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.

Gross Total Income

Gross Total Income as per Section 14 and its Computation under Income Tax Act.

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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Exempted Incomes or Incomes which do not form part of Total Income [Section 10, 10AA, and 11 to 13A]

    10(1) Agricultural income 10(2) Sum received by a member from HUF 10(2A) Share of profit of a partner from a firm 10(4) Interest on securities or bonds held by a non-resident/interest on Non-resident  (External) Account 10(5) Travel concession or assistance received by an individual from his employer 10(6) Remuneration to certain persons who …

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Rates for TDS ( Deduction of Tax at Source) given under Income Tax Act. for Financial Year 2020-21 (AY:2021-22)

Rates of TDS 1 192A — Payment of accumulated balance due to an employee  participating in a recognised provident fund 10% 2 194 — Payment of dividend by a Domestic Company 10% 3 194C — Payment to Contractor/Sub-contractor 1% where payment  made to individual/HUF.  2% in other cases 4 194DA Payment made to a resident …

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Exemptions Available in Computation of Capital Gain

Sec. Assessee to Whom Allowed Conditions to be Satisfied Quantum of exemption 54 Individual / HUF I. Transfer should be of a residential house income of which is chargeable under the head ‘Income from house property’. 2. It must be a long-term capital asset. 3. Purchase of one residential house in India should be within …

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Deductions Chart & Table – [Sections 80A to 80U (Chapter VIA)]

Sections Particulars Assessee to whom Allowed Quantum of Deduction Section 80A/AB/AC Basic rules of deductions NA NA Section 80C Deduction in respect of life  insurance premia, deferred  annuity, contributions to  provident fund, subscription to  certain equity shares or  debentures, etc.  Sum paid or deposited in the  name of a girl child under the  Sukanya Samriddhi …

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