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 […]

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 […]

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 […]

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 […]

Declaration to Deposit Lower TDS

If as a deductor, you have reasonable reasons for lower deduction/payment of TDS in the current period as compared to previous period, then the deductor can file declaration to deposit lower TDS via TRACES. It is an advisory issued from the Centralised Processing Cell (TDS) to file this declaration if there is substantial reduction (no […]