Mohammed Hyder’s Post

🚀 Navigating Tax impact on MSMEs Delayed Payments : A Closer Look at Section 43B(h) of the Income Tax Act 🚀 In the dynamic landscape of business finance, understanding the nuances of tax laws is crucial for maintaining a healthy bottom line. One such critical provision is Section 43B(h) of the Income Tax Act, 1961, which directly impacts how businesses manage payments to small and medium enterprises (SMEs). 🔍 What Does Section 43B(h) Say? In essence, Section 43B(h) mandates the deduction of certain expenses only in the year they are actually paid. This includes payments to SMEs, which, if delayed, could mean the disallowance of such expenses for tax deductions in the financial year the expense was incurred. 🌟 Why Does It Matter? For businesses, this provision underscores the importance of timely payments to SMEs. Delaying payments not only strains your business relationships but also affects your taxable income due to the disallowance of these expenses as deductions. 📊 The Ripple Effect on Business Finance -Cash Flow Management: Businesses must strategically manage their cash flows to ensure timely payments to SMEs, optimizing tax benefits. -Fiscal Responsibility: Encourages businesses to uphold financial commitments to SMEs, fostering a healthier business ecosystem. -Tax Planning: Necessitates proactive tax planning to maximize deductions and minimize fiscal surprises at the year-end. 💡 Takeaway In the quest for sustainable business growth, understanding and adhering to provisions like Section 43B(h) is not just about compliance; it's about fostering responsible financial practices that benefit both your business and the broader economy. Let's champion the cause of timely payments to SMEs and leverage strategic tax planning as a tool for financial excellence. Share your thoughts and strategies on how you navigate these financial waters. #BusinessFinance #TaxPlanning #SMEs #Section43B #FinancialHealth

A timely lift for #Singapore SMEs navigating the challenges of rising costs. 📈💰 The burgeoning expenses of business operations can hit local #SMEs hard, but companies need not confront these hurdles alone. The latest provisions in the government's 2024 budget offer timely relief that #SME leaders need to know about. 🤓 💡 Under the new Enterprise Support Package, companies will receive a 50% corporate tax rebate for Year of Assessment 2024, capped at $40,000. This applies to profitable firms whose corporate income tax rebate is calculated to be more than $2,000. Loss-making businesses or those whose corporate income tax rebate is calculated to be less than or equal to $2,000 will not receive the rebate, but benefit from the $2,000 corporate income tax rebate cash grant if they employed at least one local staff in 2023. With this rebate, companies have additional breathing room through cash flow #support to cover escalating business #expenses. From higher wages to larger rental and utility bills, businesses are feeling the strain. Yet, they now have the means to alleviate some of these burdens, ensuring the continuity of their operations and the sustenance of their #workforce. 👆 Swipe to learn more about the Corporate Income Tax Rebate. 👀 Keep an eye on this space for further insights on Budget 2024. Book a complimentary 1-to-1 business advisory session here: https://lnkd.in/g_5tassX and let SME Centre@SMF (Singapore Manufacturing Federation) help you leverage key measures and initiatives for your #business growth! 🚀📈 #Budget2024 #smallbusiness #smesupport #businessgrowth #sgbusiness #businessadvisory #consulting #businessstrategy #Singaporeeconomy #economicresilience #taxrebate #corporateincometax #taxrebate #costrelief #cashgrant

