Any amount received or benefit derived in respect of expenditure incurred or loss or trading liability allowed as deduction shall be deemed as income in the year in which the amount is received or benefit is accrued. Reference: As Per Section 59, of the Income Tax Act, 1961- The provisions of sub-section (1) of section 41 shall… Read More »
All income which arises or accrues to the minor child shall be clubbed (added) in the income of his parent. As per Section 64(1A), whose total income (excluding Minor’s income) is greater. However, if parents are separated, the income of minor will be included in the income of that parent who maintains the minor child… Read More »
As Per Income Tax Act, 1961 “Income to include transfer of shares in case of recipient firms and companies” includes: where a firm or a company not being a company in which the public are substantially interested, receives, in any previous year, from any person or persons, on or after the 1st day of June, 2010, any property, being shares… Read More »
There is a special rate of 30% for winning from lotteries, crossword puzzles, races including horse races, card games and other games of any sort of gambling or betting of any form or nature under Income tax. Basic exemption is not allowed, also 80G cannot be claimed on this income. S. 115BB, r/w s. 28(i)… Read More »
As Per Income Tax Act 1961 “Basic Specific incomes chargeable under the head INCOME FROM OTHER SOURCE (IOS)” includes: The following list of income shall be Chargeable to income-tax under the head “Income from other sources” namely:- Dividends; Income from machinery, plant or furniture belonging to the Assessee and let on hire, if the income… Read More »
Myth: Interest on fixed deposit is not taxable This is incorrect. People have an assumption that interest on fixed deposit is exempt same as interest on savings bank account. But it is wrong. Interest on savings account is exempt under section 80TTA upto Rs 10000/- and any interest above in saving account will be taxable… Read More »
Advance money forfeited till FY 2013-14 i.e. for AY 2014-15 related to capital asset/property for which negotiation for transfer was going on will be treated as capital receipt and will be reduced from the cost of acquisition of assets, but with effect from the 1st day of April, 2015 any advance money forfeited against capital assets… Read More »
Income Tax Department through Circular No. 648, dated 30-03-1993, has allowed ad hoc deduction to agents of LIC on commission Income received during the year. Deduction is allowed to agents having total commission (including first year commission, renewal commission and bonus commission) of less than Rs. 60,000 for the year, and not maintaining detailed accounts for the… Read More »
Taxation of Gift Income under Income Tax Act and Meaning of different terms used in section 56(2)(vii) of the Income Tax Act, 1961. Section 56(2)(vii) is applicable on the gift from any person or persons on or after the 1st day of October, 2009, So for any gift taken before this period will be covered under… Read More »
Taxation and Myth related to Gifts Received in India Myth: Gifts are not subject to Income Tax in India False: Many individuals are under perception that gifts are free from tax. But in reality, gifts costing above Rs. 50,000 rupees are taxable. Previously gifts were tax-exempt and to reduce tax liability people used to pay money to… Read More »