The bell had just rung, but Mohit and Mrinmoy were still seated, flipping through their notes. The topic for the day was Direct Tax Compliance, and both of them looked slightly unsettled. Mohit leaned towards Mrinmoy and whispered: I understand income tax theory, but in a manufacturing company interview, they won’t ask definitions. They’ll ask […]
TDS: An Overview of Understanding Compliance Read More »
Stam duty value is the value adopted by the Stamp Valuation Authority (SVA) to levy stamp duty on the registration of properties as guidance value to determine the undervaluation of land or buildings, if any, in the sale agreement. Stamp duty valuation is Important for the seller under income tax laws. Under Section 50C, if
Stamp Duty Value vs Actual Sale Price: Which One Governs Capital Gains Tax? Read More »
Chandrakant asked: Sir, Tell something about rebate u/s 87A Professor said: Rebate is a tax benefit provided to middle to low-income earners. It is provided only to resident individuals, earning income within 10% slab rate. Rs. 60,000 rebate is allowed for income within Rs. 12 lakh under the new regime and Rs. 12,500 for income
Rebate, Marginal Relief, Surcharge and Tax Liability in Tax Management Read More »
Capital gains do not always lead to tax liability. Long-term capital gains tax liability can be significantly reduced if one understands the exemption provisions properly. Sections 54, 54EC and 54F of the Income-tax Act provide valuable relief to taxpayers who transfer long-term capital assets and would otherwise be required to pay substantial tax. Let us
Sections 54, 54EC and 54F: Relief from LTCG Tax Read More »
Share capital is the most popular and convenient source of long term finance for companies. The organizations utilise multiple types of issues to raise public funds from the capital market. The IPOs and FPOs are one of those issues through which a company issue (sell-off) financial securities like equity shares for the investors to subscribe.
Tax Treatment of Share Transactions in Income Tax Read More »
Akash and Mukesh sitting in a college cafeteria after class. Akash looks worried, scrolling through his phone. Mukesh: Why so tense? Akash: I just sold some shares and mutual funds… and now I realise capital gains tax is not as simple as I thought.” Mukes smiles:“Teach me. I always get confused between STCG, LTCG, slabs,
Capital Gains: Basic Concepts and Tax Treatment Read More »
Before we delve into the computations, let us first understand the various types of house properties and how the income from each is brought to tax under the head ‘Income from House Property’. Income tax classifies the properties in three ways: Self-Occupied House Property Let Out House Property Deemed to be Let Out Property Self-Occupied
Income from House Property: Understanding Different Scenarios Read More »
Before computing Income from House Property, it is essential to clearly understand the concepts of Gross Annual Value (GAV) and Net Annual Value (NAV). These two terms form the foundation of house property taxation, and most numerical problems begin with their correct determination. If you read this blog carefully, you will be able to understand:
GAV and NAV Explained: The Foundation of House Property Income Read More »
While residential status of an individual is based on physical presence, the residential status of a company, firm and HUF depends mainly on control, management or POEM. Company POEM = place where key management & commercial decisions are made Firm / AOP / BOI Even partial control in India makes it Resident HUF Control
Residential Status vs Scope of Total Income Read More »
The magic figures of the number of days used to determine residential status under the Indian Income Tax Act are extremely important. The sum and applicability of tax on a person, depends upon the Residential Status of such person. Residential status of a person is important in determining the scope of income on which income tax has to
Magic figure of Residential Status Read More »
