In income tax law in India, "Previous Year" means the financial year in which you earn the income. It is the year just before the year in which you file your tax return and pay taxes on that income. The Financial Year in India starts on 1st April and ends on 31st March of the next year. So, the "Previous Year" is always the financial year before the "Assessment Year" (the … [Read more...] about What does “Previous Year” mean in Indian Income Tax Law?
Income tax
Tax Deducted at source (TDS) on Interest Payments: Section 194A
TDS, or Tax Deducted at Source, was created to help prevent tax evasion on income earned by people and businesses. People can earn money in many ways, like salaries, dividends, bonuses, commissions, and interest. Each of these adds up to a significant amount. Section 194A focuses on interest payments, which are crucial for banks, investments, and the savings of everyday … [Read more...] about Tax Deducted at source (TDS) on Interest Payments: Section 194A
TDS on Payments to Contractors & Professionals: Section 194M
Section 194M was introduced in the Finance Act, 2022 to make the process of TDS (Tax Deducted at Source) simpler for payments to resident contractors and professionals. This rule has been effective since September 1, 2019. Section 194M applies to individuals or Hindu Undivided Families (HUFs) who make payments under a contract, as commission or brokerage, or as fees for … [Read more...] about TDS on Payments to Contractors & Professionals: Section 194M
Who can claim income tax rebate under section 87A
As per section 87A of the Income tax act, 1961, a resident individual is eligible for income tax rebate if their taxable income does not exceed 5,00,000 rupees in the financial year 2023-24 (assessment year 2024-25). This means, being a resident individual, if your taxable income after eligible tax deduction is Rs 5,00,000 or below it, then you can claim income tax rebate … [Read more...] about Who can claim income tax rebate under section 87A
Income tax rates for FY 2021-22 and 2022-23-Applicable to an individual
Income tax rates are defined based on the type of assessee and total income earned for the financial year starting from 1st April to 31St March. In this article, we will tell you income tax rates applicable to a resident individual for the financial year 2021-22 (Assessment Year 2022-23) and financial year 2022-23 (Assessment Year 2023-24). We will also summarize … [Read more...] about Income tax rates for FY 2021-22 and 2022-23-Applicable to an individual
Rates of income-tax for the financial year 2021-22 (AY 2022-23)
In respect of income of all categories of assessee liable to tax for the assessment year 2021-22, the rates of income-tax have either been specified in specific sections (like section 115BAA or section 115BAB for domestic companies, 115BAC for individual/HUF, and 115BAD for cooperative societies) or have been specified in Part I of the First Schedule to the Bill. There is … [Read more...] about Rates of income-tax for the financial year 2021-22 (AY 2022-23)
Relaxation for certain category of senior citizen from filing return of income-tax
Section 139 of the Income tax Act provides for filing of return of income. Sub-section (1) of the section provides that every person being an individual, if his total income or the total income of any other person in respect of which he is assessable under this income tax Act during the previous year exceeded the maximum amount which is not chargeable to income-tax, shall, on … [Read more...] about Relaxation for certain category of senior citizen from filing return of income-tax
Latest Income tax slab rates for FY 2020-21 & AY 2021-22: For Individuals
In India, different income tax slabs rates are prescribed for individuals based on age and income generated during the financial year. In this article, we will be discussing income tax slab rates applicable to the financial year 2020-21 (AY 2021-22). Which means tax rates applicable to your income generated during the period starting from 01.04.2020 to 31.03.2021. Now let … [Read more...] about Latest Income tax slab rates for FY 2020-21 & AY 2021-22: For Individuals
Tax Deduction on medical expenses of handicapped dependent with disability – Section 80DD
Government has specified certain investments and expenses as tax deductible while calculating income tax liability of an individual. Anyone fulfilling these specified criteria can take benefit of tax deductions. Medical expenses of handicapped depended is one of such expenses which is allowed as a income tax deduction under section 80DD of income tax act 1961 . It's … [Read more...] about Tax Deduction on medical expenses of handicapped dependent with disability – Section 80DD
Tax deduction on royalty income of book authors – Section 80QQB
An individual who is resident in India and is an author of a book is eligible for tax deduction under section 80QQB of the Income Tax Act, 1961. To get eligible, royalty income should have been incurred from a book which should be a work of literary, artistic or scientific nature. This means, author of other types of books which are not literary, artistic or scientific … [Read more...] about Tax deduction on royalty income of book authors – Section 80QQB