Hi, The purpose of section 44Ad is to give relief to small assessee from compliance of maintaining books of accounts and annual Audit. This section is not related to the filing of ITR. It just gives a method of calculation of the taxable income of a business. So in this case, if the taxable income oRead more
Hi,
The purpose of section 44Ad is to give relief to small assessee from compliance of maintaining books of accounts and annual Audit.
This section is not related to the filing of ITR. It just gives a method of calculation of the taxable income of a business.
So in this case, if the taxable income of a business is less than the maximum amount which is not chargeable to tax then filing of return is not mandatory.
Hi, In short "Yes" Real Estate is on the boom and involved huge costs. Attractive marketing schemes make it more lucrative. Generally, People buy a house with the help of a bank loan and pays interest on that home loan. Repayment of Principal is allowed as deduction under section 80C and Portion ofRead more
Hi,
In short “Yes”
Real Estate is on the boom and involved huge costs. Attractive marketing schemes make it more lucrative. Generally, People buy a house with the help of a bank loan and pays interest on that home loan.
Repayment of Principal is allowed as deduction under section 80C and Portion of such Interest can be claimed as deduction under section 24(b) while calculating Income from the house property.
Now see the twist:
Interest paid on a housing loan can be considered in the acquisition cost of a house while calculating capital gain under section 48.
Section 48 of Income Tax says that
The income chargeable under the head “Capital gains” shall be computed, by deducting from the full value of the consideration received or accruing as a result of the transfer of the capital asset the following amounts, namely:—
(i) expenditure incurred wholly and exclusively in connection with such transfer;
(ii) the cost of acquisition of the asset and the cost of any improvement thereto:
The case of CIT vs. C. Ramabrahmam (2013) also supports this claim.
So, Interest paid on a house loan can be claimed at both the income head, House Property, and Capital Gain.
In simple words, any amount paid by an employer to his employees in lieu of services rendered by them is called salary. Although As per Sec 17(1) of Income Tax Act 1961, Salary Include following payments a) Wages b) Annuity or pension c) Any Gratuity d) Any fees, commission, perquisite, or profits iRead more
In simple words, any amount paid by an employer to his employees in lieu of services rendered by them is called salary. Although As per Sec 17(1) of Income Tax Act 1961, Salary Include following payments
a) Wages
b) Annuity or pension
c) Any Gratuity
d) Any fees, commission, perquisite, or profits in lieu of or in addition to any salary or wages
e) Any Advance of Salary
f) Leave Encashment
g) Employers contribution to the provident fund in excess of 12% of Salary
h) The contribution by the central government or any other employer in the previous year to the account of an employee under a pension scheme u/s 80CCD
Income Tax exemption limit for the below three categories of the individual taxpayer for the Assessment Year 2021-22 is as follows: Taxpayer Income Exemption Limit in old regime Indian Resident below 60 years of age, Huf and NRI Up to Rs 2.5 Lakh Indian Resident 60 years but less than 80 years URead more
Income Tax exemption limit for the below three categories of the individual taxpayer for the Assessment Year 2021-22 is as follows:
Taxpayer
Income Exemption Limit in old regime
Indian Resident below 60 years of age, Huf and NRI
Up to Rs 2.5 Lakh
Indian Resident 60 years but less than 80 years
Up to Rs 3 Lakh
Individual 80 years and above
Up to Rs 5 Lakh
Taxpayer
Income Exemption Limit in New regime
Indian Resident below 60 years of age, Huf and NRI
Hi, You mean the tax slab for the assessment year 2021-22 or say Income tax slab for the financial year 2020-21. Income Tax slab for Individual Below 60 years, HUF and NRI Income Old Regime New Regime Up to 2.5 Lakh NIL NIL 2.5 Lakh to 5 Lakh 5% 5% 5 Lakh to 7.5 Lakh 20% 10% 7.5 Lakh to 10 Lakh 20%Read more
Hi,
You mean the tax slab for the assessment year 2021-22 or say Income tax slab for the financial year 2020-21.
