Introduction: In accordance with Section 234B of the Income Tax Act, 1961, taxpayers facing default or delay in advance tax payments are subject to a monthly interest charge of 1% on the assessed tax. This simple interest may also apply if the tax paid falls short of 90% of the assessed tax. In this article, […]
Introduction: The Income Tax Act of 1961 stands as a comprehensive statute dictating the taxation of income accrued by individuals and entities within India. Notably, Section 270A emerges as a pivotal component, addressing penalties concerning the underreporting and misreporting of income. In this blog post, we aim to explore the key provisions mentioned in section […]
Introduction: Tax-saving is a crucial financial goal, and the Income Tax Act of 1961 offers various provisions to aid in lowering taxable income. Among these, Section 16 stands out as a significant benefit for salary earners. Understanding these provisions is key to optimizing deductions allowed under the Income Tax Act, ensuring taxpayers receive maximum benefits. […]
Introduction: The government has implemented a favorable tax framework aimed at supporting newly established manufacturing enterprises. Enacted through the Taxation Laws Ordinance of 2019 on September 20, 2019, Section 115 BAB has been introduced, providing a reduced tax rate of 15% (plus applicable surcharge and cess) for such companies. This initiative is geared towards fostering […]
Introduction: As per Section 194A of the Income Tax Act of 1961, if your interest income from FDs exceeds ₹40,000 (or ₹50,000 for senior citizens) in a financial year, banks are liable to deduct TDS from 10% Nonetheless, if your income falls below the taxable threshold, you have the option to submit Form 15G (for […]
Introduction: The implementation of Tax Deducted at Source (TDS) has significantly facilitated tax collection in the country by directly targeting the income sources. TDS not only lightens the taxpayer’s burden during the filing of income tax returns but also allows them to claim credit for the deducted taxes. Among the various types of payments made […]
Introduction: The Employees Provident Fund has contributions of 12% per month from employees and employers. Withdrawals are subject to PF rules, TDS is applied if withdrawals exceed Rs. 50,000 per annum under Section 192A of the Income Tax Act. However, if your income falls below the taxable limit, you can ensure that no TDS is […]
Introduction: To safeguard their financial well-being during challenging times, individuals often opt for insurance coverage for themselves and their families. However, when these policies mature and disburse funds, they serve as a vital income source. Consequently, Section 194DA of the Income Tax Act mandates a tax deduction at the source. Explore its applicability, rates, and […]
Introduction: If the income of an individual taxpayer falls below the basic limit for the financial year, no tax is payable in accordance with Section 139(1) of the Income Tax Act.Consequently, they are not required to file an income tax return. Such individuals are exempt from filing returns as they fall outside the taxable bracket. […]
Introduction: Authors share in the profits publishers make from the sale of their books, which is royalty. The Tax Office taxes this royalty under the headings ‘profits and gains from trade or business’ or ‘income from other sources’. However, under Section 80QQB of the Income Tax Act, individuals can claim tax deductions on this income. […]