A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures. Direct taxes are levied directly on income and indirect taxes are levied on goods and services. The purpose of taxation is to finance government expenditure. The previous year refers to the financial year for which the income is being assessed, while the assessment year refers to the year in which the income from the previous year is assessed for income tax purposes. An assessee refers to a person by whose income tax is payable under the Income Tax Act.
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.
Computation of total income & tax liability individual, Partnership Firm,...CA Abhishek Bansal
Computation of total income & tax liability individual. Rebate U/s 87A, Surcharge, Tax On Partnership Firm, Individual, Companies, Society & Trust, Health & Education Cess, Foreign Company
This document provides an overview of income tax in India. It begins with a brief history of income tax, explaining its origins in ancient India and its modern introduction in 1860. It then covers key topics like types of income, tax rates, exemptions, deductions, filing requirements and deadlines. The purpose of the tax is to generate revenue for the government to fund public services like healthcare, education, infrastructure and security. Filing taxes correctly and on time is important for both citizens and the systems that rely on tax revenue.
ITR-1 can be used by individuals with income from salary, one house property (without carried forward losses), and other sources excluding lottery/horse race winnings. ITR-2 can be used by individuals and HUFs with income from salary, house property, capital gains, and other sources including lottery/horse races, but excluding business income. ITR-3 must be used by individuals/HUFs who are firm partners with only interest, salary, bonus, commission, or remuneration from the firm. ITR-4 is for individuals/HUFs with proprietary business/profession income. ITR-4S is for small businesses using presumptive taxation. ITR-5 is for firms
Dr. P. Ravichandran has listed his academic and professional qualifications. He provides information on the different heads of income under the Income Tax Act, including salary, house property, business/profession, capital gains, and other sources. He notes that income is first computed under these heads and then adjustments are made for set-off losses before determining total income. The document then focuses on income from salary, providing details on what constitutes salary and allowable deductions. It discusses various forms of retirement benefits like leave encashment, gratuity, pension, and their tax treatment.
1. presentation on input tax credit under gstNarayan Lodha
GST, Goods And Service Tax, Basic Concept and Principals of Input Credit under GST, Availability of ITC in Special cases, ITC- Input Service Distributor, Electronic Cash Ledger, Electronic Credit Ledger, Refund of Tax under GST
Tax is an important source of revenue for governments worldwide. Taxes are collected on income, sales, purchases, and properties to fund government operations. There are two types of taxes: direct taxes which are paid directly by individuals like income tax; and indirect taxes which are passed on through other entities like sales tax. Income tax was first introduced in India in 1860 under British rule to fund expenses from the 1857 rebellion. The current Income Tax Act of 1961 governs income tax in India and has been amended over time. It details the taxation of various types of income for individuals and organizations.
1. According to Section 139(1) of the Income Tax Act, every person whose total income exceeds the maximum amount not chargeable to tax or those specified such as companies must file a return of income by the due date in the prescribed form.
2. The due date for filing return of income electronically depends on the type of assessee - it is 30th September for companies and those required to get accounts audited, 30th November for those filing transfer pricing reports, and 31st July for other assessees.
3. It is now mandatory for companies, firms, and individuals subject to tax audit to file returns electronically, while individuals with over 5 lakhs income can
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.
Computation of total income & tax liability individual, Partnership Firm,...CA Abhishek Bansal
Computation of total income & tax liability individual. Rebate U/s 87A, Surcharge, Tax On Partnership Firm, Individual, Companies, Society & Trust, Health & Education Cess, Foreign Company
This document provides an overview of income tax in India. It begins with a brief history of income tax, explaining its origins in ancient India and its modern introduction in 1860. It then covers key topics like types of income, tax rates, exemptions, deductions, filing requirements and deadlines. The purpose of the tax is to generate revenue for the government to fund public services like healthcare, education, infrastructure and security. Filing taxes correctly and on time is important for both citizens and the systems that rely on tax revenue.
ITR-1 can be used by individuals with income from salary, one house property (without carried forward losses), and other sources excluding lottery/horse race winnings. ITR-2 can be used by individuals and HUFs with income from salary, house property, capital gains, and other sources including lottery/horse races, but excluding business income. ITR-3 must be used by individuals/HUFs who are firm partners with only interest, salary, bonus, commission, or remuneration from the firm. ITR-4 is for individuals/HUFs with proprietary business/profession income. ITR-4S is for small businesses using presumptive taxation. ITR-5 is for firms
Dr. P. Ravichandran has listed his academic and professional qualifications. He provides information on the different heads of income under the Income Tax Act, including salary, house property, business/profession, capital gains, and other sources. He notes that income is first computed under these heads and then adjustments are made for set-off losses before determining total income. The document then focuses on income from salary, providing details on what constitutes salary and allowable deductions. It discusses various forms of retirement benefits like leave encashment, gratuity, pension, and their tax treatment.
1. presentation on input tax credit under gstNarayan Lodha
GST, Goods And Service Tax, Basic Concept and Principals of Input Credit under GST, Availability of ITC in Special cases, ITC- Input Service Distributor, Electronic Cash Ledger, Electronic Credit Ledger, Refund of Tax under GST
Tax is an important source of revenue for governments worldwide. Taxes are collected on income, sales, purchases, and properties to fund government operations. There are two types of taxes: direct taxes which are paid directly by individuals like income tax; and indirect taxes which are passed on through other entities like sales tax. Income tax was first introduced in India in 1860 under British rule to fund expenses from the 1857 rebellion. The current Income Tax Act of 1961 governs income tax in India and has been amended over time. It details the taxation of various types of income for individuals and organizations.
1. According to Section 139(1) of the Income Tax Act, every person whose total income exceeds the maximum amount not chargeable to tax or those specified such as companies must file a return of income by the due date in the prescribed form.
2. The due date for filing return of income electronically depends on the type of assessee - it is 30th September for companies and those required to get accounts audited, 30th November for those filing transfer pricing reports, and 31st July for other assessees.
3. It is now mandatory for companies, firms, and individuals subject to tax audit to file returns electronically, while individuals with over 5 lakhs income can
The document provides an overview of basic concepts related to income tax in India, including definitions of key terms like tax, direct tax, indirect tax, income, assessee, capital/revenue receipts and expenditures. It explains that the Income Tax Act of 1961 governs income tax and its provisions for determining taxable income and tax liability. Income includes various sources like profits, dividends, capital gains, interest etc. Computation of taxable income involves calculating income under different heads, applying deductions and exemptions, and determining the final tax liability.
This document discusses income from salaries under the Indian tax system. It defines salary as remuneration received by an individual for services rendered to an employer. Salary can be paid by individuals, firms, companies or government bodies. It includes basic pay, allowances like HRA and DA, perquisites, retirement benefits, bonuses and commission. These elements are all fully taxable as salary income. The document provides examples to illustrate how to calculate total salary income for tax purposes.
Profit & Gains from Business or Profession.RAJESH JAIN
This document provides an overview of income from business and profession under the Indian Income Tax Act. It defines business and profession, outlines the key points and basis of charge for income from business/profession. It also discusses the computation of income, specific deductions allowed, depreciation rules and amounts that are not deductible. The key information includes definitions of business and profession, income includes profits and losses, relevance of accounting method, and that income from illegal businesses is taxable.
The document discusses the five heads of income under the Indian Income Tax Act of 1961: (1) income from salary, (2) income from house property, (3) income from business and profession, (4) income from capital gains, and (5) income from other sources. It provides details on what types of income fall under each head and the basic rules for taxing each type of income.
The document discusses India's Goods and Services Tax (GST) policies and regulations related to input tax credit. Key points include:
- Under GST, input tax credit is available for goods, services, and capital goods used in the course of business. This is a significant expansion of credit compared to earlier tax systems.
- Credit can be claimed by registered businesses against central GST, state GST, integrated GST, and Union territory tax paid on business purchases.
- Certain documents like tax invoices and bills of entry must be possessed, and payment must be made to the supplier within 180 days, for credit to be claimed.
- There are also time limits, apportionment and reversal
This document provides an overview of income from business and profession under the Indian Income Tax Act with three key points:
1. It defines what constitutes a business or profession according to Section 2(13) of the Act and lists the essential features of a business as regularity of transactions, objective of earning profits, and application of labour and skill.
2. It outlines the various incomes that are chargeable to tax under the head "profits and gains from business or profession" according to Section 28 of the Act, including profits from any business/profession, income from professional associations, sale of import entitlements, and perquisites from business/profession.
