- The document discusses income from salaries, including allowances and perquisites like rent free accommodation.
- It provides examples calculating taxable income from salaries based on information like basic pay, dearness allowance, house rent allowance, commission received, and employer's contribution to provident funds.
- The document also discusses how to calculate the taxable value of perquisites like rent free accommodation furnished by the employer based on factors like whether it is owned or rented by the employer.
The document provides information about calculating income from house property in various scenarios and examples. It defines key terms like municipal rental value (MRV), fair rental value (FRV), standard rent (SR), and annual rental value (ARV). It shows how to calculate net annual value (NAV) by deducting expenses like taxes, repairs, and interest from ARV. It provides step-by-step workings for multiple examples involving self-occupied, let out, and partially occupied houses to determine the net income under the head "Income from House Property".
The document discusses income from house property under the Indian Income Tax Act. It provides information on determining the annual rental value and net annual value of let out and self-occupied properties. It includes definitions of key terms like municipal rental value, fair rental value and standard rent. It also discusses the treatment of different scenarios such as vacancy losses, partial letting, subletting income and interest on housing loans. Several numerical examples are provided to illustrate the calculation of annual rental value, gross annual value, standard deduction and net income from house property.
The document discusses various aspects of income tax in India such as residential status, types of income, tax rates, deductions, and allowances. It provides definitions for key terms, outlines the process for determining residential status, and specifies tax treatment and exemptions for different types of income like salary, gratuity, pension, and perquisites. The document also details income tax slabs and surcharge rates for individuals, HUFs, firms, and companies.
Scope of Total Income - Problems and SolutionsRajaKrishnan M
This document discusses the scope of total income that is taxable for two individuals, Mr. X and Mr. Devilal, based on their residential status of resident, not ordinary resident, or non-resident. For each individual, various types of income are listed along with whether they would be included in their total taxable income under each residential status. Computations of total income for each individual are also provided based on the residential statuses.
This document provides an overview of tax deductions available under Sections 80C to 80U of the Indian Income Tax Act. It explains that these deductions are intended to incentivize taxpayers to engage in socially desirable activities and investments. The key deductions covered include those for life insurance premiums (Section 80C), pension contributions (Section 80CCC), medical insurance (Section 80D), treatment of disabled dependents (Section 80DD), tuition fees (Section 80E), interest on education loans (Section 80E), rent payments (Section 80GG), among others. Eligibility conditions and calculation of allowable deductions for each section are described.
Scope of Total Income - Problems and Solutions (3)RajaKrishnan M
The document discusses the computation of total income for two individuals - Pawan and Jairam - for the assessment year 2020-2021 based on their residential status as resident, not ordinary resident, or non-resident. For Pawan, the total income is ₹464,000 as a resident, ₹254,000 as a not ordinary resident, and ₹254,000 as a non-resident. For Jairam, the total income is ₹751,000 as a resident, ₹505,000 as a not ordinary resident, and ₹285,000 as a non-resident. The document provides details of the income sources and amounts for each individual and the treatment
This document discusses various concepts related to taxation including tax planning, tax avoidance, tax evasion, and tax management. It provides definitions and examples of each concept. Tax planning is legal and involves arranging finances to maximize tax benefits. Tax avoidance finds loopholes in laws but remains legal. Tax evasion is illegal and involves falsifying records or accounts. The document also discusses factors to consider for tax planning like residential status and provides examples of tax planning decisions around capital structure, leasing vs buying assets, and employee compensation.
The document provides information about calculating income from house property in various scenarios and examples. It defines key terms like municipal rental value (MRV), fair rental value (FRV), standard rent (SR), and annual rental value (ARV). It shows how to calculate net annual value (NAV) by deducting expenses like taxes, repairs, and interest from ARV. It provides step-by-step workings for multiple examples involving self-occupied, let out, and partially occupied houses to determine the net income under the head "Income from House Property".
The document discusses income from house property under the Indian Income Tax Act. It provides information on determining the annual rental value and net annual value of let out and self-occupied properties. It includes definitions of key terms like municipal rental value, fair rental value and standard rent. It also discusses the treatment of different scenarios such as vacancy losses, partial letting, subletting income and interest on housing loans. Several numerical examples are provided to illustrate the calculation of annual rental value, gross annual value, standard deduction and net income from house property.
The document discusses various aspects of income tax in India such as residential status, types of income, tax rates, deductions, and allowances. It provides definitions for key terms, outlines the process for determining residential status, and specifies tax treatment and exemptions for different types of income like salary, gratuity, pension, and perquisites. The document also details income tax slabs and surcharge rates for individuals, HUFs, firms, and companies.
Scope of Total Income - Problems and SolutionsRajaKrishnan M
This document discusses the scope of total income that is taxable for two individuals, Mr. X and Mr. Devilal, based on their residential status of resident, not ordinary resident, or non-resident. For each individual, various types of income are listed along with whether they would be included in their total taxable income under each residential status. Computations of total income for each individual are also provided based on the residential statuses.
This document provides an overview of tax deductions available under Sections 80C to 80U of the Indian Income Tax Act. It explains that these deductions are intended to incentivize taxpayers to engage in socially desirable activities and investments. The key deductions covered include those for life insurance premiums (Section 80C), pension contributions (Section 80CCC), medical insurance (Section 80D), treatment of disabled dependents (Section 80DD), tuition fees (Section 80E), interest on education loans (Section 80E), rent payments (Section 80GG), among others. Eligibility conditions and calculation of allowable deductions for each section are described.
Scope of Total Income - Problems and Solutions (3)RajaKrishnan M
The document discusses the computation of total income for two individuals - Pawan and Jairam - for the assessment year 2020-2021 based on their residential status as resident, not ordinary resident, or non-resident. For Pawan, the total income is ₹464,000 as a resident, ₹254,000 as a not ordinary resident, and ₹254,000 as a non-resident. For Jairam, the total income is ₹751,000 as a resident, ₹505,000 as a not ordinary resident, and ₹285,000 as a non-resident. The document provides details of the income sources and amounts for each individual and the treatment
This document discusses various concepts related to taxation including tax planning, tax avoidance, tax evasion, and tax management. It provides definitions and examples of each concept. Tax planning is legal and involves arranging finances to maximize tax benefits. Tax avoidance finds loopholes in laws but remains legal. Tax evasion is illegal and involves falsifying records or accounts. The document also discusses factors to consider for tax planning like residential status and provides examples of tax planning decisions around capital structure, leasing vs buying assets, and employee compensation.
