Written on Aug, 04, 2012 by in | Leave a comment

There are certain investments or savings or expenditures which are deducted from gross total income of certain specified tax payers. Mostly, these payments relate to future savings of income tax payers or some specified expenditures. The Government of India permits these payments as deductions from gross total income because of following reasons:- India is a developing country and basic aim …

Written on Aug, 04, 2012 by in | Leave a comment

Meaning of salary: As per Indian Income Tax Act Salary includes:- Wages Annuity or pension Any gratuity over and above the exemption limit Any fees Commission Any advance salary Amount contributed by the employer towards the recognized provident fund in excess of 12% of salary Interest on balance in RPF in excess of specified limit. Value of any perquisites Any …

Written on Aug, 02, 2012 by in | Leave a comment

What is income: Income means any earning or receipt which is received or accrued from the following sources:- If the money is invested in any assets and out of that any earning is made. For example: rental income from house property, machines, transport vehicles and furniture etc. Any earning from investments made in mutual funds and shares etc. Any earning …

Written on Jul, 31, 2012 by in | Leave a comment

What is Advance Tax? As per Indian Income Tax Act all the tax payers are required to pay income tax on their expected income of current financial year during the same finance year. For example Mr. X expects his income Rupees Five Lac during finance year 2017-18 and income tax liability is estimated Rs.15000/= after taking all tax savings figures …

Written on Jul, 28, 2012 by in | Leave a comment

Category – 1:-  As per Indian Income Tax Act every person is liable to pay income tax whose income exceeds the basic exemption limit during any financial year. Theses persons includes the following for income tax purpose:- Individuals (Including non-residents) Hindu Undivided Family (HUF) Association of Persons/Bodies of Individuals (Where the individual shares of the members are known. Association of …

Written on Jul, 28, 2012 by in | Leave a comment

INCOME TAX SLABS FOR A.Y.2012-13 (F.Y.2011-12):- As per Indian Income Tax Act, every person whose income is taxable will have to pay the income tax as per rates given below:- Income Tax Rates forVery Senior Citizens (80 Years and Above) Who are the resident of India.   INCOME TAX RATES UP TO 500000 NIL 500001 TO 800000 20% 800000 ONWARDS …