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Vikas
Beginner
Asked: In:

  1. CA Manish Kumar Gupta Enlightened
    This answer was edited.
    Who 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:

    • 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.

     

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Ankit Agarwal
Beginner
Asked: In:

Who is assesse as per Income Tax Act?

  1. CA Manish Kumar Gupta Enlightened

    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:

    1. Normal Assess: An individual who pays tax for the total income earned during a financial year.
    2. Representative Assess: A person who is responsible to pay tax for the total income/loss caused by a third party.
    3. Deemed Assess: A representative of legal authorities. Like Accounts officer of Electricity office
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Vikas
Beginner
Asked: In:

What are the Incomes Head for reporting in IT act?

  1. ranjank Beginner

    There are five heads of income to compute the gross total income, namely: 1.Income from salaries 2. Income from house property 3.Profits and gains of business or profession 4.Income from capital gains 5. Income from other sources

    There are five heads of income to compute the gross total income, namely:

    1.Income from salaries

    2. Income from house property

    3.Profits and gains of business or profession

    4.Income from capital gains

    5. Income from other sources

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    • 3
Vikas
Beginner
Asked: In:

How prequisit are taxed?

  1. CA Manish Kumar Gupta Enlightened

    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.

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    • 4
V Mantri
Beginner
Asked: In:

What is the prequisit as per Income Tax Act?

  1. CA Manish Kumar Gupta Enlightened

    “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.

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    • 6
CA Manish Kumar Gupta
Enlightened
Asked: In:

  1. Swati Teacher

    Definition of “Person” as per section 2(31) of Income Tax Act,1961 “person" includes— (i) an individual, (ii) a Hindu undivided family, (iii) a company, (iv) a firm, (v) an association of persons or a body of individuals, whether incorporated or not, (vi) a local authority, and (vii) every artificiaRead more

    Definition of “Person” as per section 2(31) of Income Tax Act,1961 “person” includes—
    (i) an individual,
    (ii) a Hindu undivided family,
    (iii) a company,
    (iv) a firm,
    (v) an association of persons or a body of individuals, whether incorporated or not,
    (vi) a local authority, and
    (vii) every artificial juridical person, not falling within any of the preceding sub-clauses.
    The word “person” is a very broad term that in itself includes the following:
    1. Individual – It refers to a natural human being whether male or female, minor or major.
    Example – Mr. Manish Gupta
    2. Hindu Undivided Family- Under Hindu Law, an HUF is a family which consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters. An HUF cannot be created under a contract, it is created automatically in a Hindu Family. The manager of HUF is called “Karta” and its members are called ‘Coparceners’.
    Example – Mantri parivar with Mr. Vikas, his wife, his brother and his brother’s wife
    3. Company. Company means-
    (i) any Indian company registered under Indian Companies Act 1956
    (ii) any body corporate incorporated by or under the laws of a country outside India, or
    (iii) any institution, association or body which is or was assessable or was assessed as a company for any assessment year under the Indian Income-tax Act, 1922 (11 of 1922) or which is or was assessable or was assessed under this Act as a company for any assessment year commencing on or before the 1st day of April, 1970, or
    (iv) any institution, association or body, whether incorporated or not and whether Indian or non-Indian, which is declared by general or special order of the Board to be a company:
    Provided that such institution, association or body shall be deemed to be a company only for such assessment year or assessment years (whether commencing before the 1st day of April, 1971 or on or after that date) as may be specified in the declaration;
    Example – Tata Motors Ltd.
    4. Firm – Section 2(23)(i) of the Income-tax Act, 1961 takes the meaning of the “firm ” from Indian Partnership Act, 1932. Section 4 of the Indian Partnership Act, 1932 defines firm as under:
    “Persons who have entered into partnership with one another are called individually “partners” and collectively “a firm”, and the name under which their business is carried on is called the “firm name”.
    The firm shall include a limited liability partnership as defined in the Limited Liability Partnership Act, 2008. Section 2(1)(n) of the Limited Liability Partnership Act, 2008 defines “limited liability partnership” as a partnership formed and registered under the Act.

    Example – Mantri & Company. (CA firm)
    5. Association of Persons (AOP) or Body of Individuals (BOI)- AOP or BOI shall be deemed to be a person, whether or not, they were formed or established or incorporated with the object of deriving income, profits or gains.
    When persons combine together to carry on a joint enterprise and they do not constitute partnership under the ambit of law, they are assessable as an association of persons. There must be common purpose, and common action to achieve common purpose i.e. to earn income.
    An AOP can have firms, companies, associations and individuals as its members.
    A body of individuals (BOl) cannot have non-individuals as its members. Only natural human beings can be members of a body of individuals.
    Whether a particular group is AOP. or BOl. is a question of fact to be decided in each case separately.
    Example – Goregaon Sports Club (BOI)
    Example – Markfed (AOP)

    6. Local Authority. Municipality, Panchayat, Cantonment Board, Port Trust etc. are called local authorities.
    Example – A Village Panchyat.

    7. Artificial Juridical Person. A public corporation established under special Act of legislature and a body having juristic personality of its own are known to be Artificial Juridical Persons. Universities are an important example of this category.
    Example – Rajasthan University

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