This document discusses various types of allowances provided by employers to employees. It outlines allowances that are fully taxable, fully exempted, and exempted up to a specified limit. Fully taxable allowances include dearness allowance and family allowance. Fully exempted allowances include those from the United Nations. Allowances exempted up to a limit include house rent allowance, transport allowance, children education allowance, and hills allowance. The document also discusses categories for allowances and calculating tax exemptions for house rent allowance and entertainment allowance.
New income tax regime Vs Old Income Tax Regime - what is good for you Husys Consulting Ltd
In this document, we looked at the differences between the New Income Tax Regime and how our old Income Tax Regime. How is it useful for employees. There is a clear difference in using these regimes. Employees are allowed to use any of these.
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The document contains information about Dr. N.G.P. Arts and Science College including its address and website. It provides definitions of short-term capital gains and long-term capital gains based on the holding period. It also includes examples of calculating capital gains and indexed cost of acquisition or improvement. There are sections on exemptions available under sections 10 and 54 of the Income Tax Act and examples of computing taxable capital gains in different scenarios.
This document provides an overview of tax planning for individuals in India. It defines key terms related to taxes, including the meaning of tax, tax planning, and tax avoidance. It then outlines several strategies and considerations for tax planning under different types of income and assets. Specifically, it discusses opportunities for tax planning and exemptions related to agricultural income, income from a minor child, allowances from an employer, income from house property, business/profession income, capital gains, and other sources of income. The overall aim of the strategies presented is to help individuals legally minimize their tax liability.
Did you know you can get tax benefit on paying rent. This presentation explains what is HRA and how you can claim it to save tax.
To calculate HRA exemption: https://tax2win.in/tax-tools/hra-calculator
To know more about HRA: https://blog.tax2win.in/hra/
This document provides an overview of various deductions that can be claimed under sections 80C to 80U of the Indian Income Tax Act of 1961. It explains key deductions such as those for approved savings and investments of up to Rs. 1.5 lakhs under section 80C, contributions to pension schemes under 80CCD, medical and education expenses under 80D, 80DD, 80E, and donations to certain funds under 80G. It also outlines eligibility criteria and limits for claiming these common tax deductions in India.
The document discusses various types of income that are exempt from income tax under the Income Tax Act in India. It provides details on exemptions for agricultural income, HUF income, partner's share of profit, leave travel concession, pension, leave salary, voluntary retirement compensation, house rent allowance, special allowances like transport allowance, interest income from certain securities, income of employee welfare funds, income of the Employee State Insurance Fund, and a minor child's income. It also discusses tax exemptions that apply specifically for salaried employees, such as exemptions on pension income, leave encashment, gratuity payments, and certain allowances.
This PPT contains the details regarding Introduction to Income Tax. It will be useful to all the viewers. It Contains the following points, viz., 1. Meaning of Income Tax 2. Five Heads of Income 3. Sources of Income Tax Law 4. Income Tax Act, 1961 5. Income Tax Rules, 1962 6. Circulars by CBDT 7. Judicial Decisions 8. Annual Finance Act 9. Basis of Charge of Income Tax 10. Person 11. Assessee - Definition 12. Types of Assessee 13. Assessment - Definition 14. Assessment Year - Definition 15. Previous Year - Definition 16. Provisions regarding Previous Year 17. Discontinued Business 18. When Previous Year and Assessment Year will be same? 19. Previous Year Vs. Assessment Year 20. Income 21.Features of Income
The document discusses two cases of calculating residential status for Indian citizens under the Income Tax Act.
For the first case of Mr. Arun, who was outside India from October 1, 2019 to March 10, 2020, his stay in India from April 1, 2019 to March 31, 2020 was calculated to be 206 days, making him an ordinary resident under section 6(1)(a).
For the second case, Mr. Arun was outside India from October 1, 2018 to January 10, 2020. His stay from April 1, 2019 to March 31, 2020 was 82 days, not satisfying section 6(1)(a). However, he satisfies section 6(1)(b) as his total stay in India
This document discusses various aspects related to salary income under the Income Tax Act. It begins by defining salary and its components such as basic pay, dearness allowance, commissions etc. It then discusses the tax treatment of various allowances that are part of salary such as house rent allowance, entertainment allowance etc. The document also covers provident fund and its taxability. Finally, it discusses the concept of perquisites or benefits provided in addition to salary and their valuation for tax purposes.
Capital gains tax is levied on profits arising from the transfer of a capital asset. For gains to be taxed under capital gains, there must be a capital asset that is transferred, resulting in profits. Any profits exempted under sections 54-54G are not taxed. Capital assets include all property except certain exceptions like stock-in-trade. Short term capital gains arise from assets held for 36 months or less, while long term gains are for assets held longer. Indexation of cost is used to arrive at capital gains for long term assets by factoring inflation. Profits are taxed differently based on whether the gain is short term or long term.
- The residential status of an individual or entity determines whether income earned inside or outside India is taxable in India.
- There are different residential statuses for individuals/HUFs and other entities like firms. For individuals, the statuses are resident and ordinarily resident, resident but not ordinarily resident, and non-resident.
- Determining the residential status involves assessing whether basic or additional conditions are met based on the number of days spent in India in the relevant period. Meeting these conditions establishes whether one is a resident and ordinarily resident, or resident but not ordinarily resident.
This document discusses tax planning strategies for salaried individuals, dividing them into salary restructuring and investing in tax-saving devices. For salary restructuring, it recommends structuring salary to include tax-exempt allowances like housing, uniforms, education, etc. It also discusses commuting pension and transferring provident funds. For tax-saving investments, it lists options under sections 80C, 80D, 80E, 80G, etc and explains how to claim deductions and maximize tax savings within the specified limits.
Why to determine Residential Status?
Categorization of Residential Status.
