Income Tax planning for school

Income Tax planning for school

A.     Government Educational Institutions: 

Income received by any university or educational institution existing solely for educational purposes and not for purposes of profit, and which is wholly or substantially financed by the Government is fully exempt from tax vide Section 10(23C)(iiiab). Hence, a Government educational institution is fully exempt from income tax without any separate approvals etc. as long as it is not for profit purpose.

B.      Non-government Educational Institutions: 

The exemption for non-government (private) educational institutions depends upon the aggregate annual receipts of the university / educational institution.

1)      Educational Institutions with annual receipts up to Rs. 1 crore:

 Relief in Payment of Interest to Normal Taxpayers filing Form GSTR-3B for tax period Feb 20 to June 20 :

a. Taxpayers having aggregate turnover > Rs. 5 Cr. in preceding FY

Tax period	Due Date	No interest payable till	Interest payable @ 9% from & till	Interest payable @ 18% from
Feb, 2020	20th March, 2020	4th April, 2020	5th April to 24th June, 2020	25th June, 2020
March, 2020	20th April, 2020	5th May, 2020	6th May to 24th June, 2020	25th June, 2020
April, 2020	20th May, 2020	4th June, 2020	5th June to 24th June, 2020	25th June, 2020
May, 2020	27th June, 2020 (extended date for filing)	27th June, 2020	--	28th June, 2020

b. Taxpayers having aggregate turnover upto Rs. 5 crores in preceding FY (Group A)

Relief in late fee to Taxpayers filing Form GSTR-3B

Relief in late fee to Taxpayers filing Form GSTR-3B

Government has extended dates for GST filings as notified vide Not. No. 52/2020 dt 24.06.2020 and No. No 57/2020-CT dated 30.06.2020.

1.    Late Fee Relief to Normal Taxpayers filing Form GSTR-3B:

A.   Taxpayers having aggregate turnover > Rs. 5 Cr. in preceding FY

Tax period	Late fees waived if return filed on or before
February	24th June
March	24th June
April	24th June

B       Taxpayers having aggregate turnover upto Rs. 5 crores in preceding FY

                     

Tax period	Late fees waived if return filed on or before (For Group A States)*	Late fees waived if return filed on or before (For Group B States)*
February	30th June	30th June

When Revenue Recognize in different law

Point of Recognition:

There is a broad difference in the point of time when one will recognize the revenue.

As per the AS, Revenue is to be recognized either at a point in time when the customer obtains control over the promised service. At times it can be recognized over a period of time as the customer obtains control over the promised service.

Under the GST, the time of supply is triggered when the invoice is raised, or payment is made whichever is earlier. This might lead to a situation wherein GST would be paid on the contract as per the date of invoice, but the revenue would not be recognized in the books because the customer may not have obtained necessary benefits from the contract.

WHY DRUG LICENSE REGISTRATION

                 DRUG LICENSE REGISTRATION

Drug and Cosmetics Act, 1940

 Drug license is mandatory under the provisions of Drugs & Cosmetics Act; 1940. This act regulates the import, manufacture, distribution and sale of drugs and cosmetics which includes allopathic drugs, homoeopathic drugs and even the Ayurvedic, Siddha or Unani drugs.

Importance of  Drug license

Some of the significance of  drug license is explained in detail below:

WHY TAX DEDUCTOR (TAN) REGISTRATION

Meaning of TAN

Tax Deduction Account Number or Tax Collection Account Number is a 10-digit alpha-numeric number issued by the Income-tax Department (we will refer to it as TAN-Tax Account Number). TAN is to be obtained by all persons who are responsible for deducting tax at source (TDS) or who are required to collect tax at source (TCS).

PERSON RESPONSIBLE TO deduct tax

All person / entities as a payee (I.e, individual, HUF ,partnership Firm, LLP, society, trust , NGO, ,association, Company etc.) are required to deduct tax at source before the making certain payment or crediting the expenses like salary, interest, payment to professional, Commission, advertisement, payments to contractor or sub-contractors, payment of rent etc.

Taxability of agricultural income Vs. transfer of agricultural land

Taxability of agricultural income Vs. transfer of agricultural land

                                                    

The various items of income referred to in the different clauses of section 10 are excluded from the total income of an assessee. These incomes are known as exempted incomes.  Consequently, such income shall not enter into the computation of taxable income.

1.       AGRICULTURAL INCOME

Transaction in which quoting pan is mandatory wef 1 April 2020

Transaction in which quoting pan is mandatory wef 1 April 2020

                 

[Transactions in relation to which permanent account number is to be quoted in all documents for the purpose of clause (c) of sub-section (5) of section 139A.

Every person shall quote his permanent account number in all documents pertaining to the transactions specified in the Table below, namely:—

                                                                TABLE

Sl.No.	Nature of transaction	Value of transaction
(1)	(2)	(3)

Analysis of treatment of sales promotion scheme under GST

"Every business entities always aware about for increasing sale through sales promotion. There is a lot of scheme to promote the sale however the treatment of the sale promotion schemes under GST is very confusing and complex.

The problems and many industries related issues arises due to the provision contain in section 17(5)(h) of CGST Act 2017.

As per sec 17(5)(h), business cannot take input tax credits in respect of goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples.

CASH CREDITS- Deemed Income and Taxability

CASH CREDITS- Deemed Income and Taxability

Any sum found credited in the books of the taxpayer, for which he offers no explanation about the nature and source thereof or the tax authorities are not satisfied by the explanation offered by the taxpayer, is termed as cash credit. In this part you can gain knowledge about various provisions relating to tax treatment of cash credit.

FCRA REGISTRATION-A NEED

Whenever any NGO either in the form of Trust, Society or Section 8 company is willing to receive any kind of foreign contribution or donation, they are required to obtain FCRA Registration under Section 6 (1) of Foreign Contribution (Regulation) Act, 2010. Irrespective of the nature of the contribution i.e. either cash or kind, the registration is mandatory.

Introduction

FCRA Department comes under the Ministry of Home Affairs. FCRA Registration is optional for NGO ,Trust and Section 8 Company