Income Tax
Short term capital Gain on shares Section 111A
Whether the gain on shares is short term or long term is decided by the holding period of the stock. The investment in stock is classified into two parts as per the income tax act Short term capital gains as per section 111A Short term capital gains ...
Special Tax benefits for Senior Citizens in Income Tax Act
The Indian Income Tax Act gives certain tax benefits to Senior Citizens and also tries to ensure that income tax e-filing is a hassle free process. The complete list of all the tax benefits available to senior citizens is compiled in this article. ...
Section 80TTA-Tax on interest on savings account
Interest Rate on Savings Account Earlier, the Interest Rates on Savings Account were fixed by the RBI and was 4% p.a. RBI controlled these Interest Rates, and all banks were required to pay the same interest rates irrespective of the amount of money ...
How Capital Gains Tax Rules Work for Different Investments in India
The primary goal for investing in any asset is to generate a profit by selling it after its value appreciates. But, these profits are not always tax-free. The Income Tax Act specifies the various capital assets that are taxable as well as the tax ...
Long-term Capital Gains on sale of Stock
Budget 2018 proposed to remove Section 10 (38) of the Income Tax Act, 1961. As per this section, the long-term capital gains (LTCG) arising on sale of equity shares or units of an equity-oriented mutual fund on which Securities Transaction Tax (STT) ...
What is Speculative Income & How is it taxed?
Income tax provision includes taxing any kind of income earned by taxpayers categorised under five major heads such as income from salary, income from house property, profits or gains of business/profession, income from capital gains, and income from ...
Why is Cess and Surcharge levied separately?
The Constitution of India grants the power to the Union to raise revenue by levying cess. Article 270 of the Constitution of India states that the Government can collect tax in the name of cess for generating revenue, but it shall be earmarked for a ...
What is Security Transaction Tax & When is it Levied?
It is quite common for taxpayers to resort to tax evading measures to save their tax outflow to the Government. It is necessary for the Government to keep a tab on such measures by having provisions in law or introduce new provisions / modify the ...
Taxation of Income Earned from Selling Shares
We all know that Income from salary, rental income and business income is taxable. But what about income from sale or purchase of shares? Many homemakers, retired people, spend their time gainfully buying and selling shares but are unsure of how ...
How to file Income Tax Return (ITR) after Death of Taxpayer?
If a person dies during the year and has earned some income during that year, it is necessary to file income tax returns even after his death. As per the Income Tax Act, income tax is to be paid, and an income tax return is to be filed for any person ...
Tax Deduction for Interest paid on Car Loan
The Interest paid on some types of Loans is allowed to be claimed as an Expense under the Income Tax Act. However, all types of interests are not allowed to be claimed as an expense. The most common reasons for which people take loans are when they ...
What is Secretarial Audit & When is it Applicable?
Secretarial Audit is a compliance audit. It is a part of total compliance management in an organization. It is an effective tool for corporate compliance management, which helps to detect noncompliance and to take corrective measures. Secretarial ...
Section 54, 54EC, 54F: Exemption from Long Term Capital Gains
When selling any Long Term Capital Asset, the Gains are usually huge and are taxed @ 20%. The Resultant Figure to be paid as Tax usually comes out to be a huge amount liable to be paid as Long Term Capital Gain Tax. However, the Govt. of India has ...
Section 54 of Income Tax Act – Capital Gains Exemption
"Invest in property now, keep it for a few years and then sell it off for a higher price". This has been the mantra for individuals who look for secured, less risky and less volatile investments. However, while designing their strategies, the most ...
Section 80EEA Deduction for interest on home loan
Under the objective “Housing for all”, the government has now extended the interest deduction allowed for low-cost housing loans taken during the period between 1 April 2019 and 31 March 2020. Accordingly, a new Section 80EEA has been inserted to ...
Deemed Incomes Under The Income Tax Act
This article discussed deemed income under sections 68, 69, 69A, 69B, 69C and 69D. This includes Tax Treatment of Cash Credit, Unexplained investments, Unexplained money, Amount of investments not fully disclosed in books of account, Unexplained ...
Section 80EE Income Tax Deduction for Interest on Home Loan
Section 80EE allows income tax benefits on the interest portion of the residential house property loan availed from any financial institution. You can claim a deduction of up to Rs 50,000 per financial year as per this section. You can continue to ...
Income from House Property and Taxes
Budget 2021 update :It has been proposed to exempt the senior citizens from filing income tax returns if pension income and interest income are their only annual income source. Section 194P has been newly inserted to enforce the banks to deduct tax ...
Form 67 – Claim of Foreign Tax Credit
What is Foreign Tax Credit (FTC)? Assume a scenario where a taxpayer is a tax resident of Country A (Residence State) and he is in receipt of income from Country B (Source State). The Source State withholds a portion of taxes on the income received ...
Deadlines for Filing Returns for Previous Years
The due date to file the income tax return for the financial year 2020-21 ended on 31st December 2021. In case if an individual was required to file the return and failed to do so, then there are few options to file the return. This article covers ...