🚨 Attention SMEs & Business Leaders in the UK 🚨 The 2024 updates to the R&D tax credits scheme are set to significantly impact the UK business landscape, especially for SMEs. With a focus on harmonising subcontracted expenditure rules with the SME scheme, the government aims to foster a more unified tax relief environment. While this opens up new opportunities for larger corporations by broadening the scope of R&D activities eligible for tax credits, SMEs face a complex scenario. The possibility of SMEs losing out on claims under the new unified scheme is real and pressing. But here's the silver lining: We are here to navigate you through these intricate changes. Our expertise lies in ensuring that your innovative efforts continue to benefit financially, even as the landscape evolves. The new regulations prioritise entities that undertake R&D risks and initiatives directly. This is where our team comes into play, aligning your R&D claims with the new requirements to transform potential losses into substantial gains. 🌟 Why Act Now? #StayAhead: Understanding and adapting to these changes early can set you apart from competitors. #MaximiseClaims: Ensure that your R&D activities are fully recognised and rewarded under the new scheme. #RiskManagement: Navigate potential pitfalls with expert guidance, safeguarding your financial interests. 💡 Ready to secure your R&D tax credit claim under the new 2024 scheme? Our advisors are on standby to help you adapt, innovate, and thrive. Let's turn these changes into opportunities together! 📞 Connect with us today to safeguard your claim and ensure your innovative projects continue to flourish. #RnDTaxCredits #SMEs #UKBusiness #Innovation #TaxRelief #BusinessGrowth #AdvisoryServices

🌟 Guide to File Income Tax Return: Your Essential Checklist 🌟 Filing your Income Tax Return (ITR) doesn't have to be daunting! Here's a quick guide to help you navigate smoothly through the process: 📝 Types of ITR and Who Should File Them: 🔹 ITR-1: For individuals with income from salaries, one house property, and other sources (excluding lottery and racehorses). 🔹 ITR-2: For individuals and HUFs not having income from profits and gains of business or profession. 🔹 ITR-3: For individuals and HUFs having income from profits and gains of business or profession. 🔍 Why File ITR?: Filing your ITR isn't just a legal requirement but also crucial for financial planning, loans, visa processing, and more. 🗓️ Deadline: The deadline to file ITR for FY 2023-24 is July 31, 2024. Don't miss out! 📊 New vs. Old Tax Regime: Understand the benefits of both regimes and choose what suits you best on https://lnkd.in/dEkGvMim for insights. 💼 Professional Services Offered: I offer expert ITR filing services at discount market rates, ensuring compliance and peace of mind for individuals and businesses. 🚀 Quick Tips: 🔹 Keep your documents handy: PAN, Aadhaar, Form 16, bank statements, investment proofs, etc. 🔹 Utilize deductions under Section 80C, 80D, etc., to optimize your tax outgo. 🔗 For more details and to file your ITR online, visit https://lnkd.in/dWMtPaJ9. Got questions? Drop them below! Let's make tax filing simpler together. 💬 #IncomeTax #ITR #TaxFiling #FinanceTips #SAP #GST #TDS #FinancialPlanning #IndiaTax #DeadlineAlert

The total distributable revenue of N1.358 trillion comprised N161.593 billion from statutory revenue, N582.307 billion from Value Added Tax (VAT), and N18.818 billion from the Electronic Money Transfer Levy (EMTL).

We’ve hit a 100% success rate in meeting AusIndustry deadlines this April – a testament to the dedicated team at Saving Point! Since I started in R&D Tax back in 2005, every April has been a whirlwind, and 2024 was no exception. Our team’s commitment to our clients has delivered again. What to think about as we approach EOFY: Overseas Activities: if you conducted R&D outside Australia in FY24, apply for an overseas finding by 30 June. Advance Finding: confirm eligibility of your R&D activities for the Tax Incentive in advance with an Advance Finding application by 30 June. Expenditure to Associates: make sure all expenditures to associates for FY24 are paid by the financial year-end to claim the notional R&D deduction. Documentation: maintain thorough records to demonstrate compliance with the technical and financial requirements of the Tax Incentive. As we shift our focus towards the end of the financial year, the Saving Point team is here to help you streamline your R&D tax claim processes. Reach out if you need guidance or have questions about optimising your claims. Saving Point is all about working with our clients to advance innovation and growth. #RDtaxIncentive #Innovation #TaxCredits #BusinessGrowth #EndOfYearPlanning

