Category: Tax

Special Advance Authorization for Garments

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Directorate General of Foreign Trade (DGFT) has presented the Special Advance Authorization Scheme for the advancement of the product of articles of clothing. This plan permits the obligation-free import of information texture, including interlining for delivery of articles of attire and dress extras.

     

Advance Authorization for Garments

The Advance Authorization for Garments permits the obligation-free imports of contributions (after considering wastage) assuming they are truly joined in an item that is being sent out. A commodity commitment is a condition for giving Special Advance Authorization for Garments.

Eligibility for Advance Authorization

The Special Advance Authorization for Garments is available to manufacturer exporter directly or a merchant exporter tied with a supporting manufacturer. The Authorization is possible for the following:

• Physical exports
• Intermediate supply
• Supplies made to specified categories of deemed exports.

Actual Client Condition For Special Advance Authorization

The Authorization and the texture imported are dependent upon the specific client condition; this implies that the genuine client alone may import such products. The Authorization won’t be adaptable even after the fulfillment of the commodity commitment. Notwithstanding, texture imported might be moved for work fill in as allowed by the Central Excise.

Condition For Special Advance Authorization

Exceptional Advance Authorization for Garments given in light of the accompanying circumstance:

Inputs took into consideration Special Advance Authorization: The Authorization issues for the import of pertinent textures, including internal covering just as information. No other data, pressing materials, fuel oil, and impetus are taken into account import under the Special Advance Authorization.

Standard Input-Output Norms (SION): The Director-General of Foreign Trade (DGFT), on the proposal of the Norms Committee, issues traditional standards that characterize how much information is expected in the assembling of a unit of the result item that will be sent out.

Self-affirmation: Sometimes, the SION isn’t accessible for a specific item. In such a case, an application might be made to the Regional Authority, who will give the Advance Authorization upon audit.

Yearly Advance Authorization: If the texture material is determined in SION, dependent upon specific circumstances, the development approval is given for the yearly necessities. Exporters need to have a previous commodity execution in somewhere around two going before monetary years, to be qualified for such Authorization.

Minimum Value Addition

Under Special development approval, the base Value Addition to be accomplished is 15%, except actual commodities for which installments are not gotten in unreservedly convertible cash and other indicated send-out items.

Brand Rate

On the off chance that the exporter wants to guarantee not set in stone and fixed by the Central extract authority (brand rate), he/she wants to present an application for the Authorization and make a case trade under the case for brand rate.

 

The Validity Of Special Advance Authorization

The Special Advance Authorization for Garments is legitimate for quite some time from the date of issue of such Authorization. On account of considered sends out, the Authorization is connected to the contracted length of task execution or a year from the date of issue of such Authorization, whichever is more.

In any case, the commodity commitment might be satisfied in no less than a year and a half from the date of the issue of Authorization or as advised by the DGFT. Except if determined, the product continues ought to be acknowledged in openly convertible money.

Application For Award Of Special Advance Authorization

Scheme for the product of Articles of clothes and dress adornments can be filled online through the authority site of the Directorate General of Foreign Trade (DGFT). The application technique is as per the following:

From the landing page of DGFT, select the web-based eCOM application choice under the Service choice; the connection will divert to the application page. The application methodology for filling the exceptional development approval is like filling of utilization for the normal development approval. In the wake of outfitting the subtleties transfer the following documents:

Documents for Special Advance Authorization Scheme

• Bank Receipt, Electronic subsidizes move or Credit Card subtleties proving installment of utilization expense
• Articulation of products made in the former monetary year appropriately confirmed by a Chartered Accountant or Company Secretary
• Self-insured duplicate of the assembling permit of the candidate firm
• Nullification Letters in the event of provisions to an Advance Authorization holder
• On account of Deemed Export: Project Authority Certificate
• Creation and Consumption of information of the producer.

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TDS On Contractor Payment

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There is TDS on contractor payment as follows.

What is Section 194C?

Segment 194C states that any individual answerable for paying any total to the occupant worker for hire for doing any work (counting the inventory of work), in the compatibility of an agreement between the worker for hire and the accompanying:

• The Central Government or any State Government
• Any neighborhood authority
• Any enterprise laid out by or under a Central, State, or Provisional Act
• Any organization
• Any co-employable society
• Any power established in India by or under any regulation, connected either to managing and fulfilling the requirements for lodging convenience or the reason for arranging, creating, or improvement of urban communities, towns and towns or both
• Any general public enlisted under the Society Registration Act, 1980 or under any such comparing regulation to the Act in any Part of India
• Any trust
• Any college or considered college
• Any firm
  
  

What Is Going On With Work With The End Goal Of Section 194C?

