Capital Gain Exemption on Investment in Certain Bonds – Section 54EC
Eigible Assessee – Any person Eligible Capital Gain – Any long term capital gain (From financial year 2018-19 only land or building will qualify for exemption) Condition for exemption – The assessee has at any time within a period of 6 months after the date of such transfer invested the whole or any part of capital […]
Capital Gain Exemption from Sale of Residential Agricultural Land – Section 54B
Eligible Assessee – Individual and HUF Eligible Capital Gain – Capital gain arising from transfer of land which in 2 years immediately preceding the date on which the transfer took place was being used by the HUF or individual or his parents for agriculture purposes. Condition for exemption – The assessee has purchased any other land for […]
Avoid notice from Department for non filing of TDS return
Every person responsible for deduction of tax shall file quarterly TDS return as per section 200(3) of Income Tax Act, 1961. However no TDS return is required to be filed if TDS is not required to be deducted during that quarter. Due to this, the Income Tax Department has been finding it difficult to differentiate […]
Everything about PPF and its tax benefits
What is PPF ? PPF stands for Public Provident Fund which is backed by Indian Government. PPF is the most common investment for a number of decades. Its features like guaranteed return, tax exemption under section 80C as well as tax free interest makes it the most popular investment among the risk averse investors. Any person […]
6 Benefits in Income Tax for Senior Citizens
A number of benefits are given in the Income Tax Act of India to the senior citizens apart from general deductions and benefits. Senior citizen is a resident individual who is of 60 years or more at any time during the previous year.Super senior citizen is a resident individual who is of 80 years or […]
Definitions under Income Tax Act
What is Assessment year? Assessment year is the year in which the income of the previous year is to be assessed. In other words assessment year is the succeeding year of the year whose income is to be taxed. For example if we are calculating taxable salary which is received in year 2015-16 then the […]
Capital Gain Exemption from Sale of Residential House Property – Section 54
Eligible Assessee – Individual and HUF Eligible Capital Gain – Capital gain arising from transfer of long term capital asset being buildings or lands attached thereto and being a residential house the income of which is taxable under head “Income from House Property”. Condition for exemption – The assessee has a) purchased a residential house within […]
Restriction on Receipt of Cash – Section 269ST
In Budget 2017 new restrictions on cash transactions has been imposed. New section 269ST has been added in this regard and is applicable from 1st April 2017. A person should not receive cash of Rs. 2,00,000 or more in aggregate from a person in a day; or in respect of a single transaction; or in respect […]
Computation of Short Term Capital Gain/Loss
Short term capital gain means capital gain arising from transfer of short term capital asset. No indexation benefit is available for short term capital gains. Short term capital gain is computed as under Short Term Capital Gain/Loss Amount Full value of consideration Less: Expenses incurred wholly and exclusively in connection with such transfer […]
Meaning of Transfer of Capital Asset
Transfer of Capital Assets includes the following the sale, exchange or relinquishment of the asset the extinguishment of any rights therein the compulsory acquisition thereof under any law in a case where the asset is converted by the owner thereof into, or is treated by him as, stock-in-trade of a business carried on by him, such conversion […]