Category: Income Tax

Computation of Short Term & Long Term Capital Gain Tax on Property

At the time of Sale of any Real Estate Property, Tax is liable to be paid on the Gains earned on the sale of the Real Estate Property. Such Gains could either be Short Term Capital Gains or Long Term...

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Tax Implications of Dividend Stripping (with Examples)

Dividend stripping is the practice of buying a share/mutual fund units, just before the declaration of dividend and then selling it off right after the receipt of dividend, when the share prices fall below the purchase price. This practice is...

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Why is Cess and Surcharge levied separately?

The Constitution of India grants the power to the Union to raise revenue by levying cess. Article 270 of Constitution of India states that the Government can collect tax in the name of cess for generating revenue but it shall...

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post-Special Provisions for Tax on sale of Shares/Mutual Funds by NRI
Special Provisions for Tax on sale of Shares/Mutual Funds by NRI

When a NRI invests in the stock market of India, he is subject to capital gain tax on the profit earned through trading done in India. There are two types of capital gains applicable in India: Short Term Capital Gains...

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What is Take Home Salary and How to increase take home salary?

Take home salary is the amount received by an employee after subtracting all the deductions from his package or CTC (Cost to Company). The formula for computing the take home salary is Take home salary= Basic Salary + Allowances – Deductions...

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Tax on Property Transaction below Circle Rate: Sec 50C, Sec 56

This article highlights the income tax treatment on purchase/sale of a property below the Stamp Duty Value under Section 50C & Section 56(2)(x). Before the explaining the treatment, lets first understand the meaning of Stamp Duty Value. Circle Rate/ Stamp...

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Rs. 50,000 Standard Deduction in Income Tax – Budget 2019

A Standard Deduction is basically a deduction allowed in Income Tax irrespective of the expense incurred or the investment made by the Individual. No Disclosures/ Investment Proofs/ Expense Bills are required for this type of Income Tax Standard Deduction as...

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7 Special Tax benefits for Senior Citizens – Updated

The Indian Income Tax Act gives certain tax benefits to Senior Citizens and also tries to ensure that income tax e-filing is a hassle free process. The complete list of all the tax benefits available to senior citizens is compiled...

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Section 44AE: Tax on Income of Transporters – Updated

Section 44AE, Section 44AD & Section 44ADA deal with Presumptive Taxation of Business. Section 44AE is applicable for Business of plying, hiring or leasing goods carriages whereas Section 44ADA is applicable for Professionals & Section 44AD is applicable for Other Businesses. The...

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Term Insurance vs ULIP – Comparative Analysis with Calculations

Insurance is a term we all are aware of. As soon as we hear the word “insurance”, the first thing that comes to the mind is financially securing something valuable against uncertain mis-happenings. Now, there are two options that can...

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