• The saying, “work” in this segment would incorporate
• Publicizing
• Broadcasting and broadcasting including the creation of projects such as communicating or broadcasting
• Carriage of merchandise and travelers by any method of transportation, other than rail lines
• Catering
• Assembling or providing of an item as per the prerequisite or detail of a client by utilizing the materials bought from such client or its partner as characterized in section 40A (2), But does exclude assembling or providing of an item as indicated by the necessities or particulars of a client by utilizing the materials bought from an individual, other than such a client.
  

  
  
  

What is a Sub-Contractor according to Section 194C?

A “sub-project worker” would mean any individual:

Who goes into an agreement with the project worker for completing, or

For the stockpile of work for completing the entire or some portion of the work embraced by the worker for hire under an agreement with any of the specialists or

For the stockpile of, whether entirely or part of the way, any work which the worker for hire has attempted to supply as far as his agreement with any of the specialists referenced under this section.

What Is TDS To Sub-Contractor?

According to the arrangements of the Income Tax Act, any individual (being a worker for hire and not being an individual or a Hindu Undivided Family):

• answerable for paying any total to any inhabitant
• in the compatibility of an agreement with the sub-worker for hire for completing, or for the stock of work for doing, the entire or any piece of the work attempted by the worker for hire or for providing whether completely or part of the way any work which the worker for hire has embraced to supply will,
• at the hour of credit of such total to the record of the sub-project worker or
• at the hour of installment thereof in real money or
• by the issue of a check or draft or by whatever other mode, whichever is prior

deduct the sum equivalent to 1 % of the aggregate as personal duty on pay contained in that. The rate is 0.75% for exchanges from 14 May 2020 until 31 March 2021.

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Tax-Free Gratuity Limit 

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Gratuity may be a benefit given by the employer to employees. A recently approved amendment by the Centre has increased the limit of gratuity. Now it’s tax-exempt up to Rs 20 lakh from the previous ceiling of Rs 10 lakh, which comes from Section 10(10) of the Tax Act. The CBDT Notification no. S.O. 1213(E), dated 8 March 2019, clarified that the exemption limit of Rs 20 lakh would be applicable to employees within the event of retirement or death or resignation, or disablement on or after 29 March 2018.

Let us understand the impact of this amendment compared with the previous provisions.

Table of contents –

• Understanding the fundamentals of Gratuity
• Workers do not come Under the Payment of Gratuity Act
• Employees or workers Not Covered Under the Payment of Gratuity Act
• Government Employees
• Impact of the Amendment

Understanding the fundamentals of Gratuity

Gratuity could be a monetary benefit given by the employer, but not paid as a part of the regular monthly salary. The provisions of gratuity are governed by the Payment of Gratuity Act, 1972, and it’s given on the occurrence of any of the subsequent events.

On superannuation (means an employee who attains the age of retirement is claimed to be in superannuation)

On Retirement Or Resignation

On death or disablement because of accident or disease (the deadline of 5 years shall not apply within the case of death or disablement of the worker), it’s mandatory for the employee to own completed a minimum of 5 years in commission to be able to receive gratuity. it’s not available for interns or temporary employees.

Employees Covered Under the Payment of Gratuity Act

Every individual – working in a very factory, mine, oil field, port, railways, plantation, shops & establishments, or institution having 10 or more employees on any day within the preceding 12 months – is entitled to gratuity.

Once the Act becomes applicable to an employer, whether or not the amount of employees goes below 10, gratuity remains applicable.

Calculation of the quantity of gratuity exempted from tax

The least of the subsequent is exempt from tax:

Last salary (basic + DA)* number of years of employment* 15/26;

Rs. Twenty lakhs (which has been strolled from Rs. Ten Lakh as per the amendment);

Gratuity actually received

Let us understand this through an illustration: The last salary drawn by Rohan is Rs.1 Lakh per month (basic + DA). he’s entitled to receive a gratuity of Rs. 11 Lakhs. He has been working for the last 19 years and seven months.

