capital gain exemption : How to save capital gain legally

Capital gain exemption is one of the important points to go through while selling capital asset like land, building, plot etc. So instead of choosing way of tax evasion, Learn how to save capital gain legally. Capital gain exemptions available as per income tax act : Here is the summary table of exemptions: Section Capital gain On sale of New property  to claim exemption 54 Long term Residential house property House property 54EC Long term Any asset NHAI or REC bonds 54F Long term Asset other than residential house House property 54B Long term or short term Agricultural land...

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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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