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
Income tax
Understanding TDS Deduction Under Section 192 from Salary
Tax Deducted at Source (TDS) is a system introduced by the Indian government to collect taxes at the source of income. Under Section 192 of the Income Tax Act, TDS is deducted by an employer from the salary of an employee. This system ensures that employees pay taxes in a timely manner and helps the government maintain a steady flow of revenue. In this article, we will … [Read more...] about Understanding TDS Deduction Under Section 192 from Salary
Interest free or concessional loan is taxable in India
Many companies in India are providing interest free or concessional loan to their employees or to the members of employee’s household for purchase of various assets like computer, vehicle etc or for various household expenses like medical, Marriage or education. As per the provisions of income tax act and rules these amounts as incurred by employer for the benefit of … [Read more...] about Interest free or concessional loan is taxable in India
How tax can be deducted at a lower rate from salary
Employees are liable to tax only if their gross salary after all exemptions and tax deductions are exceeding the basic exemption limit of tax. For the financial year ending 31st march 2017 and 31st march 2018, basic exemption limit for the purpose of income tax is Rs. 2,50,000 for an assessee who is below 60 years of age. Recommended Read: Income tax slab rated for … [Read more...] about How tax can be deducted at a lower rate from salary
How sole proprietorship businesses are taxed in India
There is no magic rule that says corporate form of business will save you more tax in comparison to proprietorship. Tax can be saved through proper tax planning. Sole proprietorship are small and independent service providers or resellers who work for themselves in their own business. It’s a business owned by a single individual. In this article, we will discuss how a sole … [Read more...] about How sole proprietorship businesses are taxed in India
Holiday packages for employees are taxable
Holiday availed by a employee or any member of the household of employee’s are taxable to the extent of such expenditures that are reimbursed by the employer. Holiday expenses includes traveling, touring and stay expenses.Its taxable in the hand of employee. Any amount reimbursed by the employer as leave travel allowance will not be covered in this case i.e. LTA or LTC … [Read more...] about Holiday packages for employees are taxable
Losses and other incomes that can be disclosed to employer for TDS
As per section 192 of income tax act, an employee may furnish particulars of other incomes to employer that he has incurred during the financial year. While disclosing, employee can also disclose income tax that has already been deducted from such other incomes. After employee’s declaration, employer will consider other incomes and Tax deducted at source from it while … [Read more...] about Losses and other incomes that can be disclosed to employer for TDS
More than one PAN will attract penalty of Rs.10000
PAN is an alphanumeric 10 digit number which is used in all communication to income tax department. As per the provisions of income tax act, one tax payer can not possess more than one PAN. This does not mean that you can not apply for a PAN card if it’s lost. What we are talking about is one individual or company or firm can not possess more than one number. One number should … [Read more...] about More than one PAN will attract penalty of Rs.10000
How to Apply for a Duplicate PAN Card
PAN card is an essential document for all purpose. Now a days its not only required for income tax purpose but for all financial transactions and identity proof PAN card is required. You should not be tensed or restless by losing your PAN card as your can get issued a duplicate one from income tax department. Obtaining a duplicate PAN card is a very simple process. To get a … [Read more...] about How to Apply for a Duplicate PAN Card
Landlord’s PAN details required for HRA exemption – Mandatory Provision
PAN of Landlord is a must if your total annual rent paid exceeds Rs. one Lakhs during the financial year. If rent is equal or less than one lakh rupees then you need not provide PAN details of your landlord to your employer. As per recent notification issued by CBDT, to claim HRA exemption employees are required to compulsorily provide PAN details of their landlord if they … [Read more...] about Landlord’s PAN details required for HRA exemption – Mandatory Provision