Income Tax slab for Individual Below 60 years, HUF and NRI
1.Every person whose aggregated income exceeds the basic exemption limit. While calculating the aggregated income, He can get various deductions available under chapter VIA, which comprises mainly Section 80C, 80 CCD, 80D, 80TTA, 80 TTB etc. Examples of these deductions are: life insurance premium/Read more
1.Every person whose aggregated income exceeds the basic exemption limit.
While calculating the aggregated income, He can get various deductions available under chapter VIA, which comprises mainly Section 80C, 80 CCD, 80D, 80TTA, 80 TTB etc.
Examples of these deductions are:
life insurance premium/Health insurance premium
Contribution towards EPF/ PPF and NPS accounts
Interest from banks
Tuition fee for children
Repayment of home loans etc.
2. Apart from that any private or public company based out of India or doing business in India, firms, Hindu Undivided Family (HUFs), Association of Persons (AOP), Body of Individual (BOI) etc. are also liable to file ITR.
An assessee is a person who is liable to pay any tax or any sum of the amount payable or has any obligation to pay tax as per Section 2(7) of the Income Tax Act,1961. It includes: In simple words, if you have any liability to pay income tax, then you are an assessee. Following are the types of the aRead more
An assessee is a person who is liable to pay any tax or any sum of the amount payable or has any obligation to pay tax as per Section 2(7) of the Income Tax Act,1961.
It includes:
In simple words, if you have any liability to pay income tax, then you are an assessee.
Following are the types of the assessee:
Normal Assess: An individual who pays tax for the total income earned during a financial year.
Representative Assess: A person who is responsible to pay tax for the total income/loss caused by a third party.
Deemed Assess: A representative of legal authorities. Like Accounts officer of Electricity office
Section 14 of the Income Tax Act classifies all incomes under the following heads: Income from Salary Income from House Property Income from Business & Profession Income from Capital Gain Income from Other Source
Section 14 of the Income Tax Act classifies all incomes under the following heads:
Perquisites are taxable in the hand of employees to the extent as defined in Sec. 17(2) of the Income Tax Act, 1956. Generally, the taxable value of perquisites in the hands of the employees is its cost to the employer. like if the employer has provided a servent to the employee then the cost of hirRead more
Perquisites are taxable in the hand of employees to the extent as defined in Sec. 17(2) of the Income Tax Act, 1956.
Generally, the taxable value of perquisites in the hands of the employees is its cost to the employer.
like if the employer has provided a servent to the employee then the cost of hiring this servent will be the value of perquisit.
Althoug specific rules have been laid down in Rule 3 of the I.T for valuation of certain perquisites.
“Perquisite” is the casual emolument or benefit provided to the employee in addition to salary or wages.“Perquisite” is defined in section 17(2) of the Income Tax Act as including: (i) House without Rent or at concessional rent. (ii) Interest-Free Loan (iii) Facility of sweeper, gardener, personal aRead more
“Perquisite” is the casual emolument or benefit provided to the employee in addition to salary or wages.“Perquisite” is defined in section 17(2) of the Income Tax Act as including:
(i) House without Rent or at concessional rent.
(ii) Interest-Free Loan
(iii) Facility of sweeper, gardener, personal attendant
(iv) Car or other Automative Conveyance
(v) Amount paid by the employer in respect of an obligation which was actually payable by the assessee.
(vi) Value of any benefit/amenity granted free or at concessional rate to specified employees etc.
(vii) The value of any specified security or sweat equity shares allotted or transferred, directly or indirectly, by the employer, or former employer, free of cost or at concessional rate to the assessee.
(viii) The amount of any contribution to an approved superannuation fund by the employer in respect of the assessee, to the extent it exceeds one lakh Fifty Thousand rupees; and
(ix) the value of any other fringe benefit or amenity as may be prescribed.
Is it mandatory to file an ITR if an individual is opting for presumptive taxation u/s 44AD and the profit is less than taxable limits eg say yearly turnover is 10 lakh only?
