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Other Income

  • Taxability of Investment in Shares and Mutual Funds

    Tax Treatment on Income from Investment in Shares: -

    Investment in Shares gives two

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  • Income Computation and Disclosure Standards - ICDS

    Income Computation and Disclosure Standards (ICDS) are Applicable on Income from Profits and Gains of Business and Profession and Income from other Source for Computation of Income, not for maintaining books of Accounts. Income Computation and Disclosure Standards are Applicable to all asseessee's who follow mercantile system of Accounting even in case of assessee covered under

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  • Penalties under Income Tax Act

    Sec 140A(3): - When assessee fails to pay wholly or partially of Self Assessment Tax or Interest or penalty or less than, in such a case Assessing Officer may impose any amount of fine subject to Maximum of Tax in arrears.

    Sec 158BFA(2): - Minimum 100% of Tax leviable subject maximum of 300% of Tax liable on determination of Undisclosed Income.

    Sec 221 (1): - Any amount may be imposed by Assessing Officer as penalty on

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  • Common Mistakes Done by Assessee while Filing Income Tax Return

    Wrong Calculation of Exemption of House Rent Allowance (HRA)

    So, Many times claim exemption of whole amount House Rent Allowance (HRA) Received even if Some portion of HRA is Taxable. Asseessee must take exemption of minimum of - 

    Actual HRA Received

    40% Of Salary or Incase of Metro Cities 50% of Salary

    Excess of Rent Paid over 10% Salary

    Note: - Here Salary means Basic plus Dearness Allowance (DA) if

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  • Taxability of Dividend

    Dividend refers to Distribution of Accomulated Profits by a Company to its share Holders. But there are Certain Transaction which are considered as Deemed Dividend even though there is no Actual Distribution of Profits such Transaction are Distribution of May Assets by Company to its shareholders, Distribution of Debentures or Debenture Certificate by Company to Its Share Holders, Distribution of any Assets by Company to its shareholders in

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  • Explanation to Different Income Tax Return Forms  

     

    ITR -1

    ITR -1 is simple Return for Resident Individual

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  • Income Exempted from Income Tax

    Agriculture Income: - Any Income earned by any Asseessee on sale of Agriculture produce or Income derived from renting Agriculture Land for Agricultural Activities shall be fully Exempted from Income Tax. However agriculture Income is included in Total Income of Asseessee for ascertaining slab Applicable to Assessee if Agriculture Income exceeds Rs. 5000 and Non - Agriculture Income doesn't

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  • Clubbing of Income

     

    Clubbing of Income means any Income Earned by any Person but included in the total Income on any other Assessee or Transferor of Assets through which Income is Earned. Asseessee may try to avoid Tax or minimise Tax Liability either through transferring the Income or Transferring the Source of Income (i.e. Transferring Asstes from which Assessee is earning Income). To avoid such Tax Evasion Activities Concept of Clubbing of Income

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  • Income Tax and Goods and Service Tax Compliance Applicable to Company

    Income Tax Compliance Applicable to Company 

    TDS Return for Q1: - Every Deductor who Deducted TDS in Q1 shall require to

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  • NPS Tax Benefits and Tax Treatment at Maturity (Latest)

     

    NPS Tax Benefits (Latest)
    This part has not been affected by the latest budget. Only contribution to Tier-I NPS account is eligible for income tax benefits.

    Investment up to Rs 1.5 lacs into NPS in a financial year is eligible for deduction under Section 80CCD(1). Please note this deduction comes under the overall ceiling of Rs 1.5 lacs for deduction under Section 80C. In

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  • Amendments or Changes in Income Tax for Financial Year 2018-19 (Assessment Year 2019-20)

    Standard Allowance to Salaried Employees in Place of Medical Allowance or Reimbursement, and Transportation Allowances

     

    Treatment up to Financial Year 2017-18 ( Assessment Year 2018 - 19 ): -

     

    Medical Allowance: - Any Fixed amount of Money Received by Employee from Employer every Month i.e. Medical Allowance is Fully Taxable in Hands of Employee irrespective of amount

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  • Charitable Trusts and NGO – Income Tax Benefits

    1. Charitable Trusts – A brief Introduction

    “The word ‘Charity’ connotes altruism in thought and action. It involves an idea of benefiting others rather than oneself” Supreme Court in the case Andhra Chamber of Commerce [1965] 55 ITR 722 (SC). It is a voluntary help either in money/kind to the needy. Collective efforts are always more fruitful and hence there are various Non-Governmental

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  • Different Special  Tax Rates  in Income Tax

     Rate of Tax on Long Term Capital Gain

    When Security Transaction Tax (STT) is Paid: - Any Long Term Capital Gain arises on Sale of Securities (not held as Stock in Trade) through Stock Exchange on which STT is Paid then Rate of Tax will NIL (Exempted from Tax) for Gain Up to Rs. 1 Lakh and Any Long Term Capital Gain arises on Sale of Securities (not held as Stock in Trade) through Stock Exchange on which STT is Paid exceeding Rs. 1

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  • A Full Guide On Filling ITR-2 Online AY 2020-21

    Read Full Details on ITR-2

    What is the ITR 2 Form?
    The ITR-2 is filed by the individuals or HUFs not having income from profit or gains of business or profession and to whom ITR-1 is not applicable. It includes income from capital gains, foreign income or any agricultural income more than Rs 5,000.

    What is ITR 2 Form
    Changes in ITR 2 for AY 2020-21
    Eligibility

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  • Easy Ways To Save Income Tax - 2021 Edition

    What is Income Tax?
    Income tax is a portion of your income that you pay to the government. This tax is collected on an annual basis. The authorities use this money to perform administrative tasks.

    Guide To Save Income Tax In India:
    There are two ways to save tax in India:

    By Claiming Expenses:
    You will have to claim the expenses you have made to save income tax.

    By Investing in Tax-Saving

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  • Who can use ITR 1, ITR 2, ITR 3 and ITR 4 Sugam for A.Y. 2021-22

    The start of a tax year marks the beginning of many timelines with the filing of return of income occupying a prime spot. As much as tax return filing is the bounden duty of every taxpayer, it is also pertinent to use the correct Form so that the requisite disclosures are made and penal consequences not triggered. Selecting the appropriate Form is only the starting

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  • Set Off and Carry Forward of Losses

    Intra Head Set off of Losses (Set Off of Loss against Income of Same Head)

    Any losses arises under any Head of Income can be set off from any Income from any other Source under same head for that assessment year or any subsequent year, except few cases where losses can not set off to any other Income under same head for that assessment year or any subsequent year.

     

    Cases or

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  • Handbook on ULIP

    1. What is ULIP
    Unit Linked Insurance Plan (ULIP) is a mix of insurance along with investment. From a ULIP, the goal is to provide wealth creation along with life cover where the insurance company puts a portion of your investment towards life insurance and rest into a fund that

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  • Article on Taxation of proceeds of high premium ULIP

    Budget 2021- Taxation of proceeds of high premium unit linked insurance policy (ULIP)
    Clause (10D) of section 10 of the Act provides for the exemption for the sum received under a life insurance policy, including the sum allocated by way of bonus on such policy in respect of

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  • Documents or Information Required for Income Tax Return Filing

    Classification of Income : - Income of Asseessee first needs to be Classified into following Five heads or Source of Income : -

    Income from Salary : - Any Amount Received by Employee from Employer in form of Cash (Basic, Dearness Allowance, House Rent Allowance or any Other Allowances, Commission on Sale and Bonus etc.) or any Non Cash Facility shall be treated as Income from Salary of Asseessee. Primary Condition of Income from

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