Rules for determining the Residential Status :
Section 6(1) - Rule for determining the Residential Status of an Individual
Section 6(2) - Rule for determining the Residential Status of an HUF, Firm, AOP, BOI
Section 6(3) - Rule for determining the Residential Status of Company
Section 6(4) - Rule for determining the Residential Status of any other person
Glance on Incidence of Tax
An allowance is additional compensation provided by an employer beyond an employee's regular salary. Allowances can be categorized as taxable, partly taxable, or non-taxable. Taxable allowances include dearness allowance, entertainment allowance, and overtime allowance. Partly taxable allowances include house rent allowance, medical allowance, and conveyance allowance. Non-taxable allowances are those provided to government servants serving abroad and allowances for judges.
This document discusses rent free accommodation provided by employers and its taxation. It defines rent free accommodation and provides rules for valuation of unfurnished, furnished and accommodation provided at concessional rent. For unfurnished accommodation, taxable value is a percentage of salary based on city population size. Furnished accommodation value includes furniture costs. Concessional rent value is the difference between market rent and amount paid. Exceptions for certain government employees are also outlined.
From the current financial year 2020-21, Individuals & HUFs are having an option to select between old tax system & New Tax system to discharge their tax obligations. CBDT has recently issued a circular clarifying that employees need to intimate their respective employers regarding their choice and accordingly employer shall compute TDS. However in the absence of intimation, employer shall proceed according to existing tax system. Our tax team has explained the nuances of old and new tax system alongwith detailed comparison making the selection easy.
This document discusses the residential status and tax incidence of individuals, HUFs, firms, and other entities in India.
It begins by explaining the basic conditions for an individual to be considered a resident or non-resident in India based on the number of days spent in India. It further classifies residents as ordinarily resident or not ordinarily resident based on additional criteria. Similar classifications and conditions are described for HUFs and other entities.
Several examples are provided to illustrate how to determine an individual's residential status for tax purposes based on their fact pattern. Key factors like citizenship, location of birth or domicile, purpose and continuity of stay are discussed.
In conclusion, the document outlines the process
Human resources (HR) departments typically create performance appraisals as a tool for employees to advance in their careers. They give people feedback on how well they are doing in their jobs, ensuring that they are managing and achieving the goals set for them and assisting them if they fall short.
This document discusses various types of allowances provided by employers to employees. It outlines allowances that are fully taxable, fully exempted, and exempted up to a specified limit. Fully taxable allowances include dearness allowance and family allowance. Fully exempted allowances include those from the United Nations. Allowances exempted up to a limit include house rent allowance, transport allowance, children education allowance, and hills allowance. The document also discusses categories for allowances and calculating tax exemptions for house rent allowance and entertainment allowance.
New income tax regime Vs Old Income Tax Regime - what is good for you Husys Consulting Ltd
In this document, we looked at the differences between the New Income Tax Regime and how our old Income Tax Regime. How is it useful for employees. There is a clear difference in using these regimes. Employees are allowed to use any of these.
#hrexpert #hrservices
#labourlaws #payrollmanagement #hrbusinesspartner #eor #peo #hrsupport #hrtechnology
#hrconsulting #gigworkers
#careerstargroup
#smebusiness #hr #hrconsultancy #hrtech
#hroutsourcing #smesector #outplacement
#msme #globalworkforce #payrolling #indiapeo #indiaentry #smesurvival #peoindia #hrcloud #indiapayroll #listing
Follow Husys on :
Linkedin : https://www.linkedin.com/company/143536/
Facebook : https://www.facebook.com/Husys
Twitter : @Husys
Slide Share : https://www.slideshare.net/grhusys/
Any questions can be directed to: reach(at)husys.com Phone : +91-9948078937 (India)
The document contains information about Dr. N.G.P. Arts and Science College including its address and website. It provides definitions of short-term capital gains and long-term capital gains based on the holding period. It also includes examples of calculating capital gains and indexed cost of acquisition or improvement. There are sections on exemptions available under sections 10 and 54 of the Income Tax Act and examples of computing taxable capital gains in different scenarios.
This document provides an overview of tax planning for individuals in India. It defines key terms related to taxes, including the meaning of tax, tax planning, and tax avoidance. It then outlines several strategies and considerations for tax planning under different types of income and assets. Specifically, it discusses opportunities for tax planning and exemptions related to agricultural income, income from a minor child, allowances from an employer, income from house property, business/profession income, capital gains, and other sources of income. The overall aim of the strategies presented is to help individuals legally minimize their tax liability.
Did you know you can get tax benefit on paying rent. This presentation explains what is HRA and how you can claim it to save tax.
To calculate HRA exemption: https://tax2win.in/tax-tools/hra-calculator
To know more about HRA: https://blog.tax2win.in/hra/
This document provides an overview of various deductions that can be claimed under sections 80C to 80U of the Indian Income Tax Act of 1961. It explains key deductions such as those for approved savings and investments of up to Rs. 1.5 lakhs under section 80C, contributions to pension schemes under 80CCD, medical and education expenses under 80D, 80DD, 80E, and donations to certain funds under 80G. It also outlines eligibility criteria and limits for claiming these common tax deductions in India.
The document discusses various types of income that are exempt from income tax under the Income Tax Act in India. It provides details on exemptions for agricultural income, HUF income, partner's share of profit, leave travel concession, pension, leave salary, voluntary retirement compensation, house rent allowance, special allowances like transport allowance, interest income from certain securities, income of employee welfare funds, income of the Employee State Insurance Fund, and a minor child's income. It also discusses tax exemptions that apply specifically for salaried employees, such as exemptions on pension income, leave encashment, gratuity payments, and certain allowances.
This PPT contains the details regarding Introduction to Income Tax. It will be useful to all the viewers. It Contains the following points, viz., 1. Meaning of Income Tax 2. Five Heads of Income 3. Sources of Income Tax Law 4. Income Tax Act, 1961 5. Income Tax Rules, 1962 6. Circulars by CBDT 7. Judicial Decisions 8. Annual Finance Act 9. Basis of Charge of Income Tax 10. Person 11. Assessee - Definition 12. Types of Assessee 13. Assessment - Definition 14. Assessment Year - Definition 15. Previous Year - Definition 16. Provisions regarding Previous Year 17. Discontinued Business 18. When Previous Year and Assessment Year will be same? 19. Previous Year Vs. Assessment Year 20. Income 21.Features of Income
The document discusses two cases of calculating residential status for Indian citizens under the Income Tax Act.
