ITR

1. Can we file ITR return after the due date?

Yes. ITR Return can be filed after the due dates are missed a penalty is levied for the late filing. For Income shown upto Rs. 5 Lakhs, a penalty of Rs. 1000/- is levied & for income upto Rs. 7 Lakhs a penalty of Rs. 5000/- is levied.

2. We have paid more then Rs. 50,000/- in health insurance how much can I claim of it in my return filing?

U/s 80D (Old Regime) you can claim upto Rs. 25000/- in health insurance premium & if you’re parents are senior citizens, (60+ age) you can claim Rs. 50,000/- for their insurance premiums bring the total claim amount to Rs. 75000/-

3. Are the prerequisites exempted from Taxable income?

A few prerequisites like food coupons, travel allowance, etc. our exempted from the taxable income of the employee but not all prerequisites are exempted.

4. I earned some money from share market along with my salary, can I file for both in 1 ITR Return?

No, Income from share market is filed in the Form ITR -3 under the head of “Income from Business & Profession” while salary income is filed in Form ITR-1 under the head of “Salaries” with different tax rates.

Treatment of Profit from Business:

1. I am director & a shareholder in a Pvt Ltd company. Can I withdraw Profit from company after the company has paid taxes & will it be tax free income for me?

No. Even if the company has paid taxes on the profits the company earned & the shareholder withdraws some profits from the company after payment of the said taxes, the profits withdrawn by the shareholder will be considered as taxable income for the shareholder because tax is charged on realised income/profits, so when the shareholder withdrew the profit, it become a realised income for him/her & as search is a taxable income for the shareholder. 

Nil ESIC Filing

1. What is Nil ESIC filing?
   Nil ESIC filing refers to the process of filing an ESIC (Employees’ State Insurance Corporation) return when there are no employees in an organization during a particular period, and thus, no ESIC contributions are due. This is mandatory to maintain compliance, even if no contributions are payable.
2. Is Nil ESIC filing mandatory?
   Yes, it is mandatory for all organizations registered under ESIC to file returns regularly, including Nil returns when no employees are registered or no contributions are due.
3. How often should Nil ESIC returns be filed?
   Monthly Due Date: The monthly ESIC filing deadline is the 15th of each following month.

• Important Contribution Filing Schedule:
  1. For the contribution period April to September, employers can file or revise details up to 11th November.
  2. For the contribution period October to March, employers can file or revise details up to 12th May.

4. What happens if I fail to file a Nil ESIC return?
   Failure to file Nil ESIC returns on time may result in penalties and compliance issues, even if no contributions are due.
5. How can I file a Nil ESIC return?
   You can file a Nil ESIC return online through the ESIC portal by selecting the appropriate option for the Nil filing process. Or contact gauna’s for more details. 
6. Do I need to file a Nil return if I have employees but none are eligible for ESIC?
   Yes, if your organization is registered under ESIC but none of your employees meet the eligibility criteria, you must still do Nil return filing to ensure compliance.

7. Is there any penalty for late Nil ESIC filing?
Yes, late filing of Nil ESIC may attract penalties, similar to regular ESIC returns. It is important to file on time to avoid any legal or financial consequences.

Goods and Services Tax (GST)

1. Can I claim ITC if my supplier has not filed GSTR-1?

Ans:  No, ITC (Input Tax Credit) can only be claimed if:

• Your supplier has filed GSTR-1, and
• The invoice is reflected in your GSTR-2B.

2. What is the penalty for late GST return filing?

Ans:  Late fees for GSTR-3B & GSTR-1:

• • ₹50 per day (₹25 CGST + ₹25 SGST) if there is tax liability.

• ₹20 per day (₹10 CGST + ₹10 SGST) if there is no tax liability (Nil return).

Accounting & Compliance

1. What is the difference between TDS and TCS?

• TDS (Tax Deducted at Source): Deducted when a payment is made (e.g., salary, contractor payments).
• TCS (Tax Collected at Source): Collected by sellers while receiving payments (e.g., on the sale of goods above ₹50 lakh).

2. What is Form 26AS, and why is it important?

Form 26AS is a tax credit statement that shows:

• TDS deducted on your income.
• Advance tax payments.
• High-value transactions reported to the tax department.

It helps in verifying tax deductions and avoiding mismatches in ITR filing.

3. Can a director take a salary from his own private limited company?

Yes, a director can draw a salary as an employee if there is an employment agreement. The salary is taxable under “Income from Salary” in ITR.

Investment Taxation

1. How is tax calculated on stock market gains?

Ans:  Short-Term Capital Gains (STCG) (Holding <1 year) – Taxed at 15%.

Long-Term Capital Gains (LTCG) (Holding >1 year) – Tax-free up to ₹1 lakh; beyond that, taxed at 10%.

2. How is tax calculated on Fixed Deposits (FDs)?

Ans:   Interest on FDs is taxable as “Income from Other Sources”.

         Banks deduct TDS at 10% if interest exceeds ₹40,000 (₹50,000 for senior citizens).

3. Is cryptocurrency taxable in India?

Yes, crypto gains are taxed at 30% flat rate, with 1% TDS deducted on transactions above ₹50,000.