What is Depreciation? Meaning, Methods, Calculations
What is Depreciation? Depreciation is the reduction in the value of assets due to wear and tear. Every asset is subject to wear and tear in the ordinary course of its use and also with the passage of time. The cost of the asset is allocated over time and considered as expense. It is applied […]
TDS on Payment in respect of Life Insurance Policies – Section 194DA
Insurance company paying amount to a resident under a life insurance policy including bonus is liable to deduct TDS @ 1% (2% before 1st June 2016). TDS is to be deducted only when such sum is not exempt from income tax under section 10(10D). Also tds is to be deducted only when the amount paid […]
How to link your Aadhaar card with Income Tax PAN number
As per new section 139AA and judgment of Supreme Court dated 9 June 2017, following thing shall apply from 1st July 2017 :- Every person who wants to file Income Tax Return or wants to apply for PAN card shall require to quote their Aadhaar Number. If the person do not possess Aadhaar Number, the Enrolment ID […]
Contribution to Certain Pension Funds – Section 80CCC
Eligible assesse – Individual Under this section deduction is allowed if assesse has paid or deposited an amount in any annuity plan of the LIC of India or any other insurer for receiving pension from a fund referred to in section10(23AAB). Amount of deduction is lower of the amount so paid /deposited or Rs. 1,50,000 […]
Set off & Carry forward of Losses
Set off of losses under the same head of income If there is a loss from any source of income under any head, then it is to be set off against income from any other source under the same head. The exceptions to this rule are Loss from speculation business- Loss in speculation business can […]
Deduction of Interest on Housing Loan – Section 24b
Introduction Section 24b of income tax act allows deduction of interest on home loan from the taxable income. Such loan should be taken for purchase or construction or repair or reconstruction of house property. Such deduction is allowed on accrual basis, not on paid basis. In other words, the interest payable for the year is […]
GST Returns – Types of Return, Due Dates, How to File
Which GST Returns are required to be filed? (From 1st January 2021) A registered person is required to file following returns: GSTR-3B (Quarterly or Monthly) GSTR-1 (Quarterly or Monthly) GSTR-9 (Annual Return) Along with these returns, there are two forms IFF and PMT-06 which can be filed by persons filing returns on quarterly basis. These […]
TDS on Income from Units of Business Trust – Section 194LBA
This section is inserted by Finance Act 2014 and is applicable from 1st Oct, 2014. Tax is to be deductible if a business trust distributes any income referred to in section 115UA being of the nature referred to in section 10(23FC) to its unit holder. Time of deduction – Tax is deductible at the time […]
TDS from insurance commission – Section 194D
Person responsible for paying to a resident commission or otherwise for soliciting or procuring insurance business including continuance, renewal or revival of policies is required to deduct TDS. TDS is required to be deducted at the time of credit of such amount or payment thereof whichever is earlier. TDS is required to be deducted only […]
TDS from winning of lotteries or crossword puzzles – Section 194B
TDS is deductible from the payment of winnings from lotteries, puzzles, card games or other games, exceeding Rs. 10,000 at the rate of 30% . Where the prize is partly in cash and partly in kind, then TDS is deductible on total prize i.e cash + value of prize in kind, from the cash portion […]