September 2025

Section 80TTB: Deduction for Senior Citizens’ Deposit Interest

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Applicable to: *Individuals aged 60+ years (including NRIs)* This section provides higher tax relief on interest income from deposits, recognizing the financial needs of senior citizens. Key Features (AY 2025-26) 1.   Eligible Income Sources ✅ Interest from: Fixed Deposits (FDs) Recurring Deposits (RDs) Savings Accounts Post Office Schemes (SCSS, MIS, TD) Bank Deposits ❌ Excludes: Interest from bonds/debentures Dividend income […]

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Section 80U: Deduction for Persons with Disabilities

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Applicable to: *Resident Individuals with 40%+ Disability* This section provides fixed tax deductions to support differently-abled taxpayers, acknowledging their additional financial needs. Key Features (AY 2024-25) Eligibility Criteria ✅ Disability Certificate Required from: Government hospital (Medical Board) Neurologist/Psychiatrist (for mental disabilities) ✅ Minimum Disability: 40% (as per RPWD Act 2016) Deduction Amount DISABILITY LEVEL DEDUCTION 40-79% Disability ₹75,000/year 80%+ Disability (Severe) ₹1,25,000/year

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Agricultural Income & its Tax Treatment [Sections 1(1A) and 10(1)]

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Agricultural income holds a special position in India’s taxation system, with specific exemptions and treatments outlined in Sections 2(1A) and 10(1) of the Income Tax Act, 1961. This comprehensive guide explains the definition, types, exemptions, and tax treatment of agricultural income, along with special provisions for partial integration and capital gains. Definition of Agricultural Income

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Assessment of Hindu Undivided Family (HUF) under Income Tax Act, 1961

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1. Basic Concept of HUF An HUF (Hindu Undivided Family) is a separate legal entity for tax purposes, consisting of: Karta(head of family, usually the eldest male member) Coparceners(members with birthright in ancestral property) Other members(wives, unmarried daughters) Key Features: ✔ Separate PAN required ✔ Can earn income from business, property, investments ✔ Taxed separately from members’ individual incomes 2.

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Assessment of Firms (Including LLPs) under Income Tax Act, 1961

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1. Basic Concepts Firm: Partnership firm registered under Partnership Act, 1932 LLP: Limited Liability Partnership registered under LLP Act, 2008 Tax Status: Both treated as “firms” under Income Tax Act (Section 2(23)) 2. Key Features of Firm/LLP Taxation ASPECT TREATMENT Tax Rate 30% flat (+ surcharge if applicable) Tax Slabs No slab system – flat

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Assessment of AOP/BOI under Income Tax Act, 1961

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1. Basic Concepts AOP (Association of Persons): Group formed for common purpose (business/profession) BOI (Body of Individuals): Group of individuals (not for business) Tax Status: Treated as separate taxable entity (Section 2(31)) 2. Key Features of Assessment PARAMETER AOP/BOI TREATMENT Tax Rate Same as individual slabs (old regime) OR flat 30% if no shares determinate

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Taxation and Assessment of Companies under the Income Tax Act, 1961

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The Income Tax Act, 1961 governs the taxation of companies in India, outlining rules for computation, deductions, assessments, and compliance. Below is a structured breakdown of key aspects related to the taxation and assessment of companies under the Act. 1. Taxability of Companies Companies are classified into two categories for taxation: Domestic Companies(incorporated in India) – Taxed

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Types, Definitions, And Residential Status of Companies Under the Income Tax Act, 1961

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Here’s a structured breakdown of the types, definitions, and residential status of companies under the Income Tax Act, 1961: 1. Types of Companies Based on Incorporation Indian Company[Section 2(26)]: Incorporated under Indian laws (e.g., Companies Act 2013). Always treated as a resident in India, regardless of management location. Foreign Company[Section 2(23A)]: Incorporated outside India. Taxed as a resident in Indiaonly

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Special Provisions for Foreign Companies Deemed Resident in India (Section 115JH)

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Section 115JH of the Income Tax Act, 1961, provides transitional and computational rules for foreign companies deemed resident in India due to their Place of Effective Management (POEM) being in India. Here’s a structured breakdown: 1. Background & Purpose POEM Rule: Under Section 6(3), a foreign company is deemed a tax resident in Indiaif its POEM (where key management/commercial decisions are

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