practical tax & investment planning online
international tax expert / colunmist / author / speaker

PRACTICAL CASE STUDIES ON TAXABILITY OF GIFTS

Specified gifts received in cash or kind exceeding Rs.50,000 in value during the year are treated as income liable to tax !        Section 56(2)(vi) had cast income-tax liability only in respect of a ‘gift of any sum of money exceeding Rs.50,000’. In view of this clear language, any gift received in kind (not being any sum of money) clearly fell outside the liability for income-tax, irrespective of the value of...

COMPUTING TDS ON SALARY

Report all eligible exemptions & deductions to your employer to ensure non-deduction of excess TDS from your salary!              Section 192 of the Income-tax Act prescribes for tax deduction at source out of payments representing any income chargeable to tax under the head ‘Salaries’. The provisions for tax deduction at source from Salaries during each Financial Year are explained by the Central Board of...

PPF INVESTMENT NOW MORE ATTRACTIVE!

PPF’s tax saving bonanza gets much bigger with investment raised to Rs.1 lakh & interest to 8.6% p.a.! A PPF investor, who could earlier invest only Rs.70,000 in a financial year, would now no longer be required to scout around for other avenues of savings, investments or allocations for availing the full benefit of deduction of Rs.1,00,000 under Section 80C. His long time prayer has finally come to be answered...

GAINS TAX CONCESSIONS FOR AGRICULTURAL LAND

Capital gains arising on sale of a rural agricultural land & on compulsory acquisition of an urban land are fully tax exempt!       Section 2(14) of the Income-tax Act, which defines ‘capital asset,’ excludes from within its purview an agricultural land situated in India at a place having a population of less than 10,000 as per the last preceding census or at an area not comprised within any municipal limits or...

Powered by HADNow.com