Written on May, 02, 2015 by in

DEDUCTION IN RESPECT OF DONATIONS OTHER THAN POLITICAL PARTIES UNDER SECTION 80G:-  Deduction of donations is allowed to any assessee under Indian Income Tax Act who has made donation to the notified institutions or associations. Donation is divided in two parts for the purpose of claiming the amount of donation from taxable income of assessee as under:- 100% deduction is …

Written on May, 02, 2015 by in

Who can claim the deduction for rent paid? :- Deduction for rent paid under section 80GG is allowed to following persons:- Any assessee who is self employed can claim this deduction from his/her income. Any person who is employed or salaried person but not receiving House Rent Allowance from his/her employer. Conditions to avail the deduction in respect of rent …

Written on May, 02, 2015 by in

Under section 80E of Indian Income Tax, any interest paid on loan taken from any financial institution or any approved charitable trust for higher education is exempt from taxable income. The loan can be taken for himself/herself or for any relative’s higher education. This type of deduction is allowed to Individual assessee only. Higher education means any course which is …

Written on May, 02, 2015 by in

As per Indian Income Tax Act, the following points must be kept in mind while in respect of donations paid to political parties:- Any Indian company is allowed to pay the donation to any political party or parties. Any person except local authority and an artificial juridical person who is funded by government, wholly or partly. No payment must be …

Written on Mar, 18, 2015 by in

An assessee can claim following payments made as per Indian Income Tax Act in respect of various types of medical expenses incurred during or payment made under medical insurance schemes:-  MEDICLAIM UNDER SECTION 80-D DURING FINANCIAL YEAR 2014-15 Following points should be kept in mind while claiming deduction under section 80-D in respect of expenses incurred for health insurance in …

Written on Mar, 08, 2015 by in

The main highlights of Union Budget 2015 (F.Y.2015-16 and A.Y.2016-17) are as               under:- No change in income tax slabs. Corporate tax will be reduced from 30% to 25% along with removal of various types of exemptions from F.Y. 2015-16. Very Tough provisions are made for not declaring foreign investments, foreign income and foreign deposits etc. The penalty shall be for …

Written on Aug, 31, 2014 by in

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 Income Tax Payable Surcharge will be charged @ 10% on Income …

Written on Aug, 31, 2014 by in

Maximum exemption limit increased from 2 lakh to 2.5 lakh for resident individuals below 60 years Maximum exemption limit increased from 2.5 lakh to 3.0 lakh for resident senior citizen who is of 60 years or more but below the age of 80 years at any time during the previous year. There is no change in case of resident very …

Written on Aug, 30, 2014 by in

Under Income Tax Act of India, it is mandatory to file an Annual Information Return (AIR) with Income Tax Department by the specific persons within a specified time in respect of some specified financial transactions during a financial year. Following are the transactions and reporting persons against which the Annual Information Return is submitted:- BANKS/CO-OPERATIVE BANKS Cash payment for purchase …

Written on Mar, 19, 2014 by in

Following are the examples of the income which is deemed to accrue or arise in India:- Income through or from business connection in India Income through or from any property, asset or source of income in India such as royalty for patents or copyrights or secret process used in India. Transfer of a capital asset situated in India. Salaries for …