In order to follow the mercantile basis of accounting, the income from the services will have to be accounted in the month of rendering the services i.e. in March itself. You can pass a JV as follows: Client A/c (or Services Rendered A/c) ....Dr To Income from Services A/c ..............Cr If the Bills have been… (read more)

There is no requirement to surrender the PAN though you may choose to do it to prevent misuse. You will have to write to the jurisdictional AO along with a copy of the Death Certificate and proof that you are the legal heir and request cancellation of the PAN. If the deceased had any taxable… (read more)

You have to log into the TRACES website (https://www.tdscpc.gov.in/), go to the “Statements/Forms” > “Request for Correction” tab and make the appropriate entries. The payment can be made at the TIN-NSDL website (https://www.tin-nsdl.com/) under “Services” > “e-payment: Pay Tax Online” > “TDS on Sale of Property” > “Form 26QB.” The detailed procedure is explained here:… (read more)

I assume the TDS is reflecting in the seller's 26AS. If not, you will have to amend Form 26B and/or write to the TDS CPC to grant the seller credit. There is no justification for the default demand on the buyer as the TDS could not be deposited due to a default of the seller.… (read more)

The transfer can be by way of a partition deed. This attracts stamp duty at 2% of the market value of the property being partitioned, subject to a maximum cap of Rs. 30,000 per share of the coparcener. The Karta may also affect a transfer by way of a gift deed or a family arrangement.… (read more)

As per CBDT Circular No. 739, the method for determination of remuneration to partners under Section 40(b) should be clear and not vague. So, if there is an objective method specified in the partnership deed for computing the remuneration and the total remuneration is within the limits prescribed under Section 40(b), it will pass muster… (read more)

The AIS filed by the Registrar will disclose the transaction of sale and purchase. If tax is not deducted or deposited in the treasury, the AO will initiate proceedings under Section 201, demand payment of TDS with interest (1.5% per month), and may impose penalties under Sections 271C, 271H, or 234E. There could also be… (read more)

Under Ind AS 32, netting off creditors with debtors for the same party through a journal entry is allowed provided there is a legally enforceable right to set off and an intent to settle on a net basis. For GST purposes, the full value of sales and purchases must be reported in GST returns, and… (read more)

No. The 3% additional interest under Section 244A(1A) can be awarded only when the refund arises due to an order passed in appeal or revision in the assessee's own case and for the same assessment year. It cannot be extended to other cases with similar facts via Section 158A(5). (read more)

If the professional has not opted for Section 44ADA, he can declare any income supported by proper books of account. Tax audit is not required if gross receipts are below the audit threshold (₹50 lakh/₹75 lakh). (read more)