Section 54EC of Income Tax- Exemptions on long-term capital gains

by Varun Advani | 25 June 2015
Exemption from capital gain on transfer of any of long –term capital asset on the basis of investment in certain bonds [Sec.54EC] - Following are the conditions to be met in order to claim an exemption. Who can claim exemption Any taxpayer Which specific asset is eligible for exemption Any long –term capital asset Which asset taxpayer should acquire to get the benefit of exemption Bonds of National Highways authority of India (NHAI) or Rural Electrification Corporation (REC). Maximum investment in one financial year is Rs.50lakh. Moreover, from the assessm... [More]

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Exemption Under Section 54

by Varun Advani | 25 June 2015
Exemption from capital gains arising from the transfer of residential house property [Sec.54]- Following are the conditions to be met in order to claim an exemption.   Who can claim exemption An individual or a Hindu undivided family Which specific asset is eligible for exemption If residential house property (Long –term) is transferred Which asset the taxpayer should acquire to get the benefit of exemption Exemption is available if one residential house is purchased or constructed in India What is time –limit for acquiring the new asset P... [More]

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Section 44AD of Income Tax Act

by Varun Advani | 11 June 2015
Computation of business income under section 44AD is applicable if the taxpayer is a resident individual, resident Hindu undivided family or a resident partnership firm (not being limited liability partnership). [More]

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Tax Audit Under Section 44AB

by Varun Advani | 11 June 2015
Who is liable to get their books of accounts audited u/s 44AB of the Income Tax Act 1961?    Following persons are required to get their books of accounts compulsory audited by a chartered account.   A person carrying on business If the total sales, turnover or gross receipt in business for the previous year relevant to the assessment year exceeds Rs.1 crore. A person carrying on profession If is gross receipt in profession for the previous year relevant to the assessment year exceeds Rs.25 lakh. A person covered under section 44AE 44BBor 44BBB If s... [More]

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Claiming Income Tax Deductions Under Section 37(1)

by Varun Advani | 11 June 2015
Running a business is tough, as one single handedly needs to exercise control and govern a number of elements involved, the most important being expenses. Controlling expenses for any small business owner/freelancers is always a nightmare, but one aspect that a freelancer can control are the tax benefits you get for incurring expenses that are related to one’s business. The most common expenses include conveyance, Internet expenses, telephone expenses, and business promotion expenses. Other expenses also include printing and stationary, electricity expenses, books and periodicals and other administrative expenses. So what are the conditions that one needs to fulfill to get a tax deduction for incurring such expenses? [More]

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