3. It discusses the scheme of allowable
This document provides an overview of input tax credit under the GST Act. It defines input tax and input tax credit, outlines the eligibility and conditions for claiming ITC, and discusses the time limit. It also covers apportionment of credit and blocked credits, availability of credit in special circumstances like new registration or exempt supplies becoming taxable. The document discusses ITC on capital goods, distribution of credit by an Input Service Distributor, and recovery of excess credit distributed. Overall it serves as a comprehensive guide to the key aspects of input tax credit under Indian GST law.
The document provides definitions and concepts related to income tax in India. It defines key terms like assessee, assessment, person, income, direct tax, indirect tax. It explains the types of taxes and why taxes are levied. It describes the procedure for computing total income which involves determining residential status, classifying income under different heads, setting off losses, deductions and arriving at tax payable.
The document discusses the rules for set off and carry forward of business losses under the Income Tax Act. It can be summarized as follows:
1) Section 70 allows for set off of losses from one source of income against profits from another source within the same head. Section 71 allows set off of losses under one head against income under another.
2) Business losses can be carried forward for 8 years and set off against future profits of any business. Speculation losses can be carried forward for 4 years against future speculation profits only.
3) Capital losses can be carried forward for 8 years against capital gains. House property losses can be carried forward for 8 years against future house property income. Losses from specified businesses
The document discusses concepts related to input tax credit under GST, including definitions of key terms like input, capital goods, input services, and exceptions. It outlines eligibility and features of input tax credit provisions, such as conditions for claiming ITC, time limits, and utilization of credits. Examples are provided comparing tax implications of intra-state and inter-state supplies under the current system versus GST.
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.
- Clubbing of income provisions allow the income of one person to be taxed in the hands of another person if certain conditions are met (Sections 60-64).
- Key situations include transfer of income without asset transfer, revocable transfers of assets/income, income of a spouse from the other spouse's business, income from assets transferred to a spouse or minor children, and income of HUF property.
- The objectives are to prevent tax avoidance by transferring income/assets to family members while still enjoying the benefits. Income is clubbed and taxed in the transferor's hands in many situations.
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.
Capital gains are profits arising from the transfer of a capital asset. There are two types of capital assets - short term (held for less than 3 years for non-financial assets and 1 year for financial assets) and long term (held for more than 3 years/1 year). Capital gains are taxed differently based on whether the asset is short term or long term. Indexation of cost is allowed for long term capital gains to account for inflation. Various sections like 54, 54B, 54D, 54EC, 54F provide exemptions from capital gains tax if certain conditions are met like reinvestment of sale proceeds.
The document discusses various types of taxes in India including direct taxes like income tax and indirect taxes like sales tax. It explains the key concepts related to income tax like previous year, assessment year, residential status, total income and tax slabs. Residential status is determined based on the number of days spent in India and can be resident, non-resident or resident but not ordinarily resident. Total income includes income from various heads like salary, house property, business, capital gains and other sources after exemptions. Tax is calculated by applying the appropriate tax rates to the net taxable income.
This document discusses income tax in India. It defines income tax as a direct tax levied on the incomes of individuals, Hindu Undivided Families (HUFs), unregistered firms, and other associations of people. It was passed as an act in 1961 and came into effect in 1962. The document then provides the income tax slab rates for the 2013-2014 assessment year, including different rates for individuals of different ages and genders. It also defines various income tax related terms and provides an example computation of total income and tax liability for an individual named M. Niranjan for the 2013-2014 assessment year.
The document summarizes the various types of returns required to be filed under the Goods and Services Tax (GST) regime in India. It discusses 18 different return forms including monthly, quarterly, annual returns to be filed by regular taxpayers, compounding taxpayers, Input Service Distributors, e-commerce operators, non-resident taxpayers, and others. The returns require reporting of outward and inward supplies, input tax credit claimed, tax payable, payments made, and other details. The returns are largely auto-populated based on information filed in other returns, and allow for modifications and corrections.
The document provides an overview of the history and framework of income tax in India. It discusses key definitions such as assessment year, previous year, assessee, person, income types. It outlines the principles (canons) of taxation including equality, certainty, convenience, economy, productivity, elasticity, simplicity and diversity. The document also describes the different tax authorities in India and their roles. It provides details on calculating agricultural income and the tax schemes for individual, firms, companies and local authorities for the assessment year 2020-21. Finally, it discusses the differences between capital vs revenue receipts/expenditure/losses.
The document discusses various aspects of taxable salary income under the Income Tax Act in India.
1) Salary includes wages, allowances, bonuses, commissions, perquisites and other monetary payments received from an employer. Salary is taxable on an accrual basis at the place of employment.
2) Perquisites include benefits provided by employers such as rent-free accommodation, gas, electricity, water, free education for employees' children, interest-free loans, etc. Most perquisites are valued at a percentage of the employee's salary for tax purposes.
3) Some exemptions are provided for leave travel allowance, gratuity, encashment of leave salary, retrenchment compensation, pensions,
1) There are 5 heads of income under the Indian Income Tax Act: income from salary, house property, business or profession, capital gains, and other sources.
2) Computation of taxable income involves determining residential status, classifying income, aggregating, applying clubbing provisions, deducting losses, exemptions, and rebates to calculate total tax payable.
3) Income from salary includes wages, pension, gratuity, fees, commissions, perquisites, and advances. Certain allowances like conveyance, education, transport, and house rent are fully or partially exempted.
4) Income from house property is based on annual value, which is the expected rent (municip
The document provides an overview of basic concepts related to income tax in India, including definitions of key terms like tax, direct tax, indirect tax, income, assessee, capital/revenue receipts and expenditures. It explains that the Income Tax Act of 1961 governs income tax and its provisions for determining taxable income and tax liability. Income includes various sources like profits, dividends, capital gains, interest etc. Computation of taxable income involves calculating income under different heads, applying deductions and exemptions, and determining the final tax liability.
This document discusses income from salaries under the Indian tax system. It defines salary as remuneration received by an individual for services rendered to an employer. Salary can be paid by individuals, firms, companies or government bodies. It includes basic pay, allowances like HRA and DA, perquisites, retirement benefits, bonuses and commission. These elements are all fully taxable as salary income. The document provides examples to illustrate how to calculate total salary income for tax purposes.
Profit & Gains from Business or Profession.RAJESH JAIN
This document provides an overview of income from business and profession under the Indian Income Tax Act. It defines business and profession, outlines the key points and basis of charge for income from business/profession. It also discusses the computation of income, specific deductions allowed, depreciation rules and amounts that are not deductible. The key information includes definitions of business and profession, income includes profits and losses, relevance of accounting method, and that income from illegal businesses is taxable.
The document discusses the five heads of income under the Indian Income Tax Act of 1961: (1) income from salary, (2) income from house property, (3) income from business and profession, (4) income from capital gains, and (5) income from other sources. It provides details on what types of income fall under each head and the basic rules for taxing each type of income.
The document discusses India's Goods and Services Tax (GST) policies and regulations related to input tax credit. Key points include:
- Under GST, input tax credit is available for goods, services, and capital goods used in the course of business. This is a significant expansion of credit compared to earlier tax systems.
- Credit can be claimed by registered businesses against central GST, state GST, integrated GST, and Union territory tax paid on business purchases.
- Certain documents like tax invoices and bills of entry must be possessed, and payment must be made to the supplier within 180 days, for credit to be claimed.
- There are also time limits, apportionment and reversal
This document provides an overview of income from business and profession under the Indian Income Tax Act with three key points:
1. It defines what constitutes a business or profession according to Section 2(13) of the Act and lists the essential features of a business as regularity of transactions, objective of earning profits, and application of labour and skill.
2. It outlines the various incomes that are chargeable to tax under the head "profits and gains from business or profession" according to Section 28 of the Act, including profits from any business/profession, income from professional associations, sale of import entitlements, and perquisites from business/profession.
3. It discusses the scheme of allowable
This document provides an overview of input tax credit under the GST Act. It defines input tax and input tax credit, outlines the eligibility and conditions for claiming ITC, and discusses the time limit. It also covers apportionment of credit and blocked credits, availability of credit in special circumstances like new registration or exempt supplies becoming taxable. The document discusses ITC on capital goods, distribution of credit by an Input Service Distributor, and recovery of excess credit distributed. Overall it serves as a comprehensive guide to the key aspects of input tax credit under Indian GST law.
