Tag: income tax

Set off and carry forward of Losses: The ultimate Guide

Set off of losses means adjustment of losses against income earned for the financial year and carry forward of losses means any unadjusted losses for one financial year adjusted against income of subsequent financial year. There are in all 5 heads of income under the Income Tax Act viz., 1.Income from salaries 2.Income from house property 3.Income from business or profession 4.Income from capital gains and 5.Income from other sources. The Income Tax Act has prescribed rules to set-off losses against income from different source under one head of income and also to adjust loss from one head against...

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How to save taxes by Gifting or spending money for Family

How to save taxes ? Well most of us look into alternate ways to save the amount of tax we pay to the government. We search through exemptions and rebates. But have you ever thought your family members can help you in saving taxes. Yes there are certain exemptions in tax rules through which you can gain exemption over the money you spend for them. However there are rules and regulations governing them so make sure you read through it with attention.   HOW to SAVE TAXES by Gifting Or Spending money for your Family Members   Pay rent...

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TDS on Professional Fees u/s 194J : 7 IMP points you should know

TDS u/s 194J is applicable while making payment for professional or technical fees. In this article, we will understand who should deduct TDS u/s 194J, threshold limit for  deduction  TDS u/s 194J, rate of TDS u/s 194J, effects of non deduction of TDS.   TDS on professional fees/ technical fees u/s 194J:   Professional fees/technical fees meaning: Professional service means legal service, medical service, engineering, architectural service, accounting service, technical consultancy, interior decoration service, advertising service or such other profession notified by the Board for the purposes of section 44AA. Royalty is also covered under section 194J. Royalty means...

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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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CALCULATION of income tax , ITR Forms & DEDUCTIONS

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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