Do you know that you can avoid income tax on sale of residential house property? Income tax act has specified section 54 that deals with capital gain arises on sale of property. It states conditions under which a taxpayer can claim exemption of capital gain. In a simple term section 54 spell out that, capital …
Income tax return (ITR) for the financial year 2021-22 i.e assessment year 2022-23 are open. Income tax department has issued offline utility of filing ITRs. ITR1 is one of the form uses for filing information of income by the salaried/employees. Form ITR 1 is a simple form which you can fill it by yourself, provided …
Income tax Act requires that before leaving India a person should pay all taxes on the income earned in India by means of business, Profession, and employment. Section 230 of the Income Tax Act specifically requires the person to get a tax clearance certificate from the income tax officer before leaving India. Earlier Section 230 …
Every year finance minister comes with the income tax rate that are applicable for the relevant assessment year. Income tax rate are part of the finance act. Finance act contains different rates applicable on taxpayer each year. These rates may be constant, or it may be changed as per the industrial and economical requirement. When …
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Every employer responsible for paying any sum chargeable under the head ‘Salaries’ is liable to deduct tax at source (TDS) at the rate applicable in the financial year in which payment to employee is made. TDS is to be deducted every month on estimated salary. Employer is not required to deduct TDS unless the estimated …
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The word ‘business’ connotes some real, substantive and systematic or organized course of activity or conduct with a set purpose. In general, it is an activity of buying and selling goods, or providing services in order to make profit. Under the income tax law ‘business’ is defined in an another way. Section 2(13) of the …
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Interest on home loan taken to acquire or construct the property often confuses the taxpayer about its tax treatment. Salaried or Business class person generally take home loan when property is acquired and constructed. For the initial period huge interest is paid in comparison to principal amount of home loan, hence it becomes important to …
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If you are using house property for own residential purpose or business purpose, then this article will definitely help you in determining taxable income under the head ‘’Income from House Property’’. It is generally presumed that self-occupied property is not an income generating property hence no income tax liability will arise, but statement is not …
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Taxpayers often get confused about the maintenance of books of accounts and the period for which books are maintained and as a result they non-comply the income tax provisions. To understand the provisions, one need to first get an idea about books of accounts and Specified profession, and non-specified profession and business. Books of accounts: …
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What is House property income is a question that taxpayer wants while filing his income tax return. It has been seen that taxpayers often get confused that what income should be included under the head of ‘’Income from House Property’’. Under the income tax act 1961 the owner of the house property is taxed on …
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