Sr. No. Particulars Previously As Amended

1 Last drawn salary (Basic + DA) 1 lakh 1 lakh

Number of years of employment 20 (will be rounded off) 20 (will be rounded off)

Gratuity 1,00,000*20*15/26 = 11,53,846 1,00,000*20*15/26 = 11,53,846

Two Maximum privileges allowed ten lakhs to 20 lakhs (as amended)

3 Gratuity actually received 11 lakh 11 lakh

Percentage of exemption ten lakh 11 lakh

Taxable gratuity 1 lakh.

Points to note:

15 days salary supported the salary last drawn for each completed year of service or part thereof i.e. 15/26.

A number of years in commission is rounded off to the closest full year.

Employees Not Covered Under the Payment of Gratuity Act

There is no law that restricts an employer from paying gratuity to his employees, whether or not the organization isn’t covered under the Payment of Gratuity Act. the quantity of gratuity payable to the worker is often calculated supported by half month’s salary for every completed year.

Calculation of the amount of gratuity exempted from tax

The least of the subsequent are exempt from tax:

Last 10 month’s average salary (basic + DA)* number of years of employment* 1/2;

Rs. 10 lakhs (the hike to Rs 20 lakhs isn’t applicable for workers not covered under the Payment of Gratuity Act)

Gratuity actually received

Gratuity exemption is as follows;

Raghav has been employed for 25 years and a couple of months. the common salary for the last 10 months is Rs. 90,000. the particular gratuity received by him is Rs. 11 Lakhs.

Sr. No. Particulars Amount (Rs.)

1 Average of last 10 month’s salary 90,000

No. of years of employment twenty-five (will be rounded off)

Gratuity 90,000*25*1/2 = 11,25,000

2 Maximum exemption allowed 10 lakhs

3 Gratuity actually received 11 Lakhs

Amount of exemption (least of the three) 10 Lakhs

Taxable Gratuity 1 Lakh

Points to note:

An average salary for the previous 10 months is taken into account

The number of years in commission is rounded off to the closest full year

Government Employees

Gratuity paid by the govt to government employees is fully exempt from tax.

Impact of the Amendment

The impact of the amendment is clear from the instance. A hike within the ceiling limit of maximum exemption helps reduce the taxable gratuity amount. This amendment goes to profit those earning higher salaries in the short run. However, if you’ve got a protracted-time left before your retirement, this amendment will benefit most employees.

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What is Income Tax Return (ITR)

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Income Tax Return (ITR) is a form where the taxpayers file the detailed and mandatory information about her/income earned for the financial year and taxes which are applicable to the income tax (I-T) bureau.

The Income Tax forms are of various kinds and depending on the type of taxpayer, the ITR form varies. They are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7 which are announced and documented dated is the duty of every taxpayer money taxpayer to file his/her ITR form before the deadline is over. The applicability of ITR forms differs depending on the sources of the taxpayer’s income, the amount of the earned income, and also the category in which the taxpayer belongs such as individuals, HUF, company, etc.

ITR for Salaried person

As we know, The income tax office has categorized taxpayers into several classes based on income and its source to make tax submission simpler and easy. Therefore, you should not ignore filing the returns appropriately. To people with income up to Rs. Fifty lakhs, the form ITR-1 is required. In this section, we will address who can file ITR-1 and other relevant requirements.

It is significant to note that the Aadhaar card has become a mandatory document that is a requirement for every person in the country. With that in a note, the Department of Income Tax told its residents to link the Aadhaar card with the PAN card as this assists in many additional documentation processes and makes work simple. Let us further see how to file an income tax return for salaried people.

Benefits of e-Filing ITR for Salaried Employees

Before stepping into the significance, you will have to keep in mind that the Central Board of Direct Taxes has made regulations stricter for tax evaders. Let’s dive into the significance of filing the taxes for salaried employed online.

• It clarifies that you are a responsible citizen of the country
• Enables getting a loan or a credit card
• Advantages to claiming tax deductions
• Claim tax refund
• Helps to alter your capital gains and losses
• Very useful in processing your visa

Structure of ITR-1 Form

Form ITR-1 is divided into the following parts;

Part A: General Information

Part B: Gross Total Income which contains sections‘ House Property’  and ‘Salary/pension’

Part C: Deductions and Total income taxable

Part D: Computation of Tax Payable which contains the Tax Computation and Tax Status

PART E:

• Schedule IT: Details of Advance Tax and Self Assessment Tax Payments
• Schedule TDS: Details of TDS (Tax Deducted at Source)

The ITR-1 Form cannot pertain if you compel double taxation relief which comes under Section 90/90A/91.