Section 44AD – Presumptive Scheme to be opted for atleast 5 years
The government has introduced the presumptive taxation scheme under section 44AD to give relief to the small taxpayers. Taxpayers engaged in any business other than plying, hiring and leasing referred in section 44AE of the Act. Budget 2021 update: ...
Form 16 : TDS Certificate Form for TDS Credit
Form 16: Meaning Form 16 is an income tax form used by firms to give their employees information on the tax deducted. Form 16 is considered as the proof filing of income tax returns by your employer to the government. For example, if your income is ...
Section 44ADA: Presumptive Tax Scheme for Professionals
A scheme for presumptive taxation was introduced under section 44ADA from the FY 2016-17. Section 44ADA provides a simple method of taxation for small professionals. Section 44ADA offers a presumptive taxation scheme of profits and gains arising from ...
Business Tax Filing Process & Due Dates
All businesses operating in India are required to file an income tax returns each year. In addition to filing an income tax returns, a business may also be required to file a TDS return and pay advance tax to stay compliant under the Income Tax Act. ...
How does an Alternative Minimum Tax works?
The Government has introduced various profit linked deductions and incentives to encourage investment in various industries. Taxpayers eligible to claim such deductions/incentives would become zero tax companies or may end up paying marginal tax ...
Revised Income Tax Return Filing Process & Deadline
We often end up making small mistakes while filing an income tax return (ITR). The tax department has a provision that allows taxpayers to rectify any errors made while filing ITR. Section 139(5) of the Income-Tax Act, 1961 allows taxpayers to ...
Income Tax Filing for Non Residential Indians (NRI)
We all know that taxes collected from citizens is the foundation of the Indian Economy. NRI Taxation under the Indian Income Tax Act, 1961, applies to those earning outside the home country. The income tax rules and perks allowed to them are ...
Filing of Rectification under Section 154(1)
Once you file an income tax return, the Income Tax Department processes the return and sends an intimation. The intimation contains details of the return submitted by you and the numbers that the department has. If you have misrepresented certain ...
Minimum Alternative Tax u/s 115JB: Applicability and Calculation
MAT stands for Minimum Alternate Tax, and it was launched to reduce (if not to bridge) the gap between the tax accountability as per income calculation and book profits. In this article, let us explore how tax planning under MAT works. Purpose of MAT ...
How does a Free Trade Agreement Works
Overview A free trade agreement is a pact between two or more nations to reduce barriers to imports and exports among them. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government ...
How to File Form 15CA-15CB on Income Tax Site?
Brief Introduction with Their Importance As per Section 195 of the Income Tax Act 1961, every person liable for making a payment to non-residents shall deduct TDS from the payments made or credits given to non-residents at the rates in force. The ...
Income Tax benefits available for education
Education has the potential to improve the quality of life of individuals in geometric progression velocity. The government also provides certain reliefs to the taxpayers in this respect. Let us discuss the benefits available under the income tax ...
Income Tax Surcharge Rate & Marginal Relief
Do you come under one of the higher income tax brackets i.e. 30%? – If yes, you are liable to pay an additional surcharge on your Income Tax liability. To simplify, a surcharge on income tax is an extra tax to be paid by the taxpayers earning a ...
Why ELSS is the Best Tax Saving Option?
Investing in ELSS funds is an efficient way to save taxes compared to the other investment instruments available under Section 80C of the Income Tax Act, 1961. ELSS comes with the advantage of a shorter lock-in period and professional fund ...
Olympic medallists earned fame & deserves tax free prize money
Neeraj Chopra created history by becoming the first-ever Indian to win a gold medal in athletics in the history of the Olympics, and it is raining praises and prizes for him. Other winners of silver and bronze have also been bestowed with a pat on ...
Eligibility to Claim Tax Deductions under Section 80GG
Section 80GG is a special provision under Chapter VI-A of the Income Tax Act, 1961, which provides tax reprieve to those who do not avail of house rent allowance. To become eligible for tax deduction under this section, an individual must be residing ...
Who should file Schedule AL in ITR
The government has been introducing various changes to the income tax return (ITR) amendments for reporting of assets and liabilities by taxpayers. Generally, a taxpayer carrying on business or profession is required to file details of assets and ...
What is Advance Tax & How is it Calculated?
Calculation of advance tax liability We will explain the calculation by way of an example. Aashu is a freelancer earning income from the profession of interior decoration. For the FY 2019-20, Aashu estimates his annual gross receipts at Rs ...
All about Income Escaping Assessment
Income escaping assessment refers to income which has been omitted from the income tax assessment of a particular taxpayer. The proceedings which govern a case of income escaping assessment can be initiated by the income tax department if certain ...
Saving of Capital Gain Tax on Sale of Land
The land is a Capital Asset, and as an appreciated asset, a landowner can make substantial capital gains on its sale. However, agricultural land in a rural area in India is not considered a Capital Asset. So, no capital gains are applicable on its ...
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