You are eligible to income tax refund if the amount of tax paid exceeds the actual tax liability for a previous year. This type of situation arises when you have paid advance tax during the financial year expecting a higher income or TDS has been deducted from your receipts even though you are not liable to tax . In case of salary employee, if your employer has deducted 1, … [Read more...] about How to get Income Tax Refund instantly
Income tax
All about TAN – Tax Deduction Account Number
TAN stands for Tax deduction Account Number. It’s a 10 digit alpha numeric number issued by income tax department. First 4 digits are alphabetic then followed by 5 numbers and one alphabet at the end. Each number issued by income tax department is unique. TAN has to be obtained by those peoples who are responsible for deducting tax at source from the payment or income paid by … [Read more...] about All about TAN – Tax Deduction Account Number
What Payer should do In Case Of TDS
If you are making any payment or credit which attracts TDS as per the provisions of income tax act then you must follow the followings steps to comply with income tax provisions; Get TAN TAN stands for Tax Deduction Account Number. Every individual responsible for deducting tax at source must obtain a TAN before such deduction. TAN is a ten digit alpha numeric number … [Read more...] about What Payer should do In Case Of TDS
TDS @20% if PAN is not quoted
You have to pay higher income tax at source with effective from 1st of April 2011 in cases where you have not given your PAN number to the payer. IT act has specified 22 items where the payer has to compulsorily deduct income tax from the income or payment that is paid to the payee. Every person receiving these amounts has to compulsorily furnish his/her permanent account … [Read more...] about TDS @20% if PAN is not quoted
What is TDS – When Should You Deduct Tax At Source
TDS stands for Tax Deduction at Source. As per the provisions of IT act, tax on income shall be payable by deduction at source (TDS) even though such income earned during the financial year is assessable subsequently in the relevant assessment year. Because of this provision, the person who is making payment of your salary, rent, interest etc will deduct income tax (TDS) at a … [Read more...] about What is TDS – When Should You Deduct Tax At Source
Actual Cost of Asset for Depreciation Calculation
For calculating depreciation, one of the criteria to be considered is the actual cost of the asset. If you have a block of asset and a new asset has been purchased then actual cost of such new asset has to be added to the block for the purpose of calculating depreciation. If the block to which this new asset belongs does not exist at the time of buying then in such cases … [Read more...] about Actual Cost of Asset for Depreciation Calculation
Income tax deduction for Expenses relating to building
You can use your own building for business or can get a rented building for the purpose of your businesses. In both the cases you can claim expenses related to the building if it is used for your business. Building taken on rent for business use Suppose you have taken a building on rent for your business purpose. In this case what are the expenses you can claim as an … [Read more...] about Income tax deduction for Expenses relating to building
Income tax depreciation – Section 32 of Income Tax Act
Depreciation is a positive decline in the real value of tangible assets due to consumption, wear and tear or obsolescence. It's used all over the world to write off an asset used for business purpose over its life time and charge it to the profits of the business as it is used there. Two methods of depreciation are used; Straight line method Written down value method … [Read more...] about Income tax depreciation – Section 32 of Income Tax Act
Deemed Owner in the case of Income from House Property
Section 27 of income tax act talks about deemed owner for the purpose of income from house property. Although you are not the owner of a building in real sense the rental income can be charged in your hand if its proved that you are the deemed owner of the building or land appurtenant there to. For income tax purpose a person in following cases will be treated as deemed … [Read more...] about Deemed Owner in the case of Income from House Property
How Income tax on fixed deposit is calculated
Fixed deposit in any bank offers you a good amount of return in the form of interest. If you are investing in any of the specified fixed deposit scheme for 5 years or more with a scheduled bank then the amount deposited during the financial year will be allowed as a tax deduction U/S 80C out of the total income for financial year in which such amount has been deposited. Now … [Read more...] about How Income tax on fixed deposit is calculated