(c) Interest relating to the year of completion of construction can be fully claimed in that year irrespective of the date of completion. 1. An audit report duly verified by a CA on or before 30.09.yyyy of the relevant year has to be submitted. 17. However for sum lower than this income, accounts have to be maintained and get audited. affidavit. - Any govt or local authority set up for promoting family planning. Right of appeal. He is responsible for the administration of the area The benefit of indexation can be availed either from the year of acquisition of the asset by the assessee or from the base year 1981-82, which ever is later. He can also enforce any person to attend Block of assets means group of assets having same rate of depreciation and falling under a specific class of assets. Personal effects of movable nature, such as furniture, utensils and vehicles held for personal use by the assessee or any dependent member of his family. “Assessment Year” means the period of 12 months commencing on the 1 St. day of April every year. the capital was borrowed. If such depreciation could not be set off under business head then it can be set off from any other head except salary in the same year, and if still it could not be set off it can be carried forward indefinitely to succeeding years for set off in the similar manner. Public rulings are binding advice. Income Tax Rules, 1962: Central Board of Direct Taxes (CBDT) is the body which looks after the administration of Direct Tax. Long term Residential House to be Transferred. - Foreign allowance is usually paid by the government to its employees being Indian citizen posted out of India for rendering services abroad. With in the period of 1Year before or 2 year after the date of transfer, a residential house is purchased or with in a period of 3 year a residential house is constructed. First, we need to determine the average monthly income by adding up all taxable income and divide it by the number of pay periods for the year so far. Long term Residential property or land is to be transferred. Note: The tax associated with intra-entity asset transfers should be accounted for under ASC 740-10-25-3(e) and ASC 810-10-45-8. Normally commissioner is appointed as an incharge of a zone. Step 2 – From GAV computed in step 1, deduct municipal tax paid by the owner during the previous year. (Section 7) Incomes Which Accrue Or Arise In India OR Are Deemed To Accrue Or Arise In India [Section 9] (f) Jurisdiction of the AO is also determined by them u/s 124. – Lifts, Security,etc, Where composite rent includes rent of building and charges for different services (lifts, security etc. Income-tax law in India The income tax law in India consists of the following components: 1. GENERAL DEDUCTIONS UNDER SECTION 37(1) BASIC CONDITIONS FOR DEDUCTION: Wholly or exclusively for business or profession: Payment of penalty/ damages of compensatory nature. and Non Govt Employees. regarding their areas of. Profit and gains of Business or Profession. important documents of the taxpayers for the purpose of prosecutions. PART OF BLOCK SOLD BUT MONEY PAYABLE EXCEEDS WDV:- In such a case no depreciation is allowed and also short term capital gain provision as per section 50 is attracted. Period of holding would be considered from the date of which property was held by the previous owner but index would be available the year in which the property is acquired by the assessee, FORMAT OF COMPUTATION OF LONG TERM CAPITAL GAIN, FORMAT OF COMPUTATION OF SHOT REM TERM CAPITAL GAIN. 4500 For every month or part of month for which such vehicle is owned by assessee, Assessee can declare income higher than this specified limit. The commissioner of income tax (Head quarter) may direct the CA Intermediate/ IPCC Income Tax Short Notes in PDF is colourful PDF which is issued by ICAI. Step 1: Computed adjusted total Income, which is GTI as reduced by:-, Other all Donation in the list like P.M national, P.M.Armenia Earthquake relief fund, National Defense fund, National foundation for communal Harmony. Following are the important functions and powers of from any place outside India. If an employee is living in his own house and receiving HRA, it will be fully taxable. iv. ii. Assessee must be the owner of the property. - Allowances from UNO organisation to its employees are fully exempt from tax. In case of loan for acquisition or construction taken prior to 1.4.99 or loan taken for repair, renovation or reconstruction at any point of time, interest paid or payable subject to a maximum of` 30,000. However income of minor child shall not be clubbed if:-. Loss from the activity of owning and maintaining race horses. Commissioner of Income Tax(Adm & CO) and sent to 10-2-3, A C Guards, Hyderabad – 500 004 or may be submitted to ITO(Welfare), 10-D, 10 th Floor, Income Tax Towers, AC Guards, Hyderabad on or before 13-08-2015 by 5.00 PM. Activity involving of his skill, talent or specialized knowledge and experience. that the decision involves the point of law. - Payment is made to bank or financial institution, Govt. ii. The Income Tax Act 1961 has been brought into force with 1 April 1962. - Payment to employees not exceeding Rs.50,000 - Payment in a village not served by a bank, - Payment for purchase of agriculture produce, Poultry farm produce, Dairy items, cottage industry(working without aid of power. Income from Other Sources is a residuary head of income. Act Now! Agricultural land to be transferred( same must be used in 2 year immediately preceding the date of transfer for Agr.Purpose by individual or Parents. He is empowered to transfer the jurisdiction from one income Employees not covered by the payment of Gratuity Act 1972, 2)1/2 * Average last 10 months salary * complted year of service. income tax department working in his jurisdiction. However, in case of blind and orthopedically handicapped persons, it is exempt up to Rs. Deemed to be let out property [Section 23(4)]. These include travelling allowance, daily allowance, conveyance allowance, helper allowance, research allowance and uniform allowance. Depreciation is provided for whole year except when, Asset is Acquired and put to use during the year for