Assessment

Agricultural Income & its Tax Treatment [Sections 1(1A) and 10(1)]

IT Return & Assessment, Tax Ready Reckoner /

Agricultural income holds a special position in India’s taxation system, with specific exemptions and treatments outlined in Sections 2(1A) and 10(1) of the Income Tax Act, 1961. This comprehensive guide explains the definition, types, exemptions, and tax treatment of agricultural income, along with special provisions for partial integration and capital gains. Definition of Agricultural Income […]

Agricultural Income & its Tax Treatment [Sections 1(1A) and 10(1)] Read More »

Assessment of Hindu Undivided Family (HUF) under Income Tax Act, 1961

IT Return & Assessment, Tax Ready Reckoner /

1. Basic Concept of HUF An HUF (Hindu Undivided Family) is a separate legal entity for tax purposes, consisting of: Karta(head of family, usually the eldest male member) Coparceners(members with birthright in ancestral property) Other members(wives, unmarried daughters) Key Features: ✔ Separate PAN required ✔ Can earn income from business, property, investments ✔ Taxed separately from members’ individual incomes 2.

Assessment of Hindu Undivided Family (HUF) under Income Tax Act, 1961 Read More »

Assessment of Firms (Including LLPs) under Income Tax Act, 1961

IT Return & Assessment, Tax Ready Reckoner /

1. Basic Concepts Firm: Partnership firm registered under Partnership Act, 1932 LLP: Limited Liability Partnership registered under LLP Act, 2008 Tax Status: Both treated as “firms” under Income Tax Act (Section 2(23)) 2. Key Features of Firm/LLP Taxation ASPECT TREATMENT Tax Rate 30% flat (+ surcharge if applicable) Tax Slabs No slab system – flat

Assessment of Firms (Including LLPs) under Income Tax Act, 1961 Read More »

Assessment of AOP/BOI under Income Tax Act, 1961

IT Return & Assessment, Tax Ready Reckoner /

1. Basic Concepts AOP (Association of Persons): Group formed for common purpose (business/profession) BOI (Body of Individuals): Group of individuals (not for business) Tax Status: Treated as separate taxable entity (Section 2(31)) 2. Key Features of Assessment PARAMETER AOP/BOI TREATMENT Tax Rate Same as individual slabs (old regime) OR flat 30% if no shares determinate

Assessment of AOP/BOI under Income Tax Act, 1961 Read More »

Taxation and Assessment of Companies under the Income Tax Act, 1961

Tax Ready Reckoner, Taxation & Assessment of Company /

The Income Tax Act, 1961 governs the taxation of companies in India, outlining rules for computation, deductions, assessments, and compliance. Below is a structured breakdown of key aspects related to the taxation and assessment of companies under the Act. 1. Taxability of Companies Companies are classified into two categories for taxation: Domestic Companies(incorporated in India) – Taxed

Taxation and Assessment of Companies under the Income Tax Act, 1961 Read More »

Types, Definitions, And Residential Status of Companies Under the Income Tax Act, 1961

Tax Ready Reckoner, Taxation & Assessment of Company /

Here’s a structured breakdown of the types, definitions, and residential status of companies under the Income Tax Act, 1961: 1. Types of Companies Based on Incorporation Indian Company[Section 2(26)]: Incorporated under Indian laws (e.g., Companies Act 2013). Always treated as a resident in India, regardless of management location. Foreign Company[Section 2(23A)]: Incorporated outside India. Taxed as a resident in Indiaonly

Types, Definitions, And Residential Status of Companies Under the Income Tax Act, 1961 Read More »

Special Provisions for Foreign Companies Deemed Resident in India (Section 115JH)

Tax Ready Reckoner, Taxation & Assessment of Company /

Section 115JH of the Income Tax Act, 1961, provides transitional and computational rules for foreign companies deemed resident in India due to their Place of Effective Management (POEM) being in India. Here’s a structured breakdown: 1. Background & Purpose POEM Rule: Under Section 6(3), a foreign company is deemed a tax resident in Indiaif its POEM (where key management/commercial decisions are

Special Provisions for Foreign Companies Deemed Resident in India (Section 115JH) Read More »

Special Provisions Applicable to Closely Held Companies (Public Not Substantially Interested)

Tax Ready Reckoner, Taxation & Assessment of Company /

A closely held company (where the public is not substantially interested) is subject to stricter tax provisions to prevent tax avoidance and misuse of corporate structures. Below are the key special provisions under the Income Tax Act, 1961: 1. Deemed Dividend under Section 2(22)(e) Applicability: If a closely held company gives loans/advancesto: A shareholderholding ≥10% voting power or A concern(HUF, firm, AOP, etc.)

Special Provisions Applicable to Closely Held Companies (Public Not Substantially Interested) Read More »

Tax on Dividends from Specified Foreign Companies [Section 115BBD]

Tax Ready Reckoner, Taxation & Assessment of Company /

1. Overview Section 115BBD provided a concessional tax rate of 15% (plus surcharge and cess) on dividends received by Indian companies from specified foreign companies where the Indian company held ≥26% equity shares. Introduced in 2011 to promote foreign investments, this provision was withdrawn effective April 1, 2023 (AY 2023–24) to align tax treatment with domestic dividends. 2. Key Provisions (Before Withdrawal) Applicability: Only

Tax on Dividends from Specified Foreign Companies [Section 115BBD] Read More »

Scroll to Top