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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TDS on Service tax : No more confusion

No TDS on service tax on payments made/ due to resident payee if service tax component is indicated separately in the agreement/ contract. Supporting decision about NO TDS on service tax : In the recent verdict of the Hon’bleRajasthan High Court, the Commissioner of Income Tax (TDS), Jaipur Vs. M/s. Rajasthan UrbanInfrastructure held that if the terms and conditions of the agreementbetween the payer and the payee has already been agreed for, the amount of service tax will be paid separately and not to be included in the fees forprofessional services or technical services, than no TDS isrequired to...

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