The document provides definitions and concepts related to income tax in India. It defines key terms like assessee, assessment, person, income, direct tax, indirect tax. It explains the types of taxes and why taxes are levied. It describes the procedure for computing total income which involves determining residential status, classifying income under different heads, setting off losses, deductions and arriving at tax payable.
The document discusses the rules for set off and carry forward of business losses under the Income Tax Act. It can be summarized as follows:
1) Section 70 allows for set off of losses from one source of income against profits from another source within the same head. Section 71 allows set off of losses under one head against income under another.
2) Business losses can be carried forward for 8 years and set off against future profits of any business. Speculation losses can be carried forward for 4 years against future speculation profits only.
3) Capital losses can be carried forward for 8 years against capital gains. House property losses can be carried forward for 8 years against future house property income. Losses from specified businesses
The document discusses concepts related to input tax credit under GST, including definitions of key terms like input, capital goods, input services, and exceptions. It outlines eligibility and features of input tax credit provisions, such as conditions for claiming ITC, time limits, and utilization of credits. Examples are provided comparing tax implications of intra-state and inter-state supplies under the current system versus GST.
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.
- Clubbing of income provisions allow the income of one person to be taxed in the hands of another person if certain conditions are met (Sections 60-64).
- Key situations include transfer of income without asset transfer, revocable transfers of assets/income, income of a spouse from the other spouse's business, income from assets transferred to a spouse or minor children, and income of HUF property.
- The objectives are to prevent tax avoidance by transferring income/assets to family members while still enjoying the benefits. Income is clubbed and taxed in the transferor's hands in many situations.
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.
Capital gains are profits arising from the transfer of a capital asset. There are two types of capital assets - short term (held for less than 3 years for non-financial assets and 1 year for financial assets) and long term (held for more than 3 years/1 year). Capital gains are taxed differently based on whether the asset is short term or long term. Indexation of cost is allowed for long term capital gains to account for inflation. Various sections like 54, 54B, 54D, 54EC, 54F provide exemptions from capital gains tax if certain conditions are met like reinvestment of sale proceeds.
The document discusses various types of taxes in India including direct taxes like income tax and indirect taxes like sales tax. It explains the key concepts related to income tax like previous year, assessment year, residential status, total income and tax slabs. Residential status is determined based on the number of days spent in India and can be resident, non-resident or resident but not ordinarily resident. Total income includes income from various heads like salary, house property, business, capital gains and other sources after exemptions. Tax is calculated by applying the appropriate tax rates to the net taxable income.
This document discusses income tax in India. It defines income tax as a direct tax levied on the incomes of individuals, Hindu Undivided Families (HUFs), unregistered firms, and other associations of people. It was passed as an act in 1961 and came into effect in 1962. The document then provides the income tax slab rates for the 2013-2014 assessment year, including different rates for individuals of different ages and genders. It also defines various income tax related terms and provides an example computation of total income and tax liability for an individual named M. Niranjan for the 2013-2014 assessment year.
The document summarizes the various types of returns required to be filed under the Goods and Services Tax (GST) regime in India. It discusses 18 different return forms including monthly, quarterly, annual returns to be filed by regular taxpayers, compounding taxpayers, Input Service Distributors, e-commerce operators, non-resident taxpayers, and others. The returns require reporting of outward and inward supplies, input tax credit claimed, tax payable, payments made, and other details. The returns are largely auto-populated based on information filed in other returns, and allow for modifications and corrections.
The document provides an overview of the history and framework of income tax in India. It discusses key definitions such as assessment year, previous year, assessee, person, income types. It outlines the principles (canons) of taxation including equality, certainty, convenience, economy, productivity, elasticity, simplicity and diversity. The document also describes the different tax authorities in India and their roles. It provides details on calculating agricultural income and the tax schemes for individual, firms, companies and local authorities for the assessment year 2020-21. Finally, it discusses the differences between capital vs revenue receipts/expenditure/losses.
The document discusses various aspects of taxable salary income under the Income Tax Act in India.
1) Salary includes wages, allowances, bonuses, commissions, perquisites and other monetary payments received from an employer. Salary is taxable on an accrual basis at the place of employment.
2) Perquisites include benefits provided by employers such as rent-free accommodation, gas, electricity, water, free education for employees' children, interest-free loans, etc. Most perquisites are valued at a percentage of the employee's salary for tax purposes.
3) Some exemptions are provided for leave travel allowance, gratuity, encashment of leave salary, retrenchment compensation, pensions,
1) There are 5 heads of income under the Indian Income Tax Act: income from salary, house property, business or profession, capital gains, and other sources.
2) Computation of taxable income involves determining residential status, classifying income, aggregating, applying clubbing provisions, deducting losses, exemptions, and rebates to calculate total tax payable.
3) Income from salary includes wages, pension, gratuity, fees, commissions, perquisites, and advances. Certain allowances like conveyance, education, transport, and house rent are fully or partially exempted.
4) Income from house property is based on annual value, which is the expected rent (municip
Latest Updates And All Latest Issues Of Income Tax IndiaPraveen Kumar
Income Tax Act classifies income into four main heads: salary, house property, capital gains, and business/profession. Key points include: (1) employees can sometimes claim both HRA and interest on housing loans; (2) losses from rent properties can offset income from other heads; and (3) surplus from derivative contracts is non-speculative capital gains. Certain items like art are now considered capital assets. Various deductions and compliances like TDS, advance tax payments, and annual returns are required under the Income Tax Act.
Basics of income tax assessments and appealsAmeet Patel
A brief presentation made be me to an audience consisting of semi qualified accountants giving the basics of Income-tax assessments and appeals in India. The contents may undergo a change from time to time based on amendments to the Indian Income-tax Act, 1961.
This document discusses the general principles of taxation according to a lecture on income taxation. It defines taxation as the means by which a government raises income to fund its necessary expenses. The primary purpose of taxation is to provide funds to promote citizens' welfare and finance government activities. Other purposes include strengthening industries, protecting local industries, and reducing inequality. The principles discuss the theory that government needs revenue and has the right to tax citizens in return for protection. A sound tax system should be fiscally adequate, impose equal burdens based on ability to pay, and be administratively feasible. The document also outlines constitutional and inherent limitations on taxation powers.
This document provides an overview of taxation in India. It discusses the history of income tax, which was first introduced in India in 1860. It outlines the various tax authorities in India, including central and state governments and municipalities. It defines key terms related to taxation like income, assessment year, and previous year. It also provides examples of statements showing taxable income from sources like salary, house property, business/profession, and a summary statement of total taxable income. Finally, it briefly discusses value-added tax.
The document appears to contain information about various Indian taxes including income tax, sales tax, wealth tax, and service tax. It provides definitions and key details about the different types of taxes such as the tax rates, applicable entities, exemptions, and controversies in certain areas. It also summarizes the objectives and issues with some of these taxes in India.
This document discusses concepts of taxation including definitions, principles, theories, structures, and characteristics of tax systems. It defines taxation as the process by which governments raise revenue to fund expenses through mandatory contributions imposed on individuals and organizations. The key principles discussed are the benefit principle, ability-to-pay principle, and equal-distribution principle. Taxes can be proportional, regressive, or progressive based on rates. The document also outlines forms of tax exemption and avoidance.
Taxation 101 basic rules and principles in philippine taxation by jr lopez go...JR Lopez Gonzales
The document discusses taxation in the Philippines, including:
1. It defines taxation as the imposition of financial charges by the government to raise revenues and fund government expenses.
2. It outlines the history of taxation from ancient times to its development under Spanish colonial rule and the establishment of taxes like the cedula.
3. It describes the main purposes of taxation as raising revenues, redistribution of wealth, repricing goods/services, and representation of citizens in government.
The document provides information about tax planning for salaried employees. It discusses the history of Indian taxation and outlines various forms of income under salary such as basic pay, allowances, bonus, perquisites, and retirement benefits. It examines tax treatment of different allowances like house rent allowance, entertainment allowance, transport allowance, and special allowances. The document also covers perquisites including rent-free accommodation, use of motor cars, reimbursement of medical expenses, and more. It provides details on calculating tax exemptions for various allowances and perquisites. Finally, it discusses some tax planning strategies like investing in a spouse's name, taking advantage of home loan tax benefits, and investing in Public Provident Fund.
