Leave travel concession – Section 10(5)
What is Leave Travel Allowance (LTA)? Conditions and Calculation for exemption of LTA Maximum amount of deduction Other Points to be kept in mind How to claim Leave travel allowance (LTA) in Income Tax Return What is Leave Travel Allowance (LTA)? Leave travel allowance is an allowance given by an employer to his employee for […]
Deduction in respect of medical treatment etc – Section 80DDB
Eligible Assessee Resident individual (whether Indian Citizen or not) or Resident HUF Deduction is allowed for the expenditure incurred for medical treatment of the specified disease or ailment prescribed by board in respect of any of the following persons In case of individual – for himself, spouse, children, parents, brothers, sisters dependant mainly on such […]
Section 80TTA – Deduction of Interest from Savings Account
Eligible Assessee Individual or HUF (Whether resident or non resident). No benefit is available to partnership firms, company, LLP, AOP etc. If the individual is a senior citizen then deduction is allowed under Section 80TTB from financial year 2018-19. Deductible Amount Interest on deposits in saving account up to a maximum of rs. 10,000. The […]
Documents Needed For ITR
Our actions today will help us in future situations. Taking the necessary steps and precautions now can help you when tax season rolls around. By keeping all the details and documents required when filing taxes, the stress arising from filing your tax return can be significantly reduced. Let’s review the commonly required documents needed for […]
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 […]