For the first case of Mr. Arun, who was outside India from October 1, 2019 to March 10, 2020, his stay in India from April 1, 2019 to March 31, 2020 was calculated to be 206 days, making him an ordinary resident under section 6(1)(a).
For the second case, Mr. Arun was outside India from October 1, 2018 to January 10, 2020. His stay from April 1, 2019 to March 31, 2020 was 82 days, not satisfying section 6(1)(a). However, he satisfies section 6(1)(b) as his total stay in India
This document discusses various aspects related to salary income under the Income Tax Act. It begins by defining salary and its components such as basic pay, dearness allowance, commissions etc. It then discusses the tax treatment of various allowances that are part of salary such as house rent allowance, entertainment allowance etc. The document also covers provident fund and its taxability. Finally, it discusses the concept of perquisites or benefits provided in addition to salary and their valuation for tax purposes.
Capital gains tax is levied on profits arising from the transfer of a capital asset. For gains to be taxed under capital gains, there must be a capital asset that is transferred, resulting in profits. Any profits exempted under sections 54-54G are not taxed. Capital assets include all property except certain exceptions like stock-in-trade. Short term capital gains arise from assets held for 36 months or less, while long term gains are for assets held longer. Indexation of cost is used to arrive at capital gains for long term assets by factoring inflation. Profits are taxed differently based on whether the gain is short term or long term.
- The residential status of an individual or entity determines whether income earned inside or outside India is taxable in India.
- There are different residential statuses for individuals/HUFs and other entities like firms. For individuals, the statuses are resident and ordinarily resident, resident but not ordinarily resident, and non-resident.
- Determining the residential status involves assessing whether basic or additional conditions are met based on the number of days spent in India in the relevant period. Meeting these conditions establishes whether one is a resident and ordinarily resident, or resident but not ordinarily resident.
This document discusses tax planning strategies for salaried individuals, dividing them into salary restructuring and investing in tax-saving devices. For salary restructuring, it recommends structuring salary to include tax-exempt allowances like housing, uniforms, education, etc. It also discusses commuting pension and transferring provident funds. For tax-saving investments, it lists options under sections 80C, 80D, 80E, 80G, etc and explains how to claim deductions and maximize tax savings within the specified limits.
Why to determine Residential Status?
Categorization of Residential Status.
Rules for determining the Residential Status :
Section 6(1) - Rule for determining the Residential Status of an Individual
Section 6(2) - Rule for determining the Residential Status of an HUF, Firm, AOP, BOI
Section 6(3) - Rule for determining the Residential Status of Company
Section 6(4) - Rule for determining the Residential Status of any other person
Glance on Incidence of Tax
An allowance is additional compensation provided by an employer beyond an employee's regular salary. Allowances can be categorized as taxable, partly taxable, or non-taxable. Taxable allowances include dearness allowance, entertainment allowance, and overtime allowance. Partly taxable allowances include house rent allowance, medical allowance, and conveyance allowance. Non-taxable allowances are those provided to government servants serving abroad and allowances for judges.
This document discusses rent free accommodation provided by employers and its taxation. It defines rent free accommodation and provides rules for valuation of unfurnished, furnished and accommodation provided at concessional rent. For unfurnished accommodation, taxable value is a percentage of salary based on city population size. Furnished accommodation value includes furniture costs. Concessional rent value is the difference between market rent and amount paid. Exceptions for certain government employees are also outlined.
From the current financial year 2020-21, Individuals & HUFs are having an option to select between old tax system & New Tax system to discharge their tax obligations. CBDT has recently issued a circular clarifying that employees need to intimate their respective employers regarding their choice and accordingly employer shall compute TDS. However in the absence of intimation, employer shall proceed according to existing tax system. Our tax team has explained the nuances of old and new tax system alongwith detailed comparison making the selection easy.
This document discusses the residential status and tax incidence of individuals, HUFs, firms, and other entities in India.
It begins by explaining the basic conditions for an individual to be considered a resident or non-resident in India based on the number of days spent in India. It further classifies residents as ordinarily resident or not ordinarily resident based on additional criteria. Similar classifications and conditions are described for HUFs and other entities.
Several examples are provided to illustrate how to determine an individual's residential status for tax purposes based on their fact pattern. Key factors like citizenship, location of birth or domicile, purpose and continuity of stay are discussed.
In conclusion, the document outlines the process
Human resources (HR) departments typically create performance appraisals as a tool for employees to advance in their careers. They give people feedback on how well they are doing in their jobs, ensuring that they are managing and achieving the goals set for them and assisting them if they fall short.
Accounting And Bookkeeping For Business And Management 13 OctoberDr. Trilok Kumar Jain
1. The document discusses the Income Tax of India and provides information about an AFTERSCHO☺OL program in social entrepreneurship.
2. It details the conditions for claiming exemptions under section 10BA of the Income Tax Act and answers questions related to salary income and taxability.
3. The final sections provide information about workshops conducted by AFTERSCHO☺OL and the benefits of its flexible and comprehensive Post Graduate Programme in Social Entrepreneurship.
1. The document discusses the Income Tax of India and provides information about an AFTERSCHO☺OL program in social entrepreneurship.
2. It details the conditions for claiming exemptions under section 10BA of the Income Tax Act and answers questions related to salary income and taxability.
3. The final sections provide information about workshops conducted by AFTERSCHO☺OL and the benefits of its flexible and comprehensive Post Graduate Programme in Social Entrepreneurship.
Corporate Tax Planning Practicing ProblemsSundar B N
In this file you will find problems with solution for Corporate Tax Planning
Subscribe to Vision Academy for Video assistance https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
Class 15. advanced payroll management 1 v7.0HR Spot
This document provides information about tax calculations in India. It begins with an overview of components of compensation that are taxable and non-taxable. It then discusses income tax and tax deducted at source (TDS), including how TDS is deducted periodically while income tax is paid annually. Examples are provided to illustrate how to calculate tax liability based on income level and tax slabs. The document concludes with an activity asking students to complete tax calculations using different compensation structures.
The document discusses set-off and carry forward of losses under the Indian Income Tax Act. It provides examples of computing total income for various assessees by setting off current year losses against income under the same head and carrying forward unabsorbed losses. It also illustrates how to set-off capital losses against capital gains and carry forward the unabsorbed losses. The document contains computational examples showing the set-off of losses from previous years against current year income under the same head and the calculation of gross total income.