Eligibility for filing income tax returns for salaried people

• Employees whose income (Salaried / Interest Income) is less than Rs. Fifty Lakhs
• Salaried employees having single or multiple Form sixteen
• Salaried employees having the ownership of properties (single or multiple)
• New joiners or freshers
• If you have a salary above Rs. Fifty Lakhs
• If you are a director in any company or shareholder in the unrecorded company

ITR -1 Form for individuals with an income of Rs. Fifty lakhs from the below-mentioned sources is a standardized one-page form:

• Salary / pension income.
• Revenue from one house property
• All Sources of profits (excluding lottery winning and racehorses profits)

But in the case, if there are clubbed income tax returns, where a spouse or a minor is involved, then this can only be attained if their earnings are identical to the requirements mentioned above.

Documents required for income tax returns for salaried people

• Form sixteen from your company
• Additional Form sixteen
• Form 26AS Tax Credit Statement
• Aadhaar card
• Bank statement if the interest received is above Rs. 10,000/-
• Salary Slip of any month during the Financial Year.

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E-way Bill Rejection 

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After making the e-way charge, the provider or the beneficiary of the products might decide to dismiss the bill is essential. The e-way bill entry made arrangements for the enrolled clients for e-way bill dismissal notwithstanding the e-way bill crossing out. The enlisted individual might utilize the E-way bill dismissal highlight if the citizen got a hint of an e-way bill being produced by different citizens against his/her GSTIN with the other party being a provider or beneficiary. Be that as it may, the provider of the products may likewise decide to drop the e-way bill within 24 hours of age if there should arise an occurrence of non-development of merchandise or any mistake happened in the e-way bill created.

Who Can Utilize The E-Way Bill Choice?

A Person who made or created the e-way bill with subtleties of taking care of business can dismiss the bill. In any case, after the provider of the merchandise creates the e-way charge, the beneficiary of the products will get the hint of the bill created. Now, the beneficiary of the merchandise might decide to dismiss the bill, whenever produced without or against the hint. Notwithstanding, the beneficiary of the products ought to dismiss the e-way bill before 72 hours, or the created bill will apply as acknowledged.

E-way Bill Rejection

The individual who created the E-way bill can likewise decide to drop the e-way bill whenever named important. For example, assuming a citizen produces an e-way bill and the carrier of the provider can’t give the merchandise to the beneficiary, the individual might decide to drop in 24 hours or less.

E-way charge dismissal is performed on a bill created by one more available individual or carrier against the GSTIN of the citizen. In this situation, assuming the beneficiary decides to dismiss the bill as created by the provider and the individual who will do such through the entry will stand dismissed. Thus, assuming that the beneficiary neglected to get the transfer as referenced in the e-Way Bill, he/she can dismiss them utilizing this choice.

The Most Effective Method To Reject E-way Bill

To see the e-way bill created against the citizen’s GSTIN, the client can run a report by choosing the date on which the e-Way Bill was produced and tapping the submit button. In the accompanying screen, the entryway shows all the e-way charges created on that specific date. The beneficiary can pick up the e-way bill for dismissal by checking the checkbox on the right half of the e-Way Bill and tapping on submit. In the wake of choosing the bill for dismissal, the accommodation, the e-way bill would be dropped.

As the other party, one can convey the acknowledgment or dismissal of a transfer indicated in the e-Way Bill. On the off chance that the acknowledgment or dismissal isn’t imparted in any less than 72 hours from the hour of the age of e-way Bill, it is considered that he has acknowledged the subtleties.

 

 

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Alternate Minimum Tax

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The Government has introduced various profit-linked deductions and incentives to encourage investment in various industries. Taxpayers who are eligible to say such deductions/incentives would become zero tax companies or may find themselves paying marginal tax though they’re capable of paying normal tax. the govt also needs a regular/consistent inflow of tax which is one in every one of its major revenues to fund various expenses for the welfare of the country.

Hence, ensuring to not completely disrupt the intention of introducing such incentives/deductions by taking them away indirectly and also to make sure levy of tax on such zero tax/marginal tax companies, the concept of Minimum Tax was introduced.

