Liberal deductions provided under the I.T. Act in respect of expenditure for medical treatment & maintenance! The Income-tax Act provides for special deductions in computing the taxable income of a taxpayer who is disabled or who is required to incur expenditure for the medical treatment, training or rehabilitation of a disabled dependent or any amount deposited for the maintenance of such disabled dependent....
Special concessions are offered in case of one house property occupied by the taxpayer for his own residence! Under the Income-tax Act, ‘income from house property’ is a separate head of income, under which the ‘annual value’ of a property, consisting of any building or land appurtenant thereto, of which the taxpayer is ‘the owner’ is chargeable to tax. If, however, a house property is occupied by the taxpayer for...
Clubbing provisions can be lawfully avoided if income of minor is strategically deferred beyond his minority! Section 64(1A) of the Income-tax Act provides that “in computing the total income of any individual, there shall be included all such income as arises or accrues to his minor child.” Two exceptions have been provided in regard to the above provisions in relation to the clubbing of income of a minor child...
When ITAT held Tendulkar’s income from modeling & TV commercials, as that of an artist, exempt from Income-tax! “VISA Power… Go get it!”… Millions who have seen Sachin on TV commercials will never forget these lines of the master blaster, which rolled on screen for almost six long years. But perhaps very few know the interesting tax tale behind it. During Assessment Years 2001-02 to 2004-05 Tendulkar received...
Gujarat High Court holds capital gains on gifted or inherited assets also enjoy indexation from date of original holding! Section 49(1) of the Income-tax Act provides that where the capital asset has been acquired by the taxpayer in any of the modes such as on partition of a Hindu Undivided Family or under gift or Will or by succession or inheritance, etc., the cost to the previous owner shall be deemed to be cost...