Income from Salary

By | July 15th, 2017|Categories: Advanced Concepts, Salary|

Income from salary is the income or remuneration received by an individual for services he is rendering or a contract undertaken by him. This clause essentially assimilates the remuneration received by a person for the services provided by him under the contract of employment. This amount of remuneration will be considered as income for the purposes of [...]

5 Heads of Income Tax

By | July 8th, 2017|Categories: Advanced Concepts, Capital Gain, House Property, ITR Filing, Other Sources, Salary|

Introduction  As per the Section 14 Income Tax Act,1961, there are five main income tax heads for an individual. The computation of income tax is an important part and has to be calculated according to the income of a person. For a hassle-free calculation, the income has to be classified properly so that there is no confusion regarding [...]

Types of Income Tax Return Filing

By | July 7th, 2017|Categories: Advanced Concepts, ITR Filing|

Before discussing the types of Income Tax Return filing, Let's first understand that what is ITR. The income tax return is a statement of the incomes of an individual from different sources and the tax that is to be paid on that income. It also acts as a proof of the tax that is being paid [...]

Set Off and Carry Forward of Income Losses

By | July 7th, 2017|Categories: Advanced Concepts, ITR Filing|

Introduction A person can set off and carry forward the income losses incurred as per the Income Tax Act 1961; it is a big boon to a Person because it plays an important role on the financial condition of a Person who has incurred such Losses. So the legislature affected the provisions of set-off and carry [...]

NRI Income Tax and Return Filing

By | July 5th, 2017|Categories: Advanced Concepts, ITR Filing|

Residential status in India A resident is defined under Income Tax Act, 1961 and Foreign Exchange Act (FEMA, 1999). The residential status of an individual in India is based on the period of stay in India in a particular year. Residential  status in India decides the tax filing for an NRI and Indian resident. NRI tax [...]

Tax payment Challan

By | July 1st, 2017|Categories: Advanced Concepts, ITR Filing|

Introduction Challan No/ ITNS 280 is required to be used for tax payment.This payment of Income Tax may be in the form of Advance Tax, Self Assessment Tax, Surcharge etc. We know that Income Tax can be paid online as well as through cash/cheque/demand draft at various bank branches. Whether you pay tax online or offline, [...]

Public Provident Funds

By | July 1st, 2017|Categories: Advanced Concepts|

Introduction PPF is an investment option to save taxes and earn assured returns. It is a very easy process to open a PPF account. One can open it at a Post Office or more easily at the designated banks (State Bank of India, ICICI Bank, Axis Bank and Punjab National Bank).Indian Government has taken the initiative of PPFwhich [...]

Types of Assessments under Income Tax

By | June 29th, 2017|Categories: Advanced Concepts, IT Assessment|

Introduction The process of examination of ITR by the Income Tax Department is called "Assessment". The assessment also includes re-assessment and best judgment assessment under section 147 and 144 respectively and the different type of income tax assessment. Types of Income Tax Assessment: Self Assessment –u/s 140A Summary assessment –u/s 143(1) Scrutiny assessment –u/s 143(3) Best [...]

Set Off & Carry forward of capital losses

By | June 27th, 2017|Categories: Advanced Concepts|

Introduction It would be unfair if an individual was taxed on one part of his income when he has incurred capital losses from another source and it is yet to be written off. Keeping this in mind the legislature affected the provisions of set-off and carry forward of losses so that an assessee would not have [...]

Search and Seizure Powers under Income Tax Act

By | June 24th, 2017|Categories: Advanced Concepts|

Introduction It was since 1956 that the provisions of search and seizure had made its first entry into the Income Tax Act, 1961. Finance Act, 1964 was substitutes of Section 132. Two committees had made certain recommendations on the search and seizure provisions that are The Raja Chellaiah Committee and, The Kelkar Committee. The article below [...]