Include CAs in the Vaccination and Professional Work Priority Group: KSCAA

Include CAs in the Vaccination and Professional Work Priority Group: KSCAA

The Karnataka State Chartered Accountants Association (R) (abbreviated as ‘KSCAA’) is a Chartered Accountants Association founded in 1957 under the Karnataka Societies Registration Act. KSCAA was established largely for the benefit of chartered accountants, and it represents them before various regulatory bodies in order to alleviate problems and hardships that they and the business community confront.

The Institute of Chartered Accountants of India (ICAI), a main statutory body formed by an Act of Parliament, The Chartered Accountants Act 1949 (Act No XXXVIII of 1949), for regulating the profession of Chartered Accountancy in India, is predominantly made up of Chartered Accountants. The ICAI is the world’s second-biggest professional organisation of chartered accountants, with a long history of public service to the Indian economy.

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We congratulate and praise the efforts of the Government of Karnataka and the whole State Administration in restricting the spread of the Coronavirus in the state, which has resulted in a steady and gradual drop in the number of Corona positive cases over the past few days.

It is important to note that we CAs have the professional expertise, extensive experience, and in-depth knowledge in the areas of financial controls, financial accounting, financial audit, and risk management and that these skill-sets could be very useful to the government in improving financial management in relation to Covid relief and containment activities.

GST Council to meet Saturday, discuss tax exemption on Covid-19 essentials

CAs should make an effort to fulfil their social obligations by delivering professional services outside of the business sector and to the general public while remaining faithful to their position as partners in national development. It would be an honour and privilege for us at KSCAA to work in the public interest in collaboration with the Government of Karnataka in the fight against Corona by assisting in the implementation and operation of financial discipline and financial controls in the mobilisation and use of public resources.

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The Chartered Accountants (CA) profession has always worked to uphold the ethos of Partners in Nation Building, and it has been their constant effort to keep India’s economy and financial system afloat. The CAs work closely with the government and its regulatory bodies on the one hand, and the diligent and hardworking taxpayers of our country on the other, ensuring that taxpayers comply with all fiscal statutes, such as the GST and income tax, and pay their share of lawful taxes to the government in a lawful and timely manner. Aside from fiscal statutes, the CAs are also in charge of ensuring that persons and corporations follow other rules and regulations.

We are optimistic that your good selves will go to great lengths to ensure that necessary steps are taken in this regard to provide much-needed relief by classifying CAs as PRIORITY GROUP and thus help expedite vaccination of our CA members, their staff, and their families, as well as ensuring that our CA members and staff perform their functions in a very smooth, efficient manner.

Income tax on Bitcoin

Income tax on Bitcoin & its legality in India

What is bitcoin?

Bitcoin is one of the oldest forms of encryption, which forms part of the peer-to-peer payment system worldwide. Cryptocurrency is digital money. It is considered to be more secure than real money. Cryptocurrency uses something called encryption to get transactions. Encryption, in simple words, is a way to convert understandable data into complex symbols that are difficult to break. Cryptocurrencies are classified as a subset of digital currencies, currencies, and virtual currencies.

Income tax on Bitcoin

Bitcoin was the first coin quantity created in 2009. Thereafter, there has been a rapid increase in the number of cryptocurrencies cases that have created some of them Litecoin, Ethereum, Zcash, Dash, Ripple etc. Bitcoins, in India, are slowly gaining popularity, in view of the government’s efforts to move towards a non-monetary economy. However, one should know that fortification, as of today, is not centrally managed or regulated by any specific body such as the RBI who manages the physical currency in India.

Related Article: Bitcoin transaction Warnings!

Where does bitcoin come from or how is it generated?

Mining

Mining is an activity in which an individual (called a “mining worker”) uses his or her own computer prowess to overcome difficult mathematical puzzles. The cracking process of these puzzles is an integral part of blockchain technology, helping to preserve it. As a reward, the miner gets new bitcoins which are just a bitcoin or mining creation.

Purchase them from the exchange of Betquin against the real currency

Everyone can not be a bitcoin miner. Hence, you can consider buying bitcoins from bitcoin exchanges and store them in your online wallet in digital format. Unicoin, Brit xoxo, Zebpay, Coinbase etc. are some of the bitcoin exchanges currently in India. These bitcoins will be purchased in mind for the real currency. It will be interesting to note that the value of 1 Bitcoin currently stands at about 642,592 Indian Rupees.

Receipt of vouchers against the sale of goods and services

Although this may not be a common phenomenon in India at present, there are few smart businessmen who accept BitCoin (instead of the real currency) to sell goods or services, they deal with them.

3. Is Bitcoin legal in India?

As discussed earlier, the Bitcoin, as a payment intermediary, has not been authorized or regulated by any central authority in India. In addition, no specific rules, regulations or guidelines have been established to resolve disputes that may arise during dealing with the composition. Thus, the Bitcoin transactions come with their own risk set. However, given this background, one can not conclude that the formulations are illegal, so far, there has been no ban on decomposition in India.