The document discusses the definition and computation of business income and profits according to Indian tax law. It provides examples of computing business income by adding inadmissible expenses and deducting allowable expenses not shown in profit/loss accounts. It also discusses deducting incomes exempt under certain heads like interest income. The examples show calculations of total business profits by making adjustments to net profits.
The document contains two job offers from Southern Petrochemicals Industries Corporation Limited to Dharmaraj Dhaddikar (first offer) and then to Raj (second offer) for the role of Assistant Manager Operations. The first offer details a monthly compensation of Rs. 65,000 with additional benefits like housing, medical insurance, and performance bonuses. This offer is noted as rejected. The second offer increases the monthly compensation to Rs. 75,000 and includes similar benefits but is also noted as rejected, with Raj going "AWOL/MIA".
1) Income from salary includes any remuneration received for services rendered to an employer.
2) Key allowances like DA, HRA are fully taxable while some allowances receive partial exemptions.
3) Perquisites provided by employers are also taxed, including rent-free housing, cars, interest-free loans, etc. Valuation methods differ based on type of perquisite.
This document provides information about an HR training program on advanced payroll management. It includes details on the program curriculum, awards won by the training organization, and examples of tax calculations from hypothetical compensation structures. The training covers topics like components of compensation that are taxable or non-taxable, income tax and tax deducted at source, how to calculate tax liability, and hands-on practice with payroll software.
This document discusses group incentive plans. It presents information on different types of group incentive plans such as group bonus plans, group efficiency bonus plans, budgeted expense plans, Scanlon plans, and Towne plans. It provides examples of calculations for determining bonuses under different plans. It also discusses the advantages and disadvantages of group incentive plans. The key aspects covered are calculating bonuses based on cost savings, production targets, budgeted expenses, and comparing actual vs standard performance.
This document provides a financial plan for RG Food Product, a sole proprietorship business producing chowmin. The owner, Rajdeep Ghosh, has invested Rs. 9 lakh of capital. The management team will initially consist of Rajdeep and two employees. Legal agreements will be made for the business location. Financial projections include a capital structure, projected profit and loss statement, cash flow statement, and balance sheet for the first year. Key ratios like profit volume, break-even point, operating leverage, and financial leverage are also calculated.
This document discusses income from salary. It defines salary to include basic pay, dearness allowance, annuity, gratuity, advances, commissions, perquisites, retirement benefits, and the aggregate of these after exemptions is considered gross salary. It notes that an employer-employee relationship is required for income to be considered salary. It also outlines some advantages and disadvantages of salary income, such as receiving regular paychecks but lack of overtime pay. Finally, it provides an example tax computation for an individual's salary income for the assessment year 2022-23, both with and without opting for the new optional tax regime under section 115BAC of the Income Tax Act.
The document discusses various aspects of tax planning in India including:
- Tax slabs and rates for different types of taxpayers.
- Common tax deductions available under Sections 80C, 80D, 80E, and 80CCC of the Income Tax Act up to a total limit of Rs. 1 lakh.
- Tax treatment of various financial instruments like insurance, PPF, ELSS, housing loans, etc.
- Examples are provided to illustrate how tax liability can be reduced through proper tax planning and use of deductions.
1. Mrs. Surekha provided her profit and loss account for the financial year ending 31 March 2020. (2)
2. Her total income included a gross profit of Rs. 457,000, interest of Rs. 19,000, dividends of Rs. 6,000, commission of Rs. 25,000 and other receipts of Rs. 3,000, for a total income of Rs. 510,000. (3)
3. Her expenditures included a salary of Rs. 140,000, advertisement of Rs. 15,000, depreciation of Rs. 68,000, rent and taxes of Rs. 13,000, wealth tax of Rs. 9,000, sales
The document outlines various components of compensation and salary in India including:
- Basic salary guidelines which should be at least Rs. 3934 for unskilled employees.
- Tax benefits for allowances like House Rent Allowance up to 50% of basic salary in metro cities.
- Other monthly allowances like conveyance up to Rs. 800 and children's education up to Rs. 200 which are tax exempt.
- Company contributions to provident fund, ESI and gratuity which are not taxable for employees.
- The document also briefly discusses income tax rules and forms related to filing returns for employees in India.
National Pension System- NPS FOR CORPORATESFundsIndia
This is a detailed presentation on NPS for corporates and also employees of private organisations.
FundsIndia is a leading consultant for NPS. We help individuals and corporates open and manage their NPS accounts.
Till date more than 4000 individuals and 15 corporates have opened NPS account leveraging our indepth knowledge in the field of National Pension System ( NPS ).
Do mail us at nps@fundsindia.com if you are interested in opening a National Pension System ( NPS ) either for your company or employees.
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This document summarizes different forms of business organization in India. It discusses sole proprietorships, partnership firms, and joint Hindu family firms. Some key points covered are:
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1. Income from Salaries
Dr. NGPASC
COIMBATORE | INDIA
Dr. N.G.P. ARTS AND SCIENCE COLLEGE
(An Autonomous Institution, Affiliated to Bharathiar University, Coimbatore)
Approved by Government of Tamil Nadu and Accredited by NAAC with 'A' Grade (2nd Cycle)
Dr. N.G.P.- Kalapatti Road, Coimbatore-641048, Tamil Nadu, India
Web: www.drngpasc.ac.in | Email: info@drngpasc.ac.in | Phone: +91-422-2369100
Dr. R. PREMA
Associate Professor in Commerce CA
4. Dr. NGPASC
COIMBATORE | INDIA
PROVIDENT FUNDS
Meaning of Salary for PF:
BP + DA + Commission
Employer’s Contribution to RPF =
Exempted upto 12 % of salary
Interest credited to RPF Balance =
Exempted upto 9.5 % on Balance
5. Dr. NGPASC
COIMBATORE | INDIA
Question
Page No. 2.14 Illustration 5
Calculate the taxable amount of annual accretion to RPF if the
following information is provided by assessee:
1. Pay – ₹40,000 p.m.
2. Commission received by him on the basis of turnover
achieved by him – ₹1,36,000
3. Employers contribution to RPF @ 13% of salary
4. Interest credited during the year to RPF balance @12% is
₹64,000.