This document discusses salary and taxation under sections 15, 16 and 17 of India's income tax law. It defines salary and various components that constitute salary such as wages, annuity, pension, gratuity, fees, commissions, perquisites, profits and salary advances. It discusses the tax treatment of various allowances like house rent allowance, travel allowance, entertainment allowance, tuition fees allowance, and medical reimbursement. It also covers income from retirement benefits such as pension, commuted pension, leave encashment, gratuity, retrenchment compensation and voluntary retirement compensation. It provides details on tax exemptions and taxable portions for these retirement incomes.
This document discusses various taxable and partly taxable allowances in India. It provides details on 10 allowances that are fully taxable such as dearness allowance, entertainment allowance, and overtime allowance. It also explains 10 allowances that are partly taxable including house rent allowance, fixed medical allowance, and hill area allowance. The document discusses different types of taxable perquisites such as rent free accommodation, interest free loans, transfer of movable assets, and gifts. It specifically explains perquisites that are taxable in all cases and those taxable in specified cases only, such as use of employer-provided motor cars.
This document discusses various exemptions from income tax for salary income in India. It summarizes provisions related to leave salary, gratuity, pension, allowances, perquisites, provident fund and other deductions from salary that are exempt from tax. Key points include leave salary being fully tax exempt for government employees but with a maximum exemption of average salary for 10 months or Rs. 300,000 for non-govt employees. Gratuity is also exempt up to Rs. 10 lakhs. Certain allowances and perquisites like housing, medical benefits and interest-free loans are partially or fully tax exempt.
This document discusses the definition and taxation of salary under Indian income tax law. It defines salary as remuneration received periodically for services rendered through an express or implied contract. Salary can be received from one or more employers and includes both cash and non-cash remuneration. It discusses the tax treatment of various salary components such as allowances, perquisites, and reimbursements. It also provides details on exemptions available for certain allowances based on the type and amount.
Salary includes remuneration received for personal services under a contract of employment. For income to be categorized as salary, there must be an employer-employee relationship. Salary is taxable on a due or receipt basis, whichever is earlier. Components of taxable salary include basic salary, bonuses, commissions, allowances, perquisites, and profits in lieu of salary. Certain allowances such as transport, house rent, and leave travel are partially or fully tax exempt. Perquisites include benefits provided by employers and are taxed as salary. Specified employees who are directors, substantial interest holders, or high salary earners face additional taxes on perquisites.
This document discusses various types of salary income that are taxable under Section 15-17 of the Income Tax Act of 1961. It defines salary broadly to include both monetary and non-monetary payments from an employer. It outlines the tax treatment of various allowances that may be received as part of salary, including which allowances are fully taxable, partially exempted, or fully exempted. It provides examples to illustrate how to compute the taxable and exempted portions of house rent allowance and children education allowance.
The document discusses various deductions available under Chapter VI-A of the Income Tax Act that can be claimed to reduce taxable income. It provides details on deductions for life insurance premiums (Section 80C), contributions to pension plans (Section 80CCC), Employee Provident Fund (Section 80C), Principal repayments of home loans (Section 80C), tuition fees (Section 80C), among others. It also summarizes deductions for interest on education loans (Section 80E), medical insurance/expenditure (Section 80D, 80DD, 80DDB), and contributions to pension plans (Section 80CCD). The maximum combined deduction amount under Section 80C, 80CCC, 80CCD is Rs. 1.5
INCOME TAXXX RELATED POWER POINT PRESENTATIONBojamma2
- The document discusses various topics related to income tax in India including the introduction of income tax, the need to pay taxes, tax slabs, key terms, types of income such as salary income and its components, exemptions under section 10 including leave travel allowance and house rent allowance, and deductions available under the Income Tax Act.
- It provides an overview of the history and development of income tax in India since 1860 and explains the various expenditures incurred by the government that require funding through tax collection.
- The document also addresses common questions around why citizens need to pay taxes and what the government does with the tax revenue collected.
This document provides an agenda and overview of topics to be covered over two days in a payroll and compliance workshop. Day 1 will cover income tax provisions like tax rates, deductions, and comparisons of old and new tax regimes. Day 2 will cover perquisites (benefits provided in addition to salary), expected changes to labour codes, statutory payroll elements like PF and ESIC, minimum wages, and policies around these topics. Perquisites can be taxable or tax-free depending on their nature. Taxable perquisites include accommodations and motor vehicles provided by the employer. Four new labour codes are expected to consolidate existing labour laws covering wages, social security, industrial relations, and occupational safety.
The document summarizes various exemptions from income tax under Section 10 of the Income Tax Act. It discusses exemptions for agricultural income, income received as a Hindu Undivided Family member, share of profits from a partnership firm, leave travel concession, gratuity received, compensation received during voluntary retirement, amounts received from life insurance policies, payments from provident funds, payments from approved superannuation funds, house rent allowance, special allowances like conveyance allowance, and daily allowance. Conditions for availing exemptions are explained for various allowances and payments.
The document discusses various aspects of salaries under the Income Tax Act such as:
1) It defines what constitutes salary and includes wages, pension, gratuity, fees, commissions, perquisites, advance salary, leave encashment etc.
2) It discusses deductions available from salaries like entertainment allowance, tax on employment, and various retirement benefits like gratuity, pension, commuted pension that are taxable or exempt.
3) It provides details on how to treat various salary components like HRA, transport allowance, education allowance, perquisites, interest-free loans for computing taxable income from salaries.
Income tax salary ppt for bba(1) (2).pptxawanishbthk02
This document discusses various types of income that are taxable as salary in India under Section 15 of the Income Tax Act, including cash salaries, bonuses, commissions, allowances, and perquisites. It provides details on how items like house rent allowance, travel allowance, car benefits provided by employers, and retirement benefits are treated for tax purposes. The key points covered are that salary includes payments made for services as well as arrears, salary is taxed on a due or receipt basis, and there are both fully taxable and partially tax exempt allowances and perquisites defined in the tax code.
1. Sections of the Income Tax Act outline tax deductions for various types of payments including fees for professional services, technical services, purchase of goods over Rs. 50 lakhs, payments to contractors, and rent.
2. Tax deductions rates range from 1-10% depending on the type of payment and recipient. Payments to individuals are generally taxed at a lower rate than payments to other entities.
3. Certain payments like rent are only taxed if the annual aggregate amount exceeds Rs. 2.4 lakhs.
This document discusses various aspects of salary income under the Indian Income Tax Act. It defines salary and the principles for determining when salary is taxable. It explains the tax treatment of different types of salaries like basic salary, fees, commission, bonus, pension, etc. It also discusses exempted, partially exempted and taxable allowances as well as exempted and taxable perquisites. The document provides details on valuation of perquisites like accommodation and car facilities. It covers provisions related to provident funds like statutory PF, recognized PF and unrecognized PF. It concludes with deductions that can be claimed from gross salary income.
Salaries presentation presented by Sachin GujarRamesh Verma
This document discusses tax implications on salary income in India. It defines salary and outlines various allowances and payments that are included in the taxable salary. It describes exemptions available for conveyance allowance, children's education allowance, medical reimbursements, house rent allowance, and leave travel concession. It also discusses various deductions that can be claimed to reduce taxable income, such as those under Sections 80C, 80D, 80DD, 80E, 80G, and 80GG. The document concludes with tax rates, illustrations of tax calculations, the due date for filing returns, and budget implications for the fiscal year 2007-08.
Presentation On Income Tax (A.Y. 2009 10 & 2010 11)Praveen Kumar
The document discusses various aspects of income tax in India including:
1) Residential status is determined based on the number of days spent in India or the control and management of an individual's/entity's affairs.
2) Gross total income includes income from all sources and deductions are provided to arrive at total income.
3) Income tax rates for individuals range from 10-30% depending on income slabs and tax benefits are provided to senior citizens and women.
Unlock the Future of Search with MongoDB Atlas_ Vector Search Unleashed.pdfMalak Abu Hammad
Discover how MongoDB Atlas and vector search technology can revolutionize your application's search capabilities. This comprehensive presentation covers:
* What is Vector Search?
* Importance and benefits of vector search
* Practical use cases across various industries
* Step-by-step implementation guide
* Live demos with code snippets
* Enhancing LLM capabilities with vector search
* Best practices and optimization strategies
Perfect for developers, AI enthusiasts, and tech leaders. Learn how to leverage MongoDB Atlas to deliver highly relevant, context-aware search results, transforming your data retrieval process. Stay ahead in tech innovation and maximize the potential of your applications.
