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,
[Section 56(2)(id)]: Interest on Securities Taxable under Income from Other Sources Read More »
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
While the income from other sources is taxable, there are certain amounts that are not deductible while computing this income. In this blog post, we will explore the different amounts that are not deductible in computing income from other sources. 1. Any of the Following Payments The following payments shall not be deductible in computing
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 such capital gain is exempt under section 54, 54B,
Meaning of Capital Asset [Section 2(14)] – Capital Gain Read More »
Here we discuss all the Provisions towards Computation of Capital Gain in certain Special Cases and the method of Computation is different. 1. [Section 45(1A)]: Capital Gain in case of amount received from an insurer on account of Damage or Destruction of any Capital Asset Where any person receives at any time during any previous
Computation of Capital Gain in Certain Special Cases Read More »
Section 55(2) – Cost of Acquisition of Capital Asset for Computing Capital Gain Cost of acquisition is the price which the assessec 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
Deemed Cost of Acquisition of Capital Asset for Computing Capital Gain Read More »
Where any person receives at any time during any previous year any money or other assets under an insurance from an insurer on account of damage to, or destruction of, any capital asset, as a result of— (i) flood, typhoon, hurricane, cyclone, earthquake or other convulsion of nature; or (ii) riot or civil
(1) Unit Linked Insurance Policies (ULIPs) have gained popularity as a dual investment-cum-insurance product. ULIPs offer individuals the opportunity to invest in various asset classes while providing life insurance coverage. However, when it comes to the maturity of a high premium ULIP, there are certain tax implications to consider. (2) Under Section 45(1B) of the
