Author: CA Tarannum Khatri

Tax on rent income as per income tax and service tax

Rental income is taxable from the point of view of income tax and service tax. Many times tax payers forget to include or consider rental income while showing income. I have discussed rental income treatment as per income tax and service tax view in this article. You will also get insights about TDS on rent. Tax on rent income under various tax laws: Income tax on rent income: For income tax purpose, we can divide rent income from two sources: Rent income from building or land appurtenant to it. Rent income from land ( no building attached) and other...

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How tax deductions work : End of confusion

No one is unaware of TDS in India. However, it is necessary to know how tax deductions work when TDS is deducted from your payment frequently.In general, the total income of a person is charged on annual basis under the Income Tax Act. The amount of tax determined and to be paid as per the statutory provisions is as follow: a) Advance Tax b) Self-Assessment Tax c) Tax Deducted at Source (TDS) d) Tax Collected at Source (TCS) Tax deducted at source (TDS) How tax deductions work : End of confusion: We will understand procedure of tax deduction in...

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Rebate u/s 87A: Analysis with 7 Commonly asked questions

Under the Income Tax Act, 1961, Rule for rebate u/s  87A has been inserted and in the Budget Speech, by The Honorable Finance Minister had said that, “Nevertheless, I am inclined to give some relief to the tax payers in the first bracket of Rs. 2 Lakh to Rs. 5 Lakh. Assuming an inflation rate of 10% and a notional rise in the threshold exemption from Rs. 2,00,000/- to Rs. 2,20,000/- I propose to provide a tax credit of Rs. 2,000/- to every person who has a total income up-to Rs. 5 Lakh”.   Brief Analysis : Rebate u/s...

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Section 194IA: TDS on transfer of immovable properties

Section 194IA has been introduced in the Income Tax Act, 1961 (ITA) w.e.f. 01.06.2013 which prescribes rules regarding TDS on transfer of immovable properties ( other than agricultural land). A) Widening of Tax Base and Anti-Tax Avoidance Rules Background There is a statutory requirement under section 139 A of the Income Tax Act to quote the Permanent Account Number (PAN) in documents pertaining to purchase or sale of Immovable Properties for value of Rs. 5 Lakhs or more. However, during the financial year 2011-12, the information furnished by the Registrars and sub-registrars under the Annual Information Report for purchase...

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LIQUID FUNDS : DON’T Let your MONEY sit IDLE

What are the liquid funds? Are you aware ? Well, the Indian Markets are flooded with the new schemes like mutual funds and other short term instruments to make the investment of the people lucrative and to boost the confidence of investor in the Indian Market. In the same way, the Liquid Funds emerged, which are basically a very short term schemes to earn the incomes. INTRODUCTION: Liquid funds Liquid Funds are the open-ended high liquidity income schemes that invest its money in debt and money market instruments with the maximum maturity period of about 91 Days. They are...

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