#MongoDB #VectorSearch #AI #SemanticSearch #TechInnovation #DataScience #LLM #MachineLearning #SearchTechnology
Skybuffer AI: Advanced Conversational and Generative AI Solution on SAP Busin...Tatiana Kojar
Skybuffer AI, built on the robust SAP Business Technology Platform (SAP BTP), is the latest and most advanced version of our AI development, reaffirming our commitment to delivering top-tier AI solutions. Skybuffer AI harnesses all the innovative capabilities of the SAP BTP in the AI domain, from Conversational AI to cutting-edge Generative AI and Retrieval-Augmented Generation (RAG). It also helps SAP customers safeguard their investments into SAP Conversational AI and ensure a seamless, one-click transition to SAP Business AI.
With Skybuffer AI, various AI models can be integrated into a single communication channel such as Microsoft Teams. This integration empowers business users with insights drawn from SAP backend systems, enterprise documents, and the expansive knowledge of Generative AI. And the best part of it is that it is all managed through our intuitive no-code Action Server interface, requiring no extensive coding knowledge and making the advanced AI accessible to more users.
Have you ever been confused by the myriad of choices offered by AWS for hosting a website or an API?
Lambda, Elastic Beanstalk, Lightsail, Amplify, S3 (and more!) can each host websites + APIs. But which one should we choose?
Which one is cheapest? Which one is fastest? Which one will scale to meet our needs?
Join me in this session as we dive into each AWS hosting service to determine which one is best for your scenario and explain why!
Nunit vs XUnit vs MSTest Differences Between These Unit Testing Frameworks.pdfflufftailshop
When it comes to unit testing in the .NET ecosystem, developers have a wide range of options available. Among the most popular choices are NUnit, XUnit, and MSTest. These unit testing frameworks provide essential tools and features to help ensure the quality and reliability of code. However, understanding the differences between these frameworks is crucial for selecting the most suitable one for your projects.
TrustArc Webinar - 2024 Global Privacy SurveyTrustArc
How does your privacy program stack up against your peers? What challenges are privacy teams tackling and prioritizing in 2024?
In the fifth annual Global Privacy Benchmarks Survey, we asked over 1,800 global privacy professionals and business executives to share their perspectives on the current state of privacy inside and outside of their organizations. This year’s report focused on emerging areas of importance for privacy and compliance professionals, including considerations and implications of Artificial Intelligence (AI) technologies, building brand trust, and different approaches for achieving higher privacy competence scores.
See how organizational priorities and strategic approaches to data security and privacy are evolving around the globe.
This webinar will review:
- The top 10 privacy insights from the fifth annual Global Privacy Benchmarks Survey
- The top challenges for privacy leaders, practitioners, and organizations in 2024
- Key themes to consider in developing and maintaining your privacy program
In the rapidly evolving landscape of technologies, XML continues to play a vital role in structuring, storing, and transporting data across diverse systems. The recent advancements in artificial intelligence (AI) present new methodologies for enhancing XML development workflows, introducing efficiency, automation, and intelligent capabilities. This presentation will outline the scope and perspective of utilizing AI in XML development. The potential benefits and the possible pitfalls will be highlighted, providing a balanced view of the subject.
We will explore the capabilities of AI in understanding XML markup languages and autonomously creating structured XML content. Additionally, we will examine the capacity of AI to enrich plain text with appropriate XML markup. Practical examples and methodological guidelines will be provided to elucidate how AI can be effectively prompted to interpret and generate accurate XML markup.
Further emphasis will be placed on the role of AI in developing XSLT, or schemas such as XSD and Schematron. We will address the techniques and strategies adopted to create prompts for generating code, explaining code, or refactoring the code, and the results achieved.
The discussion will extend to how AI can be used to transform XML content. In particular, the focus will be on the use of AI XPath extension functions in XSLT, Schematron, Schematron Quick Fixes, or for XML content refactoring.
The presentation aims to deliver a comprehensive overview of AI usage in XML development, providing attendees with the necessary knowledge to make informed decisions. Whether you’re at the early stages of adopting AI or considering integrating it in advanced XML development, this presentation will cover all levels of expertise.
By highlighting the potential advantages and challenges of integrating AI with XML development tools and languages, the presentation seeks to inspire thoughtful conversation around the future of XML development. We’ll not only delve into the technical aspects of AI-powered XML development but also discuss practical implications and possible future directions.
5th LF Energy Power Grid Model Meet-up SlidesDanBrown980551
5th Power Grid Model Meet-up
It is with great pleasure that we extend to you an invitation to the 5th Power Grid Model Meet-up, scheduled for 6th June 2024. This event will adopt a hybrid format, allowing participants to join us either through an online Mircosoft Teams session or in person at TU/e located at Den Dolech 2, Eindhoven, Netherlands. The meet-up will be hosted by Eindhoven University of Technology (TU/e), a research university specializing in engineering science & technology.
Power Grid Model
The global energy transition is placing new and unprecedented demands on Distribution System Operators (DSOs). Alongside upgrades to grid capacity, processes such as digitization, capacity optimization, and congestion management are becoming vital for delivering reliable services.
Power Grid Model is an open source project from Linux Foundation Energy and provides a calculation engine that is increasingly essential for DSOs. It offers a standards-based foundation enabling real-time power systems analysis, simulations of electrical power grids, and sophisticated what-if analysis. In addition, it enables in-depth studies and analysis of the electrical power grid’s behavior and performance. This comprehensive model incorporates essential factors such as power generation capacity, electrical losses, voltage levels, power flows, and system stability.
Power Grid Model is currently being applied in a wide variety of use cases, including grid planning, expansion, reliability, and congestion studies. It can also help in analyzing the impact of renewable energy integration, assessing the effects of disturbances or faults, and developing strategies for grid control and optimization.
What to expect
For the upcoming meetup we are organizing, we have an exciting lineup of activities planned:
-Insightful presentations covering two practical applications of the Power Grid Model.
-An update on the latest advancements in Power Grid -Model technology during the first and second quarters of 2024.
-An interactive brainstorming session to discuss and propose new feature requests.
-An opportunity to connect with fellow Power Grid Model enthusiasts and users.
Introduction of Cybersecurity with OSS at Code Europe 2024Hiroshi SHIBATA
I develop the Ruby programming language, RubyGems, and Bundler, which are package managers for Ruby. Today, I will introduce how to enhance the security of your application using open-source software (OSS) examples from Ruby and RubyGems.
The first topic is CVE (Common Vulnerabilities and Exposures). I have published CVEs many times. But what exactly is a CVE? I'll provide a basic understanding of CVEs and explain how to detect and handle vulnerabilities in OSS.
Next, let's discuss package managers. Package managers play a critical role in the OSS ecosystem. I'll explain how to manage library dependencies in your application.
I'll share insights into how the Ruby and RubyGems core team works to keep our ecosystem safe. By the end of this talk, you'll have a better understanding of how to safeguard your code.
leewayhertz.com-AI in predictive maintenance Use cases technologies benefits ...alexjohnson7307
Predictive maintenance is a proactive approach that anticipates equipment failures before they happen. At the forefront of this innovative strategy is Artificial Intelligence (AI), which brings unprecedented precision and efficiency. AI in predictive maintenance is transforming industries by reducing downtime, minimizing costs, and enhancing productivity.
HCL Notes und Domino Lizenzkostenreduzierung in der Welt von DLAUpanagenda
Webinar Recording: https://www.panagenda.com/webinars/hcl-notes-und-domino-lizenzkostenreduzierung-in-der-welt-von-dlau/
DLAU und die Lizenzen nach dem CCB- und CCX-Modell sind für viele in der HCL-Community seit letztem Jahr ein heißes Thema. Als Notes- oder Domino-Kunde haben Sie vielleicht mit unerwartet hohen Benutzerzahlen und Lizenzgebühren zu kämpfen. Sie fragen sich vielleicht, wie diese neue Art der Lizenzierung funktioniert und welchen Nutzen sie Ihnen bringt. Vor allem wollen Sie sicherlich Ihr Budget einhalten und Kosten sparen, wo immer möglich. Das verstehen wir und wir möchten Ihnen dabei helfen!
Wir erklären Ihnen, wie Sie häufige Konfigurationsprobleme lösen können, die dazu führen können, dass mehr Benutzer gezählt werden als nötig, und wie Sie überflüssige oder ungenutzte Konten identifizieren und entfernen können, um Geld zu sparen. Es gibt auch einige Ansätze, die zu unnötigen Ausgaben führen können, z. B. wenn ein Personendokument anstelle eines Mail-Ins für geteilte Mailboxen verwendet wird. Wir zeigen Ihnen solche Fälle und deren Lösungen. Und natürlich erklären wir Ihnen das neue Lizenzmodell.
