Introduction: A partnership deed, which is a detailed legal document, describes all the necessary terms and conditions and is signed by all the partnerships Without such an agreement, a benefit may not be readily available to the partners. The Partnership Act of 1932 mandates that any interest on capital paid to partners from earnings must […]
Introduction: Public sector employers compensate their employees with basic salaries determined by their respective pay scales, upon which various additional components are calculated and subsequently added to determine the final take-home amount. Notably, one significant component in this calculation is the Dearness Allowance (DA). Dearness Allowance: Dearness Allowance (DA) is an essential living modification distributed […]
Introduction: Section 80EE of the Taxation Act provides a useful scheme aimed at reducing the burden on taxpayers through home loans. This section facilitates the deduction of mortgage interest payments, thereby providing relief to eligible individuals. The section was first introduced in the Union Budget of FY 2013–2014 in support of tax relief for first-time […]
Introduction: Employees’ Provident Fund (EPF), commonly referred to as PF (Provident Fund), acts as a compulsory savings and retirement scheme for employees of eligible organizations After retirement, employees can rely on the cumulative corpus of this bank as financial results. As per EPF rules, employees are required to contribute 12% of their basic salary to […]
Introduction: The National Pension Scheme (NPS), introduced by the Government of India in January 2004, is a voluntary contribution-based retirement benefits scheme. It extends to all Indian citizens, encompassing those in the unorganized sector, with the objective of ensuring a dependable pension income for retirees. Participation in the scheme mandates individuals to open an NPS […]
Introduction: The Indian Income Tax Act provides a tax deduction of up to Rs. 1.5 lakh per financial year to pay interest on home loan for purchase or construction of affordable house. This deduction, provided under Section 80EEA of the Income Tax Act, supplements the existing tax benefits outlined in Sections 80C and 24. Let’s […]
Introduction: Form 24Q is a platform where taxpayers can file TDS returns for the public. It includes important information about wages and tax deductions. Companies are required to file declarations and make quarterly payments in the state. Form 24Q : While allocating salary to an employee, the employer is required to deduct TDS under Section […]
Introduction: Investors should align their investment choices with their individual financial objectives. As an investor, you can opt for high returns with high risks or opt for fixed-return schemes that provide superior risk-adjusted returns. Various government-backed fixed-income schemes, including National Savings Certificates , offer both guaranteed returns and advantageous income tax deductions under Section 80(C) […]
Introduction: Form 12BA covers perquisites received as benefits or reimbursements, which are included in their salaries. Income tax applies to these other benefits, allowances, or fringe benefits described in Form 12BA. It is about such benefits, including amenities, perks, and other peripheral benefits, whether monetary or nonmonetary. Form 12BA: Form 12BA is an income tax […]
Introduction: Section 35D of the Tax Act provides for deduction of specified initial expenditure by an Indian company or resident person seeking to start a business, set up a new industrial division, or expand a business. The deduction is granted to the Indian company on the basis of profits earned over ten equal years, starting […]