892021total sites visits.

      New Income Declaration Scheme (IDS): Pradhan Mantri Garib Kalyan Yojana 2016

      Wednesday, November 30th, 2016 Amritesh no responses

      Post Demonetization, Government has realized it needs to do more in terms of tax reform to eradicate the influx of Black Money in the economy. The new amendment bill introduced in the Parliament is aimed at plugging the loopholes in the Income Tax Act which may be exploited by the illicit money holders. However, the Government has once again given an option to the concerned individuals to disclose their undeclared income. The ones voluntarily disclosing their undeclared wealth will be taxed/penalized the least while steep tax and penalty will be levied on the rest. The disclosure scheme has been named as Garib Kalyan Yojana 2016 which is an amendment to existing Income Tax Act, levies tax and penalties U/S 115BBE…

      Goods and Services Tax (GST): All About GST

      Sunday, November 6th, 2016 Amritesh no responses

      Goods and Services Tax (GST) is the most awaited indirect tax reforms in India. It is aimed at removing various points of tax levy which has a cascading effect and would simplify the tax barriers. Indirect Taxes are imposed by the Central Government as well as the State Government. The current setup has number of tax barriers which is confusing for the layman to decode. GST is the much needed tax reform which will simplify the Indirect Tax regime. India has been trying to replace the prevalent tax regime as we are liberalized economy and tax barriers act as a hindrance to the growth of the economy.  GST will impact the entire gamut of Business Activity and smoothens the process…

      Income from Other Sources: Inclusions and Tax Implications

      Sunday, October 2nd, 2016 Amritesh no responses

        “Income from Other Sources” is any income which is not taxable under any other “Heads of Income”. Any income which does not specifically come under Income from Salary, Income Business or Profession, Income from House Property or Income from Capital Gain, will be taxed under “Income from Other Sources.   Income from House Property: Tax Implications   Income from Salaries: Tax Implications   Following Incomes are taxed under “Income from Other Sources”:   Dividends received from non Indian entities is chargeable to Tax. Dividend received from Domestic company is exempt from tax if it chargeable to dividend distribution tax U/S 115-O. But as per the Finance Act,2016, Dividend in excess of Rs 10,00,000 received by any individual/HUF/Firm is chargeable…

      Income from House Property: Tax Implications

      Wednesday, September 28th, 2016 Amritesh 2 responses

        Any Income earned in form of rent through a property like land, house, apartment, building, etc by the owner is chargeable to tax under “Income from House Property”. Income earned from such properties cannot be included under any other “heads” of Income. Income from Salaries: Tax Implications Income from Other Sources: Tax Implications   Types of Income falling under the heads “Income from House Property”   Income earned in form of rent by the owner is only chargeable to tax under the head “Income from House Property”. It includes any rental income arising out of land/building being let out for residence or shop, commercial purpose of which the tax payer is the legal owner.   Income not considered under…

      Applicability of Tax on Retirement Benefits

      Sunday, September 4th, 2016 Amritesh no responses

      Employees receive monetary benefits at the time of retirement. Such benefits are taxable under the head, “Salaries” as it is profits paid in lieu of salary. Certain tax exemption wholly or partially is also granted on such benefits under the Income Tax Act, 1961. Tax exemption is available U/S 10 of the Income Tax Act. The exemption granted may be wholly or partially depending on the nature of benefit. These tax exemptions are provided on retirement benefits to reduce the financial burden. Furthermore, these financial benefits are for Individuals to sustain themselves and lead a comfortable life when they are no longer employed.   Employees’ Provident Fund (EPF)   Employees’ Provident Fund (EPF) is the lumpsum benefit paid to the…

