Section 27 of income tax act talks about deemed owner for the purpose of income from house property. Although you are not the owner of a building in real sense the rental income can be charged in your hand if its proved that you are the deemed owner of the building or land appurtenant there to. For income tax purpose a person in following cases will be treated as deemed … [Read more...] about Deemed Owner in the case of Income from House Property
How Income tax on fixed deposit is calculated
Fixed deposit in any bank offers you a good amount of return in the form of interest. If you are investing in any of the specified fixed deposit scheme for 5 years or more with a scheduled bank then the amount deposited during the financial year will be allowed as a tax deduction U/S 80C out of the total income for financial year in which such amount has been deposited. Now … [Read more...] about How Income tax on fixed deposit is calculated
Form 60 or 61- Income tax form to be submitted in place of PAN
Form 60 or 61 can be submitted by a person in case he or she is entering into a transaction where quoting PAN is compulsory. Income tax act specifically mentioned certain transactions where PAN must be quoted. Form 60 has to be produced by a person who does not have PAN card but entering into any of the transaction specified below; … [Read more...] about Form 60 or 61- Income tax form to be submitted in place of PAN
Section 44AA – Compulsory Maintenance of Books of Account under Income Tax Act
Section 44AA has made it compulsory for certain specified professionals to maintain books of account and other documents for income tax purpose. Followings are the provisions of section 44AA of Income tax act, 1961. Followings professions will be treated as specified profession for the purpose of section 44AA and they need to maintain their books of accounts and other … [Read more...] about Section 44AA – Compulsory Maintenance of Books of Account under Income Tax Act
Section 44AE – Presumptive taxation for businesses of plying, leasing or hiring trucks
To give relief to small assesses, government has come out with a simple scheme known as presumptive taxation scheme. Under Presumptive taxation scheme, persons engaged in business of plying, leasing or hiring of trucks are required follow the conditions as laid down in section 44AE of Income Tax Act 1961 to calculate their tax liability. To claim benefits of section 44AE … [Read more...] about Section 44AE – Presumptive taxation for businesses of plying, leasing or hiring trucks
Section 44AD – Presumptive basis of calculating business profit
Section 44AD has been inserted with effect from assessment year 2011-2012 into Income Tax Act . Any one fulfilling conditions that are laid down in section 44AD can calculate their business profit as 8% of the gross receipt or turnover. Who are eligible to take benefit of Section 44AD As specified in section 44AD of IT act, following persons will be eligible to calculate … [Read more...] about Section 44AD – Presumptive basis of calculating business profit
Income Tax Audit under section 44AB
Section 44AB required certain persons to get there accounts audited under IT act by a charted accountant in practice if the conditions as specified in section 44AB fulfills. Followings persons are required to carry on Income Tax Audit as specified under Section 44AB; A person carrying on business Under section 44AB, income tax audit will be compulsory for a person … [Read more...] about Income Tax Audit under section 44AB
PPF – All About Public Provident Fund Account
Public Provident Fund or PPF scheme is an excellent tax saving investment option for individuals in India. A PPF Account can be opened either in a post office or in any authorized branches of a private or nationalized bank in India. A minimum amount of five hundred rupees is required to get started investing in PPF Account. PPF interest rate is a compound rate that is … [Read more...] about PPF – All About Public Provident Fund Account
All about your PAN Card
PAN stands for Permanent Account Number. It's issued by income tax department and treated as an important identity proof in India. Purpose of issuing Pan Card is to have a universal identification number which can be linked to financial transactions and indirectly prevent tax evasion by keeping track of your all high value transactions. Permanent Account Number A typical … [Read more...] about All about your PAN Card
Wholly owned Subsidiary company Formation in India
Wholly owned subsidiary is a company in which another company holds 100% share. The company which holds 100% share is called parent company. An organization will become a subsidiary of another when that other organization holds 51 to 99.99% share in it. When that shareholding becomes 100% it will be called as a wholly owned subsidiary company or organization. Example: if “A … [Read more...] about Wholly owned Subsidiary company Formation in India