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 […]
Introduction: Salaried individuals may receive advance salary or arrears, necessitating taxes to be paid on the total amount received. However, the Income Tax Department safeguards employees from additional tax liabilities arising from delayed income under Section 89(1). In essence, if you receive a portion of your salary as arrears, you can claim tax relief under […]
Introduction: The Finance Act 2020 introduces a number of measures and reforms aimed at promoting economic growth and improving tax efficiency. These initiatives include the addition of Section 80M to reduce the tax and compliance burden on companies. Section 80M: Section 80M of the Income Tax Act, 1961 outlines provisions for the deduction of inter-corporate […]
Introduction: The Income Tax Act, 1961 mandates professionals and traders to maintain books of account and file income tax returns at the end of the financial year, where audit of their accounts is required To facilitate this process and reduce compliance burden upon which the government instituted Presumptive Tax Scheme under Section44ADA of the Income […]
Introduction: When filing income tax, the right form choose is essential for successful tax filing. If this is not done he may be subject to a tax department rejection and may incur penalty payments for late submission. As a consequence, the majority of the individual tax payers face confusion when identifying between ITR 1 and […]
Introduction: Section 194H of the Income Tax Act includes tax deduction at source on commission or brokerage payments. This provision applies to any person or entity paying a commission or brokerage fee to a resident. It outlines the prescribed rate for TDS deduction and delineates the procedures for filing returns and obtaining refunds. The category […]