Co-ownership – Section 26
Meaning of Co-owner – When the property is owned by two or more person, they are known as co-owners. Taxability If their respective shares are definite and ascertainable then the income from House Property shall be calculated as per the general provision and then apportioned amongst each co-owner as per their definite share. However, deduction under […]
TDS – Practical Guide with Examples
What is TDS? TDS stands for Tax Deducted Source. In TDS system, persons responsible for making payment for specified services such as commission, brokerage, professional consultancy etc are required to deduct a fixed percentage from the amount. Such deducted amount (which is called TDS) have to be deposited to the Government by the Deductor (person […]
Fringe Benefits
Fringes benefits taxable in case of all employees: – (1) Interest free or concessional loans from employer Taxable Value = Maximum outstanding monthly balance X Rate charged p.a. by SBI on similar loans on 1st day of the relevant previous year – Interest actually paid by employee or any of his household members. Maximum outstanding […]
Form 15G and Form 15H – Comprehensive Guide
What is Form 15G and Form 15H Difference between Form 15G and Form 15H Examples to understand who can submit Form 15G and Form 15H When to File Form 15G/15H What if TDS already deducted Download Form 15G/Form 15H in Pdf, fillable Pdf, Word or Excel Formats Filled Sample Forms Submitting Form 15G/15H online Penalty […]
Taxability of Salary
Salary is taxed on due basis or receipt basis, whichever is earlier. Therefore if any advance salary is received which is related to forth coming periods, then it is chargeable to tax in the year of receipt. Arrears of salary are taxable in the year of receipt, if not charged to tax in any earlier […]
Allowances Taxability
Fully Taxable Allowances: Dearness Allowances, City Compensatory allowance, Medical Allowance, Tiffin allowance, Servant allowance, Project allowance, Overtime allowance, Warden Allowance, Family Allowance, Domestic Servant Allowance Partly Taxable Allowances: Allowances which is received by employee for meeting expenses related to the employer’s business is not taxable in hands of employee to the extent it is actually […]
Leave salary exemption – Section 10(10AA)
If Leave salary encashment is received by any employee while in employment then it is fully taxable in the hands of employee. While if leave encashment is received in case of retirement or superannuation or resignation, then exemption is available upto the following limits. In case of Central government or State government employee(excluding employees of […]
Professional Tax in India
Professional Tax is a state level tax levied by State Governments. It is applied to individuals, who is earning by way of salary income or practising a profession such as CA, CS, lawyer, doctor, architect, engineer etc. Currently, this tax is applicable in Andhra Pradesh, Assam, Bihar, Goa, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, […]
What is Deferred Tax Asset and Deferred Tax Liability (DTA & DTL)?
What is Deferred Tax Asset and Deferred Tax Liability (DTA & DTL) In some cases there is a difference between the amount of expenses or incomes that are considered in books of accounts and the expenses or incomes that are allowed/disallowed as per Income Tax. A very common example of this is depreciation. For companies, […]
TDS on payment to contractor or sub-contractor – Section 194C
Persons required to deduct TDS under this section Any specified person responsible for paying any sum to any resident contractor for carrying out any work is required to deduct tax at source. TDS is also required to be deducted for payment to sub contractor. Tax is to be deducted even if contract is for supply […]