Cheque related issues

 The Negotiable Instrument Act was promulgated in the year 1881 which was introduced to ease the growth of banking and commercial transactions. The basic purpose was to legalize the system of negotiable instruments. The Act was enforced during British rule and to date, most of the provisions still remain unchanged. The Ministry of Finance is the nodal organization that regulates the system related to negotiable instruments. The process of transfers from one person to another in dealings of monetary value in terms of legal documents is the negotiable instrument. The legal definition of negotiable is that something can be transferable from one party to another party by delivery so that the title shall pass with or without the endorsement to the transferee. 

 As the prosperity and growth of a country are dependent on its financial growth, therefore it is not wrong to say that the Banks are the growth engine of a Country. In the past decade, as the technology has grown it’s sphere in almost all the fields, the Banking Sector is also not untouched with it. The use of E-Banking in India, especially among the Corporate Houses is on its peak these days, the reason is it provides a user-friendly, instant platform to the customer to execute and perform their financial transactions very easily. It is pertinent to mention here that in E-Banking, the “E” stands for Electronic, therefore it is an accepted and acknowledged fact that the E-Banking will be banking via using electronic gadgets like Computer, Laptops and Mobiles. Now in today’s Cyber Era the advantages that the E-Banking offers to both customer and Banks are as follows:

1. It widely removes all the traditional geographical barriers for reaching Bank to its customers, as E-Banking can be accessed from any part of the World very easily via the Internet. Therefore all C2B and B2C transactions can be very easily initiated and executed in this regard via E-Banking.
2. It is also cost-effective to banks to provide user-friendly and instant platforms to it’s customers, and by virtue of this cut-throat competition, the quality of services among all the Banks has been tremendously increased. As it has created a healthy-competitive atmosphere among the Banks for providing maximum customer satisfaction to the customers.
3. It even offers Bank Transactions at all times on holiday hours and also during this disastrous situation like Covid-19.

 The Income Tax Act of 1961 is a comprehensive statute that sets the rules and regulations that govern taxation in India. The Income Tax Act contains a total of 23 chapters and 298 sections according to the official website of the Income Tax Department of India.

Income Tax Act has few broad provisions which you may need to use in your regular filing of income tax. You have three stages of filing returns as an individual taxpayer:

• Estimate Taxable Incomes under different sources (heads of income)
• Estimate total income by deducting eligible deductions from gross total income or total taxable income
• Pay the tax on total income

The budget of 2020 has added an option for tax estimation for individual taxpayers. While the old slab rates for income tax remain the same, you now have another slab option under section 115BAC. Let’s go step by step with the estimate of tax liability and slab rate regime:

Estimating Taxable Income

Income Tax Act, 1961 divides the incomes under following five heads for taxation:

• Salary
• Income from house property
• Capital gains
• Profit and gains from business or profession
• Income from other sources.

Other sources will include all incomes which do not fall in any of the other four categories. Most prominent other incomes would be – interest on bank deposits, bond coupons, and gifts. Any money you receive from a life insurance company as taxable maturity benefit or claim amount is also added to other incomes.

The retirement benefits, however, you should count under salary when taxable. Income from house property will only include rental incomes. If you sell the house the gain or loss are treated as a capital gain.

After 2020 budget you have two options to estimate your taxes, old regime and the new regime. The old regime continues to allow the deductible allowances and deductions on savings. However, the new regime focuses on reducing the tax for those not participating in these schemes.