Nehmen Sie an diesem Webinar teil, bei dem HCL-Ambassador Marc Thomas und Gastredner Franz Walder Ihnen diese neue Welt näherbringen. Es vermittelt Ihnen die Tools und das Know-how, um den Überblick zu bewahren. Sie werden in der Lage sein, Ihre Kosten durch eine optimierte Domino-Konfiguration zu reduzieren und auch in Zukunft gering zu halten.
Diese Themen werden behandelt
- Reduzierung der Lizenzkosten durch Auffinden und Beheben von Fehlkonfigurationen und überflüssigen Konten
- Wie funktionieren CCB- und CCX-Lizenzen wirklich?
- Verstehen des DLAU-Tools und wie man es am besten nutzt
- Tipps für häufige Problembereiche, wie z. B. Team-Postfächer, Funktions-/Testbenutzer usw.
- Praxisbeispiele und Best Practices zum sofortigen Umsetzen
Skybuffer SAM4U tool for SAP license adoptionTatiana Kojar
Manage and optimize your license adoption and consumption with SAM4U, an SAP free customer software asset management tool.
SAM4U, an SAP complimentary software asset management tool for customers, delivers a detailed and well-structured overview of license inventory and usage with a user-friendly interface. We offer a hosted, cost-effective, and performance-optimized SAM4U setup in the Skybuffer Cloud environment. You retain ownership of the system and data, while we manage the ABAP 7.58 infrastructure, ensuring fixed Total Cost of Ownership (TCO) and exceptional services through the SAP Fiori interface.
HCL Notes and Domino License Cost Reduction in the World of DLAUpanagenda
Webinar Recording: https://www.panagenda.com/webinars/hcl-notes-and-domino-license-cost-reduction-in-the-world-of-dlau/
The introduction of DLAU and the CCB & CCX licensing model caused quite a stir in the HCL community. As a Notes and Domino customer, you may have faced challenges with unexpected user counts and license costs. You probably have questions on how this new licensing approach works and how to benefit from it. Most importantly, you likely have budget constraints and want to save money where possible. Don’t worry, we can help with all of this!
We’ll show you how to fix common misconfigurations that cause higher-than-expected user counts, and how to identify accounts which you can deactivate to save money. There are also frequent patterns that can cause unnecessary cost, like using a person document instead of a mail-in for shared mailboxes. We’ll provide examples and solutions for those as well. And naturally we’ll explain the new licensing model.
Join HCL Ambassador Marc Thomas in this webinar with a special guest appearance from Franz Walder. It will give you the tools and know-how to stay on top of what is going on with Domino licensing. You will be able lower your cost through an optimized configuration and keep it low going forward.
These topics will be covered
- Reducing license cost by finding and fixing misconfigurations and superfluous accounts
- How do CCB and CCX licenses really work?
- Understanding the DLAU tool and how to best utilize it
- Tips for common problem areas, like team mailboxes, functional/test users, etc
- Practical examples and best practices to implement right away
Main news related to the CCS TSI 2023 (2023/1695)Jakub Marek
An English 🇬🇧 translation of a presentation to the speech I gave about the main changes brought by CCS TSI 2023 at the biggest Czech conference on Communications and signalling systems on Railways, which was held in Clarion Hotel Olomouc from 7th to 9th November 2023 (konferenceszt.cz). Attended by around 500 participants and 200 on-line followers.
The original Czech 🇨🇿 version of the presentation can be found here: https://www.slideshare.net/slideshow/hlavni-novinky-souvisejici-s-ccs-tsi-2023-2023-1695/269688092 .
The videorecording (in Czech) from the presentation is available here: https://youtu.be/WzjJWm4IyPk?si=SImb06tuXGb30BEH .
2. 2
What is Tax ?
A fee charged ("levied") by a
government on a
product, income, or activity. If tax
is levied directly on personal or
corporate income, then it is a
direct tax. If tax is levied on the
price of a good or service, then it is
called an indirect tax. The purpose
of taxation is to finance
government expenditure.
3. 3
What is Previous Year and Assessment
Year ?
Previous year: The financial year Assessment year: The income from the
for which your income is being year preceding it is assessed for income
assessed. tax.
Income from a particular financial year is assessed for income tax in the following year. The financial year
in which this assessment takes place is called the Assessment Year (AY)
Now we are in Assessment Year 2012-13 for the previous year 2011-12
Assessee
Who is assessee:
Income Tax Act 1961 (Act no. 43) defines 'assessee' as a person by whom any tax or any other sum of
money is payable under this Act, and includes –
Every person in respect of whom any proceeding under this Act has been taken for the assessment of his
income or of the income of any other person in respect of which he is assessable, or of the loss sustained
by him or by such other person, or the amount of refund due to him or to such other person;
4. 4
Computation of Total Income
Five heads of income for the purpose computation of tax
• Salaries (Sec 15 to 17).
• Income from house property (Sec.22 to
27)
• Profits and gains of business or
profession (Sec 28 to 44 DB)
• Capital gains (Sec.45 to 55A)
• Income from other sources (Sec. 56 to
59)
5. 5
What is Salary
• Wages
• Any gratuity
• Any fees, commission,
perquisites or profits in lieu of or
in
additional to any salary or wages
• Any advance of salary
• Leave encashment
• Any annuity or Pension
• Provident Fund - a) Employer’s
contribution in excess of 12% of
salary Etc
6. 6
Computation of Gross income under
Salary
Step I
Deductions – Sec 16
The income chargeable under the head “Salaries” Shall be computed after
making the following deductions from gross salary
•Deduction of entertainment allowance (only for Govt. Employees Max. of
Rs.
5000) Sec 16(ii)
•Deduction of Professional Tax 16 (iii)
Salary 75000X 12 9,00,000/-
Value of taxable perquisites 25,780/-
Gross Salary 9,25,780/-
Less Professional Tax Paid. Rs. 200 X 12 = 2400.00 2,400/-
Taxable Salary 9,23,380/-
7. 7
Computation of Salary Income
Step II
Calculation of LTA ( Leave Travel concession or assistance) Sec.10 (5)
Quantum of Exemption
The exemption for each trip shall be computed on the following basis
Journey performed by Exemption
1. Air Amount in economy class by Shortest route
2. By Rail Amount in I A/C by shortest route
3. If rail service not exist – by recognized public transport Amount equivalent to the air conditioned I class rail fare
does not exit
4 .If recognized public transport systems exists An amount not exceeding the first class or deluxe class fare by
shortest route
1. L TA eligible to travel to anywhere in India with family (Self, Spouse,
Children, dependent parents, brothers and sisters.
2. This is exempted from tax only 2 trips in a block of 4 calendar years
starts from 1986, like 1986 to 1989, 1990 to 1993 ….. Now we are in the
slab of 2013 to 2016
8. 8
Calculation of HRA
STEP III
Calculation of HRA
House Rent Allowance Sec 10(13A)
HRA granted to an assessee by his employer is exempt to the extent of
the least of the following
Excess of rent paid over 10% of salary (Basic + DA only*) due for the
relevant period; or
If the accommodation is in Metro cities -50% (Basic + DA only*) of the
salary and in any other place – 40% salary
Actual allowance received for the relevant period
Exemption is not available to an assessee who lives in his own house or
in a house for which he doesn’t pay any rent.
Salary for this purpose means basic salary, dearness allowance – if
provided in terms of employment and commission as a percentage of
turnover achieved by the employee.
9. 9
Calculation of HRA
Illustration
Mr. Zakaria, staying at Chennai receives Rs. 12,500 Month as basic in terms of
employment. He is paid an house rent allowance of Rs. 1,800 PM . House Rent
paid by him Rs. 2500 Per Month. He received advanced salary of Rs. 50,000/- in
March 2011 relating to the period of April to July 2011. Determine the taxable
quantum of house rent allowance.
Computation of taxable house rent allowance – Mr. Zakaria
Particulars Rs. Rs.
