* As per Indian Income Tax Act, Income is taxable under five (5) heads-
1. Salary
2. House Property
3. Business or / Profession
4. Capital Gain and
5. Other Sources.
* Salaried person must obtain Form 16 from his Employer Every Year.
* Income Tax Return should be filed by considering Form 16 and other Income.
* Transport Allowance is exempt up to Rs.1,600 per month.
Home Loan..!
* 30% Standard deduction is available on Income from House /home Property.
* Income to be considered as deemed let out on IInd House property.
* For self-occupied house property, deduction of Interest on Home Loan is allowed up to Rs. 2 lac and for other house property actual
expenditure of Interest on Home Loan is allowed.
* Repayment of Principal amount of Home Loan is deductible under section 80C upto Rs.1.5 lac.
* Tax Audit is compulsory if sales turnover exceeds Rs.1 crore in case of business.
* Tax Audit is compulsory if the Gross Receipts of Professionals exceeds Rs.25 lakhs.
* 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.
* The Due Date for Tax Audit and income Tax Return is 30th September.
* Assessee other than Company and those eligible for Tax Audit are required to file Income Tax Return before 31st of July.
* Accurate Stock Valuation should be done on 31st of March.
* Cash payment should not be made to a person in single day exceeding Rs.20,000.
* Cash Payment limit for Transporters is Rs.35,000.
* Loans, deposits and Immovable Properties transactions should
not be carried out above Rs.20,000 in cash.
*. Business loss can be carried forward to Next 8 Years.
TDS
* Tax Audit applicable assesses should deduct TDS on particular
transactions.
* TDS should be made on the date of Credit or Payment basis of whichever
is earlier.
* TDS payment should be made on or before 7th day of Next Month.
* TDS Returns are to be filed Quarterly.
* TDS returns can be revised any number of times.
* TDS should be deducted and paid if applicable.
* If TDS is not deducted then deduction of 30% of Expenditure
is not allowed.
* Late filling of TDS return attracts late filing fees of Rs.200 per day.
Capital Gain
* Long Term Capital Gain will arise if transfer of specified Capital
Assets is made after 3 years.
* Generally Long Term Capital Gains is taxable at 20%
* STT paid Long Term Capital Gain on Shares, etc is exempt from Tax.
*. Short Term Capital Gain is Taxable at 15% if STT is paid.
* Capital Gain on Immovable Properties is chargeable at Stamp
Duty Value or Selling Price whichever is higher.
* Dividend received from domestic company is exempt from Tax.
* Agricultural Income is exempt from Tax.
* Gifts received form stranger of an Amount exceeding Rs.50,000 is taxable.
* Income Tax is not chargeable on Gifts received at the time of Marriage, Will, and in case of Succession and from specified relatives.
* Maximum deduction limit under section 80C, 80CCC and 80 CCD is Rs.1.5l ac.
Medical Insurance Premium
* Deduction of Medical Insurance Premium is available up to Rs. 25,000.
* Deduction of Medical Insurance Premium paid for Parents is available up to Rs. 20,000.
* Deduction limit of Interest earned on Saving Accnt is up to Rs.10, 000.
* Income earned by a Minor child is clubbed in the hands of Parents.
* Every Taxpayer should verify his Form 26AS.
* Form 26AS provides the Information regarding the TDS, Advance Tax paid and details of refund.
* Notice may be sent to the Taxpayer if the Income mentioned in Form 26AS and the Income Tax Return filed is having difference.
* Basic Exemption Limit for individuals for FY 2015-16 is Rs.2.5 lac
* Basic Exemption Limit for Senior Citizen i.e. above 60 years age is Rs.3,00,000.
* Basic Exemption Limit for Super Senior Citizen i.e. above 80 years age is Rs.5 lac.
* Advance Tax is to be paid if Tax Liability during the year exceeds Rs. 10,000.
* 12% of Surcharge is applicable if Income Exceeds Rs. 1 Crore.
* Income Tax Return should be filed if Income exceeds Basic Exemption Limit.
* 30% of Tax applicable on Income of Partnership Firm, Company, LLP etc.
* For Companies – Minimum Alternate Tax and for other Assesses
– Alternate Minimum Tax rate is 18.5%.
* Details of all Bank Accounts have to be given in Income Tax return.
* Passport number is required to be given in Income Tax return.
Relief of Rs.2,000 in Tax.
* If taxable income of Individual is less than Rs. 5 Lakhs then relief of Rs.2,000 is available in Tax.
* Aadhar Card No. is required to be mentioned in Income Tax return.
* E-filling of return is compulsory if income exceeds Rs. 5 lakhs.
* In Income Tax, E-filling of return can be done for Previous 2 Years only.
* PAN Card is essential for Taxpayer and it should not be used as Id Proof.
* From FY 2014-15 Depreciation is to be calculated as per New Companies Act.
* Domestic Transfer Pricing is applicable on transaction exceeding an Amount Rs.20 Crores.
Detailed information of Income Tax is available on
www.incometaxindia.gov.in
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