Meaning of Relative for Section 56(2)
Gift received from a relative is not taxable in hands of the recipient under section 56 of Income Tax Act. The persons who are considered as relatives are In case of an individual Spouse of the individual Brother or sister of the individual Brother or sister of the spouse of the individual Brother or sister […]
Mode of Taking or Accepting Loans, Deposits – Section 269SS
A person shall not take any loan or deposit or specified sum from any person otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system if the amount of such loan or deposit or specified sum or the aggregate amount of such loan, deposit and specified sum […]
Joint Life Insurance Policy
Life insurance policy is an indispensable aspect of sound financial planning. Any person who is an earning member of their family should have life insurance cover so that their death does not adversely affect the financial health of their family. The apprehension of what would happen to their loved ones, always influences a bread earner […]
Relief when salary or family pension has been received in arrears or in advance – Section 89(1)
Relief is allowed under section 89 to a salaried person when Salary or family pension is received in advance Salary or family pension is received in arrears and income is assessed at a rate higher at which it would otherwise have been assessed. For eg – A person’s salary is rs. 4,00,000 in year 2014-15 […]
Alternate Minimum Tax (AMT) on Assesses other Company
Applicability Alternate minimum tax under this section is applicable on all assesses other than company. Also this section doesn’t apply to assesses whose adjusted total income doesn’t exceeds Rs. 20 lakhs. Conditions for payment of Alternate Minimum Tax Where regular income tax payable by an assesse is less than the alternate minimum tax then the […]
Taxability in special cases under House Property
Case 1 – Computation of Income of a house property which is self occupied for residential purposes Case 2 – Computation of Income of a house property which could not actually be self occupied owing to employment at other place Case 3 – Where assessee has more than one house for self occupation Case 4 – Computation of income […]
Computation of Income under House Property
A) Fair Rent XXX B) Municipal Value XXX C) Higher of A or B XXX D) Standard Rent XXX E) Expected Rent (Lower of C or D) XXX F) Actual Rent XXX G) Gross Annual Value (higher of E or F ) XXX H) Less: Municipal Tax XXX I) Annual Value (G – H) XXX J) Standard Deduction (30% of […]
Deduction of municipal tax paid in computing annual value from House Property
Any taxes levied by any local authority in respect of the house property is to be deducted from the gross annual value, if the following conditions are fulfilled:- a) Municipal taxes have been borne by the owner, and b) These have been actually paid during the previous year. Notes:- a) Deduction is allowed only when […]
Gross Annual Value of House Property
Section 23 – Income from house property is taxable on the basis of annual value. Even if the property is not let out during the year or let out only for a part of the year, notional rent receivable is taxable as its annual value. Annual value of the house property is based on the following […]
National Pension Scheme – Section 80CCD
National Pension Scheme (NPS) is launched with the objective of providing retirement income to the government employees on 01st January 2004. It is a government sponsored pension scheme initially launched for Government employee but from 01st May 2009 the scheme was opened for all the citizens of India. NPS aims to generate habit of savings […]