Income tax deductions are in section 80C to Section 80U of income tax act. Each of these sections provides different tax deductions from your taxable income. But, these tax deductions are not applicable to every one. There are certain tax deductions which are applicable to individuals and certain tax deductions are nor. Below is a list of those tax deductions which are … [Read more...] about Income Tax Deduction applicable to a Salary Individual
Income tax
What is Income Tax?
Its an annual tax charged on your annual financial income by Central Government at the rates that are applicable for your financial year ending 31st march. IT Rates are specified in the Finance Act. Finance act is passed in the budget session of our parliament every year. Every year, budget has to be presented and passed in both the houses of parliament to get the new IT … [Read more...] about What is Income Tax?
Tax provisions related to your minor child
Minor’s income will get clubbed in the hand of either of parents whose income is higher before clubbing provision is applied. If such minor generates it because of his skills, talent or specialized knowledge and experience then it will not be clubbed in the hands of parent. IT act also states, if the minor is suffering from any disability and such disability is specified in … [Read more...] about Tax provisions related to your minor child
Income Tax Rate for Last 15 years – for Individual, HUF, AOP and BOI
Income tax rate is a percentage specified in the finance bill as a rate to be charged on the taxable income of financial year to which the finance bill is relevant. For different assessee different rates are been specified and accordingly they are charged to income tax. Following lists are specified for individual (like salaried person, self employed person or any other … [Read more...] about Income Tax Rate for Last 15 years – for Individual, HUF, AOP and BOI
What is Professional Tax – IT Provisions for PT
Professional Tax or PT is state based. Different states have different rates and methods of calculation. Any one having income from Salary or practicing chartered accountants, lawyers, doctors etc are required to pay it to their respective state government as per the rules and regulations framed by them. It is also called employment tax and allowed as a deduction from the … [Read more...] about What is Professional Tax – IT Provisions for PT
Specified Diseases and Ailments for the purpose of Deduction U/S 80DDB – Rule 11DD
Here is the text of rule 11DD Which mentioned specified diseases and ailments for the purpose of deduction under section 80DDB. (1) For the purposes of section 80DDB, the following shall be the eligible diseases or ailments : (i)Neurological Diseases where the disability level has been certified to be of 40% and above,—(a)Dementia ;(b)Dystonia Musculorum Deformans … [Read more...] about Specified Diseases and Ailments for the purpose of Deduction U/S 80DDB – Rule 11DD
Loss from House Property Reduces your Taxable Income
As per Section 71 of IT Act, 1961 a loss from house property can be set off against your other income generated during the financial year. If the net result of your income under the head house property is a loss then such loss can be set off against your other income of the same financial year in which you have generated such loss. If such loss is not completely set off then … [Read more...] about Loss from House Property Reduces your Taxable Income
All About Section 80C – Income tax Deduction
Section 80C has been inserted with effect from assessment year 2006 – 07 onwards to provide income tax deduction in respect of specified qualifying amounts paid and deposited by the tax payer during the financial year (previous year). Who is eligible for Income Deduction under section 80C IT Deduction under section 80C is available to; An individual or a Hindu … [Read more...] about All About Section 80C – Income tax Deduction
How your minor Childs income is taxable in India – Section 64 (1A) of IT Act, 1961
Income of a minor child is clubbed in the hands of parent. However, if it arise from manual work or from any activity involving his talent or specialized knowledge and experience and such amount generated by a minor child who is suffering from any disability of the nature specified in section 80U then it will not be included in the hands of his parents. If income of minor … [Read more...] about How your minor Childs income is taxable in India – Section 64 (1A) of IT Act, 1961
What is Clubbing in Income tax – Section 64 of IT Act
Taxpayers having huge taxable income are sifting a portion of their income it another persons who have lower taxable income to reduce tax liability. This practice is achieved either by transferring profit generating assets or by sifting revenue generating capacity to certain family members. To tackle this type of issues, IT department has clubbing provisions from section 60 to … [Read more...] about What is Clubbing in Income tax – Section 64 of IT Act