My Blog List

Wednesday, February 22, 2023

Digital Signature


Digital Signature

Introduction of Digital Signature

A digital signature is exactly what it sounds like a modern alternative to signing documents with paper and pen.

It uses an advanced mathematical technique to check the authenticity and integrity of digital messages and documents. It guarantees that the contents of a message are not altered in transit and helps us overcome the problem of impersonation and tampering in digital communications.

Digital signatures can provide evidence of origin, identity and status of electronic documents, transactions or digital messages. Signers can also use them to acknowledge informed consent.

What is a digital identity?

Similar to a passport in electronic form, a digital identity (or digital ID) provides strong evidence that you are who you say you are when e-signing a document. Each digital ID is backed by a digital certificate issued by a trusted third party, such as a bank or government, after thoroughly verifying your identity. Using a digital ID to authenticate your identity and apply a digital signature during the document signing process provides a higher level of assurance that you agreed to the terms listed and have authorized your signature on a specific document.

The role of digital signatures

In many regions, including parts of North America, the European Union, and APAC, digital signatures are considered legally binding and hold the same value as traditional document signatures.

In addition to digital document signing, they are also used for financial transactions, email service providers, and software distribution, areas where the authenticity and integrity of digital communications are crucial.

Industry-standard technology called public key infrastructure ensures a digital signature's data authenticity and integrity.

Categories of digital signatures

Digital signature certificates (DSCs) can be classified into three groups:

READ MORE...

Monday, February 6, 2023

Will Indians Earning Rs 7 lakh Per year have to Pay tax or not


Will Indians Earning Rs 7 lakh Peryear have to Pay tax or not

Let’s clear out the biggest Confusion of Budget 2023-24

FM Nirmala Sitharaman announced that the rebate limit Has been increased from Rs. 5 lakh To Rs 7 lakh under the new tax Regime, which means an annual Income of up to Rs. 7 lakh will be Exempt from taxes.

However, the new tax regime also says that annual income of Rs. 6 – 9 lakh will be taxed at a rate of 10%.

0 to 3 lakh                                          Nill

3 lakh – 6 lakh                                    5%

6 lakh – 9 lakh                                  10%

9 lakh – 12 lakh                                15%

12 lakh – 15 lakh                              20%

15 lakh – above                               30%

Maximum tax, along

With surcharge                                39%

What’s The Confusion? Let’s Figure Our.

Understand with this example:

Suppose Mr. X earns Rs 7 lakh per Annum, then his income would Be taxed as follows:

·        First Rs 3 lakh: Nil tax as per

          0 – 3 lakh slab

·        Next Rs 3 lakh: taxed at 5% as per

        0 – 6 lakh slab

·        Last Rs 1 lakh: taxed at 10% as per

        6 – 9 lakh slab

Therefore, total tax liability will be:

5% of Rs  3 lakh: Rs. 15000

10% of Rs 1 lakh: Rs. 10000

Total tax liability: Rs. 25 lakh

READ MORE...

Friday, February 3, 2023

BUDGET HIGHLIGHTS 2023


BUDGET HIGHLIGHTS 2023

Union Finance Minister Nirmala Sitharaman on Wednesday presented the Union Budget 2023, the fifth budget of Modi 2.0. In the last full-fledged Budget before the general elections next year, Nirmala Sitharaman said that the Indian economy is on the right path and heading towards a bright future. In a big boost for taxpayers and economy, Sitharaman announced major changes in tax slabs under the new tax regime and big hike in allocation for railways and capital expenditure.

Here follows a sector-wise detailed reading of the various measures Finance Minister Sitharaman announced in Budget 2023:

1.      Income Tax payers:

2.      No changes in the old tax regime

3.      New tax regime to become the default tax regime. However, citizens can opt for the old tax regime.

4.      No tax on income up to Rs 7.5 lakh a year in new tax regime (with inclusion of standard deduction)

5.      Govt proposes to reduce highest surcharge rate from 37% to 25% in new tax regime

New Income Tax Slabs Under New Tax Regimes:

Rs 0-3 lakh:

Nil

Rs 3-6 lakhs:

5%

Rs 6-9 lakhs:

10%

Rs 9-12 lakhs:

15%

Rs 12-15 lakhs:

20%

Rs Over 15 lakhs:

30%

1.      An individual with annual income of Rs 9 lakh will have to pay only Rs 45,000 in taxes: FM Sitharaman

2.      Income of Rs 15 lakh will fetch Rs 1.5 lakh tax, down from Rs 1.87 lakh

3.      A Rs 50,000 standard deduction to taxpayers has been introduced under the new regime

4.      Payment received from Agniveer Corpus Fund by Agniveers to be exempted

5.      Tax exemption removed in insurance policies with premium over Rs 5 lakh

6.      For online games, govt proposes to provide for TDS and taxability on net winnings at the time of withdrawal or at the end of fiscal

7.      Tax exemption on leave encashment on retirement of non-government salaried employees hiked to Rs 25 lakh from Rs 3 lakh.

8.      A higher limit of Rs 3 crore for TDS on cash withdrawal to be provided to co-operative societies.

9.      Next-generation Common IT Return Form to be rolled out for tax payer convenience

10.  Grievance redressal mechanism to be strengthen.

11.  TDS rate to be reduced from 30 per cent to 20 per cent on taxable portion of EPF withdrawal in non-PAN cases.

What gets cheaper and what's get costlier:

Costlier:

Cigarettes

Silver

Compounded rubber

Imitation Jewellery

Articles made from gold bars

Imported bicycles and toys

Imported kitchen electric chimney

Imported luxury cars and EVs

Cheaper

Mobile phones

TV

Lab-grown diamonds

Shrimp feed

Machinery for lithium ion batteries

Raw materials for EV industry

Read More...