Income tax

To understand whether salary paid abroad is taxable in India or abroad, we have to understand the place of accrual of salary. As per our tax laws, the place of accrual of salary is the place of employment. Section 9(1)(ii) states that salary earned for services rendered in India is deemed to accrue or arise in India even if it's paid outside India. Similarly pension paid … [Read more...] about When salary paid abroad is taxable in India-Explained with few exceptions

Composite rent means the house owner charges rent to the tenant for renting the house property and also on account of services provided by the landlord for various facilities such as lift, gas, water, electricity, watch and ward, air conditioning etc. In such a case, composite rent has to be split up to following two components; Rent for the portion attributable to the … [Read more...] about How composite rent is taxable under the head house property

Few employers in India offer interest free loans to their employees as a benefit for working with them. Few other employers are offering low interest rates in comparison to the market rate. As per our tax laws, the value of the benefit resulting from concessional or interest free loan provided by the employer to the employee during the relevant previous year shall be considered … [Read more...] about Why interest free loan to employees is not tax free?

Any amount paid or payable by the employer whether directly or through a fund other than a recognized provident fund or an approved superannuation fund or deposit linked insurance fund to effect an insurance on the life of the assessee or to effect a contract for an annuity is treated as taxable perquisite in the hands of the employee. Therefore, the value of the perquisite … [Read more...] about When life insurance premium paid by employer is taxable

Value of benefit resulting from the use of any movable assets owned or hired by the employer shall be considered as perquisite if used by employees for any purpose other than official. Value of perquisite shall be determined based on the type of assets used by the employee. Value has to be determined as follows: For use of laptops and computers - NilFor assets other than … [Read more...] about When movable assets given by employer is taxable

Form 16 issued by employer is referred to as a Salary TDS certificate in which employer certify the total amount of tax that has been deducted out of employee's income and deposited against employee's permanent account number (PAN) for the whole previous year. If employer has issued form 16 for the financail year 2021-22, then it should have details of tax deducted out … [Read more...] about Salary TDS certificate Form 16 – All you need to know

Before getting into when salary is chargeable to income tax, you first need to understand whether your income is taxable under the head salaries or under some other head of income. For instance, if you are hired by a software company as a contractor, amount incurred by you from the software company will not be taxable under the head salary as the money paid to you is not due … [Read more...] about When salary income is taxable in India

Before finding which Income Tax Return (ITR) form a salaried individual should file with the government, you must know whether you are liable to file your tax return or not. As per the present tax laws, every individual  whose total income before allowing deductions under Chapter VI-A, exceeds the maximum amount which is not chargeable to tax is obligated to furnish return of … [Read more...] about Which Tax Form (ITR) salaried individuals should file for FY 2021-22

Form 16 is known as a salary TDS certificate. It's issued by the employer to an employee for the whole financial year showing all the taxes deducted from salary and deposited with the government. Form 16 is the first and most important document that every salaried individual required to file an income tax return. It’s mandatory for the employer to issue Form 16 to the … [Read more...] about How to file income tax return without form 16