Actual House Rent Allowance received Rs. 1,800 X 12 Months 21,600
Less exempt u/s 10 (13A) to the extent of least of the following:
1. Excess of rent paid over 10% of the Salary 15,000 15,000
( 12500 X 12 ) 1,50,000/-
Rent Paid 2500X12 = 30000 – 15,000/-
1. 50% of Salary 75,000
2. Actual HRA received 21,600
3. Actual Rent Paid 30,000
Taxable HRA 6,600
10. 10
Special Allowance
Special Allowance – Sec 10(14)
The following allowances are prescribed by Central Board of Direct Taxes
under Rule 2 BB of the Income Tax rules as exempt to the extent spent or
specified here below:
Any allowance granted and spent to meet the cost of
1. Travel on tour or on transfer
2. Ordinary daily charges incurred on account of absence from normal place of
duty;
3. Conveyance allowance granted to meet the expenditure incurred on
conveyance in the performance of the duties.
4. Expenditure incurred on a helper in the performance of duties
5. Purchase or maintenance of uniforms for wear during the performance of
duties
6. Transport allowance granted to an employee to meet hi expenditure
for the purpose of commuting between the place to his residence and
the place of his duty to the extent of Rs. 800/PM, for employee is who
is blind or orthopedically handicapped with disability of lower
11. 11
Fringe benefit tax
The taxation of perquisites -- or
fringe benefits -- provided by an
employer to his employees, in
addition to the cash salary or
wages paid is fringe benefit tax.
12. 12
Valuation of Perquisites
According to Section 17(2) perquisites include
•Rent free accommodation provided to the assesses by his employer or
concessional with this matter
•Provision of transport facility (free or concessional)
•Interest free or concessional Loan : The value of benefit or amenity is
taxable as
rate charged by SBI
•Transfer of movable asset - If the employer transfers any moveable asset
to the employee perquisites calculated as, for Motor Cars 20% rate of
depreciation (Reducing balance Method,(WDV)) Computers and electronics
gadgets 50% rate of depreciation (WDV)any other assets is 10% at straight
line method .
13. 13
Non Taxable perquisites
According to Section 17(2) Non Taxable perquisites includes
1. Any amount of premium paid in relations to group medical
insurance taken by the employer for his employees or
reimbursement medical insurance premium
2. Reimbursement by employer of actual medical expenditure incurred
by an employee and his family not exceeding Rs. 15,000/-
3. When Employee owns car and employer bears expenses (when it
is used for official and Personal use) Up to 1.6 ltr CC Engine –
1800/- PM and Above 1.6 ltr. C.C Engine-Rs. 2400/- PM. Driver
Salary for Rs. 900/- PM.
4. If free meals provided by the employer during the office hours at
office premises up to Rs.50/- or through voucher usable only at
eating joints if the value thereof is up to Rs.50/- Per meal;
5. Tea and snacks provided during the office hours
6. Gift - The value of any gift/(voucher/token) by employer to
employee up to Rs.5000/- is exempted and if the value exceeds
Rs. 5000/- the entire amount is taxable.
7. Employer pay or reimburses telephone/mobile bills is exempted
from taxable perquisite
14. 14
Income from House Property
1 Let-out Property Any Amount of Income or Loss
2 Self Occupied or Un Occupied Either nil or loss subject to max of Rs. 1.5 Lakh
Property
3 Deemed let-out property Any Amount of Income or Loss
House Property – Let out for a period
What is annual value of the property
Generally fair rent is adopted as the gross actual value to this general rule there are only two
exceptions as follows
If the property is let out and the actual rent received or receivable is excess of fair rent, the
amount so received shall be deemed to be the annual value.
If the property is let out was vacant during the whole/part of the previous year a during the
whole or any part of the previous year and owing to such vacancy the actual rent received or
receivable shall be considered as the annual value
Fair rent means rent which similar property in the same locality would fetch. But if the
municipal valuation is also available, then municipal valuation or the rent which similar property
in the same locality would fetch.
15. 15
Income from House Property
Interest on Loans – Sec.24(b)
• Interest Payable on loans borrowed
for the purpose of acquisition,
construction. Renovation, repairing or
reconstruction can be claimed as
deduction
• Loan borrowed to repay original loan
would also be admissible as
deduction
• Deduction U/s 24 (b) is allowed up to
Rs. 1,50,000/- (acquired/Construction
after 1-4-99)
16. 16
Deductions to be made in computing
total income
Deductions to be made in computing total income.
U/s 80C
• Life insurance
• Employee welfare funds – PF, PPF
• Central Government /Post Office savings / other notified schemes – like
PPF, pension fund, RD (5yrs) etc
• Housing – Repayment of any housing loan, stamp duty, registration charges
• Tuition Fees – payment made as tuition fees to any university, college or
school or other educational intuition
The aggregate of the eligible contributions mentioned above shall be
allowed as deductions to the extent of Rs. 1,00,000/-
17. 17
Deductions to be made in computing
total income
Deductions to be made in computing total income. U/s 80CCC- Pension Fund
1. Contribution made to annuity plan issued by LIC or any other insurer approved by
IRDA
2. If this insurance is surrenders before maturity, the surrender value or pension
received by this annuity is taxable
3. Deduction in respect of contribution to pension schemes of central government
Sec 80.CCD
4. Where an individual has contributed any amount under a pension scheme notified
by the central Government, he shall be allowed a deduction in the computation of
his total income, the limit as follows;
5. In the case of an individual deriving Salary income - 10% of the Salary (Limit)
6. In the case of individual deriving other income – 10% of the gross total income
(Limit)
18. 18
Deductions to be made in computing total
income – Example
• Mr. Sharma aged 70 years furnishes the following particulars for the year ending
• Life insurance premium paid – Rs. 50,000/- capital sum of the policy assured for Rs. 2 Lakhs
• Contribution to Public provident Fund – Rs. 30,000/- in the name of mother
• Tuition fee payment – Rs. 10,000/- each for 3 daughters pursuing full time graduation courses
in Mumbai; Tuition fee for son pursing MBA in Harvard Business School – Rs. 1 Lakh
• Housing Loan principal repayment - Rs. 24,000/- to HDFC bank this property is under
construction at Mumbai as on 31st March 2011
• Principal repayment of Housing loan taken from friend – Rs. 50,000/- property is self occupied
situated at Chennai
• Deposit under Sr. Citizen Scheme Rs. 25,000/-
• Deposit under Post office time deposit scheme – Rs. 30,000/-
• Investment in National savings Certificate – 50,000/-
• Subscription to bond issued by NABARD - Rs. 25,000/-
• Term deposit of Rs. 25000/- with schedule bank for a period of 5 years. This deposit was
pledged to avail education loan for son
• Compute the deduction eligible under section 80C AY-2011-12
19. 19
Deductions to be made in computing total
income
Particulars Note Amount eligible Rs.
A Life Insurance Premium 1 40,000/-
B Contribution to Public Provident Fund 2 NIL
C Tuition fee for daughter pursuing full time education in Mumbai 3 20,000/-
D Housing Loan principal repayment 4&5 NiL
E Post Office Term Deposit Scheme 30,000/-
F Contribution to NSC 50,000/-
G Subscription to Bonds issued by NABARD 25,000/-
H Sr. Citizen Scheme deposit 25,000/-
I Term deposit 6 NiL
Gross amount eligible 1,90,000/-
Deduction under section 80C restricted to 1,00,000/-
20. 20
Deductions to be made in computing total
income
Notes
1. Any amount of Life insurance premium paid in excess of 20% of capital
sum
assured shall be ignored for deduction u/s 80C.
2. In the case of Individual contribution to PPF shall be made in his name,
spouse or
children to qualify for deduction.
3. Tuition fee paid is eligible for deduction u/s 80C for maximum of two
children.
Tuition fee paid for educational institution situated outside India is not
eligible for
deduction
4. In order to claim the principal repayment on loan borrowed for house
property as deduction, the construction of such property should have been
completed
5. Repayment of Principal on housing loan is not allowed as deduction in
21. 21
Deductions to be made in computing total
income
The Rajiv Gandhi Equity Savings Scheme
will allow 50 per cent tax deduction for
those whose annual income is below Rs
10 lakhs and who invest up to Rs 50,000
in stocks.
The scheme will have a lock-in period of
three years, This scheme for new
investors can be availed only once,
meaning people who have already
invested in equity market cannot avail this
tax benefit.
This is once in a lifetime This scheme is
over and above the deduction provided
on investments up to Rs 1 lakh.
