/s 80, u/s 89.
IT Computation Statement and Report Option to update the Employee Master for Computed Income Tax Amount
- Form 16 / 12 BA
- Form 24 / Form 24 Quarterly
- IT Challan Details
Income Tax Calculation of Income Tax [TDS] :
All the parameters affecting the IT calculations have been considered :
- Exemptions [HRA, conveyance, Education, Medical, LTA etc.]
- Perquisites and deductions under section 88 / 80, etc.
The computation of Income Tax :
- Including projections
- With a facility to either spread out the balance Income Tax over the remaining months
- Or fully tax the actual earned income up to the current month during the current month.
Including differential interest [10% / 13%] on Loan.
The Income Tax related outputs include :
- IT Computation
- Form 16
- Form 12BA
- Form 24 / Form 24 Quarterly.
- Advance or IT, if entered through this module, will be a accounted for Income Tax and some other statutory report purposes but will have no impact on monthly payroll.
If you have any doubts and quires and for further details please feel free to contact us at firstname.lastname@example.org