Category: income tax

How tax deductions work : End of confusion

How tax deductions work : End of confusion

Posted by | Oct 5, 2015 | , |

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

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

Posted by | Sep 28, 2015 | |

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: TDS on transfer of immovable properties

Posted by | Sep 21, 2015 | , |

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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TDS on Service tax : No more confusion

TDS on Service tax : No more confusion

Posted by | Sep 3, 2015 | , |

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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CALCULATION of income tax , ITR Forms & DEDUCTIONS

CALCULATION of income tax , ITR Forms & DEDUCTIONS

Posted by | Aug 6, 2015 | |

Many taxpayers are worried about their taxes, refunds, filing of returns ( ITR forms) and the most important aspect is calculation of  income tax so that no future correction statements need to be filed with the Income Tax Department and one can avoid the extra consultancy charges to be paid to the outsiders. From this year, the Income Tax Department has made quite simpler the process of Filling of the Income Tax Return and simultaneously the calculation of the Correct Income Tax Payable/Refund. All the major aspects regarding the Income Tax Calculation & Income Tax Calculation have been discussed...

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