Income tax

NRI having income during the financial year from any Indian source will be liable to tax. Any income which is incurred outside and received in India will also be taxable in India. Incomes like salary for services rendered in India, sale of any capital asset are liable to tax even though the individual is a non resident Indian. … [Read more...] about How a Non resident Indian is taxable in India

Individuals like employee, self employed persons are required to file their tax return on or before the due date of filling tax return. Such returns are required to be filled either online or in paper format with the IT department as prescribed in the IT act. Sometime CBDT use to extend the due date based on number of factors. If such due dates are extended then IT return has … [Read more...] about Due date and income tax filling for an individual

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?

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

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

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 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

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

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