INTRODUCTION Section 54F of the Income Tax Act provides relief to taxpayers who have earned long-term capital gains on the sale of an asset (like a piece of land, trademarks, vehicles, machinery, patents, and jewelry) and have invested the profits from such sale into the purchase or construction of a new residential property. This section … Read more
Introduction PAN Aadhaar linking has become a necessity in today’s times. It is a well-known fact that Aadhaar and PAN are two of the most important documents for Indian citizens. So, let’s understand the importance of the two documents and their linking. Aadhaar is a 12-digit unique identification number. The Unique Identification Authority of India … Read more
The meaning of Assessment Year (AY) and Previous Year (PY) are essential for determining the tax liability of a person for a given financial year. Therefore, let us take a brief look into these key concepts. What is Assessment Year in Income Tax ? “Assessment Year“ in Income Tax Act, 1961 (hereinafter referred to as the … Read more
Who is an Assessee in Income Tax Act, 1961 ? Assessee means any person (i.e., Individual, HUF, Firm, Company, AOP/BOI, etc.), who are liable to pay any Tax or any other sum of money (i.e., penalty or interest) under the IT Act. Assessee can also include representative Assessee. Further, Assessee also “INCLUDES” the following categories … Read more
Surcharge on income tax Income tax is one of the primary revenue sources of the Indian Government. The Indian Government imposes a surcharge on taxpayers who earn income above a certain threshold to charge a higher rate of tax from high-income earners. Consequently, it is generally calculated as a percentage of the income tax payable … Read more
What is an Indian PAN Card Number? The Permanent Account Number (PAN Number India) is the income tax identification number for identifying a taxpayer . A foreign company, which derives taxable income from India may also need to apply for Indian PAN Card, unless it is specifcally exempt from filing tax return in India. Further, … Read more
Dividend, in ordinary sense, is payment made by a company to its shareholder, out of profits earned by the company, in proportion to the ownership of the shareholder. Tax on dividend income in India, depends on the following factors : – Rate of tax applicable on recipient – Individual, company, firm etc ; Whether recipient … Read more
Section 27 of the Income Tax Act provides cases, wherein, certain individuals, who are not the legal owners of a property, are deemed owner of house property, and income from such property is taxed in their hands. The following cases are covered under this Section : – Transfers of a house property to the spouse … Read more
FAQs on Annual Information Statement (AIS) The Annual Information Statement (hereinafter referred to as the AIS) is a comprehensive statement containing information of a taxpayer with regards to interest, trades in stock, dividends, mutual fund investments, details regarding international remittances, etc. Basically it contains details regarding all financial transactions, income statement, income tax proceedings (if … Read more
The Direct Tax Committee of the Institute of Chartered Accountants of India has issued an Exposure Draft of Revised Guidance Note on Tax Audit under Section 44AB of the Income-tax Act, 1961 . Under Section 44AB Income Tax Act, a taxpayer is required to have a tax audit , if the gross turnover or receipts … Read more