Income Tax

Section 194J: TDS on Professional/ Technical Fees @ 10%

Section 194J: TDS on Professional/ Technical Fees @ 10%

As per Section 194J of the Income Tax Act, TDS is to be deducted @ 10% on any amount paid to any resident as:- Fees for professional services, or Fees for technical services, or Royalty, or Any sum referred in Section 28 (Discussed below) Exceptions to TDS Deduction under Section 194J No TDS should be deducted under section 194J if ...

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TDS on Commission/Brokerage – Section 194H

TDS on Commission/Brokerage – Section 194H

TDS on Commission/Brokerage is required to be deducted under Section 194H by the person making the payment by way of commission or brokerage. TDS on Commission/Broker is required to be deducted @ 10% at the time of:- Making such payment or Credit of such income to the account of the payee in the books of the person deducting such TDS ...

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Section 44AD: Income of any Business presumed to be 8%

Section 44AD: Income of any Business presumed to be 8%

As per the new Section 44AD of the Income Tax Act applicable from A/Y 2011-12, a taxpayer can assume his income to be 8% of his total turnover and pay tax on the income so computed. Prior to A/Y 2011-12, this section was only applicable to the business of civil construction. However, it is now applicable to all types of ...

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Mandatory Disclosure of Asset in Income Tax Return for A/Y 2013-14

Mandatory Disclosure of Asset in Income Tax Return for A/Y 2013-14

The new income tax forms released by the income tax department require that all assets should be disclosed by the taxpayer in his income tax return. The condition for disclosure of assets in the income tax return is only applicable those taxpayers who satisfy both the conditions as mentioned below:- The taxpayer is earning Income from Proprietorship/ Partnership business, and ...

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Capital Loss: Treatment for Income Tax purposes

Capital Loss: Treatment for Income Tax purposes

At the time of sale of any Asset, if a Short Term/ Long Term Capital Loss arises to a taxpayer; this loss is allowed to be set-off in the same year against other incomes. However, if this loss is not set-off in the same year, it is allowed to be carried forward to the next year. Recommended Read: Manner of ...

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Residential Status for the purpose of Income Tax

Residential Status for the purpose of Income Tax

The determination of Residential Status of a person is very important for the purpose of levy of income tax, as income tax is levied based on the residential status of a taxpayer. The Residential Status of a taxpayer can be divided in the following categories Determination of Residential Status of a taxpayer is very important at the time of filing ...

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Belated Return: Filing of Income Tax Return after Due Date

Belated Return: Filing of Income Tax Return after Due Date

In case you’ve not been able to file your income tax return before the prescribed due date, you can still file a belated return of income tax after the due date as well. Under Section 139(1), the normal due date of filing of income tax return is Particulars Due Date Where the taxpayer is Company Any person mandatorily required to ...

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Tax on Salary Income, TDS on Salary with examples

Tax on Salary Income, TDS on Salary with examples

Any income received by an employee is chargeable under head “Income from Salaries” and tax on salary is levied in the manner as shown below. Income would be taxable under head Income from Salaries only when an employer-employee relationship exists. The following computation of Tax on Salary Income and TDS on Salary is required to be shown by a salaried ...

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Leave Encashment: Tax Computation of Amount Exempted

Leave Encashment: Tax Computation of Amount Exempted

While an employee is in service, he is allowed various types of leaves like Medical Leave, Gazetted Holidays, Casual Leaves etc. There are some types of leaves which can be carried forward to the next year whereas there are some leaves which cannot be carried forward to the next year. In case an employee does not avail all the leaves ...

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Tax on Pension Income: Computation of Amount Exempted

Tax on Pension Income: Computation of Amount Exempted

At the time of retirement of an employee, the employer pays the employee a certain amount regularly in consideration of his past service. This periodic payment is paid by the employer to his employee is referred to as Pension. After the introduction of the National Pension Scheme, not only can the employer pay pension after retirement but the Pension Scheme ...

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