Tax Ready Reckoner

Direct and Indirect Tax Ready Reckoner for the Assessment Year 2022-23 & 2023-24.

Estimated Income Method – for Computing Business Income in Certain Cases

Business or Profession /

Special Provisions for computing Business income in certain cases on the basis of Estimated Income Method under Section 44AD, 44ADA, 44AE has been described with examples. 1.  Special Provisions for computing profits and gains of Any Business [Section 44AD] (excluding the business covered under Section 44AE) (1) Eligible assessee engaged in an eligible business allowed […]

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Income From “House Property” [Section 22 to 27]

House Property /

Income under the head ‘Income from House Property’ under Section 22 to 27 has been described with practical examples for the AY- 2022-23 & 2023-24. Table showing …How to Compute “Income from House Property” 1. Gross annual value i.e. expected rent/actual rent received or receivable, whichever is higher ₹…………. However, in case of vacancy, expected rent

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Income under the Head “Salaries” [Sections 15 to 17]

Salaries /

1. Computation of Income under the head Income from “Salaries” The first head of income is income from “Salaries”. Sections 15, 16 and 17 of the Income-tax Act deal with the computation of income under the head “Salaries”. To understand the computation of income under the head “Salaries”, the following important concepts must  first be

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Allowance- Meaning, Types and Treatment for Calculating Taxable Salary Income

Salaries /

1.  Allowances- Income under the head Salaries Allowance is a fixed monetary amount paid by the employer to the employee for meeting some particular expenses, whether personal or for the performance of his duties. These allowances are generally taxable and are to be included in the gross salary unless a specific exemption has been provided

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Perquisites [(Section 17(2)]- Income under the head Salaries

Salaries / ,

1.  Perquisites [(Section 17(2)]-Definition Section 17(2) of the Income-tax Act, 1961 gives an inclusive definition of ‘perquisite’. As per this section ‘perquisite’ includes: (i)      the value of rent-free accommodation provided to the assessee by his employer; (ii)     the value of any concession in the matter of rent respecting any accommodation provided to the assessee

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Perquisites- Rent Free Accommodation or Accommodation provided at Concessional Rate

Salaries / ,

Accommodation provided to the employee may be— (i)      unfurnished (ii)     furnished Further, such accommodation may be provided: (a)      rent free; or (h)     at concessional rate. As per amended rule 3(1), the valuation of accommodation should be done as under: (A)      Accommodation provided by the Government to its employees Where the

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Perquisites – Fringe Benefits or Amenities which shall be Taxable Perquisite in the hands of All Employees

Salaries / ,

The rules for valuation of specified fringe benefits or amenities arc as under: 1.  Interest Free Or Concessional Loans [Rule 3(7)(i)] The value of the benefit resulting from loans made available to the employee or any member of his household during the relevant previous year by the employer or any person on his behalf shall

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Perquisites – Valuation of Motor Car / Other Vehicles [Rule 3(2)]

Salaries / ,

As already discussed, motor car/other vehicles, provided by the employer, is a perquisite only for specified employees because it is a facility provided by the employer to the employees. On the other hand, if the car belongs to the employee and the expenses of running and maintenance of that car are met by the employer,

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Valuation of PERQUISITES- for Calculating Taxable Salary Income

Salaries / ,

1.  Perquisites [(Section 17(2)]- Income under the head Salaries Section 17(2) of the Income-tax Act, 1961 gives an inclusive definition of ‘perquisite’. As per this section ‘perquisite’ includes: (i)      the value of rent-free accommodation provided to the assessee by his employer; (ii)     the value of any concession in the matter of rent respecting any

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