Hi, The purpose of section 44Ad is to give relief to small assessee from compliance of maintaining books of accounts and annual Audit. This section is not related to the filing of ITR. It just gives a method of calculation of the taxable income of a business. So in this case, if the taxable income oRead more
Hi,
The purpose of section 44Ad is to give relief to small assessee from compliance of maintaining books of accounts and annual Audit.
This section is not related to the filing of ITR. It just gives a method of calculation of the taxable income of a business.
So in this case, if the taxable income of a business is less than the maximum amount which is not chargeable to tax then filing of return is not mandatory.
See lessIs interest paid on home loan included in the cost of housing property while computing capital gains tax on its sale?
Hi, In short "Yes" Real Estate is on the boom and involved huge costs. Attractive marketing schemes make it more lucrative. Generally, People buy a house with the help of a bank loan and pays interest on that home loan. Repayment of Principal is allowed as deduction under section 80C and Portion ofRead more
Hi,
In short “Yes”
Real Estate is on the boom and involved huge costs. Attractive marketing schemes make it more lucrative. Generally, People buy a house with the help of a bank loan and pays interest on that home loan.
Repayment of Principal is allowed as deduction under section 80C and Portion of such Interest can be claimed as deduction under section 24(b) while calculating Income from the house property.
Now see the twist:
Interest paid on a housing loan can be considered in the acquisition cost of a house while calculating capital gain under section 48.
Section 48 of Income Tax says that
The income chargeable under the head “Capital gains” shall be computed, by deducting from the full value of the consideration received or accruing as a result of the transfer of the capital asset the following amounts, namely:—
(i) expenditure incurred wholly and exclusively in connection with such transfer;
(ii) the cost of acquisition of the asset and the cost of any improvement thereto:
The case of CIT vs. C. Ramabrahmam (2013) also supports this claim.
So, Interest paid on a house loan can be claimed at both the income head, House Property, and Capital Gain.
See lessWhat is the definition of Salary as per Income Tax Act?
In simple words, any amount paid by an employer to his employees in lieu of services rendered by them is called salary. Although As per Sec 17(1) of Income Tax Act 1961, Salary Include following payments a) Wages b) Annuity or pension c) Any Gratuity d) Any fees, commission, perquisite, or profits iRead more
In simple words, any amount paid by an employer to his employees in lieu of services rendered by them is called salary. Although As per Sec 17(1) of Income Tax Act 1961, Salary Include following payments
See lessa) Wages
b) Annuity or pension
c) Any Gratuity
d) Any fees, commission, perquisite, or profits in lieu of or in addition to any salary or wages
e) Any Advance of Salary
f) Leave Encashment
g) Employers contribution to the provident fund in excess of 12% of Salary
h) The contribution by the central government or any other employer in the previous year to the account of an employee under a pension scheme u/s 80CCD
How much income is not taxable as per Income Tax Act?
Income Tax exemption limit for the below three categories of the individual taxpayer for the Assessment Year 2021-22 is as follows: Taxpayer Income Exemption Limit in old regime Indian Resident below 60 years of age, Huf and NRI Up to Rs 2.5 Lakh Indian Resident 60 years but less than 80 years URead more
Income Tax exemption limit for the below three categories of the individual taxpayer for the Assessment Year 2021-22 is as follows:
See lessWhat is the Income tax slab as per Income Tax Act?
Hi, You mean the tax slab for the assessment year 2021-22 or say Income tax slab for the financial year 2020-21. Income Tax slab for Individual Below 60 years, HUF and NRI Income Old Regime New Regime Up to 2.5 Lakh NIL NIL 2.5 Lakh to 5 Lakh 5% 5% 5 Lakh to 7.5 Lakh 20% 10% 7.5 Lakh to 10 Lakh 20%Read more
Hi,
You mean the tax slab for the assessment year 2021-22 or say Income tax slab for the financial year 2020-21.
2. For Individual 60 years but less than 80 years
3. For Individual 80 years and above
See lessWho need to file ITR as per Income Tax Act?
