Capital gain tax on house property arises only when you sale your building or house property to some one else for a consideration. If you have held this building for more than 3 years then you will be paying tax at the rate of 20.6% on such capital gain as it will be treated as long term capital gain (LTCG). If the building is held for less than 3 years then it will be … [Read more...] about Capital Gain Tax on Sale of your House Property in India
Income tax
Car expenses paid by employer to employee is taxable
Income tax liability on the employee’s car expenses are derived based on the purpose and ownership of the car. Followings are the provisions of income tax to calculate taxable amount of perquisite in the hands of employee. Car is owned by the employee and expenses are met by employer Where the car is owned by the employee and expenses are met by employer, we have to see … [Read more...] about Car expenses paid by employer to employee is taxable
How salary of MP, MLA and Judges are taxable in India
Any income can be taxed under the head salary only if there is an employer and employee relationship between the payee and payer. If such relationship does not exist then income will not be taxable under the head salary. Member of Parliament and MLA are elected by the public from their respective constituency. They are discharging their respective constituency functions, so … [Read more...] about How salary of MP, MLA and Judges are taxable in India
Form 12B – Furnishing salary details to the present employer
As per income tax rules, an employee has to submit his previous employment's salary details to the present employer if in between the financial year he has joined the company after leaving another company (i.e. former employer). Such salary details are to be submitted in form 12B to the present employer. Following details are to be presented in form 12B; Previous … [Read more...] about Form 12B – Furnishing salary details to the present employer
Requirements of Form 16 and 12BA in Income Tax
Form 16 is a TDS certificate issued by employer to the employee for the financial year with the details of tax deducted, tax deposited, Challan number, date of deposit, PAN of the employee and employer. Every employer at the time of payment of salaries to employee has to compulsorily deduct TDS at the average rate computed on the basis of estimated income of the employee. … [Read more...] about Requirements of Form 16 and 12BA in Income Tax
Salary received from more than one employer – Multiple form16
During the financial year, an assessee can be employed simultaneously under more than one employer or can change the employment during the financial year. In both cases, employee can furnish details of salary due or received by him to either of the employer of his choice. Such company after getting employee’s salary details has to compulsorily deduct TDS after considering … [Read more...] about Salary received from more than one employer – Multiple form16
Section 194B and Section 194BB – TDS on Winning from lottery or crossword puzzles or horse race
Section 194B deals with deduction of TDS in the case of winning from lottery or crossword puzzles and section 194BB is for TDS deduction in case of winning from horse races. Section 194B Under section 194B, any person responsible for paying any amount as winning from followings will attract Tax at Source and the payer has to deduct TDS at the rate of 30% if such amount is … [Read more...] about Section 194B and Section 194BB – TDS on Winning from lottery or crossword puzzles or horse race
Is Gift given to an employee by the employer taxable?
Gift to the employee by an employer is taxable under the head “salary” if it's value exceed Rs 5000 during the financial year. Under this provision gift of any kind is taxable under the head income from salary including voucher or token. Value of such gift in excess of Rs 5000 will be treated as perquisite and taxable in the hands of employee. While deducting tax (TDS) … [Read more...] about Is Gift given to an employee by the employer taxable?
Section 43B – Tax deductions based on actual payment
Section 43B of Income Tax act allows certain expenses on the basis of actual payment made within the stipulated time i.e. before the due date of filling income tax return. If such expenses are not paid within the due date then it will be allowed in the year of payment i.e. on the basis of actual payment. Section 43B will be applicable only if incomes are chargeable to tax … [Read more...] about Section 43B – Tax deductions based on actual payment
Section 193 – TDS from Interest on Securities
Section 193 is applicable to interest on certain specific securities from which TDS has to be deducted at the time of payment or credit to the books of accounts which ever is earlier. Transfer to any account like suspense account other than the party account will be considered as if such interest amount has been credited in the books of account. Any person who is responsible … [Read more...] about Section 193 – TDS from Interest on Securities