A person of Indian origin or citizen living outside India will be treated as Non Resident Indian or NRI if they satisfy the conditions of becoming a non resident. The concept of non resident depends on number of days the person stays in India. A person will be treated as resident if he is in India for a period more than 182 days during the financial year starting from 1st of … [Read more...] about Who is a Non Resident Indian or NRI as per income tax act?
Income tax
Bonus – How employee bonus are taxed in india
Over and above the normal compensation, an employee gets performance bonus based on his performance on a job during the financial year. It’s an excellent way to reward employees and motivate them to do more than the bare minimum. These bonuses can have many components like it can be based on employee’s performance or industry performance or team performance. It can be a … [Read more...] about Bonus – How employee bonus are taxed in india
Penalty on Employer For Not Depositing TDS
Employers are required to deduct income tax at source (TDS) from employees and deposit it with IT department on or before 7th of the next month following the month for which TDS has been deducted. For the month of march it has to be deposited before 30th April. If you are liable to tax as per the provisions of IT act then it is the responsibility of the employer to deduct … [Read more...] about Penalty on Employer For Not Depositing TDS
Contract Employees – Income tax provisions for contract employees
Most of the Companies in India have already started hiring most of their employees on contract. Contract employee is an individual engaged in business to provide specific services based on the contract signed. These peoples are engaged for a particular time period after which their contract requires renewal. Such contact employees are not liable to get all the benefits that … [Read more...] about Contract Employees – Income tax provisions for contract employees
Basic Exemption Limit in Income Tax
Basic exemption limit is an amount applicable to a financial year up to which an individual will not be liable to pay income tax. Income in excess of this limit will be liable to tax at the rate that is applicable to the financial year in which such incomes are incurred. Basic exemption limit is considered on the total income that is arrived after deducting Income Tax … [Read more...] about Basic Exemption Limit in Income Tax
How to recover income tax efilling password
Sometime it happens that we forget our log-in ID and password of our email account or internet banking. To recover these passwords depends on your email provider or banking company’s policy but how about resetting password of online tax e-filling account. A normal tax payer uses his e-filling account only once in a year to e-file his tax return which increases the chances of … [Read more...] about How to recover income tax efilling password
Employer has not issued Form 16 or refuses to issue it
Employer after deducting income tax from employee’s salary should issue a certificate disclosing all the details of tax deducted with Challan number and date of deposits. As per the tax provisions this certificate has to be issued before 31st May of the assessment year i.e. for the financial year 2013-2014 form 16 has to be issued on or before 31st may 2014. In case employee … [Read more...] about Employer has not issued Form 16 or refuses to issue it
Tax deductions for your HRA and Home loan
Most of the employees in India either buy apartments or build their own house with a home loan during their employment. Home loans have two components, interest and principal amount which are allowed as income tax deduction up to an extent as provided in the IT act. HRA forms part of your taxable salary which your employer gives you to take care of your living expenses at … [Read more...] about Tax deductions for your HRA and Home loan
HRA Exemption can be claimed on rent paid to wife
Relationship between husband and wife is not commercial and based on this concept it was a settled rule that rent paid to wife can not be claimed as a HRA or House Rent Allowance exemption. As per the income tax act, employee can not claim HRA or House Rent Allowance exemption if he is the owner of such accommodation or he is not paying any rent for the rented … [Read more...] about HRA Exemption can be claimed on rent paid to wife
Section 192 – TDS on salary
Employers including an individual or HUF who are responsible for paying any salary to any of their employee has to compulsorily deduct TDS from salary paid, if such salary amount is exceeding the basic exemption limit applicable to the financial year. As per section 192 of income tax act, TDS on salary has to be deducted at the time of payment to employee. TDS will not be … [Read more...] about Section 192 – TDS on salary