Written on Oct, 15, 2019 by in

What is Advance Tax? Every person is required to pay income tax on their income during the current financial year which they expect. It means that every tax payer should calculate his expected income and income tax payable during the current financial year and deposit the same during the current financial year itself. This is called Advance Tax. For example …

Written on Oct, 06, 2019 by in

WHAT IS NATIONAL PENSION SCHEME? National Pension Scheme is wonderful saving scheme sponsored by the Government . Under this scheme a social security is provided to the employees of public sector, private sector and other organized sectors except the armed forces. This scheme is governed and administered by Pension Fund Regulatory and Development Authority (PFRDA).  Under this scheme the people …

Written on Sep, 28, 2019 by in

Section 80TTB was introduced with effect from financial year 2018-19. Section 88TTB relates to deduction against interest amount received or receivable by Senior Citizens. Senior citizen means the person who is 60 years old or more at any time during the current financial year. For example Mr. X completes 60 years on 05.09.18, he will be call Senior Citizen for …

Written on Sep, 28, 2019 by in

Section 88TTA was first introduced in Financial Year 2012-13 (A.Y. 2013-14). 80TTA  allows the deduction against the interest from Saving Accounts income under Chapter VI-A, to the following persons:- Individuals:–  Resident or Non-resident,  Senior Citizens or other individuals below 60 years. Hindu Undivided Family (HUF) Note:- Interest received by Partnership Firm, Companies, Association of Persons, Body of Individuals and public …

Written on Sep, 27, 2019 by in

Rebate of Income Tax Under Section 87A for Financial Year 2017-18 (Assessment Year 2018-19) There are following conditions to avail this rebate:- The income tax payer should be resident individual. The individual may be male or female. The rebate is allowed to senior citizens also. This rebate is not given to Hindu Undivided Family (HUF), Partnership Firm and Companies. His/her …

Written on Sep, 24, 2019 by in

In simple words, depreciation means the quantum of reduction in value of any fixed assets in business organizations. For example, you purchase a computer in financial year 2017-18 for Rs.50000/=. But if see the value of this computer in financial year 2018-19, you will find decrease in the value of computer. This difference in value of computer in financial 2017-18 …

Written on Jul, 20, 2019 by in

WHAT IS GRANDFATERING In budget of financial year 2018-19, there was a proposal to grandfather investment made on or before 31.01.18. Since the law was made in respect of taxation of long term capital gain from equity shares and equity oriented mutual funds, the investors who invested their money before making a new law, were given the right to avail …

Written on Jul, 12, 2019 by in

  INCOME TAX RATES (SLABS) FOR FINANCIAL YEAR 2019-20 (ASSESSMENT YEAR 20-21) For Male Individuals below 60 years (Resident of India) INCOME UP TO 250000 0 250001 TO 300000 5% 300001 TO 500000 5% 500001 to 1000000 20%  EXCEEDING 1000000   30%   Add: Health Education Cess @ 4% on Income Tax payable and Surcharge. Surcharge:- 10% on income above …

Written on Feb, 02, 2019 by in

Standard deduction for salaried persons increased from Rs.40000/= Rs.50000/= 100% rebate on tax is allowed to resident individual tax payers having taxable income up to Rs.5 lakh. It means that the the resident individuals are not supposed pay any tax if their income is up to Rs.5 lakh after allowing all the permissible deductions under income tax act. In other …

Written on May, 16, 2018 by in

BENEFITS OF THE GOODS AND SERVICES TAX (GST) 17 types of  indirect taxes have been merged in to one tax i.e Goods And Service Tax. Online Registration of dealer is done maximum within 3 days  under GST. One nation one tax i.e. single rate is charged on same item in whole country. Previously there were different rates of tax in …