22. 22
Deductions to be made in computing total
income
Medical Insurance Premium – Sec 80D
Summaries of the deduction allowable u/s80D
Mediclaim Premium Paid in respect of
Self, Spouse & Parents, Total deduction u/s
Description
dependent dependent or not 80D
Children
No one attained the
Rs. 15,000/- Rs. 15,000/- Rs.30,000/-
age of 65 years
Assessee his family
less than 65 years of
Rs. 15,000/- Rs. 20,000/- Rs. 35,000/-
age and parent is a
senior citizen
Assessee and the
parent attained the age Rs. 20,000/- Rs. 20,000/- Rs. 40,000/-
of 65 Years
Latest Amendment for 2012-13 – Age of Senior Citizen reduced from 65 years to 60
Expenditure on preventive health checkup up to Rs. 5000 will be qualified for deduction on u/s 80D (within the
specified amount)
23. 23
Deductions to be made in computing total
income
Maintenance including medical treatment of a dependant with disability – Sec 80DD
• Deduction is allowable in respect of – Any expenditure incurred for the medical
treatment, training and rehabilitation of a dependant with disability
• An amount paid or deposited by assessee under any scheme of LIC or any other
insurer for the above.
• Deduction- Deduction of a flat amount of Rs.50,000/- shall be allowed irrespective of
the quantum of expenditure incurred or deposit made, If the person with severe
disability, the deduction shall be Rs. 1,00,000/-.
The deduction is subject to the following conditions:
• The scheme of LIC or any other insurer or the administrator provides for the
payment of annuity or lumpsum amount for the benefits of a dependant with
disability.
Medical treatment for certain specified disease or ailment – Sec 80DDB
• Deduction under this section can be claimed by the asessee and their dependant
towards medical treatments of specified diseases or ailments
• Deduction shall be up to Rs. 40,000/- or actual expenses whichever is less.
• For the purpose of Sec 80DDB the specified diseases and ailment shall be as under
(Rule 11 DD)
24. 24
Deductions to be made in computing total
income
Deduction for the interest on loan taken for higher education – Sec 80E
• Any amount paid towards interest on loan borrowed from any financial
institution or any approved charitable institutions for the purpose of
pursuing higher education is deductible.
• The higher education shall be pursued by the assesse himself or by
spouse or children
• This deduction is allowed for the initial year (year of commencement of
payment of the interest) and immediately succeeding 7 assessment
years or until the interest is paid by the assessee in full whichever is
earlier.
• “Higher education” means any course of study pursued after passing the
Sr. Secondary examination or its equivalent from any school, board or
university recognized by the Central Government, Sate Government,
Local authority or any other authorized authorities.
25. 25
Deductions to be made in computing total
income
Donations to Certain Funds, charitable institution
etc 80G
Category No. Eligibility of Donation Made
I 100% deduction without any limit
II 50% deduction without any limit
III a) Donations eligible for 100% of the
restricted amount
b) Donations eligible for 50% of the
restricted amount
Category I
PM National relief fund, PM earthquake relief found, The national foundation for communal Harmony and many more.
Category II
Jawaharlal Nehru Memorial Fund, PM’s Drought Relief fund, The Nationals Children’s fund, Indira Gandhi Memorial Trust; Rajiv
Gandhi Foundation
Category III
•Donations eligible for 100% of the restricted amount
•Contribution by a company as donations to the Indian Olympic association or any other associations or institutions established in
India for the development of infrastructure for sports and games or for the sponsorship of sports and games in India notified by
Central Government
•Government or local authority or approved institution/association for promotion of family planning
•Donations eligible for 50% of the restricted amount
•Renovations of notified temple, mosque, Church or gurudwara or any other notified place of national importance;
•The government or any local authority, to be utilized for any charitable purpose other than the purpose of promoting family
planning;
•Any other corporation established by government for promoting interest of scheduled caste/Scheduled tribe/backward class;
•Any authority set up for the providing housing accommodations or town planning;
26. 26
Deductions to be made in computing total
income
Net qualifying Amount
• Here qualifying amount would be 10% of adjusted total
Income (i.e Gross Total Income - Deductions a)
Deductions under Chapter VI-A (80C to 80U), b) long term
capital gains, c) Short term capital gains on listed securities
, d) income of non-residents chargeable to tax) lowest of the
amount.
• Donations in kind are not deductible.
• New amendment for FY-2012-13 Deduction u/s 80G and
80GGA not granted in case of cash donations in excess of
Rs. 10,000/-
27. 27
Tax Rate – Assessment Year 2013-14
Tax rate- Proposed for assessment year 2013-14
Where the total income does not exceed Rs. 2 Nil
Lakhs
Where the total income exceeds Lakhs but 10% of the amount by which the total income
not exceed 5 Lakhs exceeds, 2 Lakhs
Where the total income exceeds Rs. 5 Lakhs Rs. 30,000 + 20% of the amount by which the
doesnot not exceed 10 Lakhs total income exceeds Rs. 5 Lakhs
Whrere the total income exeeds Rs. 10 Lakhs Rs. 1.30. Lakhs + 30% to the amount by which
the total income exceeds Rs. 10 Lakhs
+ 2% education and secondary and higher education cess at the rate of 1% will apply
There is tax exception up to 2.5 Lakhs for every individual who is of the age of 60 and less then 80 yrs
There is tax exception up to 5.00 Lakhs for who is of the age of 80 years after 5.00 Lakhs it is 20% and 10
Lakhs and above is 30%
28. 28
FAQ’S
1. What are the benefits of obtaining a Permanent Account Number [PAN] and PAN Card?
A PAN number has been made compulsory for every transaction with the Income Tax department. It is
also mandatory for numerous other financial transactions such as opening of bank accounts, availing
institutional financial credits, purchase of high-end consumer item, foreign travel, transaction of
immovable properties, dealing in securities etc. A PAN card is a valuable means of photo identification
accepted by all government and non-government institutions in the country
2. What can I do to reduce my tax?
The tax can be reduced by making investment in approved schemes and also by making donations to
approved charitable institutions.
3. If I have paid excess tax how and when will it be refunded?
The excess tax can be claimed as refund by filing your income tax return. It will be refunded by issue of
cheque or by crediting to your bank account. The department has been making efforts to settle refund
claims within four months from the month of filing return.
4. If I have committed any mistake in my original return, am I permitted to file a corrected return?
Yes, provided the original return has been filed before the due date and provided the department has
not completed assessment. However it is expected that the mistake in the original return is of a genuine
and bona fide nature.
29. 29
FAQ’S
6. Are arrears of salary taxable?
Yes. However certain benefit of spread over of income to the years to which it relates can be availed for lower
incidence of tax. This is called relief u/s 89(1) of Income-tax Act
7. Life insurance amount received on maturity along with bonus - is it taxable?
No.
8. My spouse and I jointly own a house for construction of which both of us have invested equally out of
independent sources. Can the rental income received be split between us and taxed in the individual hands?
Yes.
9. have 5 separate let out properties. Should I calculate the house property income separately for each individual
property or by clubbing all the rental receipts in one calculation?
The calculation will have to be made separately for the various properties.
10.What is TDS?
TDS means Tax Deducted at Source. It is the amount withheld from payments of various kinds such as salary,
contract payment, commission etc. This withheld amount can be adjusted against your tax due.
10. What can I do if I am unable to get the TDS certificate [form-16 or 16A]?
It is the duty of every person deducting tax to issue TDS certificate. In spite of your asking if you are denied the
certificate then there is a chance that the tax deducted has not been deposited by the deductor to the government
account. Please inform the department [PRO or TDS section] which will then do the needful.
30. 30
FAQ’S
14. What tax benefits can one get on a home loan?
Tax benefits can be claimed on both the principal and interest components of the home loan as per the Income Tax
Act. These deductions are available to assesses, who have taken a loan to either buy or build a house.
(A) Interest on borrowed capital is deductible as follows:
If the following conditions are satisfied, interest on borrowed capital is deductible up to Rs 150,000,
Capital is borrowed on or after April 1, 1999 for acquiring or constructing a property.
The acquisition/construction should be completed within 3 years from the end of the financial year in which capital
was borrowed.
The person extending the loan, certifies that such interest is payable in respect of the amount advanced for
acquisition or construction of the house or as refinance of the principal amount outstanding under an earlier loan
taken for such acquisition or construction.
If the conditions stated above are not satisfied, then the interest on borrowed capital is deductible up to Rs 30,000.
(B) In addition to the above, the principal repayment of the loan/capital borrowed is eligible for rebate under
Section 88 up to Rs 20,000