It provides a solid foundation for a knowledge base on taxation, covering both theoretical and practical elements.
Under the Goods and Services Tax (GST) regime in India, certain banking-related services are either exempt or subject to a nil rate of tax. These exemptions are provided to ensure that essential financial services remain accessible and affordable to the general public. Below is a detailed explanation of the exemptions on banking-related services under GST: […]
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In the context of the Goods and Services Tax (GST), the term “non-supplies” refers to transactions or activities that are not considered as supplies under the GST law. These transactions are outside the scope of GST, meaning they are not subject to tax, and no input tax credit (ITC) can be claimed for such activities. Section 7(2)(a) provides
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Circular No. 03/2025 [F. No. 275/107/2024-IT(B)] Dated 20th February, 2025 Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Reference is invited to Circular No. 24/2022 dated 07.12.2022, whereby the rates of deduction of income-tax from the payment of income under the head “Salaries” under section 192 of the Income-tax Act, 1961 (hereinafter referred
Section 10(10D) of the Income Tax Act, 1961, provides tax exemption on the sum received under a life insurance policy, including the bonus. This section ensures that the proceeds from life insurance policies are generally tax-free, subject to certain conditions. Scope of Exemption: The entire sum received under a life insurance policy (including the bonus)
Any sum received under a Life Insurance Policy [Section 10(10D)] Read More »
Section 10(10CC) of the Income Tax Act, 1961, deals with the tax treatment of non-monetary perquisites provided by an employer to an employee. This section ensures that the tax liability on such perquisites is borne by the employer, and the employee is not directly taxed on these benefits. Definition of Non-Monetary Perquisites: Non-monetary perquisites are
Income in Nature of a Non-Monetary Perquisites Provided by Employer [Section 10(10CC)] Read More »
Voluntary Retirement Scheme (VRS) is a mechanism used by companies to reduce their workforce by offering employees an option to retire voluntarily. The compensation received under VRS is governed by Section 10(10C) of the Income Tax Act, 1961, which provides exemptions for such payments. Eligibility for Exemption: The exemption applies to employees of: Public Sector
Compensation received by an individual or their legal heirs in the event of a disaster is governed by Section 10(10BC) of the Income Tax Act, 1961. This section provides an exemption for such compensation to alleviate the financial burden on affected individuals or families. Scope of Exemption: Compensation received from: The Central Governmentor a State Government. Any local
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Retrenchment compensation is the amount paid to a workman (employee) at the time of termination of employment due to retrenchment (layoff) or closure of the business. The tax treatment of retrenchment compensation is governed by Section 10(10B) of the Income Tax Act, 1961, which provides exemptions for such payments. Eligibility for Exemption: The exemption applies
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Leave encashment refers to the amount received by an employee in exchange for unused leave balance at the time of retirement, resignation, or superannuation. The tax treatment of leave encashment is governed by Section 10(10AA) of the Income Tax Act, 1961, which provides exemptions for such payments. Exemption under Section 10(10AA): Exemption for Government Employees:
Amount received as Leave Encashment on Retirement [Section 10(10AA)] Read More »
The commuted value of pension refers to the lump sum amount received by an employee in lieu of a portion of their pension. This is governed by Section 10(10A) of the Income Tax Act, 1961, which provides the rules for its taxability and exemptions. Types of Pension Commutation: Government Employees: Pension received by government employees
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