Medical expenses incurred by an individual is eligible for various income tax deductions under different sections of Income Tax Act, 1961. One of such section is called section 80DD. Medical expenses for treatment of a dependent who is a person with disability is eligible for income tax deduction under section 80DD if it meets all the conditions as specified in this section … [Read more...] about Section 80DD – Tax Benefits On Medical Treatment of Handicapped Dependent
Section 80TTA – Income Tax benefits for Interest on Deposit in Saving Account
A new section 80TTA has been inserted with effect from assessment year 2013-2014. Section 80TTA provides a deduction of up to Rs 10, 000 in aggregate to an individual or a Hindu undivided family in respect of any income by way of interest received on deposit (not being time deposits) in a savings account of banks, cooperative banks and post office. Tax deduction under … [Read more...] about Section 80TTA – Income Tax benefits for Interest on Deposit in Saving Account
Life Insurance Premium – Income Tax Deduction u/s 80C of Income Tax Act
Many people in India invest in a Life insurance with a view to save tax as the policy holder can claim up a maximum of Rs. 1, 00,000 as tax deduction from his taxable income under section 80C of Income tax act, 1961. Deduction for life insurance is applicable only when the policy holder has paid or deposited the premium during the previous year for which he is claiming the … [Read more...] about Life Insurance Premium – Income Tax Deduction u/s 80C of Income Tax Act
Tax eligibility in the case of insurance premium paid for Parents
Income Tax Deduction for life insurance premium is available under section 80C of IT Act, 1961. Under this section premium paid to ensure your life, life of your spouse and any of your child is eligible for income tax deduction up to a maximum of Rs. 1, 00, 000. As no specific deduction is available for parents under section 80C, the taxpayer will not be eligible for income … [Read more...] about Tax eligibility in the case of insurance premium paid for Parents
Is Your Salary Allowance Taxable in India
Allowance is money that you get from your employer for meeting some particular expenses such as transport, HRA. All these allowances are taxable unless it is specifically exempted under income tax act. There are two types of allowance as defined under income tax act; House Rent Allowance Prescribed Allowance House rent allowances are exempted from income tax based on … [Read more...] about Is Your Salary Allowance Taxable in India
How to deduct correct TDS from salary and non salaries items
Income Tax Act directs specified persons to deduct tax from payments which has been specifically required to deduct income tax at the rates specified there in. Different rates are specified for different type of payments to deduct TDS. TDS from salary is deducted by an employer from the salary of employee and deposited in the central government account against the PAN of the … [Read more...] about How to deduct correct TDS from salary and non salaries items
How salary is defined under Income Tax Act
The term salary is defined under section 17 (1) of the income tax act to include following items as salary; Wages Any annuity or pension Any gratuity Any fee, commission, perquisite or profit in lieu of salary or in addition to any salary or wages Any advance of salary Any payment received by an employee in respect of any period of leave not availed by him The … [Read more...] about How salary is defined under Income Tax Act
Debunking 5 common income tax return efiling Myths
Efiling of your income tax return has become mandatory if your taxable income generated during the financial year 2012-2013 has crossed Rs. 5, 00,000. Earlier to this the limit was Rs. 10, 00,000. By doing this change central board of direct taxes has widened the scope of e filing of IT return. Due to this change a salaried person having taxable income of more than Rs. 5, … [Read more...] about Debunking 5 common income tax return efiling Myths
How To Withdraw Employees Provident Fund (EPF) Amount In India
Contribution to Employees Provident Fund or EPF can be withdrawn when an employee retired or ends his job in the current organization. Employee can claim accumulate balance from his or her employee provident fund or EPF account till the date of his retirement or end of their job. If you are joining some other company then the present EPF balance can be transferred to your … [Read more...] about How To Withdraw Employees Provident Fund (EPF) Amount In India
How Taxable Income Is Derived In Income tax
All incomes according to IT act have been divided into 5 major heads to get it taxed in India. If it is falling under any one of these 5 heads then that will be taxable under that head and can not be taxed under any other head. Tax is charged on the total income that is generated during the financial year (previous year) starting from 1st of April to 31st March. Income … [Read more...] about How Taxable Income Is Derived In Income tax