6. Dr. NGPASC
COIMBATORE | INDIA
Computation of Taxable portion of annual accretion for the P/Y 2019-20
Page No. 2.14 Illustration 5
Particulars ₹ ₹
i) Employers Contribution to RPF @ 13 % of Salary
Salary = (BP+DA+ Commission)
= 40,000 x 12 = 4,80,000 + 1,36,000
=6,16,000 x 13/100
Less: Exempted upto 12 %
Taxable Portion
ii) Interest credited to RPF balance @ 12 %
Less: Exempted upto 9.5 %
=64,000 x 9.5/12
Taxable Portion
Taxable portion of annual accretion
80,080
73,920
64,000
50,667
6,160
13,133
19,493
7. Dr. NGPASC
COIMBATORE | INDIA
Question
Calculate the taxable amount of annual accretion to RPF
if the following information is provided by assessee:
• Salary @ ₹48,000 p.m.
• Commission @ 1% of turnover of ₹80,00,000 achieved by him
during the previous year
• Employers contribution to RPF @ 7,000 p.m.
• Interest credited to RPF balance @ 12% p.a. is ₹72,000
Page No. 2.14 Qn. No. 3
8. Dr. NGPASC
COIMBATORE | INDIA
Computation of Taxable portion of annual accretion for the P/Y 2019-20
Page No. 2.14 Qn. No. 3
Particulars ₹ ₹
i) Employers Contribution to RPF (7,000 x 12)
Less: Exempted upto 12 % of salary
Salary = (BP+DA+ Commission)
BP= 48,000 x 12 = 5,76,000
Commission = 80,00,000 x 1/100 = 80,000
Salary = 5,76,000 + 80,000 = 6,56,000 x 12/100
Taxable Portion
ii) Interest credited to RPF balance @ 12 %
Less: Exempted upto 9.5 %
=72,000 x 9.5/12
Taxable Portion
Taxable portion of annual accretion
84,000
78,720
72,000
57,000
5,260
13,133
15,000
20,280
9. Dr. NGPASC
COIMBATORE | INDIA
Question
Mr. A Joined a new job on 1.4.2018 at ₹ 15,000 p.m. due on last
day of the month. He started contributing to URPF @2,500 p.m. His
employer was also contributing same amount. The fund was
recognized from 1-8-2019. Interest credited during 2018-2019 at
the rate of 11% was ₹4,400 and for the period 1-4-2019 to
31.7.2019 was ₹3,300. Compute the amount of transferred balance
of URPF to RPF as on 1-8-2019 and its taxable portion.
Page No. 2.15 Qn. No. 6
10. Dr. NGPASC
COIMBATORE | INDIA
Computation of Transferred balance and Taxable Portion thereof
Page No. 2.15 Qn. No. 6
Particulars ₹ ₹
Employee’s Contribution (2500x12)
Employer’s Contribution (2500x12)
Interest on Balance
Employee’s Contribution(2500x4)
Employer’s Contribution(2500x4)
Interest on Balance
Transferred Balance to RPF on
1.8.2019
30,000
30,000
4,400
10,000
10,000
3,300
87,700
Particulars ₹ ₹
Employer’s Contribution (2500x12)
Less: Exempted upto 12 % of Salary
15,000 x 12 = 1,80,000 x 12 /100
Interest credited at 11 %
Less: Exempted upto 9.5 %
4,400 x 9.5 / 11
Employer’s Contribution(2500x4)
Less: Exempted @ 12 % of salary
15,000 x 4 = 60,000 x 12 /100
Interest credited @ 11 %
Less: Exempted upto 9.5 %
3,300 x 9.5/11
30,000
21,600
4,400
3,800
10,000
7,200
3,300
2,850
8,400
600
2,800
450
12,250
Previous Year 2018-19 Previous Year 2018-19
Previous Year 2019-20 upto
31.07.2019 (4 months) :
Previous Year 2019-20 upto
31.07.2019 (4 months) :
13. Dr. NGPASC
COIMBATORE | INDIA
House Rent Allowance (Sec 10(13 A))
Meaning of Salary: BP + DA + Commission
14. Dr. NGPASC
COIMBATORE | INDIA
Question
Mr. Hari is employed at Amritsar on a salary of ₹30,000 p.m. The
employer is paying HRA of ₹8,000 p.m. but the actual rent paid by
him (employee) is ₹ 12,000 p.m. He is also getting 2% commission on
turnover achieved by him and turnover is ₹ 50,00,000. Calculate his
gross salary.
Page No. 2.22 Qn. No. 11
15. Dr. NGPASC
COIMBATORE | INDIA
Computation of Gross Salary for the P/Y 2019-20
Page No. 2.23 Qn. No. 11
Particulars ₹ ₹
Basic Pay (30,000 x 12)
Commission (50,00,000 x 2/100)
House Rent Allowance Received (8000 x 12)
Less: Exemption u/s 10(13A):
(Least of the Following is Exempted)
i) Actual HRA Received 96,000
ii) Rent Paid – 10 % of Salary
1,44,000 – 46,000 98,000
iii) 40 % of Salary 1,84,000
Gross Salary
96,000
96,000
3,60,000
1,00,000
Nil
4,60,000
Rent Paid = 12000 x 12 = 1,44,000
Salary = BP + DA (Enters) + Commission
= 3,60,000 + 1,00,000 = 4,60,000
10 % = 46,000 40 % = 1,84,000
16. Dr. NGPASC
COIMBATORE | INDIA
Question
Compute Gross salary from information given below for situation separately:
• Salary - ₹30,000 p.m.
• DA – ₹6,000 p.m.
• CCA – ₹1,000 p.m.
• HRA – ₹8,000 p.m.
• Commission on turnover achieved by him is ₹ 40,000.
Situation
a) Living in own house
b) Living in rented house at Delhi and DA enters into pay for retirement benefits
and rent paid is ₹ 7,000 p.m.
c) Living in rented house at Chandigarh and DA does not enters into pay for
retirement benefits and the rent paid is 10,000 p.m.