This was initially introduced for companies within the name of ‘Minimum Alternate Tax (MAT)’ to gather minimum tax to be paid by companies who are claiming profit-linked deductions in such financial years wherein normal tax payable is less than minimum alternative tax. Adjusted total income is going to be computed for MAT by adding and deducting certain specified items. Then, tax at a rate not up to the traditional rate of tax is levied on the adjusted income. 

However, credit for MAT paid in earlier years was allowed to be carried forward and go away in subsequent years wherein normal tax payable was above MAT. Alternative Minimum Tax introduced for non-corporate taxpayers works on similar principles. However, applicability, manner of computation of adjusted income, reporting requirement, etc are different compared to minimum alternative tax. 

Table of contents 

Alternative Minimum Tax – Basics 

Applicability of AMT 

Exemption from Applicability of AMT 

Calculation of Adjusted Total Income Computation of liabilities When AMT Provisions are Applicable 

AMT Credit 

Reporting Requirement 

Illustration 

Budget 2022 update FM proposes to scale back the Alternate Minimum Tax (AMT) Rates to fifteen from 18.5% for the cooperative.

Alternative Minimum Tax – Basics 

As it is obvious from the name, AMT could be a minimum tax that’s a liveable alternative to normal tax. The rate of AMT is eighteen.5% (plus applicable surcharge and cess). 

If the person could be a unit located in a world Financial Services Centre (IFSC) and receives income solely in convertible foreign currency, the AMT rate is 9%. 

AMT could be a tax levied on ‘adjusted total income’ in an exceedingly FY wherein tax on normal income is under AMT on Adjusted total income. So, regardless of normal tax, AMT needs to be paid by taxpayers to whom AMT provisions apply. 

Applicability of AMT 

As already mentioned above, in the beginning, the concept of minimum tax was introduced for companies and progressively made applicable to non-corporate taxpayers. Finance Act, 2011 introduced AMT on financial obligation Partnership (LLP), and Finance Act 2012 amended the provisions because it stands today. Accordingly, AMT provisions are applicable to the following taxpayers: 

All non-corporate taxpayers; and 

Taxpayers who have claimed deduction under: 

Chapter VI-A under the heading “C. — Deductions in respect of certain incomes’ – These deductions are under Section 80H to 80RRB provided in respect of profits and gains of specific industries like hotel business, small scale industrial undertaking, housing projects, infrastructure development, etc. 

Deduction under Section 35AD – While the cost in assets usually qualifies for depreciation year on year, under this Section 100% deduction is allowed on the cost incurred for specified business e.g. operation of cold chain facility, fertilizer production, etc. 

Profit deduction under Section 10AA – Deduction of profit from 100% to 50% is provided to units in Special Economic Zones. Based on the above, it is often concluded that AMT provisions are applicable only to those noncorporate taxpayers having income under the pinnacle ‘Profits or Gains of Business or Profession’. Further, as mentioned above AMT provisions are applicable only to normal tax payable and are not up to AMT in any FY. 

Exemption from Applicability of AMT –

AMT provisions don’t seem to be applicable to a private, Hindu Undivided Family (HUF), Association of Persons (AOP), Body of people (BOI) and the artificial juridical person whose adjusted total income doesn’t exceed Rs 20,00,000. Therefore, this exemption supported monetary threshold of adjusted total income isn’t applicable to LLPs, partnership firms, and other non-corporate assessees. 

Calculation of Adjusted Total Income 

Adjusted total income and AMT have arrived in the following manner: 

Particulars Amount (in Rs) 

Taxable income (A) XXXXX 

Adjusted total income (E) = (A)+(B)+(C)+(D) XXXXX 

AMT – 18.5% of (E) XXXXX 

Computation of liabilities When AMT Provisions are Applicable 

Particulars Amount (in Rs) 

Tax liability computed as per normal provisions of the Income-tax Act – normal tax liability XXXX 

AMT computed at 18.5% (plus applicable surcharge and cess) on adjusted total income XXXX 

Tax liability of taxpayer Higher of the above 

AMT Credit

Though AMT was introduced to gather tax from zero tax companies, it had been also with the intention of getting a consistent flow of tax to the public funds. Therefore, while minimum tax is being levied in an FY wherein normal tax is below AMT, in subsequent FYs wherein AMT is under the normal tax, AMT paid earlier is allowed to be carried forward and reduced against tax to the extent of the difference between AMT normal tax. Balance if any after such depart will be carried forward to subsequent FYs. this idea is named AMT Credit.

