Income Tax Provisions at a Glance
Source :www.simpletaxindia.net
Income Tax Provisions at a Glance as being circulated among the Members and
being refreshment of the Income Tax Provisions:
1.
Detailed
information of Income Tax is available on www.incometaxindia.gov.in
2.
As per Income Tax
Act, Income is taxable under five heads- Salary, House Property, Business or
Profession, Capital Gain and Other Sources.
3.
Salaried person
must obtain Form 16 from his Employer Every Year.
4.
Income Tax Return
should be filed by considering Form 16 and other Income.
5.
Transport Allowance
is exempt up to Rs.1,600 per month.
6.
30% Standard
deduction is available on Income from House Property.
7.
Income to be
considered as deemed let out on second House property.
8.
For self-occupied
house property, deduction of Interest on Housing Loan is allowed up to Rs.
200,000/- and for other house property actual expenditure of Interest on
Housing Loan is allowed.
9.
Repayment of
Principal amount of Housing Loan is deductible u/s 80C up to Rs. 150,000/-.
10.
Tax Audit is
compulsory if sales turnover exceeds Rs. 1 crore in case of business.
11.
Tax Audit is
compulsory if the Gross Receipts of Professionals exceeds Rs.25 lakhs.
12.
If sales turnover
is below Rs. 1 crore, then net profit of 8% or higher is to be taken as
business income otherwise tax audit is required.
13.
The Due Date for
Tax Audit and income Tax Return is 30th September.
14.
Assessee other than
Company and those eligible for Tax Audit are required to file Income Tax Return
before 31st of July. Extended date is 31st Aug for F.Y. 2014-15.
15.
Accurate Stock
Valuation should be done on 31st of March.
16.
Cash payment should
not be made to a person in single day exceeding Rs.20, 000.
17.
Cash Payment limit
for Transporters is Rs. 35,000/-.
18.
Loans, deposits and
Immovable Properties transactions should not be carried out above Rs. 20,000 in
cash.
19.
Business loss can
be carried forward to Next 8 Years.
20.
Tax Audit
applicable assesses should deduct TDS on particular transactions.
21.
TDS should be made
on the date of Credit or Payment basis of whichever is earlier.
22.
TDS payment should
be made on or before 7th day of Next Month.
23.
TDS Returns are to
be filed Quarterly.
24.
TDS returns can be
revised any number of times.
25.
TDS should be
deducted and paid if applicable.
26.
If TDS is not
deducted then deduction of 30% of Expenditure is not allowed.
27.
Late filling of TDS
return attracts late filing fees of Rs. 200 per day.
28.
Long Term Capital
Gain will arise if transfer of specified Capital Assets is made after 3 years.
29.
Generally Long Term
Capital Gains is taxable @ 20%
30.
STT paid Long Term
Capital Gain on Shares,etc is exempt from Tax.
31.
Short Term Capital
Gain is Taxable @ 15% if STT is paid.
32.
Capital Gain on
Immovable Properties is chargeable at Stamp Duty Value or Selling Price
whichever is higher.
33.
Dividend received
from domestic company is exempt from Tax.
34.
Agricultural Income
is exempt from Tax.
35.
Gifts received form
stranger of an Amount exceeding Rs. 50,000 is taxable.
36.
Income Tax is not
chargeable on Gifts received at the time of Marriage, Will, and in case of
Succession and from specified relatives.
37.
Maximum deduction
limit u/s 80C, 80CCC and 80 CCD is Rs.1, 50,000.
38.
Deduction of
Medical Insurance Premium is available up to Rs. 25,000.
39.
Deduction of
Medical Insurance Premium paid for Parents is available up to Rs. 20,000.
40.
Deduction limit of
Interest earned on Saving Account is up to Rs.10, 000.
41.
Income earned by a
Minor child is clubbed in the hands of Parents.
42.
Every Taxpayer
should verify his Form 26AS.
43.
Form 26AS provides
the Information regarding the TDS, Advance Tax paid and details of refund.
44.
Notice may be sent
to the Taxpayer if the Income mentioned in Form 26AS and the Income Tax Return
filed is having difference.
45.
Basic Exemption
Limit for individuals for F. Y. 2015-16 is Rs. 2,50, 000.
46.
Basic Exemption
Limit for Senior Citizen i.e. above 60 years age is Rs. 3,00, 000.
47.
Basic Exemption
Limit for Super Senior Citizen i.e. above 80 years age is Rs. 5,00,000.
48.
Advance Tax is to
be paid if Tax Liability during the year exceeds Rs. 10,000.
49.
12% of Surcharge is
applicable if Income Exceeds Rs. 1Crore.
50.
Income Tax Return
should be filed if Income exceeds Basic Exemption Limit.
51.
30% of Tax
applicable on Income of Partnership Firm, Company, LLP etc.
52.
For Companies –
Minimum Alternate Tax and for other Assesses – Alternate Minimum Tax rate is
18.5%.
53.
Details of all Bank
Accounts have to be given in Income Tax return.
54.
Passport number is
required to be given in Income Tax return.
55.
Detail of Fixed
Assets held in Foreign Country is required to be given in Income Tax return.
56.
If taxable income
of Individual is less than Rs. 5 Lakhs then relief of Rs. 2,000/- is available
in Tax.
57.
Aadhar Card No. is
required to be mentioned in Income Tax return.
58.
E-filling of return
is compulsory if income exceeds Rs. 5 lakhs.
59.
In Income Tax,
E-filling of return can be done for Previous 2 Years only.
60.
PAN Card is
essential for Taxpayer and it should not be used as Id Proof.
61.
From FY 2014-15
Depreciation is to be calculated as per New Companies Act.
62.
Domestic Transfer
Pricing is applicable on transaction exceeding an Amount Rs. 20 Crores.
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