Page No. 2.22 Qn. No. 11
17. Dr. NGPASC
COIMBATORE | INDIA
Computation of Gross Salary for the P/Y 2019-20
Page No. 2.23 Qn. No. 7
Particulars ₹ ₹
Basic Pay (30,000 x 12)
DA (6,000 x 12)
CCA (1,000 x 12)
Commission
Gross Salary
3,60,000
72,000
1,200
40,000
5,80,000
18. Dr. NGPASC
COIMBATORE | INDIA
Computation of Gross Salary for the P/Y 2019-20
Particulars ₹ ₹
Basic Pay (30,000 x 12)
DA (Enters) (6,000 x 12)
CCA (1,000 x 12)
Commission on Turnover
House Rent Allowance Received (8000 x 12)
Less: Exemption u/s 10(13A):
(Least of the Following is Exempted)
i) Actual HRA Received 96,000
ii) Rent Paid – 10 % of Salary
84,000 – 47,200 36,800
iii) 50 % of Salary 2,36,000
Gross Salary
96,000
36,800
3,60,000
72,000
12,000
40,000
59,200
5,43,200
Page No. 2.23 Qn. No. 7
19. Dr. NGPASC
COIMBATORE | INDIA
Computation of Gross Salary for the P/Y 2019-20
Particulars ₹ ₹
Basic Pay (30,000 x 12)
DA (6,000 x 12)
CCA (1,000 x 12)
Commission on Turnover
House Rent Allowance Received (8000 x 12)
Less: Exemption u/s 10(13A):
(Least of the Following is Exempted)
i) Actual HRA Received 96,000
ii) Rent Paid – 10 % of Salary
1,20,000 – 40,000 80,000
iii) 40 % of Salary 1,60,000
Gross Salary
96,000
80,000
3,60,000
72,000
12,000
40,000
16,000
5,00,000
Page No. 2.23 Qn. No. 7
20. Dr. NGPASC
COIMBATORE | INDIA
Question
Mr. Ramesh swain is employed at Hyderabad at a Basic Salary of ₹25,000 p.m. and he is also getting following
allowances:
1. Dearness Allowances - ₹2,000 p.m.
2. Lunch allowance - ₹1,000 p.m.
3. Servant allowance (He is paying ₹1,200 p.m. to a servant) - ₹ 1,000 p.m.
4. Transport allowance - ₹ 2,000 p.m.
5. Education allowance @ 200 p.m. per child for three children
6. Hostel allowance to one child - ₹ 500 p.m.
7. Conveyance allowance - ₹ 800 p.m.
8. Overtime allowance - ₹2,000 p.m.
9. Officiating allowance - ₹2,000 p.m.
10. Cash allowance - ₹1,200 p.m.
11. Entertainment allowance - ₹2,000 p.m.
12. Medical allowance - ₹800 p.m.
13. City Compensatory allowance - ₹600 p.m.
14. House rent allowance - ₹ 5,000 p.m.
He is having a family house at the place of his posting but he is living in a rented house and is paying a rent of
₹7,000 p.m. Find out his gross salary.
Page No. 2.26 Qn. No. 12
21. Dr. NGPASC
COIMBATORE | INDIA
Computation of Gross Salary for the P/Y 2019-20
Page No. 2.26 Qn. No. 12
Particulars ₹ ₹
Basic Salary (25,000 x 12)
Dearness Allowance (2,000 x 12)
Lunch Allowance
Servant Allowance (Taxable if servant is for his personal use)
Transport Allowance
Education Allowance Received
Less: Exempted 100 x 2 x 12
Hostel Allowance Received (500 x 12)
Less: Exempted (300 x 12)
Conveyance Allowance (800 x 12)
Overtime Allowance (2000 x 12)
Officiating Allowance (2000 x 12)
7,200
2,400
6,000
3,600
3,00,000
24,000
12,000
12,000
24,000
4,800
2,400
9,600
24,000
24,000
22. Dr. NGPASC
COIMBATORE | INDIA
Computation of Gross Salary for the P/Y 2019-20
Page No. 2.26 Qn. No. 12
Particulars ₹ ₹
Cash Allowance (1,200 x 12)
Entertainment Allowance (2,000 x 12)
Medical Allowance (800 x 12)
City Compensatory Allowance (600 x 12)
House Rent Allowance Received (5000 x 12)
Less: Exemption u/s 10(13A):
(Least of the Following is Exempted)
i) Actual HRA Received 60,000
ii) 40 % of Salary 1,20,000
iii) Rent Paid – 10 % of Salary 54,000
Gross Salary
60,000
54,000
14,400
24,000
9,600
7,200
6,000
4,98,000
24. Dr. NGPASC
COIMBATORE | INDIA
Rent Free Accommodation
Accommodation for
Residence of the
Employee
Accommodation is
given to the employee
without any charge
Not in cash but in kind
as Perquisites.
Accommodation is
Rent Free to the
Employee
25. Dr. NGPASC
COIMBATORE | INDIA
Calculation of Rent Free House
RFA
Unfurnished
Accommodation
Furnished
Accommodation
26. Dr. NGPASC
COIMBATORE | INDIA
Calculation of Rent Free House
Unfurnished
Accommodation
Govt.
Employees
Other
Employees
27. Dr. NGPASC
COIMBATORE | INDIA
Calculation of Rent Free House
Unfurnished
Accommodation
Govt.
