• Oct
  • 26
  • 2014

Various Threshold Limits under the Income Tax Act [AY 2015-16]

Added In Income Tax
 In Respect of exemptions, deduction etc Income Tax imposes various threshold limit.  Like in respsect of Tax Rates or in respect of deduction under section 80C, 80D, 80U etc.  Some of the Popular Limits are Tax Rates , Conveyance Allowance, HRA, Home Loan Interest, Deduction Under Section 80C, Leave Encashment, Gratuity, Medical Reimbursement etc. Income […]

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  • Oct
  • 26
  • 2014

Tax Treatment of Income from Different Sources

Added In Income Tax
Any income which is not chargeable to tax under any other heads of income and which is not to be excluded from the total income shall be chargeable to tax as residuary income under the head Income from Other Sources.

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  • Oct
  • 26
  • 2014

In case of disclosure of material facts of during original assessment proceeding, AO cannot issue re-assessment notice u/s 148 of the Act to find nature of same

  It is a settled position in law that for reassessment proceedings beyond the period of four years from the end of the relevant assessment year, it is an essential condition that the income chargeable to tax which has allegedly escaped assessment must be occasioned, inter alia, by reason of the failure on the part […]

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  • Oct
  • 26
  • 2014

S. 80IC Assembling of Tools & Machinery for final product is equal to manufacturing process

The respondent-assessee was engaged in the business of manufacture of health care and surgical items and in the returns filed for Assessment Years 2006-07, 2008-09 and 2009-10 had declared taxable income of Rs.26,25,230/-, Rs.94,90,363/- and Rs.32,18,350/- respectively. The deduction claimed under Section 80-IC of the Act was to the tune of Rs.42,90,162/-, Rs.35,69,594/- and Rs.2,46,13,965/- […]

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  • Oct
  • 25
  • 2014

Penalty u/s 271(1)(c) should not be levied on the amount which was voluntarily surrendered by the assessee during survey

Added In Income Tax
It is evident from the record that surrender was made during the course of survey by the assessee and furnished the return of income declaring additional income and paid the tax thereon. Nothing has been brought out on record by the Assessing Officer that the surrender was made when the assessee was cornered by the Assessing Officer.

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  • Oct
  • 25
  • 2014

Expenses incurred between the dates of commencement of business to setting up of business are allowable

Some of the relevant facts are, the assessee company was incorporated on September 19, 2007 under the Companies Act, 1956, to carry on trading activities which primarily included wholesale trading of all kinds of consumer goods durables, articles and products. The year 2008-09 was the first year of assessment. The assessee company filed an E-Return […]

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  • Oct
  • 25
  • 2014

Penalty u/s 271C cannot be levied where assessee was under bonafide belief that TDS is not deductible

Added In Income Tax
It is clear that the assessee may be under the bonafide belief that TDS is not liable to be deducted on payments made to non-banking financial institution. Section 273B of the Income Tax Act provides that no penalty under section 271C shall be imposable on the person or the assessee as the case may be, for any failure referred to in the said provisions, if he proves that there was reasonable cause for the said failure.

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  • Oct
  • 25
  • 2014

Section wise details of Deduction Under Income Tax Act,1961

Added In Income Tax
In this article we have discussed deduction available to Taxpayers from various sources of Income for A.Y. 2014-15 and A.Y. 2015-16. Deductions include deduction Against Salaries, Against ‘income from house properties’, Against ‘profits and gains of business or profession’ Against ‘capital gains’ and Against ‘income from other sources’.

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  • Oct
  • 25
  • 2014

Allowances / Exemptions available to different categories of Tax Payers

Added In Income Tax
Taxpayers are normally aware of deduction under the Income Tax Act,1961 for which they are eligible but it is noticed that taxpayers are found unaware of Taxability of Various Allowances and exemptions available to them under different sources of Income i.e. Salary , Business Income, House property other sources etc.

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  • Oct
  • 25
  • 2014

Capital Gain – All you want to know

Added In Income Tax
Computation of capital gain depends upon the nature of the capital asset transferred during the previous year, vis-à-vis, short-term capital asset, long-term capital asset or depreciable asset. Capital gain arising on transfer of short-term capital asset or depreciable asset is considered as short-term capital gain, whereas transfer of long-term capital asset gives rise to long-term capital gain.

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