Range Concept: Accurate Calculations

In order to align transfer price calculations with that of international best practices, Government is going to incorporate “range concept”.

The government on Tuesday notified amendments to the transfer pricing rules to incorporate a "range concept" to align transfer price calculations with that of international best practices.

The amended regime will be applicable for computation of arms length pricing (ALP) of international transactions and specified domestic transactions undertaken on or after April 1, 2014, a finance ministry press release states.

It will enhance the reliability of the analysis used for the computation of ALP. It will begin with the 35th percentile and end with the 65th percentile of the comparable prices. 

Ruchi Anand and Associates is prominent tax consultants in India, who provide services that include audit services, company registration, risk advisory services, etc.   

Pilot Project: Ease for tax payers

Pilot project has been started by the Income Tax Department for sending notices, getting replies and to carry out tax assessments with the help of email in order to make an attempt to make sure taxpayers don’t have to visit I-T offices physically.

Five locations including Delhi, Mumbai, Bengaluru, Ahmedabad and Chennai has been identified by the Central Board of Direct Taxes(CBDT) and 100 initial cases for e-hearing.

Cases covered under the pilot project would be those which have been selected for scrutiny on the basis of AIR/CIB information or non-matching with 26AS-data.

Consent of taxpayers will be considered and cases of willing taxpayers will be included in this project. Official e-mail Ids will be used by tax officials.


Ruchi Anand and Associates is prominent tax advisor in India, India, who provide services that include audit services, company registration, risk advisory services, etc.   

Benefit to Non- Residents under Income Tax Act,1961

1. Who is a Non-Resident

Section 2(30) defines non-resident as a person who is not a resident. Section 6 lays down the test of residency for different taxpayers as under:

A. Individual

An individual is said to be non-resident in India if he is not a resident in India. An individual shall be deemed to be resident in India if he satisfies any of the following conditions:

1.  If he is in India for a period of 182 days or more during the previous year; or

2.  If he is in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year.

Condition no. 2 is not taken into consideration in cases given below:

a) If an Indian citizen leaves India during the previous year for the purpose of employment outside India;

b)If an Indian citizen leaves India during the previous year as a member of the crew of an Indian ship; 

or c)  If an Indian citizen or a person of Indian origin comes on a visit to India during the previous year. [A person shall be deemed to be of Indian origin if he or either of his parents or any of his grand-parents, was born in undivided India] Note: With effect from Assessment Year 2015-16, in the case of an individual, being a citizen of India and a member of the crew of a foreign bound ship leaving India, the period or periods of stay in India shall, in respect of such voyage, be determined in the manner and subject to such conditions as may be prescribed.

B. Partnership firm : A partnership firm is treated as non-resident in India if control and management of its affairs are situated wholly outside India. C. Company An Indian company is always resident in India. A foreign company is treated as resident if, during the previous year, control and management of its affairs is situated wholly in India. In other words, a foreign company is treated as non-resident if control and management of its affairs is situated wholly or partly outside India.

Read more at: http://taxguru.in/income-tax/benefits-residents-income-tax-act1961.html

You can also contact Ruchi Anand and Associates for any type of information on tax benefits 

IT-Department: Pay Advance Income Tax

In order to widen the tax base, all the traders and businessman were asked to pay advance tax rather than paying at the end of the financial year. The motive is to calculate assesses in the starting and helps in making critical decisions. The Government asked the tax man to bring one crore new tax  payers within the current fiscal year.

Central Board of Direct Taxes asked the taxman to include 5.32 lakh new assesses. With this initiative, income tax department is now holding public sessions called ‘ Seedha samvad’ with the industry and trade bodies in the public places. One session was organized in the kamla market near Delhi University(Delhi), with the North Delhi Traders Federation. Department did Pan mapping in Kamla market, it was disappointing that the tax returns have decreased as compared to last financial years. There can be several reasons for it. Traders were requested by the department to pay advance tax on time and spread this message in friends and community. 

Advance tax is known as ‘pay as you earn tax’ and a person having a  tax liability greater than Rs.10,000 in a fiscal, needs to make the payments in instalment rather than doing it at the end of the year.

It will surely help Indian Government to pre-assess the budget and to apply new techniques in order to make sure that no businessman or trader left who have a tax liability.

Filing tax returns on time helps the government as well as you to improve the economy. These changes occur frequently, but you do not have to worry about these changes. You can consult any chartered accountant firm. Ruchi Anand and Associates, the top tax consultants in India can assist you to understand this process.

Tax benefits of using a car

A person can have several resources at a same time and allowed as a tax deduction in the business income of an individual. It seems easy and lucrative for a lot of people, but it requires a proper understanding of the process to become eligible. There are several conditions that would need to be met to become actually eligible. Now take example of a Car that is purchased and all the expenses for which you sought tax deduction as a business resource.

1. Advantage restricted
It is not applicable to everyone. It is restricted to those who earn income under specific heads. If you are a salaried employee and bought a car and sought tax deduction benefits on this expense then the expenses on this cannot be reduced from the salary you earn. It is applicable only to a businessman because a businessman can use this car for his/her employee’s transportation facility. It means he/she is not using it for his/her personal use.  

