Introduction TDS compliance is not a one-size-fits-all solution. Different industries, such as manufacturing, media, and technology, face unique challenges when dealing with foreign remittances. This blog dives into real-world case studies, uses figures to provide clarity, and offers practical steps to ensure smooth compliance while avoiding tax disputes. Key TDS Challenges by Industry 1. Manufacturing:…
Introduction Reimbursements are a routine part of business transactions, but their taxability often causes confusion. Are all reimbursements non-taxable? When does TDS apply to reimbursements? This blog tackles these myths and provides clear guidelines using case laws, scenarios with figures, and practical compliance strategies. Understanding Reimbursements and Taxability When Are Reimbursements Taxable? Reimbursements are taxable…
In today’s globalized economy, companies frequently engage non-resident consultants for services ranging from IT advisory to legal opinions. While such arrangements boost operational efficiency, they also trigger TDS liability under Indian tax law, particularly under Section 195 of the Income-tax Act, 1961. This blog simplifies the taxability of cross-border consulting payments, with practical case studies,…
International secondments offer employees global career growth, but they also introduce complex tax challenges. If you are temporarily working in another country, you may have several tax-related concerns, such as: This guide breaks down the tax implications for seconded employees, explaining DTAA benefits and providing a real-life case study to help you navigate tax planning…
For Non-Resident Indians (NRIs) selling property in India, adhering to tax compliance under the Income Tax Act, 1961, is crucial to prevent excessive tax deductions and transaction delays. One major challenge NRIs face is the high rate of Tax Deducted at Source (TDS), which significantly reduces net sale proceeds. Key Topics Covered: By following these…
Many Non-Residents (NRs) returning to India are unsure about the tax implications of their residential status change. They often ask: If you are an NRI planning to move back to India, this article will help you understand the tax impact of becoming a resident under the Income Tax Act, 1961. What Are the Common Misconceptions…
When an individual move abroad for work or business, their residential status changes, leading to significant tax implications. Some of the key questions they ask include: This article will clarify these key tax concerns for individuals transitioning from Resident to Non-Resident under the Income Tax Act, 1961. What is Unclear About NRI Taxation? Many people…
Many Non-Resident Indians (NRIs) believe that just because they reside outside India, their business and professional income is exempt from Indian taxes. But is that really the case? The Income Tax Act does not just consider where you live; it also looks at where your business is controlled from and where your profession is set…
If you are planning to move abroad for work or business, or if you are an NRI managing financial affairs in India, you might assume that once you leave India, you automatically qualify as a Non-Resident (NRI) under all Indian laws. But is that really the case? The reality is that residency status is not…
1. Track the Date of Commencement of Activity The date of commencement of the trust’s activities is a key factor in determining the timeline for filing the registration application. 2. Provisional Registration Before Commencement If the trust has obtained provisional registration before starting its activities, it must file for regular registration within 6 months from…