1 EXEMPT STATUS Exempt status generally depends on the nature and purpose of an organization. An organization is tax-exempt only if it is a class specifically described by the IRC as one on which exemption is conferred. An organization operated for the primary purpose of carrying on a trade or business for profit is generally […]
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UNRELATED BUSINESS INCOME TAX Unrelated business income (UBI) is income from a trade or business, regularly carried on, that is not substantially related to the charitable, educational, or other purpose constituting the basis for an organization’s tax-exempt status. But income is not subject to tax as UBI if substantially all the work is performed […]
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ELECTION All eligible corporation must make the election for S Corporation status by filing Form 2553 All shareholders at the time the election is made must file a consent Each person who was a shareholder at any time during the part of the tax year before the election is made must also consent. If any […]
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REQUIREMENTS OF S STATUS An S corporation must Be a domestic and eligible corporation Have only one class of stock Have no more than 100 shareholders Have only allowed shareholders (individuals, estates, or qualified trusts) A Non – Resident alien (NRA) may not own shares of S Corp [Must be a citizen / resident […]
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1 Special taxes imposed on S corporations. Passive investment income (PII) tax Built-in gains (BIG) tax LIFO recapture General business credit recapture 1.01 PASSIVE INVESTMENT INCOME(PII) TAX Passive investment income includes gross receipts from royalties, rents, dividends, interest, and annuities. If an S corporation has pre-S corporation E&P (from the period it was a C […]
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Following are several important relief measures taken by the Government of India in view of COVID-19 outbreak, especially on statutory and regulatory compliance matters related to several sectors:— A. INCOME TAX [1] Income Tax Extend last date for income tax returns for (FY 18-19) from 31st March, 2020 to 30th June, 2020. [2] Aadhaar-PAN linking […]
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Going global is impressive, yet is much more complex than meets the eye. To successfully convert a domestic business to an international one, a host of factors needs to be considered. Further, on one side the advent of internet has been a key business enabler and a leveler for SMEs, on the other side it […]
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Notification No. 2/2015 EVC to verify Income-tax return As per the above-referred notification, Electronic Verification Code (EVC) is a 10-digit alpha numeric code generated for the purpose of electronic verification of the person furnishing the return of income. The same is not applicable to assesse’s where a digital signature is mandatory i.e. a company assessee, […]
Continue readingSr. Sec Main Heading Amendment Action Points ‘ ‘ ‘ ‘ ‘ ‘ 1 192 Tax deduction from Salary Employer shall obtain from employee, the proofs of claims (incl. set-off of house property loss) made by him in the prescribed form and manner from 01/06/2015. Prescribed Form has not yet been notified. […]
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17/07/2014 – Article on Union Budget 2014-15 Acche Din Aayenge !? The maiden budget from the NaMo led government placed before the parliament on 10 July 2014 was most sought after by the people of India to DISCOVER the CHANGE and EMBARK on RAYS OF ACHHE DIN. Hopes and expectations were attached f rom the […]
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