Form 60 or 61 can be submitted by a person in case he or she is entering into a transaction where quoting PAN is compulsory. Income tax act specifically mentioned certain transactions where PAN must be quoted. Form 60 has to be produced by a person who does not have PAN card but entering into any of the transaction specified below; … [Read more...] about Form 60 or 61- Income tax form to be submitted in place of PAN
Income tax
Section 44AA – Compulsory Maintenance of Books of Account under Income Tax Act
Section 44AA has made it compulsory for certain specified professionals to maintain books of account and other documents for income tax purpose. Followings are the provisions of section 44AA of Income tax act, 1961. Followings professions will be treated as specified profession for the purpose of section 44AA and they need to maintain their books of accounts and other … [Read more...] about Section 44AA – Compulsory Maintenance of Books of Account under Income Tax Act
Section 44AE – Presumptive taxation for businesses of plying, leasing or hiring trucks
To give relief to small assesses, government has come out with a simple scheme known as presumptive taxation scheme. Under Presumptive taxation scheme, persons engaged in business of plying, leasing or hiring of trucks are required follow the conditions as laid down in section 44AE of Income Tax Act 1961 to calculate their tax liability. To claim benefits of section 44AE … [Read more...] about Section 44AE – Presumptive taxation for businesses of plying, leasing or hiring trucks
Section 44AD – Presumptive basis of calculating business profit
Section 44AD has been inserted with effect from assessment year 2011-2012 into Income Tax Act . Any one fulfilling conditions that are laid down in section 44AD can calculate their business profit as 8% of the gross receipt or turnover. Who are eligible to take benefit of Section 44AD As specified in section 44AD of IT act, following persons will be eligible to calculate … [Read more...] about Section 44AD – Presumptive basis of calculating business profit
Income Tax Audit under section 44AB
Section 44AB required certain persons to get there accounts audited under IT act by a charted accountant in practice if the conditions as specified in section 44AB fulfills. Followings persons are required to carry on Income Tax Audit as specified under Section 44AB; A person carrying on business Under section 44AB, income tax audit will be compulsory for a person … [Read more...] about Income Tax Audit under section 44AB
All about your PAN Card
PAN stands for Permanent Account Number. It's issued by income tax department and treated as an important identity proof in India. Purpose of issuing Pan Card is to have a universal identification number which can be linked to financial transactions and indirectly prevent tax evasion by keeping track of your all high value transactions. Permanent Account Number A typical … [Read more...] about All about your PAN Card
Section 24 – Deduction from income from house property
Under section 24, tax deduction from annual value of house property is available while calculating income from house property. Only two types of tax deductions are allowed under section 24 of income tax act; Standard Deduction Interest on borrowed capital The list presented in section 24 is an exhaustive list and no other deductions are allowed from “income from house … [Read more...] about Section 24 – Deduction from income from house property
Gross Annual Value of your House Property – Income Chargeable Under the head income from house property
For the purpose of calculating the taxable amount of house rent, we have to first derive the gross annual value of the property. Gross Annual value will be derived as follows; Derive the expected rent for your house property To derive the expected rent of your house property you need to follow the following steps; Calculate the Municipal and Fair Value of the … [Read more...] about Gross Annual Value of your House Property – Income Chargeable Under the head income from house property
Income from House Property – Tax Calculation for your house rent
Rent received as a legal owner from your owned building is taxable under the head “house property”. If you have a land which is attached or situated in the vicinity of your building then rent received from such land will also become part of the building rent and will be taxable along with your rent income. If you have a vacant land or a plot and you have received rent out of … [Read more...] about Income from House Property – Tax Calculation for your house rent
Unrealised Rent in House Property Income
Unrealised rent is the portion of your house rent amount which is not realised from the tenant fro some reason. While deriving actual rent received or receivable for the purpose of calculating gross annual value, the unrealised rent has to be deducted from it. Unrelaised rent will be allowed to be excluded from the rent received only when following conditions are … [Read more...] about Unrealised Rent in House Property Income