MRink - Finance and Income Tax

This document discusses a specific rule (Rule 11(g)) introduced under the Companies Act, 2013 in India. The rule focuses on the use of accounting software by companies and requires auditors to report on certain aspects related to the software. In simple terms, this passage is talking about new rules and requirements for companies related to how they maintain their financial records using accounting software. Here are the key points: Background: There are rules (Section 143(3) of the Companies Act, 2013) that auditors must follow when reporting on a company's financial status. New rules (Rule 11 of the Companies (Audit and Auditors) Rules, 2014) were introduced in 2021 and amended in 2023. Applicability : This rule was supposed to apply from April 1, 2021, but it was deferred to April 1, 2022, and later to April 1, 2023. Categories to which the said requirement will be applicable are stated as follows:                All Public Companies, Private Limited Compani

Just two days back at office, I was discussing with one of my colleagues regarding increased rate of interest and its impact on country’s economy and individual’s finances and in that discussion, I come to know from my colleague that from his home loan’s EMI of ~₹30k, credit towards principal portion is only ~ ₹700...!!!!!  Being a finance person, I got furious that how come this possible and going further deep in discussion with him I have perused from his loan amortization schedule that tenure of loan also has got extended from 30 years to around 42 years along with increase in EMI from ~₹25k to ~₹30k (for outstanding loan amount of ~ ₹35lacs). The reason behind such abnormality, was hike in rate of interest from ~7% (applicable rate at the time when loan sanction) to ~9.5% (currently applicable rate of interest).  This might be the situation for most of the people who has borrowed for forming his/her dream home and many of you have also taken the right actions on time by managing fi

A. Brief of Salary Taxability ​​​​​​​​​Section 17​​ of the Income-tax Act defines the term ‘salary’. Generally, it includes whatever is received by an employee from an employer (current as well as former) in cash, kind or as a facility (perquisite / allowance). It shall be chargeable to Income Tax, considering the following: Due in previous year, whether paid or not (i.e., salary accrued) Paid or allowed in the previous year, though not due or before it became due (i.e., advance salary) Arrears of salary paid or allowed in previous year, if not taxed earlier (i.e., arrears of salary) For advance salary and arrears of salary, the Act has provided relief u/s. 89 for the differential amount of tax –  Click here  to read our detailed article on the same. B. Taxability of Allowances received as a part of salary Allowances are fixed periodic amounts, apart from salary, which are paid by an employer for the purpose of meeting some particular requirements of the employee. E.g., Child educa

Dear Readers, Many of you must be aware that the due date of filing Income Tax Returns (“ITR”) for Financial Year 2021-22 (“FY 2021-22”) or say Assessment Year 2022-23 (“AY 2022-23”) for Individual / HUF/ AOP/ BOI, in whose case tax audit is not applicable is approaching and one needs to file the same latest by 31st July, 2022 for timely compliance of the same. However, if the same could not be met due to any reason, one can file the same belatedly by 31st December, 2022. Further, to bring your knowledge, we would like to mention here the repercussions of the case when ITR could not be filed within the original due date i.e., 31st July, 2022.  Penalty u/s. 234F of ₹ 5,000/- if the total income exceeds ₹ 5,00,000/- and in other case it would be ₹ 1,000/- Interest u/s. 234A at the rate of 1% for every month or part of a month on the unpaid tax amount,  comprised in the period commencing on the date immediately following the due date till the date of furnishing ITR So, for your ready re

Please find the below press note released on 11th January 2021:

Central Government relaxes provisions of TDS u/s 194A of the Income-tax Act, 1961 in view of section 10(26) of the Act. CBDT Notification No. 110/2021 in S.O. 3815(E) dated 17th September, 2021 issued. Copy of notification:

On consideration of difficulties reported by the taxpayers in filing of Income Tax Returns(ITRs) & Audit reports for AY 2021-22 under the ITAct, 1961, CBDT further extends the due dates for filing of ITRs & Audit reports for AY 21-22. Circular No.17/2021 dated 09.09.2021 issued. Copy of press release: If you have any query related to the article please reach us via mail:-mrinkblog@gmail.com  Advisory: Information relates to the law prevailing in the year of publication as indicated. The above article is only to enable public to have a quick and an easy understanding. Viewers are advised to ascertain the correct position/prevailing law before relying upon any document.

Details released by government regarding PLI Scheme for textile: If you have any query related to the article please reach us via mail:-mrinkblog@gmail.com  Advisory: Information relates to the law prevailing in the year of publication as indicated. The above article is only to enable public to have a quick and an easy understanding. Viewers are advised to ascertain the correct position/prevailing law before relying upon any document.