Category: Income Tax

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...

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Section 80GG: Deduction for Rent Paid increased – Budget 2016

Budget 2016 Update: The limit has been increased from Rs. 24,000 p.a. to Rs. 60,000 p.a. This Section has been explained below in detail. Section 80GG provides for Deductions for House Rent paid, provided that a deduction for payment of...

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Section 80DD & Section 80U: Deduction for Disability

Section 80DD & Section 80U deal with income tax deductions for individuals and their family members with disabilities. Deduction under Section 80U is provided in case the individual is himself disabled and Deduction under Section 80DD is provided in case...

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Section 43B: Certain Tax Deductions allowed only on Actual Payment

Section 43B is an over-ruling section and anything contained in other provisions of the Income Tax Act should not be applicable to the payments mentioned under this section. Section 43B states that certain payments should be allowed to be claimed...

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Section 40A(3): Disallowance of Expenses made in Cash & Exceptions

Budget 2017 Update: In order to disincentivise cash transactions, it is proposed to amend the provisions of Section 40A of the Income Tax Act to provide the following: To reduce the existing threshold of cash payments to a person from...

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Section 40A(2): Disallowance of Payments to Relatives in 2023

Section 40A(2) is an over-riding sections which provide that even if an expenditure or allowance comes within the purview of any other section, there treatment should only be done as laid down in Section 40A(2). Section 40A(2): Disallowance of expense...

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Income Tax on Gifts: Computation & 7 Exemptions

If a person receives Gifts (either in cash or in kind) from any person, gift tax would be liable to be paid by the person receiving the gifts. Such income would be taxable in the year in which the gift...

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Income Tax on Partnership Firms & LLP’s in India

Although Partnership Firms don’t have a separate legal entity, for the purpose of Income Tax, they are treated as different from their partners. Partnership Firms whether registered or unregistered are therefore required to register with the Income Tax Dept. and...

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Difference b/w Income Tax Rebate Vs Tax Deduction Vs Tax Exemption

A common man is most of the times confused between the terms – Income Tax Rebate, Income Tax Deduction and Income Tax Exemption and ends up using them interchangeably. Although, all these terms are beneficial to the taxpayer and reduce...

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TDS Refund: Procedure for applying for Income Tax Refund

TDS is required to be deducted at the time of making any payment and the TDS so deducted is deposited with the Income Tax Department as tax deducted on behalf of the person to whom the payment is being made....

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