Udyog Aadhar Registration will be called as Udyam Registration. Indeed, This Registration is a simple cycle for Startup and MSME Companies where Daily Filing will enroll you as a UDYAM Company without any problem. Additionally, This Company enrollment will give you more advantages to appreciate Government Schemes.
Documents Required for Udyog Aadhaar
The applicant’s personal Aadhaar is the main requirement for obtaining Udyog Aadhaar in case of a proprietorship.
- Aadhaar must be used.
- Partners Aadhaar can be used.
- Bank Details
- Offical Address
- In the case of a company, the Directors Aadhaar can be used.
- In the case of LLP, the Designated Partners Aadhaar can be used
It’s always nice to get relaxation from paying heavy taxes despite your financial condition or the size of the business but holds more significance for small taxpayers and businesses.
In this blog, we will discuss about how small taxpayers can benefit a lot from Tax Rebates. But first of all, let us throw light on what exactly is Income Tax Rebate?
What is Income Tax Rebate?
An income tax rebate relates to a discount or concession on the income and does not imply that your income becomes tax-free or exempted.
This means that in order to qualify for the refund, you must first calculate your tax on your entire taxable income, which must be less than 500,000/-. The amount of any cess included in such tax should be deducted.
The rebate is for tax, not for cess. From the assessment year 2020-21 (the financial year 2019-20), the maximum amount of the income tax rebate is 12,500/-.
How do you get a Tax Rebate?
Under Section 87A of the Income Tax Act of 1961, individual taxpayers with a yearly income of less than Rs. 5 lakhs are eligible for a tax rebate beginning with the Assessment Year 2020-21 (Financial Year 2019-20).
So, if your income is less than Rs. 5 lakhs, you are exempt from paying income tax.
But it’s not as simple as you believe. There is a lot of ambiguity in this regard. People believe that they do not have to pay tax on income up to Rs. 5 lakhs, and that tax is only due on income above Rs. 5 lakhs. Please keep in mind that the tax rebate under Section 87A is only accessible to individual taxpayers with an annual income of less than Rs. 5 lakhs.
The rebate on income tax is only for small taxpayers. When an individual’s income exceeds Rs. 5 Lakhs, the tax rebate disappears, and he is required to pay tax at a rate of 5% on income received beyond the Rs. 2,50,000 level and up to Rs. 5 Lakhs.
As a result, if your income exceeds Rs. 5 lakhs, you should be prepared to pay an additional Rs. 12,500 in tax, plus a 4% surcharge and cess.
Also read, Tax Deductions for small business Owners – Complete List
What is the Eligibility for claiming the Tax Rebate?
If you meet the following requirements, you are eligible for the rebate:
- Only individual taxpayers are eligible for the income tax rebate.
- Only Indian citizens are eligible for this rebate in tax.
- The total rebate on income tax amount is limited to a maximum of 12,500/-. (for A Y 2020-21 and onwards)
- The tax rebate on income is applied to the tax amount rather than the cess on the tax amount.
- The total income after deductions under Chapter VIA (e.g., 80C, 80D, 80DD, 80G, and so forth) is less than 500,000/-.
File your Income Tax Return with Dailyfilings
If your entire income is between Rs. 5 and Rs. 7 lakhs, you can plan well and reduce your tax burden to zero with the expert advice of Dailyfilings consultants.
The government provides tax breaks for mortgage interest, section 80C deductions for life insurance, PPF, NSC, school tuition, section 80D deductions for medical insurance premiums, and a variety of other deductions. These deductions will assist you in reducing your taxable income to less than Rs. 5 Lakhs.