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Deep dives and practical guides written by the WFYI team.
Comprehensive explanations, FAQs, and updates about GST regulations, returns, and compliance.
Section 10(10D) of the Income Tax Act allows certain life insurance proceeds, including maturity benefits and bonuses, to be exempt from income tax. This exemption depends on specific conditions related to the annual premium amount compared to the sum assured. Different premium limits apply based on the policy issuance date and type, but death benefits are generally tax-free.
This article explains how to understand and track your income tax refund status in India, covering common reasons for delays and available methods for receiving refunds. It details the process for checking ITR refund status online and interpreting various refund statuses, including how to request a refund re-issue if necessary. Taxpayers can learn about the factors influencing refund processing times and utilize official helplines for assistance with their refund inquiries.
This article clarifies the fundamental differences between an invoice and a bill, two common business documents. While both indicate money owed for goods or services, invoices are formal legal documents used by sellers, often for credit transactions with specific due dates, detailing comprehensive customer and tax information. In contrast, bills typically represent immediate cash transactions from a buyer's perspective, offering simpler proof of purchase.
This guide details the mandatory process of linking your PAN with Aadhaar under Indian tax laws, emphasizing the consequences of non-compliance, such as an inoperative PAN. It outlines a two-step procedure involving penalty payment and online/offline linking requests through the Income Tax e-filing portal. The article also covers required documents, steps for both logged-in and guest users, how to check linking status, applicable fees, and available customer support contacts.
The Insolvency and Bankruptcy Code (IBC) of 2016 introduced a streamlined framework for resolving insolvency cases in India, moving from a debtor-in-possession to a creditor-in-control system. This crucial economic reform replaced fragmented laws, aiming to expedite resolutions typically within 180-270 days. The Code applies to various entities, including companies, LLPs, firms, and individuals, with a minimum default threshold, but excludes regulated financial service providers like banks. Its core objectives are to balance stakeholder interests, enhance credit availability, promote entrepreneurship, and establish a regulatory body for better debt management.
Businesses transitioning to the Goods and Services Tax (GST) regime can claim pre-GST input tax credits using specific forms. This article explains the requirements for Forms TRAN-1 and TRAN-2, which allow taxpayers to carry forward credits from old tax systems for various scenarios, including existing stock, capital goods, and goods held by job workers or agents. Adhering to these transitional provisions is essential for a smooth credit transfer.
This article explains the critical aspects of Input Tax Credit (ITC) reconciliation, reversal, and reinstatement under GST. It details how mismatches between GST returns can lead to scrutiny notices and outlines the official communication methods for such discrepancies. Furthermore, the post clarifies the procedures for rectifying excess or duplicate ITC claims and the conditions for successfully reclaiming reversed credits, emphasizing compliance with GST provisions.
Input Service Distributors (ISDs) play a crucial role in GST by distributing common input service tax credits to their various operational units. This article explains the mandatory provisions and conditions for ISDs under GST Rule 39, effective from April 1, 2025. It details the precise methods for allocating different types of Input Tax Credit (ITC), addressing various scenarios for distribution based on usage and turnover, and outlining implications of debit/credit notes for ISDs. The information ensures businesses understand compliance and recovery processes related to ISD operations.
This article explores the impact of GST on India's restaurant and food service industry, detailing the updated tax rates and rules effective from September 22, 2025. It clarifies how GST replaces previous taxes like VAT and Service Tax, simplifying the tax structure for consumers and business owners. The content breaks down various GST rates for different types of restaurants and food items, distinguishing between essential goods and luxury products, and illustrates the financial benefits for the sector under the new regime.
The Invoice Furnishing Facility (IFF) is an optional GST mechanism allowing small taxpayers, specifically those under the QRMP scheme, to upload B2B invoices monthly. This facility enables buyers to claim Input Tax Credit (ITC) without waiting for quarterly GSTR-1 filings, thereby reducing delays. It streamlines compliance for small businesses while aiding their customers in faster ITC realization.
This article outlines the process for businesses to carry forward pre-GST input tax credits into the new regime using Forms TRAN 1 and TRAN 2. It details who is eligible to file these forms, the specific information required in each, and critical conditions for claiming credit on old stock and capital goods. The guide also covers special scenarios like goods sent for job work or held by agents, ensuring a clear understanding of the transition provisions.
This article provides an in-depth explanation of best judgement and summary assessments under India's GST framework. It details how tax liability is determined for non-filers and unregistered persons, including conditions for withdrawal of such assessments and the recent amnesty scheme for non-compliant taxpayers. The piece also outlines the process for summary assessments, emphasizing their role in protecting government revenue and the provisions for their revocation, while noting similarities to previous indirect tax systems.