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Taxchopal Latest Questions

CA Vishnu Ram
Enlightened
Asked: In:

  1. Ramesh Sharma Enlightened

    Yes you can claim the exemption of HRA as per section 10(13A) as it has no bearing on your home loan interest deduction. The deduction of Interest on the home loans can be taken under section 24b. so, Both can be claimed. In fact, the interest paid on the home loan can be considered as the cost of tRead more

    Yes

    you can claim the exemption of HRA as per section 10(13A) as it has no bearing on your home loan interest deduction. The deduction of Interest on the home loans can be taken under section 24b.

    so, Both can be claimed.

    In fact, the interest paid on the home loan can be considered as the cost of the acquisition of property at the time of selling the property and calculating capital gain.

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    • 1
CA Vishnu Ram
Enlightened
Asked: In:

  1. CA Manish Kumar Gupta Enlightened

    Hi, The answer is a big No. If you are paying rent but not receiving house rent allowance then you are allowed to claim deduction under section 80GG subject to your spouse or children are not owning a house property in the place of employment. And, in case you are paying rent and receiving HRA, thenRead more

    Hi,

    The answer is a big No.

    If you are paying rent but not receiving house rent allowance then you are allowed to claim deduction under section 80GG subject to your spouse or children are not owning a house property in the place of employment.

    And, in case you are paying rent and receiving HRA, then you can claim a deduction of such HRA as per section 10(13A).

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    • 3
CA Sanjiv Kumar
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    National Pension Scheme is a good option for saving as well as tax benefit sources. A tax exemption of Rs.1.5 lakh can be claimed on the employee’s and employer’s contribution towards the National Pension System (NPS). However, employees can get an additional tax benefit of Rs 50000 for self contribRead more

    National Pension Scheme is a good option for saving as well as tax benefit sources. A tax exemption of Rs.1.5 lakh can be claimed on the employee’s and employer’s contribution towards the National Pension System (NPS). However, employees can get an additional tax benefit of Rs 50000 for self contribution in NPS. Tax benefits can be claimed under Section 80CCD(1), 80CCD(2), and 80CCD(1B) of the Income Tax Act. Following is a brief description of all these sections:

    • 80CCD(1), This section is a part of Sec 80C. It covers self-contribution in NPS made by the employee. Salaried employees can claim a maximum deduction of 10% of their salary, while self-employed individuals can claim up to 20% of their gross income.
    • 80CCD(2), is also a part of Section 80C. It includes the employer’s contribution towards NPS. This benefit cannot be claimed by self-employed individuals. The maximum amount that an individual is eligible for deduction is either the employer’s NPS contribution or 10% of basic salary plus Dearness Allowance (DA) whichever is higher.
    • 80CCD(1B), under this section, individuals can claim an additional tax benefit up to Rs.50,000 for any other self-contributions as NPS tax benefit.

    Therefore, individuals can claim up to Rs.2 lakh as tax benefits under NPS.

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    • 1
CA Vishnu Ram
Enlightened
Asked: In:

  1. Ramesh Sharma Enlightened

    In case of receipt of past salary, salary in advance or receipt of family pension in arrears, tax relief under section 89(1) is allowed. Here’s how you can calculate the tax relief as per below steps – Step 1: First calculate the tax payable on the total income, including additional salary – in theRead more

    In case of receipt of past salary, salary in advance or receipt of family pension in arrears, tax relief under section 89(1) is allowed.

    Here’s how you can calculate the tax relief as per below steps –

    Step 1:
    First calculate the tax payable on the total income, including additional salary – in the year it is received.

    Step 2:
    Now calculate tax payable on the total income, excluding additional salary in the year it is received.  You need to subtract the arrear received from the employer from the total salary received

    Step 3:
    Calculate the difference between Step 1 and Step 2.
    This will give you the additional tax liability arrived due to arrears of income.

    Step 4:
    Now calculate the tax payable on the total income of that year to which the arrears relate, excluding arrears.

    Step 5:
    Calculate tax payable on the total income of that year to which the arrears relate, including arrears

    Step 6:
    Calculate the difference between Step 4 and Step 5.
    This will calculate the actual tax liability in any past year pertaining to which arrears have been received in the current year, had the full arrears received in the same past year.

    Step 7:
    Excess of the amount at Step 3 over Step 6 is the tax relief that shall be allowed. ( Step 3 minus Step 6). If the amount in Step 6 is more than the amount in Step 3, no relief shall be allowed.

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    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    This Form 16 is a certificate, wherein the employer certifies details of the salary earned by the employee during the year and how much TDS has been deducted on that employee. It has two parts – Part A and Part B. Part A has information of the employer & employee, like name & address, PAN anRead more

    This Form 16 is a certificate, wherein the employer certifies details of the salary earned by the employee during the year and how much TDS has been deducted on that employee. It has two parts – Part A and Part B.

    • Part A has information of the employer & employee, like name & address, PAN and TAN details, the period of employment, details of TDS deducted & deposited with the government.
    • Part B includes details of salary paid, Prerequisites, other incomes, deductions allowed, tax payable, etc.

    In simple words, it is an acknowledgment which states that how much TDS was deducted from your salary and When it was deposited with the Income Tax department. Generally, It is issued by 15th June of the year for which it is being issued but, the due date stands extended to 15 August 2020.

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    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Sanjiv Kumar Enlightened Chartered Accountant

    Form 16A is also a TDS Certificate. Form 16A is applicable for TDS on Income Other than Salary while Form 16 is for only salary income. For example, a Form 16A shall be issued to you when the bank deducts TDS on interest credited on fixed deposits or for TDS deducted on insurance commission, or forRead more

    Form 16A is also a TDS Certificate. Form 16A is applicable for TDS on Income Other than Salary while Form 16 is for only salary income.

    For example, a Form 16A shall be issued to you when the bank deducts TDS on interest credited on fixed deposits or for TDS deducted on insurance commission, or for TDS deducted on your rent receipts.

    It means when TDS is deducted on any other income than salary then form 16A is issued.

    Likewise, form 16, form 16A also has details of the name and address of deductor/deductee, PAN/TAN details, challan details of TDS deposited. It also has details of income you have earned and the TDS deducted and deposited on such income.

    All details that are there in Form 16A are available on Form 26AS. This can be used to file your return. However, the same is not in the case of Form 16. Details of Form 16 that are available in Form 26AS are only TDS deducted by the employer.

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    • 0
Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    Financial Year is the year in which the income is earned or say the year of which income-related. Assessment Year is the year following the financial year in which you have to evaluate the previous year’s income and pay taxes on it. For example, if the financial year is from 1 April 2020 to 31 MarchRead more

    Financial Year is the year in which the income is earned or say the year of which income-related.

    Assessment Year is the year following the financial year in which you have to evaluate the previous year’s income and pay taxes on it.

    For example, if the financial year is from 1 April 2020 to 31 March 2021, then it is known as FY 2020-21. The assessment year for this period would begin after the financial year ends – that is from 1 April 2021 to 31 March 2022. Hence, the assessment year would be AY 2022-22.

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    • 0
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