4. How is a tax on Bitcoin in India?

The concept of bitcoins is entirely new to the Indian market, apparently, the government has yet to bring taxes from the bitcoins in the platform books. At the same time, a tax on decomposition cannot be ruled out because India’s income tax laws always seek to impose a tax on the income received irrespective of the form in which it is received. Therefore, the possibility of taxing the bitcoins can be considered under the following conditions:

Scenario A: Bitcoin Mining

Bitcoins created by mining are self-capital assets. The subsequent sale of such a house would, in the normal context, lead to capital gains. However, one may notice that the cost of getting a homeowner cannot be determined because it is a subjective asset. Moreover, they do not fall within the provisions of article 55 of the Income Tax Act of 1961, which specifically specifies the cost of acquiring certain self-created assets. Therefore, the mechanism of calculation of capital gains fail in the wake of the decision of the Supreme Court in the case of B.C.Srinivasa Shetty. Consequently, capital gains tax will not arise on Bitcoin Mining.

This position will continue until the Government contemplates an amendment to article 55 of the Act. At this juncture, as India’s tax laws are silent on the full taxability of taxation, we have found it right to comment on a possible reverse view by the IRS. There is a possibility that management may not consider bitcoins as capital assets at all. Thus, the provisions of capital gains will not be applied at all. Accordingly, income tax authorities may choose to tax the value of the formations received from mining under the heading “income from other sources”.

Scenario B: Betcinins held as an investment being converted against a real currency

If capitalization, which is capital assets, is held as an investment and is converted against a real currency, the higher value will result in long-term capital gains or short-term capital gains depending on the period of the CITC contract. Moreover, long-term gains will be taxed at a fixed rate of 20% while short-term gains will be taxed on the individual tile price. The acquisition cost will be determined to reach long-term capital gains after giving the indexing feature. A simple example below is to understand this:

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Accounts and Audit Requirements

Books of Accounts and Audit Requirements

The Income Tax Law sets out the books of accounts to be kept for income tax purposes. It has been described under Article 44AA and Rule 6F.

Required to keep the books of accounts?

The following professions must maintain accounting records if their total revenue is greater than Rs. 150,000 in the previous 3 years for a career list. This also applies to a newly established profession whose total revenue is expected to exceed Rs 10,000. 1,50,000.

Books Accounts

The accounting records to be booked in Rule 6F were identified:

  • legal
  • Medical
  • Engineering
  • The architect
  • Accounting
  • Technical Consultancy
  • Interior decoration

Authorized representative – a person who represents a person for remuneration before a body or other authority under the law. It does not include an employee of the person represented or the person who performs the accounting profession.
A filmmaker – includes a producer, an editor, a representative, a director, a music director, a technical director, a director, a photographer, a singer, a songwriter, a storyteller, a screenwriter, And fashion designers.
Secretary Company

If you are a freelance entrepreneur pursuing any of these professions, your total receipts are more than Rs. 150000, these rules apply to you.

If the total income of the above professions does not exceed Rs.150,000 in one or more of the previous three years of an existing occupation or a newly established occupation whose total revenue is expected to be less than Rs 1, 50,000 – the professional must keep books of accounts. Unless all books or records are not kept, they are not exactly selected. The only requirement is that AO is able to calculate taxable income from professional ones.

From 18-18 years, the maximum rupee. 150,000 to Rs. 250000.

  • Accounting books defined by Rule 6F
    Cash book
    Record cash and cash payments daily that show the cash balance at the end of the day or at best at the end of each month and not thereafter.
  • Magazine in accordance with the Commercial Accounting System
    The newspaper is a record of all daily transactions. It is a record, in terms of accounting, where the total credits equal the total debt, when we follow the double-entry accounting system, that is, each opponent has a balance against and vice versa.
  • The ledger in which all entries from the magazine flow contains details of all accounts, and this can be used to prepare financial statements.
  • A copy of the invoices or receipts issued by them which are more than 25 rupees
    Bills of original expenses incurred which are more than 50 rupees
  • The following are additional requirements in the case of a person with a medical profession – doctors, surgeons, dentists, pathologists, radiologists, etc.

Record daily cash with patient details, services provided, fees received and date of receipt
Details of stock of medicines, medicines and other consumables used
These books must be kept at the head office or in each office.

How long should these books be preserved?

Records must be kept each year for 6 years from the end of this year.

Not keeping the books of accounts?

If you fail to maintain account records as stated, you may be fined 25,000 rupees or in some cases where you may have international transactions and failed to retain the information and documentation for such transactions – 2% of the value of each international transaction.

It will be hard to keep your books and track all your expenses and income in a systematic way.

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