Written on Sep, 12, 2012 by in

EXAMPLES RELATING TO CALCULATION OF INCOME TAX RELATING TO FINANCIAL YEAR 2014-15 (ASSESSMENT YEAR 2015-16):- Illustration: Mr. X, aged 45 years, submitted the details of his income and investment for financial year 2014-15, as under: Particulars Amount(In Rupees) Income from salary 300000/= Interest from fixed deposits with bank 15000/= Interest from personal loans 5000/= Interest from Public Provident Fund Account …

Written on Aug, 26, 2012 by in | Leave a comment

GENERAL TIPS RELATING TO INDIAN INCOME TAX ACT We have tried to explain few important income tax terms just for general knowledge for accountants or common people as under:- FILING OF INCOME TAX RETURN HEADS OF INCOME FOR INCOME TAX PURPOSE INCOME EXEMPT FROM INCOME TAX INCOME TAX RATES FOR FINANCIAL YEAR 2011-12 INCOME RECEIVED FROM OTHER SOURCES PAYMENT OF …

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WHO SHOULD FILE THE INCOME TAX RETURN? :- Every person, whose income is taxable, must file the income tax return with income tax authorities within the stipulated time. The following persons will have to file income tax return:- All Individuals Hindu Undivided Family (HUF), Association of Persons (AOP)/Body of Individuals (BOI) (where individual shares of the members are known) And …

Written on Aug, 15, 2012 by in | Leave a comment

What is Tax Deduction at Source (TDS)? Financial Year 2016-17 Onward According to Indian Income Tax Act there are some specified payments against which tax is to be deducted at the time of payment or at the time of accrual, is called Tax Deducted at Source. Tax is being deducted by the person who pays the money at prescribed rates …

Written on Aug, 15, 2012 by in | 2 Comments.

What is Partnership Firm? When two or more person agree to start a business which will be carried on by all or any of those partners acting for all, with an aim of earning profit out of the activities of the business, will be called as partnership firm. But the partnership firm is an independent entity like other individuals. Therefore …

Written on Aug, 11, 2012 by in | Leave a comment

What is business: In brief, Business includes any trade, commerce and manufacturing of goods with a purpose of making profit within the permissible laws of country. What is a Profession: It includes services provided by the professionally qualified or technically qualified person according to their qualification. Income from Business/Profession: means any income which is shown in profit and loss account …

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Any income which does not fall under any other head of income i.e. Income from business/profession, Income from salary, capital gains and house property then it will be called as income from other sources. Following are few examples of income which are treated as income from other sources as per Indian income tax act:- Any amount received as rent from …

Written on Aug, 08, 2012 by in | Leave a comment

What is Capital Gain? Capital gain means any profits or gains which arises from sale of capital assets. Capital gain is chargeable to income tax under the head capital gains in that financial year in which the transfer takes place. Taxation of capital gains, thus, depends on two aspects – capital assets and transfer. What is Capital Asset? Capital asset …

Written on Aug, 05, 2012 by in | Leave a comment

What is house property? House property means any building of which the assessee is the owner. Ownership of the building is must in case of calculation of income from house property. Notes: Income from sub-letting of the house property is taxable under the head “Income from other sources”. If rent of furniture is received along with the house rent, the …

Written on Aug, 05, 2012 by in | Leave a comment

Section 10 of Indian Income Tax Act deals with all incomes which are exempt from income tax. We are giving the details of few important exempted incomes as under:- Agricultural Income is exempt from income tax. However, If net income from agriculture exceeds Rs.5000/=, then it will be taken for determining the tax rates of income. Any amount received by …