Mamtora & Associates
Chartered Accountants

Generally expenses are allowed based on accounting method followed by the Assessee. If you follow Mercantile method of Accounting, you will be allowed expenses on accrual basis. If you follow Cash accounting, you will be allowed to claim expenses on actual payment basis. However, Income Tax Act has carved out an exception here in respect of certain expenses.  Section 43B lists out certain expenses which are allowed only on actual payment basis. Finance Act 2023 inserted a new clause (h) in Section 43B which states that if any sum is payable by the assessee to a micro or small enterprise and if it is not paid within the time limit specified in Section 15 of the MSMED Act, 2006, the assessee cannot claim it as an expense until the said sum is actually paid. Such disallowed amount will be allowed to claim as expenditure in the year of actual payment. This provision is applicable w.e.f. FY 2023-24 (AY 2024-25) Let us first understand the criteria for Micro, Small & Medium Enterpris...

Finance Minister Nirmala Sitharaman in the Budget 2024 had announced withdrawal of past small direct tax demands as under: Demands upto Rs. Period Max Ceiling per Assessee Rs. 25,000/- Upto FY 2009-10 Rs. 1,00,000/- Rs. 10,000/- From FY 2010-11 to FY 2014-15 Rs. 1,00,000/- Direct tax demands include demands pertaining to Income Tax, Wealth Tax & Gift Tax. This is expected to benefit about 1 crore assessees and an estimated Rs. 3,500/- crore of demands will be withdrawn following the announcement.

When it comes to evaluating investment performance, three common metrics are often discussed: XIRR, CAGR, and Absolute Returns. Each of these measures offers a different perspective on how an investment has performed over time. ABSOLUTE RETURNS Absolute Returns measure the total return of an investment over a specific period. It is the simplest form of calculating returns and does not take into account the time factor. The formula for Absolute Returns is: Absolute Return = ((Final Value – Initial Value)/Initial Value)*100 Example_A: If you invested Rs. 1,00,000 and it grew to Rs. 1,20,000 in 3 years, the Absolute Return would be 20% as under: = ((120000 – 100000)/100000)*100  = (20000/100000)*100  = 20% CAGR (COMPOUNDED ANNUAL GROWTH RATE) CAGR is the mean annual growth rate of an investment over a specified time period longer than one year. It represents one of the most accurate ways to calculate and determine returns for anything that can rise or fall in value ...

Tax Planning is important for every taxpayer and the same needs to be done before the end of the financial year to which income pertains. In addition to tax planning, taxpayer needs to collect relevant supporting documents/evidence and calculate his tax dues and pay the same in advance, if advance tax is applicable. Here we have listed few common things every individual taxpayer  needs to keep in mind before the end of financial year i.e. on or before 31st March: Calculate your estimated income & tax liability to check if you are liable to pay advance tax and to assess which scheme of taxation is beneficial to you viz. New Tax Scheme or Old Tax Scheme. Please note, many of the below mentioned deductions will not be available if you opt for new tax scheme. Hence we suggest you to consult a Chartered Accountant who is expert and well experienced at tax planning who would help you collating your income, exemptions, deductions, TDS details for estimating your tax liability mor...