An Electoral Trust is a unique entity that plays a crucial role in the political funding of political parties in India. It is a non-profit organization that collects funds from individuals, corporates, and other entities and then distributes them to various political parties. The main objective of an Electoral Trust is to bring transparency and […]
Income of an Electoral Trust shall be Exempt [Section 13B] Read More »
Interest incomes which are exempt under section 10(15) could be explained with the help of the following table- Section Income Exemption to 10(15)(i) Interest, premium on redemption, or other payment on notified securities, bonds, certificates, and deposits, etc. (subject to notified conditions and limits) All assesses 10(15)(iib) Interest on notified Capital Investment Bonds notified prior
Interest Incomes which are Exempt under Section 10(15) Read More »
as per Part “C” of Schedule II of the Companies Act, 2013 after making following assumptions: The useful life to compute depreciation of the asset has been taken as per Part C of Schedule II The residual value of an asset has been taken as 5% of the original cost of the asset as per
Rates of Depreciation under Companies Act, 2013 [ Depreciation Rate Chart] Read More »
Section 10(1) of the Income-tax Act, 1961 exempts agricultural income from income-tax. However, net agricultural income is added to the total non-agricultural income computed as per income-tax Act, for the purpose of determining the income-tax on non-agricultural income of an individual, HUE, AOP/BOI or an artificial juridical person, although the agricultural income will remain fully
Agricultural Income [Section 2(1A)] Read More »
In the following Cases, Instances of Agricultural and Non-Agricultural Incomes are described in details with examples. Instances of Agricultural Income: In the following cases, income is held as agricultural income: If denuded parts of the forest are replanted and subsequent operations in forestry are carried out, the income arising from the sale of replanted trees.
Instance of Income held to be Agricultural / Non-Agricultural Income Read More »
Tax Treatment of Partly Agricultural and Partly Non-Agricultural Income Tax Treatment of on Composite Business Income i.e. Partly Agricultural and Partly Non-Agricultural Income as per Rules 7, 7A, 7B, 8. For disintegrating a composite business income which is partly agricultural and partly non-agricultural, the following rules are applicable— Income Non-Agricultural Income Agricultural Income Income Tax
Tax on Non-Agricultural Income with partial Agricultural Income As already discussed, there is no tax on agricultural income but if an assessee has non-agricultural income as well as agricultural income, such agricultural income is included in his Total Income for the purpose of computation of income-tax on non-agricultural income. This is also known as partial
Tax on Non-Agricultural Income if the Assessee earns Agricultural Income also Read More »
1. [Section 80C]: Deduction in respect of Life Insurance Premium, Deferred Annuity, Contributions to Provident Fund, Subscription to certain Equity Shares or Debentures, etc. Section 80C of the Income Tax Act allows individuals to claim deductions on certain investments and expenses, thereby reducing their taxable income. This section is one of the most popular tax-saving
1. Section 80-IAC: Deduction in respect of Eligible Business or Eligible Start Up Understanding of Section 80-IAC The Income Tax Act, 1961 provides various deductions for taxpayers to reduce their taxable income. One such deduction is Section 80-IAC, which is specifically designed to encourage the growth of eligible businesses and startups in India. In this
The following Essential & Basic Rules have to be kept in mind while calculating Deductions under Section 80C to 80U : 1. Deductions cannot exceed Gross Total Income [Section 80A(2)]: According to Section 80A(2) of the Indian Income Tax Act, deductions under various sections, including Sections 80C to 80U, cannot exceed your Gross Total Income
Basic Rules of Deductions under Section 80C to 80U [Sections 80A/80AB/80AC] Read More »
