What are the Deemed Profits and how they chargeable to Tax as Business Income 1. Recovery against any Allowance or Deduction Allowed earlier [(Section 4 1(1)] (A) Recovery by the same assessee (Section 41(1)(a)1: Where an allowance or deduction has been made in the assessment for any year in respect of (i) loss, (ii) expenditure […]
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As per Section 44AA and Rule 6F, persons carrying on Business and Professions specified below are mandatorily required to maintain their books of accounts. 1. Person carrying on certain professions [Section 44AA(1)]: Every person, carrying on legal medical, engineering or architectural profession, or profession of accountancy or interior decoration or any other profession as is
Following Business are required to get their Accounts compulsory Tax Audited by a Chartered Accountant under Section 44AB for computing Profits and Gain of Business and Profession. 1. Following Business required to get their Accounts Compulsory Audited by CA under Section 44AB (1) Person carrying on business to get his accounts audited if his total
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 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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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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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
Allowance- Meaning, Types and Treatment for Calculating Taxable Salary Income Read More »
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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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
Perquisites- Rent Free Accommodation or Accommodation provided at Concessional Rate Read More »
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
