Tax Ready Reckoner

Direct and Indirect Taxes with Tax Ready Reckoner.

Instance of Income held to be Agricultural / Non-Agricultural Income

Agricultural Income /

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.

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Tax Treatment of Income which is Partly Agricultural and Partly from Business [Rules 7,7A,7B,8]

Agricultural Income /

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

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Tax on Non-Agricultural Income if the Assessee earns Agricultural Income also

Agricultural Income /

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

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Deductions Under ‘Chapter VI-A’ in respect of ‘Payments & Investments’ are Allowed from Section 80C To 80GGC

IT Deductions /

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

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Deductions Under ‘Chapter VI-A’ in respect of ‘Incomes’ are Allowed from Section 80-IA To 80U

IT Deductions /

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

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Basic Rules of Deductions under Section 80C to 80U [Sections 80A/80AB/80AC]

IT Deductions /

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

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[Section 80C]: Deduction in respect of Life Insurance Premium, Deferred Annuity, Contributions to Provident Fund, Subscription to certain Equity Shares or Debentures, etc.

IT Deductions /

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 provisions in India as it offers various options for taxpayers to reduce their tax liability. Eligible Investments and Expenses Under Section 80C, individuals can

[Section 80C]: Deduction in respect of Life Insurance Premium, Deferred Annuity, Contributions to Provident Fund, Subscription to certain Equity Shares or Debentures, etc. Read More »

Section 80CCD : Deduction in respect of Contribution to a National Pension Scheme (NPS)

IT Deductions /

1.  Introduction to Section 80CCD Section 80CCD of the Indian Income Tax Act, 1961, provides for deductions in respect of contributions made to the National Pension Scheme (NPS). This section encourages individuals to save for their retirement by offering tax benefits on contributions to the NPS. Here are the key details of Section 80CCD: (1) 

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Section 80D : Deduction in respect of Medical Insurance Premia

IT Deductions /

Understanding of Section 80D Section 80D of the Income Tax Act provides individuals with a deduction in respect of medical insurance premiums paid. This section is aimed at encouraging taxpayers to avail medical insurance coverage for themselves and their families. Under Section 80D, taxpayers can claim deductions on the premiums paid for medical insurance policies

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[Section 80DD]: Deduction in respect of Caring & Maintenance including Medical Treatment of a Disabled Dependent

IT Deductions /

Section 80DD of the Income Tax Act in India provides a deduction for individuals or Hindu Undivided Families (HUFs) in respect of expenses incurred for the caring and maintenance, including medical treatment, of a disabled dependent. This section is aimed at providing financial relief to taxpayers who have the responsibility of supporting disabled dependents. Here

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