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GST On  Advance Payment 

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The rules for the time of supply under GST play a lawfully important role in determining when to pay tax for a transaction. the final rule for the time of supply for services is the earliest of the subsequent.

Date of issue of invoice

Date of receipt of payment/advance

The date on which the invoice should be issued.

The second point above is receipt of advance. This implies that if the advance is received before the difficulty of the invoice the time of supply would be the date of receipt of the advance. Thus taxpayers accepting advance must pay GST on the money obtained.

Note: For the availability of products advance received isn’t subject to GST. the complete amount is taxed on the difficulty of the invoice (w.e.f. 15th November 2017).

What is a taxpayer presumed when an advance is received.

A taxpayer has got to take the subsequent actions on receipt of advance:

Issue a Receipt Voucher.

The supplier must issue a receipt voucher to the person paying beforehand. The receipt voucher will contain details like the amount of advance, the speed of tax applicable, description of products or services, etc.

Calculate Tax on Advance Received

You have to evaluate tax in advance and pay tax while filing the recovery for the month. The advance received should be grossed up. This implies that the advance received is taken into account inclusive of GST. When the speed of tax can’t be determined during receipt of advance GST @ 18% must be charged. Also if the purpose of sale can not be ascertained the advance is taken into account as interstate supply and IGST has got to be paid.

Let us understand the treatment of advance under GST using an e.g:

Mr. A entered into a contract of delivering services worth Rs 10,00,000 by 20th February. the overall invoice value together with GST @ 18% is Rs 11,80,000. He obtained an advance of Rs 4,00,000 on 10th January and a balance payment of Rs 7,80,000 on 20th February. The invoice was also raised on 20th February.

Here is how you may calculate tax:

It is vital to notice here that the taxpayer paying advance isn’t eligible to assert ITC on advance paid. The taxpayer can claim ITC on advance spent only on receipt of employment. this implies that within the above e.g recipient are going to be capable to assert ITC on an advance in February.

Note: Say, the above contract was entered to produce the products rather than providing services. Then, the recipient isn’t prone to pay the tax on the receipt of the advance on 10th January. However, he has got to pay the complete tax amount of Rs 1,80,000 on the date of issue of the invoice, i.e. 20th February.

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how To Start a Real Estate Business

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Mini word count-700, Formatting -1 st heading

A real estate business is a business entity that buys, sells, manages, and invests in real estate.  Real estate is defined as “real estate, land, buildings, air rights above land, underground rights below land.” 

Many people today are facing an unfortunate reality. According to the US Census Bureau, less than 5% of people living up to age  65 either have enough money to retire or are “financially safe enough.” If you are looking for stress-free retirement preparations, it may be time to start a real estate investment business to help you reach your personal financial goals.  Starting a real estate investment business isn’t easy, but it’s worth it if you’re properly prepared. Best of all, there are some resources on small business systems that can make the learning process easier and more efficient

Is the real estate business Profitable?

The simple answer to this question is yes—if you handle your assets wisely. “Entrepreneur has the experience and basic business ability needed to start their own real estate business,” says Martin opening for founders of Rent to Own Labs. “In addition, they have the capital to invest. It is a great advantage when he entered the real estate business.” 

The most common way of real estate projects may benefit or the most common way. Appreciation is an increase in the value of assets over time. Assets can be residential, commercial, or even undeveloped land. The increase can occur for a variety of reasons, including  Increased demand due to decreased supply. Making a  profit in your real estate business comes from selling your property after it is valued-secondly, real estate profits from generating income through regular payments or rent. increase.

How To Start a Real Estate Business?

Anyone thinking about how to start a real estate business should warn that owning a real estate company is not an easy task. Just like starting a business in another industry, entrepreneurs need to spend countless hours researching and developing a thorough business plan before actually jumping into the business. Here are some tips to help you open the door to starting a real estate business. 

• Set Business Goals 

Take the time to evaluate and prioritize your future plans before you start. This means rethinking your personal, professional, and financial goals as they affect how your real estate investment business starts and grows. Start by asking yourself where you want to be in 5, 10, and 15 years. Then plan other immediate steps to help you get here. The importance of this process cannot be exaggerated. Goals not only help investors stay focused, but they also help them take action.

