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
Income tax
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
Joining bonus – Income tax liability for receiving joining bonus
Joining bonus is an amount paid to a new employee by a company as an incentive to join them. Normally employer pays a lump sum amount at the time of joining to lure experienced peoples from the competition. According to income tax act, joining bonus will be treated as profit in lieu of salary and will be taxable in the hands of the employee who receive it. When you receive … [Read more...] about Joining bonus – Income tax liability for receiving joining bonus
Income Tax Liability On Your Education Allowance
Any education allowance you received for your children will be exempted to the extent of following; Rs. 100 per month per child up to a maximum of 2 children to meet the cost of education and Rs. 300 per month per child up to a maximum of 2 children as hostel expenditure. If you have twins after the first child then you will be eligible for all of your three children … [Read more...] about Income Tax Liability On Your Education Allowance
What is profit in lieu of Salary – Section 17(3) of Income Tax Act
Any payment received or due in addition to your salary or wages from your employer is called profit in lieu of salary. Section 17 (3) of income tax act defines profit in lieu of salary as follows; "Profits in lieu of salary" includes— (i) the amount of any compensation due to or received by an assessee from his employer or former employer at or in connection with the … [Read more...] about What is profit in lieu of Salary – Section 17(3) of Income Tax Act
VRS (Voluntary Retirement Scheme) – exemption from income tax
Voluntary retirement scheme (VRS) is an early retirement option given by the employer to its eligible employee by compensating them for taking a early retirement. Most of the public sector banks, PSU and private companies opted for voluntary retirement scheme (VRS) in past to restructure there organization. Voluntary retirement scheme (VRS) is also accepted by trade union as … [Read more...] about VRS (Voluntary Retirement Scheme) – exemption from income tax
Leave Travel Allowance (LTA) Exemption under Income tax Act
Leave travel allowance or LTA is an allowance received by an employee from his employer to travel any likable place according to his choice. LTA can be obtained every year from the employer but the exemption can be claimed two times in a block of 4 years. The recent block of 2010-2013 for leave travel allowance will be over on 31st December 2013. If for any reason you are … [Read more...] about Leave Travel Allowance (LTA) Exemption under Income tax Act
No Need to file Income tax return if you have only Salary Income up to Rs. 5, 00,000
If your earning is up to Rs, 5, 00,000 during the financial year then you may not require filing your income tax return. From the financial year ending 31st march 2012, if an individual’s total income does not exceed Rs. 5, 00,000 and consists of only salary and/or interest from a bank saving account not exceeding Rs. 10, 000 then he is exempted from filling his IT return. … [Read more...] about No Need to file Income tax return if you have only Salary Income up to Rs. 5, 00,000
Income Tax Provisions On Pension
Pension is a monthly payment made by the employer after the retirement or death of the employee as a reward of past services. Its always taxable under the head income from salaries. Income tax act provides exemption if the employee has opted for commutation. Therefore, employees getting commuted pension can avail exemption benefits while paying tax. What is commuted pension It … [Read more...] about Income Tax Provisions On Pension
Gratuity – Section 10(10) of Income tax act
Gratuity is a payment made by the employer in appreciation of past services of employee. It can be paid at the time of retirement or resignation or termination of employee from his employment. Income tax act provides exemption for the amount an employee receives as gratuity from his employer. After this exemption the rest will be taxable in the hand of employee under the head … [Read more...] about Gratuity – Section 10(10) of Income tax act