Did you know that utilising available tax reliefs and allowances can significantly reduce your tax burden and enhance your bottom line? Here’s a breakdown of key reliefs and how they can benefit your business: 🌟 Annual Investment Allowance (AIA): This allowance enables businesses to deduct the full cost of qualifying capital expenditure from their profits before tax, incentivising investment in tangible assets. 💰 Capital Allowances: Businesses can write off the cost of certain capital assets against taxable income, including enhanced allowances for investments in energy-efficient equipment. 🔬 Research and Development (R&D) Tax Credits: Designed to support innovation, R&D tax credits provide relief for companies investing in qualifying projects, with recent reforms simplifying the claims process. 💼 Employment Allowance: Eligible employers can reduce their National Insurance liability, making it more affordable to hire and retain staff. 💡 VAT Reliefs: Schemes like the Flat Rate Scheme simplify VAT calculations for small businesses, reducing administrative burdens and optimising cash flow. #Accountancy #Accounting #SME #TaxRelief #BusinessFinance

📌 Budget Taxation Update 2024: Key Changes and Benefits 📌 Capital Gains and Securities Transaction Tax (STT) - Exemption Limit: Proposed capital gains exemption limit set at ₹1.25 lakh per year. - STT Increase: STT on F&O transactions increased to 0.02% and 0.1%. - Long-Term Capital Gains (LTCG): Rate raised from 10% to 12.5%; listed financial assets held for over a year now classified as long-term. - Short-Term Gains: Certain financial assets taxed at 20%, while others taxed at applicable rates. 📌 Corporate and International Taxation - Corporate Tax: Reduced to 25% for foreign companies. - Angel Tax: Abolished for all classes of investors. - MNC Professionals: ESOP recipients investing up to ₹20 lakh in movable assets abroad decriminalized/non-penalized. 📌 Deductions and Standard Reductions - Standard Deduction: Increased to ₹75,000 from ₹50,000 under the new tax regime. - Family Pension: Deduction for pensioners increased to ₹25,000. - Income Tax Savings: Salaried employees to save ₹17,500 annually in income tax. E-commerce and TDS - TDS on E-commerce: Reduced to 0.1% from 1%. 📌 Revised Tax Rate Structure ₹0 - 3L: 0% ₹3L - 7L: 5% ₹7L - 10L: 10% ₹10L - 12L: 15% ₹12L - 15L: 20% Over ₹15L: 30% Credit : The Valuation School

Is your business up to speed with the changes to the R&D tax relief schemes? For accounting periods beginning on or after 1st April 2024 the RDEC and SME schemes have been merged and a separate scheme for loss-making R&D Intensive SMEs has been introduced. The latter, known as the ERIS (Enhanced R&D Intensive Support) Scheme offers an enhanced rate for businesses who meet qualifying criteria. Whether your accounting period starts in April or later, you need to be aware of the latest applicable rules to ensure your claims remain compliant. If you need help or advice when transitioning to the new schemes, you can contact us for a free, no-obligation consultation: https://buff.ly/3G39ovf #rdtaxcredits #MergedScheme #ERISScheme

Today, the ATO released a report on their observations from reviews conducted under their Top 1,000 combined assurance program, focusing on large public, multinational groups, and APRA regulated superannuation funds. The report reveals that 24% of taxpayers achieved high assurance overall, but only 20% received high assurance on transfer pricing matters (excluding financing), which further dropped to 18% for related party financing arrangements. The ATO’s most recent findings reinforces the complexity of transfer pricing and taxpayers being able to effectively demonstrate to the ATO dealings with their related parties are on arm’s length terms. Some common transfer pricing issues identified by the ATO include: - Taxpayers unable to produce contemporaneous or adequate transfer pricing documentation to support the arm’s length nature of their transactions and resulting profit outcomes - Concerns with demonstrating genuine economic benefits have been received by the taxpayer in relation to licensed assets where payments are made to international related parties - Concerns on taxpayer’s profit outcomes from arrangements involving inbound and outbound supply of goods and services with related parties - Financing arrangements that are structured to avoid interest withholding tax Being prepared is key to a successful ATO defence. If no documentation is prepared then taxpayers open themselves up to the ATO forming their own transfer pricing positions, potentially leading to reviews escalating to an audit and a higher risk of transfer pricing adjustments. #transferpricing #taxcontroversy