Section 115 BAC: A Comprehensive Guide

Introduction: Section 115 BAC of the Indian Income Tax Act, introduced through the Finance Act of 2020, provides individuals with the option to select between the conventional tax rates and the new concessional tax rates, disregarding legal specifics such as deductions and exemptions. Upon the enactment of Section 115 BAC, ambiguity arose regarding whether employees […]

Section 80CCD(1B) – Maximize Your Deductions with NPS

Introduction: The Taxation Act of 1961 provides deductions and exemptions designed to reduce taxable income, thereby reducing personal tax liability These provisions allow deductions for investments in within a particular system or alongside certain types of debt. There is a separate exemption for contributions to National Pension Scheme (NPS) under Section 80CCD(1B). In this guide, […]

Section 80DD: Tax Deductions with Disabilities

Introduction: Residents, whether individuals or Hindu Undivided Families (HUFs), are entitled to deductions under Section 80DD of the Tax Act for totally dependent disabled caregivers if they will be supported and cared for. Families of disabled dependents can avail tax benefits under section 80DD for personal maintenance. Both self-employed and Hindu Undivided Families (HUFs) are […]

Section 64  : Clubbing Of Income

Introduction: India has progressive taxation policy that makes higher the tax liability at the stage of higher income tax slabs the higher the income is. To bypass the increased tax burden, some taxpayers go as far as transferring their assets and income into their spouses’ name. On the other hand, the Income Tax Department has created provisions […]