Income Tax
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 ...
Tax Saving for Salaried Individuals
SECTION I – Understanding Your Payslip Basic Salary This is a fixed component in your paycheck and forms the basis of other portions of your salary, hence the name. For instance, HRA is defined as a percentage (as per the company’s discretion) of ...
Tricks F&O trader should know about return filing
Lately, derivative trading (trading in future and options or F&O on stocks, currencies, and commodities) has become a hot topic amongst investors. Unfortunately, though, most people have little knowledge about how these trades are taxed. Besides, ...
Tax Exemptions Available For Startups In India
According to Section 2(40) of the Companies act, 2013, startup means (i) A private company registered under companies act, 2013 or any previous act (ii) Recognized as startup in accordance with Department of Industrial Policy and promotions (DIPP). ...
Restrictions on cash transactions under Income Tax laws
The income tax laws in India have various restrictions on payment in cash and receipt of money in cash in respect of various transactions. Some restrictions apply to those who are engaged in business or profession and some apply to all the persons. ...
Income Tax on Gifts to Relative & Friends
In this article, we look at income tax applicable on gift in detail. Currently, Section 56(2)(X) is covered the chargeability of taxes on gifts, any amount received by a person or HUF over Rs.50,000/- in a year from any unrelated person, in cash or ...
Guide to Claim Income Tax Refund Online
When it comes to an income tax refund, people in India are unaware of what it is and how to claim an income tax refund online. As a matter of fact, when you successfully file your income tax return (ITR), the tax department assesses your file, and ...
How does Royalty Works & Tax Implications
Understanding Royalties Royalties are payments to owners of property for use of that property. Royalties often deal with payments for the right to use intellectual property (IP), such as copyrights, patents, and trademarks. The payment ...
Relief u/s 89(1) of the Income Tax Act
What is Section 89(1) It is a relief provided by the income tax department in relation to the amount received in advance or in arrears in the form of salary, which is related to any other financial year. Basically, when any person receives a salary ...
Form 10-IE - Opt for the New Tax Regime
The Finance Minister, Nirmala Sitharaman had presented the Budget 2020 on February 1, 2020. The introduction of the new tax regime took place in the previous budget, and this regime is available only to individuals and HUF where they need to opt by ...
Comparison of New Income Tax Regime vs Old Income Tax Regime
With the initiation of a new Income Tax Regime comes the confusion of which one is suitable for you. You, as the taxpayer, may find it challenging to identify which one of the two regimes is better and relevant to your income. Here another question ...
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