It can be treated as a dividend for income tax purposes even if the participants treat it as some other form of transaction, such as a loan, advance, gift or writing off a debt. It should be included in the assessable income of the shareholder or their associate.

Is transfer taxable income?

Simply, such receipts may be treated as gifts, and gifts up to a sum of Rs 50,000 are exempt from gift tax. But if bigger amounts are transferred between friends, the entire amount will be subject to tax.

Which transactions are tracked by income tax?

Credit Card Bill Payments : Banks will have to report if you make Credit Card bill payments of more than Rs 1 Lakh per annum in cash mode (or) more than Rs 10 Lakh through Cheques / RTGS etc.

What is a non taxable transaction?

A Nontaxable Transaction Certificate (NTTC) obtained from the Taxation and Revenue Department (TRD) allows you as a seller or lessor to deduct the receipts from qualified transactions from your gross receipts. You need only one NTTC from a customer to cover all transactions of the same type with that customer.

What transactions are reported?

Transaction reporting is the detailing of each major currency exchange, withdrawal, transfer or payment made by, to or through a financial institution.

Why do you have to pay Securities Transaction Tax?

This tax was introduced to avoid tax evasion in case of capital gains. Securities transaction tax, as the name itself implies is levied on the value of securities (except commodities and currency).

Which is true about securities transaction tax in India?

Securities transaction tax is a direct tax and is levied and collected by the central government of India. The most prominent point about securities transaction tax is that STT is applicable only on share transactions made through a recognized stock exchange in the country. Off-market share transactions are not covered under STT.

How are cash transactions under Income Tax Act amended?

The Government of India with an intention to evade black money and to discourage the cash transactions time and again taking various steps. Specially the Income tax Act is amended and provided with disallowances and stringent penal provisions for various types of cash transactions. Let us briefly understand some of such provisions here.

What is the security transaction tax in mutual funds?

What is the security transaction tax in mutual funds? Security Transaction Tax (STT) is a direct tax which is levied on buying/selling of financial instruments like equity, debentures, bonds, derivatives, mutual funds.