Its an annual tax charged on your annual financial income by Central Government at the rates that are applicable for your financial year ending 31st march. IT Rates are specified in the Finance Act. Finance act is passed in the budget session of our parliament every year. Every year, budget has to be presented and passed in both the houses of parliament to get the new IT … [Read more...] about What is Income Tax?
Archives for July 2013
Tax provisions related to your minor child
Minor’s income will get clubbed in the hand of either of parents whose income is higher before clubbing provision is applied. If such minor generates it because of his skills, talent or specialized knowledge and experience then it will not be clubbed in the hands of parent. IT act also states, if the minor is suffering from any disability and such disability is specified in … [Read more...] about Tax provisions related to your minor child
Income Tax Rate for Last 15 years – for Individual, HUF, AOP and BOI
Income tax rate is a percentage specified in the finance bill as a rate to be charged on the taxable income of financial year to which the finance bill is relevant. For different assessee different rates are been specified and accordingly they are charged to income tax. Following lists are specified for individual (like salaried person, self employed person or any other … [Read more...] about Income Tax Rate for Last 15 years – for Individual, HUF, AOP and BOI
What is Cross Company Code Transaction in SAP
A cross company code transaction posted to accounts in several company codes as it always involves two or more organization in one business transaction. Example: Once organization procure materials for another organization Central payment system by which one organization makes payment for other organizations One organization purchase goods from another … [Read more...] about What is Cross Company Code Transaction in SAP
What is Professional Tax – IT Provisions for PT
Professional Tax or PT is state based. Different states have different rates and methods of calculation. Any one having income from Salary or practicing chartered accountants, lawyers, doctors etc are required to pay it to their respective state government as per the rules and regulations framed by them. It is also called employment tax and allowed as a deduction from the … [Read more...] about What is Professional Tax – IT Provisions for PT
Specified Diseases and Ailments for the purpose of Deduction U/S 80DDB – Rule 11DD
Here is the text of rule 11DD Which mentioned specified diseases and ailments for the purpose of deduction under section 80DDB. (1) For the purposes of section 80DDB, the following shall be the eligible diseases or ailments : (i)Neurological Diseases where the disability level has been certified to be of 40% and above,—(a)Dementia ;(b)Dystonia Musculorum Deformans … [Read more...] about Specified Diseases and Ailments for the purpose of Deduction U/S 80DDB – Rule 11DD
Loss from House Property Reduces your Taxable Income
As per Section 71 of IT Act, 1961 a loss from house property can be set off against your other income generated during the financial year. If the net result of your income under the head house property is a loss then such loss can be set off against your other income of the same financial year in which you have generated such loss. If such loss is not completely set off then … [Read more...] about Loss from House Property Reduces your Taxable Income
How field status of a document entry is managed in SAP FI
During a document entry in SAP FI module fields are displayed based on the transaction and the account we use. We customize the account specific field status in company code view of general ledger account master data setting through transaction code FS00. Posting key field status always used for certain type of fields based on the entry you chose to make. When you define … [Read more...] about How field status of a document entry is managed in SAP FI
FAQs on Clubbing – As per IT Act, 1961
As per the present tax laws of India, you will be chargeable to tax for your income not for the income of any other person. However, certain wealthy individuals in order to lower their tax liability, sift a portion of their income or asset to another person who is in lower tax braket, so that overall tax liability will be lower. We have written many articles on clubbing of … [Read more...] about FAQs on Clubbing – As per IT Act, 1961
FAQ on Income Tax Deduction under Section 80C of IT Act, 1961
The maximum amount you can claim as deduction under section 80C of IT act is Rs. 1, 00,000. If you have invested anything less than the limit then you can claim only up to the amount that you paid for these investments. I have invested Rs. 20, 000 in life insurance policy and Rs. 50, 000 in Public provident fund and my employer deducts Rs. 10,000 as contribution to … [Read more...] about FAQ on Income Tax Deduction under Section 80C of IT Act, 1961