Write the names of causal organism and animals affected with the following diseases
Foot and mouth disease
Pox
Tuberculosis
Anthrax
Rinderpest
Answers
Answer:
Nimesh Desai has hired two employees to run his sweet shop. However, without his wife assisting him in his business, he would have found it tough. His two children had also been chipping in whenever they can. But, last year, when Desai was asked by his tax consultant whether he pays salary to his wife and children, he was at a loss for words. "It had never crossed my mind. In fact, it was good to know that I was within my rights to pay my family members a salary that they actually deserved," he says. He was equally surprised when he was told that he would save a great deal on his tax outgo. "The tax benefit was an added advantage," adds Desai. And, this year, he is in a position to reap the rewards of 'hiring' his wife and children when he files his income tax return.
But, does it really translate into considerable savings? Yes, it does, especially so, if the family members are not in the income tax bracket or at the lower tax brackets, because the combined tax liability of the family comes down significantly.
However, you cannot breach certain fundamental norms in your efforts to minimise your tax outgo. First, the expenses should be legitimate. Says Nikhil Bhatia, executive director, PwC India: "You can claim only legitimate expenses incurred for business as deductions. And, since this is a related party transaction, it should be done using the arm's length rule." Note: The income tax department is wary of "related party transactions" and, typically, runs a check to ensure there's no tax fraud. The terms, "related party transactions" and "arms length", are not defined in the IT Act, but there are several provisions that mention them.
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Definition of relative
The provisions about "relative" vary according to the status of the entity, i.e., whether it is a proprietary concern, partnership or limited company. In a proprietary concern, "relative" would include husband, wife, brother, sister and any lineal ascendant or descendent of the proprietor. Similarly, relatives of a partner with more than 20 per cent profit share will be defined as "relative" in case of partnership firms or limited liability partnerships. For limited companies, the cut off is 20 per cent of the voting power of the company.
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IT ACT
INCOME TAX OFFICER
MANISH SHAH
TAX BENEFIT
SECTION 64
SK PAREKH & CO.
DEFINITION OF RELATIVE
RIGHTS
TAX CONSULTANT
INSURABLE INTEREST
NIKHIL BHATIA
INSURABILITY
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