The Pakistan-born opening batter got more votes than superstar Shaheen Afridi as he became the first UAE player to win the ICC award
- K. Subbarao, Dubai
A: There is a temporary blip in trading activities as a result of shortage of currency notes. However, consumers prefer to use electronic methods of payment and debit cards. The transactions made through e-wallets and debit cards have increased exponentially. Therefore, the shortage in currency notes has been made up by non-cash instruments.
The government has now given a substantial tax incentive to trade enterprises which have an annual turnover of Rs20 million or less. Such enterprises are not required to maintain books of account and have them audited if they adopt the mode of presumptive taxation for determining their taxable profits. Under section 44-AD of the Income-tax Act, eight per cent of the actual turnover is deemed to be the taxable profit and no expenditure is required to be proved for claiming a deduction. In order to promote the digital economy and encourage traders to accept non-cash instruments, the rate of presumed income is brought down to six per cent.
Therefore, if your son's annual turnover is Rs20 million, his presumed income will be Rs1.2 million. If he makes investments in instruments specified in section 80-C of the Act which allows deduction of Rs150,000, he will be liable to pay income-tax of just Rs144,200. On the other hand, a trader who undertakes only cash transactions would, in similar circumstances, be liable to pay tax of Rs267,800. Thus, tax of Rs123,600 would be saved by shifting to the digital mode of transacting business.
Q: There have been some reports in the Press that the market capitalisation of bitcoins has increased. I want to know what a bitcoin is.
- B.K. Shah, Doha
A: A bitcoin is a web- based crypto currency. Central banks and monetary authorities do not regulate it and, therefore, most governments are wary of it. A bitcoin is traded on the Bit Stamp Exchange which is based in Europe. Recently, the price of one bitcoin reached $875 and the total value of bitcoins in the world exceeds $14 billion. A bitcoin is traded mainly in China and the depreciation of the Chinese yuan is partially responsible for the increase in the price of bitcoins.
Q: My wife is a medical practitioner in India. I believe that the code of conduct for doctors has recently been amended. Can I have some details in respect of the same?
- R.S. Kumar, Abu Dhabi
A: The amendments in the code of conduct for medical practitioners prohibit receipt of any gift worth more than Rs1,000 from any pharmaceutical or healthcare company or from their sales or medical representatives. If this rule is violated, the name of the doctor would be removed from the Indian Medical Register or State Medical Register for a specified period.
A doctor cannot accept any hospitality, such as hotel accommodation, for self and family members under any pretext. Further, they are debarred from accepting any travel facility in or out of India from any pharmaceutical or healthcare company. This would cover attendance of conferences, seminars, workshops, etc., as a delegate.
A medical practitioner may participate or work in a research project funded by a pharmaceutical or healthcare company. However, this is subject to the fulfillment of certain conditions, one of them being that the doctor undertaking the research should have the freedom to publish the results of the research for the benefit of society.
The writer is a practising lawyer specialising in tax and exchange management laws of India. Views expressed are his own and do not reflect the newspaper's policies.
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