2. Purchase
This detail is the most important aspect that is missed by a lot of people. The asset should be in the name of the business not on the person’s name or someone other. It ensures the source of amount.
It will allow the benefit of depreciation to the owner of asset. The asset should not be in the name of other person otherwise business owner will not liable for the benefit of depreciation.
 
 3. For purpose of Profession
The resource should be used for only business purpose, not for personal use. One cannot set off personal expenses with the income incurred on the asset. If the asset is used for personal as well as business purpose then the total amount that has been spent would be separated in a specific ratio depending on the usage for each of these purposes.

4. Other expenses
Several other expenses which are associated with the running of asset would have to be allowed as a deduction. For example, the running and maintenance cost of car comes under tax deduction. The benefit of depreciation is allowed every year depending on the market value of asset since the asset purchased. It is a big relief for the person or the entity that is using this asset.


There are so many tax advisers are available in India and other parts of world that provides audit service. You can get these tax benefits on various resources by getting suitable advice from expert tax consultant of your area.

Author Bio:
Ritu Verma writes on behalf of Ruchi Anand and Associates, Auditor in India and one of the top chartered accountant in Delhi provides services from company registration to filing ITR.        

Connecting The Dots Between Tax Day, Identity Theft And Digital Transformation

It’s probably no surprise to the security professional community that once again, identity theft is among the IRS’s Dirty Dozen tax scams. Criminals use stolen Social Security numbers and other personally identifiable information to file tax claims illegally, deposit the tax refunds to rechargeable debit cards, and vanish before the average citizen gets around to filing.

Since the IRS began publishing its “Dirty Dozen” list to alert filers of the worst tax scams, identity theft has continually topped the list since 2011. In 2012, the IRS implemented a preventive measure to catch fraud prior to actually issuing refunds, and issued more than 2,400 enforcement actions against identity thieves. With an aggressive campaign to fight identity theft, the IRS saved over $1.4 billion in 2011 and over $63 billion since October 2014.

That’s great progress – but given that of the 117 million tax payers who filed electronically in 2014, 80 million received on average $2,851 directly deposited into their bank, which is more than $229 billion changing hands electronically. The pessimist in me has to believe that cyber criminals are already plotting how to nab more Social Security numbers and e-filing logins to tap into that big pot of gold.

So where are criminals getting the data to begin with? Any organization that has employees and a human resources department collects and possibly stores Social Security numbers, birthdays, addresses and income either on-premises or in a cloud HR application. This information is everything a criminal would need to fraudulently file taxes. Any time a common business process is digitally transformed, or moved to the cloud, the potential risk of exposure increases.
Ruchi Anand and Associates are one of the top tax consultant in india filing to company formation.
As 31st August is the last date of filing Tax Returns.It is right to contact or take advise from Chartered Accountant becacuse it is complex to file e-returns.

For more information on Article read on Tech Crunch here

How NRI can avoid tax under India DTAA

After the introduction of ‘Project Insight’, India government is progressing in right direction to make taxpaying process more transparent from people point of view.

A new agreement had signed by India with several countries to avoid tax on same income in both countries. DTAA agreement is Double Taxation Avoidance Agreement. It is signed between two countries.

The provisions of the Income Tax Act apply only to the extent they are more beneficial to the individual. Provisions of the DTAA prevail over the statutory provisions. Non resident Indians residing in different countries (DTAA approved) can avail the tax benefits of this agreement by submission of following documents on time.

  
1. Tax residency certificate

This certificate is available to the people by the government of the country in which he /she resides. Some columns are mandatory in Tax Residency Certificate (TRC).TRC should be filled accurately before submission to the Indian Tax Deductor. Name, status (individual , company, firm etc), address, nationality, country, tax identification number of the person in that country, tax status, period for which the tax certificate is issued should all be mentioned in the TRC. This form should be duly verified by the government of the country in which NRI reside.

2. Self declaration-cumindemnity form

The format of the form should be according to the prescription of particular bank.The following information should be mentioned in the form:

•  Account number
• Country of residence
•  Period for which TRC is submitted
• Tax rate applicable under DTAA

3. Other documents

• Self attested copy of PAN card
• Self attested copy of passport
• Self attested copy of visa.

Important information

-The documents listed above must be furnished on an annual basis for claiming DTAA tax benefits each year.

-If the TRC is not submitted within the timelines required by the deductor, the deductor (eg. Bank) will deduct tax on NRO deposits at the presently applicable rate of 30.9%.

Ruchi Anand and Associates is a blend of top chartered accountants in India having vast experience in different fields. They can advise you on your financial situation. In order to get maximum deductions and refund, our team of experts understand your financial situation and help you get maximum savings in filing tax returns. Filing ITR is a complex task but RAAAS can get you maximum savings while you can focus on your business.

RAAAS provides services like

• Audit Service in India
• Tax Consultant in India
• Formation of Business organizations in India
• Outsourcing
• Auditing
• Reporting
• Taxation
• Special Areas

Author Bio:

Kanika Arora writes on behalf of Ruchi Anand and Associates, Auditor in India and one of the top chartered accountant in Delhi provides services from company registration to filing ITR.