1.Every person whose aggregated income exceeds the basic exemption limit. While calculating the aggregated income, He can get various deductions available under chapter VIA, which comprises mainly Section 80C, 80 CCD, 80D, 80TTA, 80 TTB etc. Examples of these deductions are: life insurance premium/Read more
1.Every person whose aggregated income exceeds the basic exemption limit.
While calculating the aggregated income, He can get various deductions available under chapter VIA, which comprises mainly Section 80C, 80 CCD, 80D, 80TTA, 80 TTB etc.
Examples of these deductions are:
2. Apart from that any private or public company based out of India or doing business in India, firms, Hindu Undivided Family (HUFs), Association of Persons (AOP), Body of Individual (BOI) etc. are also liable to file ITR.
See lessWho is assesse as per Income Tax Act?
An assessee is a person who is liable to pay any tax or any sum of the amount payable or has any obligation to pay tax as per Section 2(7) of the Income Tax Act,1961. It includes: In simple words, if you have any liability to pay income tax, then you are an assessee. Following are the types of the aRead more
An assessee is a person who is liable to pay any tax or any sum of the amount payable or has any obligation to pay tax as per Section 2(7) of the Income Tax Act,1961.
It includes:
In simple words, if you have any liability to pay income tax, then you are an assessee.
Following are the types of the assessee:
- Normal Assess: An individual who pays tax for the total income earned during a financial year.
- Representative Assess: A person who is responsible to pay tax for the total income/loss caused by a third party.
- Deemed Assess: A representative of legal authorities. Like Accounts officer of Electricity office
See lessWhat are the Incomes Head for reporting in IT act?
Section 14 of the Income Tax Act classifies all incomes under the following heads: Income from Salary Income from House Property Income from Business & Profession Income from Capital Gain Income from Other Source
Section 14 of the Income Tax Act classifies all incomes under the following heads:
- Income from Salary
- Income from House Property
- Income from Business & Profession
- Income from Capital Gain
- Income from Other Source
See lessHow prequisit are taxed?
Perquisites are taxable in the hand of employees to the extent as defined in Sec. 17(2) of the Income Tax Act, 1956. Generally, the taxable value of perquisites in the hands of the employees is its cost to the employer. like if the employer has provided a servent to the employee then the cost of hirRead more
Perquisites are taxable in the hand of employees to the extent as defined in Sec. 17(2) of the Income Tax Act, 1956.
Generally, the taxable value of perquisites in the hands of the employees is its cost to the employer.
like if the employer has provided a servent to the employee then the cost of hiring this servent will be the value of perquisit.
Althoug specific rules have been laid down in Rule 3 of the I.T for valuation of certain perquisites.
See lessWhat is the prequisit as per Income Tax Act?
“Perquisite” is the casual emolument or benefit provided to the employee in addition to salary or wages.“Perquisite” is defined in section 17(2) of the Income Tax Act as including: (i) House without Rent or at concessional rent. (ii) Interest-Free Loan (iii) Facility of sweeper, gardener, personal aRead more
“Perquisite” is the casual emolument or benefit provided to the employee in addition to salary or wages.“Perquisite” is defined in section 17(2) of the Income Tax Act as including:
(i) House without Rent or at concessional rent.
(ii) Interest-Free Loan
(iii) Facility of sweeper, gardener, personal attendant
(iv) Car or other Automative Conveyance
(v) Amount paid by the employer in respect of an obligation which was actually payable by the assessee.
(vi) Value of any benefit/amenity granted free or at concessional rate to specified employees etc.
(vii) The value of any specified security or sweat equity shares allotted or transferred, directly or indirectly, by the employer, or former employer, free of cost or at concessional rate to the assessee.
(viii) The amount of any contribution to an approved superannuation fund by the employer in respect of the assessee, to the extent it exceeds one lakh Fifty Thousand rupees; and
(ix) the value of any other fringe benefit or amenity as may be prescribed.
See less