Primarily both the sections seem similar. However, whenever Section 194Q becomes applicable, Section 206C(1H) will not be applicable. Section 194Q is a priority section over Section 206C(1H).
Owing to various complexities, people tend to make many mistakes while filing their Income Tax Return which can be easily avoided if proceeded with more caution.
Under Section 44AD, small taxpayers with less than 2 crores of turnover are not required to maintain books of accounts and their profits are presumed to be 8% of their turnover.
National Pension Scheme is a scheme introduced to cultivate a habit to save money for pension. It is available to any person between the age group of 18-65 years.
Under Section 194Q the buyer deducts an amount equal to 0.1% of such sum exceeding Rs 50 lakhs in case the supplier of goods provides the buyer with its valid PAN details.
The taxpayer is liable to pay simple interest @0.5% on the amount so refunded for every month or part of a month comprised in the period from the date of grant of refund to the date of regular assessment.
Under Section 89(1), relief is provided by the income tax department in relation to the amount received in advance or in arrears in the form of salary which is related to any other FY.
Discussing 7 important points that must be checked before filing your ITR for FY 2020-21. These include linking your PAN with Aadhaar, Bank Account with PAN, Downloading Form 26AS etc.
TDS must be deducted by the entity who makes the payment to the resident person, as remuneration/rewards, by the way of commission or for soliciting insurance business or for renewal of insurance policies.
Vodafone and Cairn, and other taxpayers would be greatly benefitted from this change as they no longer have to battle with the Indian Government and would also get refund of taxes paid (without interest).
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