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INCOME TAX

Section 80C – Investment cum Deduction

Chapter VI-A of section 80C clarify about complete information about deductions from Gross Total Income. It is important to note that if there is no Gross total Income than no deduction will be permitted. The chapter comprise deductions in respect of some payments, deductions in respect of some incomes, deductions in respect of other incomes and other deductions. Let’s discuss on Section 80C which include certain Investment which can be… Read More »Section 80C – Investment cum Deduction

What are the Similarities and Differences in Section 54 and 54F

The Government of India has provided certain exemptions on purchase or construction of house property which are inducted in the section of 54 & 54F of Income Tax Act 1961. As we know that both Section 54 & Section 54F deal in house property investment on sale of residential house or any asset other capital asset. There are few similarities and differences between these sections of income tax which are… Read More »What are the Similarities and Differences in Section 54 and 54F

Alternative Tax Regime for Individuals/HUFs u/s. 115BAC

As we are aware that income of Individuals/HUFs are taxable according to the progressive tax slabs. The maximum rate of tax payable is @30%, when income of Individual/HUF exceeds INR 10.00 Lacs in relevant previous year. The Central Government has inserted Section 115BAC w.e.f. AY 2021-22 to endow Optional Tax Regime to HUFs/individuals. Income Tax Rate under Alternative Tax Regime [As per Section115BAC]; Total Income      Rate of Tax Up to… Read More »Alternative Tax Regime for Individuals/HUFs u/s. 115BAC

Taxability Of Interest On Excess PF Contribution-New Threshold Limit & Manner Of Tax Computation

The Government has increased the deposit threshold limit to INR 5 lacs per annum in the provident fund for which interest would continue to be tax-exempt if there is no employer contribution. This announcement by the Finance minister Mrs. Nirmala Sitharaman was part of the amendments which was made to the Finance Bill, 2021 at the time of passing of the Bill on 23 March. Provident Funds Where Employer Do… Read More »Taxability Of Interest On Excess PF Contribution-New Threshold Limit & Manner Of Tax Computation

Why Revised Return Concept Under Income Tax Law

Under Income tax law the concept of Revised Return is dealt in section 139(5). Now the question is what is Revised Return and why there is concept called revised return exist? In the simple word, revised return can be termed as return which is filed for error correction or mistake correction i.e. correct return. While filing income tax return whether original return i.e. return filing for the first time for… Read More »Why Revised Return Concept Under Income Tax Law

Tax Incentive To Business / Service Sector/ Industry On Salary Of New Employees

Any service or business sector or manufacturing industry can claim additional deduction of 30% of salary paid to their additional employees, subject to fulfilment of few conditions. This deduction of 30% of the additional employee cost can be claimed for 3 years including the year in which such employment is provided. Aggregate amount of the additional tax incentive in 3 years would be 90% of salary paid to additional employees.… Read More »Tax Incentive To Business / Service Sector/ Industry On Salary Of New Employees

Section 194LBA | TDS on Certain Income from Units of a Business Trust

Who is responsible to deduct tax under section 194LBA? An individual who makes payment of income according to the section 115UA which is payable by a business trust to their unit holder is needed to deduct tax at source. This kind of unit holder can be a non-resident or resident (but not a company). When to Deduct TDS under Section 194LBA? The time of TDS deduction is earlier of, the… Read More »Section 194LBA | TDS on Certain Income from Units of a Business Trust

Capital Gain Exemption Under Section 54 of Income Tax Act, 1961

The Income Tax Act- section 54 endows exemption for ‘Long Term Capital Gain’ arising on sale of residential property. Let’s understand the basis of ‘Capital Assets’ & ‘Capital Gain’ The term ‘capital asset’ is defined under the Income Tax Act, 1961- section 2 (14) which includes any kind of property (movable or immovable property, tangible or intangible property etc.) held by an assessee. These kind of properties may be connected… Read More »Capital Gain Exemption Under Section 54 of Income Tax Act, 1961

Section 43B- Deductions Allowable On Payment

As a taxpayer, you might be claiming different expenses & exemptions to lesser your income tax liability, but do you know that there are some deductions that you cannot claim unless you have actually paid for them. Let’s discuss the income tax provisions laid out under Section 43B of the Income Tax Act. Section 43B prescribes that specific statutory expenses could be claimed only in the year of actual payment.… Read More »Section 43B- Deductions Allowable On Payment

ITR Filing Exemption To Senior Citizen Above Age Of 75

As we know that the union budget comes into effect recently, Union budget of 2021-22 highlights that senior citizen above the age of 75 now need not file their Income Tax Return. In the Union Budget 2021-22, senior citizens who are the age above 75 are exempted from filing income tax return of income subject to few conditions. The banks on the other side, is needed to deduct the requisite… Read More »ITR Filing Exemption To Senior Citizen Above Age Of 75