Request for Reissue of Income Tax Refund Online

At the time of filing income tax return, many of us claimed the refund of excess income tax paid or TDS deducted i.e. income tax paid is more than income tax chargeable on the total taxable income for the year. Depending on the option exercised by the assessee, at the time of filing of income […]

Taxability of Alimony

Meaning of Alimony Any sum of money (recurring or lump sum) received from spouse after legal separation or divorce for the purpose of maintenance of spouse or child. Taxability in hand of the recipient There is no specific provision which governs the taxability of alimony under the Income Tax Act 1961. As a general principle, […]

How Salaried and Non Salaried Person Can Save Tax

How Salaried and Non Salaried Person Can Save Tax

There are number of deduction available for salaried person to save income tax. Although you have to do a proper tax planning from the beginning of the financial year to avoid last minute investment. These deductions are as follows:- Investment under 80C, 80CCC and 80 CCD(1) Limit – The maximum limit of deduction is Rs 1,50,000 […]

TDS/TCS Certificate

Certification for Tax Deducted at Source and Tax Collected at Source are to be issued in the following manner – Form no. 16 for TDS from Salary Form no. 16B for TDS under section 194-IA Form no. 16A for any other TDS Form no. 27D for TCS Time limit for issue of TDS are as […]

Taxability of Medical Facilities

The taxable value of medical facilities provided by an employer to his employee shall be calculated as under Treatment in hospital maintained by employer Medical treatment provided to employee or any of his family members in any hospital maintained by the employer is not chargeable to tax. Treatment in hospital maintained by Government, Local Authority […]

Voluntary retirement or separation – Section 10(10C)

If an employee receives compensation(whether in one go or in instalments) on voluntary retirement or separation, Section 10(10C) provides for exemption for such amount, subject to a maximum of Rs. 5,00,000. This exemption is available to employee of any of the following:- (i) a public sector company (ii) any other company (iii) an authority established […]

Retrenchment Compensation – Section 10(10B)

Retrenchment compensation received by an assessee shall be exempt of the least amount from the following. Actual amount received 5,00,000 An amount calculated in accordance with section 25F(b) of the Industrial Disputes Act, 1947 i.e 15 days average pay x completed year of service or part thereof in excess of 6 months  

Pension – Section 10(10A)

Uncommuted pension i.e pension received in regular instalments is taxable for all employees. Commuted means to pay in one time rather to pay in instalments. Commuted pension is exempt from tax as per the following provisions: Employees of Central Government, State Government, Local authority, statutory corporation Commuted pension is fully exempt in hands of such […]

Gratuity Exemption – Section 10(10)

If Gratuity is received by any employee while in employment then it is fully taxable in the hands of employee. While if gratuity is received in case of death or retirement or resignation, then exemption is available up to the following limits. In case of Government employee Any gratuity received by an employee of Central […]