(1) Introduction to Section-71 (Inter-Head Adjustment) Under the Indian Income Tax Act, 1961, taxpayers are allowed to set off losses incurred under one head of income against income earned under another head of income. This provision is known as inter-head adjustment and is governed by Section 71 of the Income Tax Act. Section 71 allows […]
Under the Income Tax Act, individuals and Hindu Undivided Families (HUFs) have the option to be taxed as per the provisions of Section 115BAC. This section allows them to avail certain special provisions for set off of losses, which can significantly impact their tax liability. In this blog post, we will explore the special provisions
1. Introduction to Clubbing of Income The Indian Income Tax Act, 1961, has provisions that prevent taxpayers from avoiding tax liability by transferring their income to their spouse, minor child, or any other person. This is known as the clubbing of income provisions, which are specified under sections 60 to 65 of the Income Tax
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1. [Section 56(2)]: List of Incomes included under ‘Income from Other Sources’ There are many incomes which are taxable under the head ‘Income from Other Sources’. However, section 56(2) enlists certain specific incomes which shall be chargeable to Income-tax under the head ‘Income from other sources’. These are: (i) Dividend Income : dividends [including
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There are many incomes which are taxable under the head ‘Income from Other Sources’. However, section 56(2) enlists certain specific incomes which shall be chargeable to Income-tax under the head ‘Income from other sources’. These are: (i) Dividend Income : dividends [including deemed dividend referred to in section 2(22)] Prior to 1.4.2020, the company
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Understanding of Section 56(2)(i) In India, the taxation of dividends is governed by the provisions of the Income Tax Act, 1961. Section 56(2)(i) of the Act specifically deals with the taxability of dividends received by individuals and other entities. It is important for taxpayers to understand the implications of this section in order to comply
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Under Section 56(2)(ib) of the Indian Income Tax Act, 1961, income from winnings is subject to taxation. This includes income from lotteries, crossword puzzles, horse races, and card games. In this article, we will explore the taxability of such income and the relevant provisions under the Income Tax Act. Section 56(2)(ib) of the Income Tax
Interest income is one of the common sources of income for individuals and businesses alike. When it comes to the taxability of interest on securities, Section 56(2)(id) of the Indian Income Tax Act, 1961 plays a significant role. This section deals with the taxation of interest income earned from certain specified securities. In this article,
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Under the Indian Income Tax Act, 1961, the taxability of income from letting out of machinery, plant, or furniture is governed by Section 56(2)(ii). This section provides the provisions related to the taxation of income from such sources. income from machinery, plant or furniture, belonging to the assessee and let on hire, is chargeable as
The Indian Income Tax Act, 1961, governs the taxation of various sources of income in India. One such source is income from other sources, which includes the taxability of gifts of money and property. In this blog post, we will explore the provisions of Section 56(2)(x) of the Income Tax Act, which deals with the