Employees
Other
Employees
(NGE)
Whether accommodation is
owned by employer or not
License fee or Rent
fixed by Govt. is
taxable
28. Dr. NGPASC
COIMBATORE | INDIA
Calculation of Rent Free House
Other
Employees
(NGE)
15% of salary or Actual rent
paid by employer whichever
is less
A) Owned
by Employer
B) Hired by
Employer
Population - more
than 20 lakhs
Population –
Exceeding 10 lakhs &
but not exceeding 20
lakhs
Population – 10
lakhs & less than
10 lakhs
15% of salary
10% of salary
7.5% of salary
Unfurnished
Accommodation
29. Dr. NGPASC
COIMBATORE | INDIA
Calculation of Rent Free House
Furnished
Accommodation
Value of
Furnished
RFA
Value of Unfurnished RFA
If furniture is
owned by
employer
10% of actual cost of
furniture
= +
Note: Govt. employee or
Non govt. employee
30. Dr. NGPASC
COIMBATORE | INDIA
Calculation of Rent Free House
Furnished
Accommodation
Value of
Furnished
RFA
Value of Unfurnished RFA
If furniture is
hired by
employer
Actual hire charges of
furniture paid by employer
= +
Note: Govt. employee or
Non govt. employee
31. Dr. NGPASC
COIMBATORE | INDIA
Hotel Accommodation
For less than 15 days on
transfer from one place to
another
HA
For more than 15 days on
transfer from one place to
another
24% of salary or actual bill
whichever is less is
taxable
Fully Exempted
32. Dr. NGPASC
COIMBATORE | INDIA
Meaning of salary
Basic pay, pay, wages
Dearness pay, Dearness allowance which enters
Commission
Bonus
Fees
Value of all taxable allowances
Any other monetary payment which is chargeable to tax
Leave encashment of salary only if it pertains to the leave
earned during the previous year in which RFH is provided
to the employee
Salary
33. Dr. NGPASC
COIMBATORE | INDIA
Question
Mr. R is working in a central government office at Shimla. His salary particulars are
as follows:
Salary - 3,60,000
DA(fully enter into pay for retirement benefits) - 96,000
Hill Compensatory Allowance - 24,000
Transport Allowance - 24,000
Rent Free House: Annual License Fee - 72,000
Cost of furnishing - 3,00,000
Calculation of Rent free House.
Page No. 2.37 Qn. No. 15
34. Dr. NGPASC
COIMBATORE | INDIA
Computation of RFH for the P/Y 2019-20
Page No. 2.37 Qn. No. 15
Particulars ₹ ₹
For Government employee the value of RFH is
License Fee
Add: 10% of cost of furnishing (10% of
3,00,000)
72,000
30,000
Value of rent free furnished house 1,02,000
35. Dr. NGPASC
COIMBATORE | INDIA
Question
Mr. Y gets a salary of ₹33,000 p.m. and he has been provided with
rent free furnished accommodation at Karnal (Population 7.5 lakhs).
The FMV of the unfurnished house is ₹60,000 p.a. He gets DA @ 40%
of salary which is given as per terms of employment. He gets
education allowance of ₹500 p.m. for education of his son. The cost
of furnishing of the house is ₹2,30,000. The employee has been
provided with hired air conditioner for five months and hire charges
of ₹1,000 p.m. are paid by the employer.
Page No. 2.38 Qn. No. 17
36. Dr. NGPASC
COIMBATORE | INDIA
Computation of Gross salary for the P/Y 2019-20
Particulars ₹ ₹
Salary 33,000*12
DA (40% of salary)
Education allowance 500*12
(-) Exempted
Value of Rent Free House: House owned by employer at
Karnal
7.5% of salary
(3,96,000+1,58,400+4,800=5,59,200)(5,59,200*7.5/100)
Add: 10% of cost of furnishing
Add: Rent of air conditioner 1000*5
6,000
1,200
41,940
23,000
5,000
3,96,000
1,58,400
4,800
69,940
Gross Salary 6,29,140
Page No. 2.38 Qn. No. 17
37. Dr. NGPASC
COIMBATORE | INDIA
Question
Mr. Arun has furnished following particulars:
i) Salary @25,000 p.m.
ii) Dearness Allowance @5,000 p.m. (It enters into pay for retirement benefits)
iii) Entertainment allowances @600 p.m.
iv) Bonus 16,000
v) Cost of furnishing 1,20,000
Calculate the value of rent free house if
Case I. Mr. Arun is Govt. employee and rent of house fixed by Govt. is 2,500 p.m.
Case II. Mr. Arun is working in a Semi-Govt. undertaking at Chennai (population more than
25 lakhs) and FMV of the house is 8,000 p.m.
Case III. Mr. Arun is working in private sector at Chandigarh (population below 10 lakhs) and
rent of the house hired by employer is 6,000 p.m. are paid by employer.
Case IV. Mr. Arun is working in private sector at Delhi(population above 25 lakhs) and actual
rent of the house not owned by employer is 6,000 p.m. Rent charged by employer
is only 3,000 p.m.
Page No. 2.39 Qn. No. 18
38. Dr. NGPASC
COIMBATORE | INDIA
Computation of Rent Free House for the P/Y 2019-20
Particulars ₹ ₹
CASE I: Govt. Employee
Value of Rent Free House:
Rent fixed by Govt.
Add: 10% of cost of furnishing (10% of
1,20,000)
30,000
12,000 42,000
Value of rent free furnished house 42,000
Page No. 2.39 Qn. No. 18
39. Dr. NGPASC
COIMBATORE | INDIA
Computation of Rent Free House for the P/Y 2019-20
Particulars ₹ ₹
CASE II: Semi Govt. Employee
Value of Rent Free House at Chennai
Salary of the employee =
3,00,000+60,000+16,000+7,200=3,83,200
15% of salary
Add: 10% of cost of furnishing (10% of
1,20,000)
57,480
12,000 69,480
Value of rent free furnished house 69,480
Page No. 2.39 Qn. No. 18
40. Dr. NGPASC
COIMBATORE | INDIA
Computation of Rent Free House for the P/Y 2019-20
Particulars ₹ ₹
CASE III: Any other Employee (City having population below
10 lakhs)
Value of Rent Free House hired by employer:
Salary of the employee =
3,00,000+60,000+16,000+7,200=3,83,200
15% of salary = 57,480 or
Actual rent paid by employer= 72,000 w.e is less
Add: 10% of cost of furnishing (10% of 1,20,000)
Add: Actual hire charges of refrigerator
57,480
12,000
7,200 76,680
Value of rent free furnished house 76,680
Page No. 2.39 Qn. No. 18
41. Dr. NGPASC
COIMBATORE | INDIA
Computation of Rent Free House for the P/Y 2019-20
Particulars ₹ ₹
CASE IV: Any other Employee (City having population above
25 lakhs)
Value of Rent Free House at Delhi:
Salary of the employee =
3,00,000+60,000+16,000+7,200=3,83,200
15% of salary = 57,480 or
Actual rent paid by employer= 72,000 w.e is less
Add: 10% of cost of furnishing (10% of 1,20,000)
57,480
12,000
Value of rent free furnished house
Less: Rent charged by employer @3,000 p.m.
69,480
36,000
Value of concessional accommodation 33,480
Page No. 2.39 Qn. No. 18