Notice & Appeal under Income Tax

Notice & Appeal under Income Tax Income Tax Notice Notice u/s 143(1)  Intimation of Income Tax return. After processed electronically, department sends the information to Assessee in 3 instances: Tax liability to be paid Refund to be determined  No refund or demand determined Notice u/s 143(1)  from the department shall be received within one year […]

Carry forward & Set off of losses

Carry forward & Set off of losses Particulars      Set off  same year                   Cay forward & set- off Another Head Against C/F Years Against House Property No Same Head Yes 8 Years Same Head Speculation Business No Same Head Yes 4 Years Same Head Non Speculative Business Yes Any business profit Yes 8 Years Same Head Depreciation […]

Deduction under chapter 6A

Deduction under chapter 6A 80C: Maximum limit Rs.1.50 Lacs ( 2 Lacs with 80CCD) Life insurance premium for self, spouse, children– premium amount can’t more than 10% of sum assured, suffering from disability = 15% of sum assured Sukanya Deposit PPF -Interest is also tax free NSC – first 5 years accrued interest also exempt ULIP […]

Depreciation

Depreciation under IT Act & Company Act            Particulars Income Tax                       Company  Act % WDV Useful Life (years) % WDV %SLM Computer 60% 3 63.16% 31.67% Plant & Machinery 15% 15 18.10% 6.33% Furniture & Fixture 10% 10 25.89% 9.50% Office Equipment   5 45.07% 19% Cars & Vehicles 15% 10 25.89% 9.50% Cars […]

Income Tax Act 44AD, 44ADA, 44AE

Income Tax Act 44AD, 44ADA, 44AE Presumptive Taxation Scheme To give relief to small taxpayers, Income Tax Act framed the presumptive taxation scheme under section 44AD, section 44ADA & section 44AE.  A person adopting this scheme can declare income at a prescribed rate and relieved from maintain book of accounts.   Section 44AD: Presumptive Income Under Income Tax […]

Income from Capital Gains

Income from Capital Gains Particulars Rate Holding Condition Short term capital gain (Shares)                        15% Less than 12 Months Long term Capital gain (Shares) upto 1 Lacs Nil More than 12 months Long term Capital gain (Shares) more than 1 Lac 10% More than 12 months Short term Capital gain (Property) ITR slab Less than 24 […]

Income from House property

Income from House Property Income from a let out house property is determined as under:  Gross Annual Value Municipal Value Fair Rent Standard Rent   (If Rent Control Act Applicable) Actual Rent Gross Annual Value = (1 or 2 which is higher but limited to 3) or 4 which is high Net Annual Value = Gross Annual Value – Municipal […]