less than 180 days during the year , in this case the depreciation is limited to 50% of total depreciation, but if same asset acquired during earlier years but put to use this year and usage period less than 180 days during current year then depreciation for whole year. Land ,Building or any right in land forming part of Industrial undertaking must be compulsory acquired. Log on to e-filing portal at https://incometaxindiaefiling.gov.in. If a property is covered under Rent Control Act, then the reasonable expected rent cannot exceed standard rent (Note 2). The definition of the term ‘relative’ for this purpose is as under : k. lineal ascendant of the individual (say, grandfather), l. lineal descendant of the individual (say, son, grandson, daughter), m. lineal ascendant of the husband of the individual, n. lineal descendant of the husband of the individual, o. lineal ascendant of the wife of the individual (say, wife’s father). tax authority to another. These assets are grouped together and depreciation is provided on the block as illustrated in the coming points. Deduction in respect of LIC, PF etc. Income tax Acts 2. (a) Interest payable on loans borrowed for the purpose of acquisition, construction, repairs, renewal or reconstruction can be claimed as deduction. - Any payment made by a company on purchase of its own shares from a shareholder in accordance with the provisions of Section 77A of the Companies Act, 1956, shall not be regarded as dividend. premises the commissioner can make inventory of that article. Interest on loan taken for acquisition or construction of house on or after 1.4.99 and same was completed within 3 years from the end of the financial year in which capital was borrowed, interest paid or payable subject to a maximum of ` 1,50,000 (including apportioned pre-construction interest). Certain allowances are given to the employees to meet expenses incurred exclusively in performance of official duties and hence are exempt to the extent actually incurred for the purpose for which it is given. Capital Asset .Sec.2(14) means property of any kind held by an assessee whether or not connected with his business or profession ,but does not include the following: i. by the commissioner income tax (appeal). Voluntary contribution or donations (not being contributions made with a specific direction that they will form part of the the corpus) will be deemed to be a part of income derived from property held under trust. (2) For the purpose of claiming deduction of ` 1,50,000 the assessee should furnish a certificate from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by the assessee for the purpose of such acquisition or construction of the property. - Discount on issue of zero coupon bonds to be allowed as deduction on pro-rata basis. on 23 November 2013. treating both the short term capital gain as well as the long term capital gain as business income by construing the entire activity of the assessee as a business activity. (a) Where the assessee owns more than one property for self-occupation, then the income from any one such property, at the option of the assessee, shall be computed under the self-occupied property category and its annual value will be nil. interest income accrued, but not received, from these loans for tax purposes. Exempt up to 70% of such allowance or Rs.6000 per month, whichever is less. However, exemption is granted in respect of any sum of money received –, - on the occasion of marriage of individual; or, - under a Will or by way of inheritance; or, - in contemplation of death of the payer or, - from any fund, foundation, university, other educational institution, hospital, medical institution, any trust or institution referred to in Section 10(23C); or. The commissioner exercises the power to control the staff of Amount received or deemed to be received in India for transportation of goods, passenger, livestock, mail, etc. If Any sum received under a Keyman insurance policy including bonus is chargeable under this head when it is received by any person other than the employer who took the policy and the employee in whose name the policy was taken. Get his Accounts audited under section 44AB. Meaning of Salary: Any remuneration paid by an employer to an employee in consideration of his services is called salaries. The following income shall be chargeable to tax under this head of income only if it is not taxable under the head “Profits and Gains of Business or Profession”: - Interest on securities (State and Central Government securities and debentures); - Any sum collected from employees towards their share of contribution to any Welfare Fund Account : - Income from letting of machinery, plant and furniture; and. Appointment of officers 4. ii. 25 Lakhs. Capital gain arises from the transfer of any capital asset. If the total income of an assessee includes such short term capital Gain and other income ,the tax payable by the assessee in such a case shall be the aggregate of-, i. It requires mention here that such winnings are chargeable to tax u/s 115BB at a flat rate of 30%. When all the assets of block are sold, in such a case no depreciation is allowed and short term capital/gain or loss would be attracted as per provisions of section 50 discussed in capital gains. Income from other sources (Section 56 – 59), Computation of Gross Total Income of Mr./Mrs.…A, Profits and gains from business or profession. - Any sum payable as interest on loan borrowed from public financial institution or state financial institution. Carrying on any business whose gross receipt from such business does not exceed Rs.1 Crore A sum equal to 8% of gross receipt paid or payable to the assessee or such higher sum as declared by the assessee in the return of income shall be deemed to be the income from such business. disqualify an income tax practitioner to appear before any income tax 25 And Original Copy Of Expenditure Exceeding Rs.50. - Loan or advance to a shareholder who holds the beneficial ownership of equity shares carrying not less than 10% voting power. The commissioner income tax can take various steps to Blue Surfing by Trade Cycle 2014. 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