Written on Mar, 19, 2014 by in

The scope of taxation under income tax act depends on the residential status of the assessee. Residential status is completely determined on the basis of presence of assessee in India during the previous year. The residential status is determined every year because a person can be resident in one year and non-resident in other year. The residential status is determined …

Written on Mar, 19, 2014 by in

The income tax law is contained in the Income Tax Act, 1961 and Income Tax Act covers the following matters:- Basis of charging income tax. Computation of income tax under various heads Exempted incomes Permissible deductions from income. Rebates and relieves from income tax. Clubbing of income. Set off and carry forward of losses. Double taxation relief. Special provision for …

Written on Mar, 19, 2014 by in

As we know that the major source of revenue of Government is taxes. These taxes are divided in two parts; one is direct taxes and other one is called indirect taxes. Direct taxes can be classified as income tax, wealth tax and expenditure tax etc. and indirect taxes are excise duty, sales tax, service tax and custom duty etc. In …

Written on Mar, 19, 2014 by in

In common view, budget means the estimation of expenses and incomes. Same way, the Union Budget is a statement of estimated receipts and expenditures of the Government of India. Government has to spend a heavy amount on heavy industries, infrastructure, internal and external security, education, employment generation, health, transportation etc. To meet the above requirements, the Government has to raise …

Written on Mar, 17, 2014 by in

HIGHLIGHTS OF AMENDMENTS IN INCOME TAX ACT INFINANCE BILL 2013:- Followings are few amendments in finance bill 2013:- Basic Exemption:- There is no change in basic exemption limits or slab rates. Surcharge:- If total income of Individuals, HUF, AOP, BOI, Co-operative society, firm etc, exceeds Rs.1 crore then the surcharge shall be levied @ 10%. Income of securitization trust shall …

Written on Mar, 16, 2014 by in

  For Male Individuals below 60 years (Resident of India) INCOME TAX RATES UP TO 200000 0 200001 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 No Surcharge will be charged on Income Tax Payable …

Written on Mar, 16, 2014 by in
CASH POSTING

When the income tax payable on the total income of any company in any financial year is less than 18.5% of book profit of that company during the same financial year, then the tax payable by the company shall be deemed to be equal to 18.5% of the book profit. We call it Minimum Alternative Tax (MAT). Book profit for …

Written on Mar, 17, 2013 by in

LEAVE ENCASHMENT OR LEAVE SALARY (F.Y.2016-17):- When any employee does not avail his/her leaves as per terms of employment then he/she gets the salary in lieu of non-availed leaves. This type of payment is called leave encashment. As per Indian Income Tax Act, the leave encashment is exempt from income tax subject to the following conditions:- In case of Central …

Written on Mar, 13, 2013 by in

Meaning of Commuted Pension:- When any lump-sum payment is made in lieu of periodical payment of pension then it will called as commuted pension. Treatment of Commuted Pension from Income Tax Point of View:- The Pension is an income. As per Indian Income Tax Act, the receipt from pension is treated as under:- Any payment received as commuted pension by …

Written on Mar, 09, 2013 by in

According to Indian Income Tax Act, any gratuity received by the employee, is exempt from his/her income as under:- Death-cum-retirement gratuity received by any employee of Central Government, Local Government and Local Authorities is exempt from income tax with out any limit. For example: Mr. X is the employee of Central Government. He received the gratuity for Rs.20,00,000/=  (Rs. Twenty …