      Income from Salaries: Tax Implications

      Sunday, August 28th, 2016 Amritesh 2 responses

      “Salary” is any remuneration paid by an employer to the employee in lieu of the service provided by him/her. Salary may include monetary and non monetary benefits which are taxable as per the Income Tax Act. Any payment made by the employer to employee in lieu of service is chargeable to tax. Salary has a much wider meaning for taxation purpose than it is normally understood.  Salary includes; Wages Fees, Commission, Perquisites or Profits in Lieu of Salary Advance Salary Leave Encashment Fund transferred from Unrecognized Provident Fund to Recognized Provident Fund Compensation due to variation in Service Contract Contribution to Recognized Provident Fund in excess of prescribed limit by the respective employer. Contribution to Notified Pension Scheme by the…

      Heads of Income for Tax Computation

      Sunday, July 31st, 2016 Amritesh one response

        The various Sources of Income which is taxable under the Income Tax Act has been discussed below. This is a brief of the various Income Heads which are chargeable to tax, details pertaining to the each head will be discussed in my future posts. Income Tax Filing: Types of Income Tax Forms How to e-File Income Tax Return (ITR1- Sahaj)?   Income from Salary:Any monetary or facility benefit extended by an Employer to Employee in lieu of service provided is called Salary. For computation of income from “Salary” it important to establish an “Employee “, “Employer” relationship between the provider and receiver.   Components of Salary Include: Basic Pay Dearness Allowance House Rent Allowance Allowance Conveyance Allowance Medical Allowance…

      Tax Deductions Available Under Various Sections For Financial Year 2016-17

      Sunday, May 1st, 2016 Amritesh one response

      Individuals whose Annual Income is above Rs 2,50,000/ p.a- will be liable to pay Taxes on the earnings above the prescribed amount. However, Individuals earning below Rs 5,00,000/- p.a can avail Tax Credit up to Rs 5000/- on the Tax payable. Now we will look at the Tax Deductions available under the Income Tax Act and Sections applicable. We would also find out Investment and Savings options which could be availed.DEDUCTIONS U/S 80CDeductions are available to the Individuals under Section 80C, 80CCD, 80CCC up to the extent Rs 1,50,000/-. These are now effectively clubbed under Section 80C with the aggregate deduction ceiling of Rs 1,50,000/-. SAVING/INVESTMENT SCHEMES RETURN ON INVESTMENT LOCK IN PERIOD Contribution to Employee’s Provident Fund (EPF) Varies…

      Impact Of Income Tax For The Financial Year 2016-17

      Sunday, April 10th, 2016 Amritesh one response

       INCOME TAX LIABILITY FOR THE FINANCIAL YEAR 2016-17 (For Individuals Below 60 years)  Income up to Rs 2,50,000/- is exempted from Tax. *Tax Rebate U/S 87A raised to Rs 5,000 from Rs 2,000 for Individuals with Net Income below Rs 5,00,000/-. Assumed Maximum Deduction availed under Various Sections:** Deduction is available on Investment up to Rs 1,50,000/-  U/S 80C.     Deduction is available on Investment up to Rs 50,000/- in National Pension  Scheme U/S 80 CCD (1b).     Deduction is also available on Health Insurance paid for self, spouse, dependent children up to Rs 25,000/- U/S 80 D.*** Education Cess of 3% is levied on Income Tax payable.**** Surcharge of 15% is applicable on Income over Rs 100,00,000/-.Note:Only Deductions directly applicable to Individuals…

      Professional Tax For The Financial Year 2016-17

      Saturday, April 2nd, 2016 Amritesh 97 responses

      Professional tax is a tax levied by the various State Governments of India on salaried individuals, working in government or non-government entities, or in practice of any profession, including Chartered Accountants, Doctors, Lawyers etc or carry out some form of business. This form of tax is in practice for a long time and States were conferred the power of leveling the Tax under Clause (2) of Article 276. The rate at which Professional tax is charged is based on the Income Slabs set by the respective State Governments. However the maximum Professional Tax that can be levied by any State till date is Rs 2500/-. The total amount of professional tax paid during the year is allowed as Deduction under…