Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Direct Taxes Ready Reckoner

Direct Taxes for the Assessment Year 2021-22

Incomes Chargeable to Tax under Profits and Gains of Business or Profession

1.   [Section 28]- List of Incomes Chargeable to Income-Tax The following incomes shall be chargeable to income-tax under the head “Profits and gains of business or profession”: (i)            the profits and gains of any business which was carried on by the assessee at any time during the previous year; (ii)           any compensation or …

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Summarized Table – Cost of Acquisition of Capital Assets

SL No. Type of Capital Asset Cost of acquisition to the assessee Relevant section applicable I. Goodwill of a business, trademark or brand name associated with a business, right to manufacture or produce or process any article or thing or right to carry on any business or profession or tenancy rights, state carriage permits or …

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Capital Gains under Income Tax Act. 1961 – LTCG & STCG

Cost of acquisition is the price which the Assessee has paid, or the amount which the Assessee has incurred, for acquisition of the asset. Expenses incurred for completing the title are a part of the cost of acquisition. Interest on money borrowed for acquiring capital assets will form part of cost of asset:  (1)          …

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Capital Gains under Income Tax Act. 1961 – LTCG & STCG

1.   Basis of Charge – Capital Gains [Section 45(1)] Any profits or gains arising from the transfer of a capital asset effected in the previous year, shall be chargeable to income-tax under the head ‘Capital Gains’ and shall be deemed to be the income of the previous year in which the transfer took place unless …

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Taxability – Income from Other Sources [Sections 56 to 59]

1.   Section wise Table – Income from Other Sources Sections Particulars 56 Income from Other Sources 56(1) Chargeability 56(2) Specific incomes included under income from other sources 56(2)(i) Taxability of dividend 56(2) (ib) Winnings from lotteries, crossword punks. etc. 56(2) (id) Interest on securities 56(2)(ii) Income from kiting out of machinery, plant and furniture 56(2)(iii) …

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Set Off or Carry Forward and Set Off Of Losses under Income Tax Act

Income-tax is a composite tax on the total income of a person earned during a period of one previous year.  There might be cases where an assessee has different sources of income under the same head of income.  Similarly, he may have income under different heads of income. It might also happen that the net …

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Taxation In Companies – Company Taxation

1.   [Section 6(3)]- Definitions & Types of Companies with Residential Status (1).  Definition and Types of Companies 1. Company: As per section 2(17), company means: (i)            Any Indian company, or (ii)           Anybody corporate incorporated by or under the laws of a country outside India, or (iii)          Any institution, association or body which …

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Assessment of Charitable Trusts and Institutions

1.   Exemption Under Section 11 to 13 in case of Public Trusts for Charitable or Religious Purposes The income derived from a property held under charitable or religious trusts is exempt from tax under section 11 subject to the fulfillment of certain conditions. However, any profit or gain of a business carried on by such …

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Income Tax Assessment Procedure in details

1.   Self-Assessment [Section 140A] before Submitting Return of Income Every person, before submitting a return of income under: (i)         Section 139 or (ii)        Section 142(1) or (iii)       Section 148 or (iv)       Section 153A, is under an obligation to make a self-assessment of his income and after taking in account the amount of tax, …

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