• Conduct In-Depth Research 

A successful business plan is preceded by thorough industry research, identifying a specific niche, market area, and potential competitors. There are a number of exit strategies your real estate business can focus on, although some others are for beginners. Many new investors will be wholesale, allowing them to learn skills before buying a property. However, depending on your goals, a bounce or buy-and-hold strategy can also be a great option. 

• Establish Your Finances

There are several methods for getting into real estate without paying upfront; However, that doesn’t mean you should avoid looking at your current financial situation. When you approach a lender, they most likely want information about your financial history. It is important to see before being approached with questions. Ask for a copy of your credit report and review any existing accounts or investments you have. I always tell investors that no matter where you start financially, there are ways to get started in real estate investing.

• Develop Your Business Strategy 

Once you’ve done your research, you should begin to form ideas in your head about exactly what will help your business succeed in your market. Create a business plan that also includes the resources and tools you will use.

• Form a Real Estate LLC

A limited liability company (LLC) refers to a business structure that is in place to protect the expenses of the business from interference with an investor’s personal finances. The designation allows investors to buy and own real estate without personal liability. Each state has different fees and regulations involved in forming an LLC, although the overall process is the same.

• Business Marketing Plan 

A successful real estate business means a successful marketing plan. What is your unique value proposition? The answers to these questions will help you build a brand for your business and subsequent marketing campaigns. It’s also a great time to focus on your logo, core values ​​, and mission. These components help communicate how to reach potential customers and serve as a starting point for your marketing collateral. 

• Create a Website 

In today’s digital age, having a decent online presence is important. This is specifically true in the real estate industry. Most homebuyers report that they start their search online before contacting an agent. In other words, having a reliable website increases your chances of attracting new customers. We recommend using websites like WordPress, Squarespace, and Wix that offer a beginner-friendly experience at a relatively low price.

• Launch Campaigns 

Make sure you’re consistent across all of your marketing channels, whether it’s social media, email, postal mail, or traditional marketing. Make sure to schedule tracking for each campaign you run. 

• Stay On Top Of Leads

One of the worst things you can do for your business is launch marketing campaigns without a plan to track and follow your leads. Even if someone doesn’t offer the opportunity right away, cultivating a relationship over time can take your business down. A great way to track your leads is to use a CRM customer relationship management system. 

• Build a Support Network 

As cliché as it may sound, no one is an island when it comes to starting a real estate investment business. Conversely, many real estate leads and deals  will come directly from your personal network. Whether your network includes clients, colleagues, mentors, or even competitors, make sure to invest enough time in cultivating these key relationships.

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Proposed Form 28AA – 2017 Notification  Income Tax

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Proposed Form 28AA : The Department of Revenue (Central Board of Direct Taxes) has flowed a draft notice for the inclusion of new rule 39A in the Income Tax Rules, 1962 for making another sort of personal expense recording prerequisite.

As per the draft notice given on nineteenth September 2017, another system would be made for self-detailing of assessments of current pay, charge installments, and advance expense obligation by specific citizens viz. organizations and duty review cases, on an intentional consistency premise.

Who Might Need To File Form 28AA?

Form 28AA would need to be filled by all organizations and some other kind of substance or individual for whom duty review is pertinent. In the structure, the citizen should give data about assessed pay and installment of expenses like pay, TDS deducted, advance duty paid, and so forth.

What Is The Due Date For Filling Out Form 28AA?

Form 28AA will be expected before the fifteenth of November for the time of first April to September 30th. The pay assessed as of 30th September is not exactly the pay of the comparing time of the earlier year by a measure of Rs.5 lakhs or 10%, whichever is higher, Form 28AA will be expected before 31st January.

Details To Be Provided In Form 28AA

• Name of the assesses
• PAN
• Previous Year (PY)
• Assessment Year (AY)
• Nature of Business or calling (if more than one business or calling the shows the fundamental exercises/items)
• Subtleties of assessed Income/charge responsibility for the earlier year
• Subtleties of turnover, benefits, and so forth.

If the assessed advance-charge installment for the earlier year is not exactly the development charge paid during the former earlier year, kindly indicate the reasons (Point-wise).

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