Income Tax

Audit of Speculation Business-Shares, Futures and Options Trading

Audit under section 44AB is required when turnover exceeds Rs. 1 crore. But in case of speculation business, shares trading and futures/options, turnover is determined in the following manner. 1) Speculation Business – The aggregate of both positive and negative differences is to be considered as the turnover. 2) Intra

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TDS on Rent by Individual/HUF – Section 194IB

Provisions of this section is applicable from 1st June 2017 A new section 194IB has been introduced from 01st June 2017. This section  requires certain individuals or HUF to deduct TDS on rent paid for the use of any land or building or both. Persons required to deduct TDS under

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HRA provisions in Circular 8/2013

5.3.9 Under section 10(13A) of the Act, any special allowance specifically granted to an assessee by his employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee is exempt from Income-tax to the extent as may be prescribed,

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Assessment as a Firm – Section 184

A partnership firm will be assessed as a firm in Income Tax Act if  the following conditions are satisfied Partnership is evidenced by an instrument Normally a partnership agreement is made for the purpose and is a valid instrument. Instrument also includes any other formal document. Individual shares of the

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8 mistakes people do while filing Income Tax Return (ITR)

Now a days many people file their own Income Tax Return (ITR) in lieu of taking service of CA or tax consultant. But a number of persons make some very common mistakes while filing ITR. Here we have provided a list of common mistakes so that people can avoid them.

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Receipts without Considerations – Section 56(2)

If an individual or HUF received any money/property without consideration If the amount of money received without consideration exceeds rs. 50,000 any movable property, without consideration the fair market value of which is more than rs. 50,000, then such fair market value any movable property, for a consideration which is

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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

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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

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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

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