Written on May, 28, 2017 by in

Illustration: Mr. A who is 46 years old, has the following details for financial year 2017-18:- Income from business                                               Rs.3,50,000/= Deposited in PPF account                                         Rs.60000/= Calculate the amount of income tax payable by him. Solution: Income from business                                                           Rs.350000/= Less: Deduction under Chapter VI-A Deposit in PPF Account                                                         Rs.60000/= Net taxable Income                                                                 Rs.290000/= Income Tax on above                …

Written on May, 27, 2017 by in

  INCOME TAX RATES (SLABS) FOR FINANCIAL YEAR 2017-18 (ASSESSMENT YEAR 2018-19) 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% Notes: Add: Education Cess @ 2% on Income Tax Payable Add: Secondary & …

Written on Feb, 05, 2017 by in

Income tax rates have been reduced from 10% to 5% in case of individual tax payers in bracket of Rs. 2.50 Lakhs to Rs. 5.00 Lakhs. Tax rebate is cut from Rs.5000/= to Rs.2500/= for individuals with taxable income up to Rs.3.5 Lakhs. Individuals having net taxable income up to Rs.3.00 Lakhs need not to pay any tax. 10% surcharge …

Written on Jun, 22, 2016 by in

Illustration: Mr. X who is 35 years old and employed in M/s ABC Ltd., has the following details relating to his income and investment during financial year 2016-17:- Basic pay                                                                                         Rs. 300000/= Commission on sales                                                   …

Written on Jun, 15, 2016 by in

Illustration : Mr. X is a retail trader. He is 40 years old. He submits the following particulars of his income and investments during financial year 2015-16:- Net income from business 500000/= Interest from taxable bonds Rs.17000/= Interest from saving bank accounts Rs.15000/= Long term capital gain on sale of jewellery Rs. 14000/= Interest from PPF account Rs.10000/= Medical Insurance …

Written on Jun, 12, 2016 by in

INCOME TAX RATES (SLABS) FOR FINANCIAL YEAR 2016-17 (ASSESSMENT YEAR 2017-18) For Male Individuals below 60 years (Resident of India) INCOME   TAX RATES   UP TO 250000 0 250001 TO 500000 10% 500001 TO 1000000 20% 1000001 and above 30% Notes: Add: Education Cess @ 2% on Income Tax Payable Add: Secondary & Higher Education Cess @ 1% on …

Written on Jun, 12, 2016 by in

Finance bill, 2016 has been passed by Parliament.  There are some significant changes in income tax act as follows:- There is no change in income tax slabs. In case of Individual, HUF, AOP and BOI, Surcharge on Income Tax is being increased to 15% if income exceeds Rs. 1 crore. Tax rebate under section 87A for resident individuals having income …

Written on Mar, 06, 2016 by in

BUDGET HIGHLIGHT – FINANCIAL YEAR 2016-17 IN RESPECT O TAXATION No change in income tax slabs. Rebate under section 87-A in respect of individuals whose total taxable income does not exceed Rs. 5,00,000 lakh, is increased from Rs.2,000/= to Rs.5,000/=. Maximum limit of deduction under section 80GG in respect of the individuals who do not receive any House Rent allowance …

Written on Sep, 26, 2015 by in

FINANCIAL YEAR 2016-17 (ASSESSMENT YEAR 2017-18) When The Tax Audit (Under Section 44AB) Is Compulsory?:- Tax audit is compulsory in the following cases:- If the gross turnover or receipts of a business firm exceeds Rupees One Crore then the tax audit is compulsory. If the gross turnover or receipts of a professional firm exceeds Rupees Fifty Lakhs then the tax …

Written on Sep, 26, 2015 by in

DEDUCTION IN RESPECT OF DISABLED PERSONS (U/S 80U) DURING FINANCIAL YEAR 2014-15:- The deduction is allowed to an individual suffering from any disability as defined in Indian Income Tax Act. Deduction of Rs.50000/= is allowed for partial disability. Deduction of Rs.100000/= is allowed to a person suffering with severe disability. The assessee must furnish a certificate from an authority as …