Income Tax

Rule 6DD [Exception to Section 40A(3)]

Rule 6DD [Exception to Section 40A(3)]: Cases where CASH payment exceeding Rs. 10,000 is Allowed:- Salary of Employee after deducting TDS where, employee is temporarily posted greater than or equal to 15 days continuously at place (not place of duty) or ship & at that place, employee does not have any bank accounts. Terminal benefit upto Rs. 50,000 to employee. For general understanding: Terminal benefit is the last amount paid to employee either on termination or resignation or in other cases. Firstly we have [...]

THE PNB FRAUD

THE PNB FRAUD The hot topic of these days is PNB scam. Everyone is sharing on social platforms that PNB is involved in the fraud of Rs.  11,500 crores approx. but everyone is not aware about the way it has happened. So, let us discuss about the one of the biggest scams of the country, The PNB Fraud. **For the purpose of this article, Foreign Bank means “Foreign branch of an Indian Bank” Before proceeding further, we should know about the LoU i.e. [...]

Base Erosion & Profit Shifting – A Global Challenge

Base Erosion & Profit Shifting – A Global Challenge Meaning: “Recently more and more enterprises organised abroad by American firms have arranged their corporate structures aided by artificial arrangements between parent and subsidiary regarding intercompany pricing, the transfer of patent licensing rights, the shifting of management fees, and similar practices in order to reduce sharply or eliminate completely their tax liabilities both at home and abroad.” So, Base erosion and profit shifting (BEPS) refers to tax avoidance strategies that exploit gaps and [...]

INCOME FROM PENSIONS

Pension is a retirement benefit; this is taxed as salary in the hands of the employee. Tax is deductable under section 192 of income tax act on payment. Family pension received by the dependence of the employee is taxable under the head income from other source. TDS is not deductible on family pension as it is not covered under section 192 of the Income tax act Exemption under section 10 (18) if any income by way of pension [...]

INCOME FROM SALARIES

Any remuneration paid by an employer to his employee in consideration of his service is called Salary. It includes monetary value of those benefits and facilities provided by the employer which are taxable. Section 15, 16 and 17 of the Income tax act, 1961 deal with thecomputation of income under the head Salaries. To understand the computation of Income under the head Salaries, the following important concepts must be understood: EMPLOYER AND EMPLOYEE RELATIONSHIP BASIS OF CHARGE( SECTION 15) PLACE OF [...]

LEAVE TRAVEL CONCESSION/ASSISTANCE- TAXATION ISSUES

We go on travel with our families ,if we can get tax benefits, why waste it. Hence the article on Leave Travel allowance or LTA. Have you claimed LTA? Leave Travel Allowance (LTA) is basically defined as the cost of travel granted to employees to travel anywhere in India, while on leave from work. It is allowed twice in a block of four calendar years. These blocks of 4 years are predefined by the government. These are: 2002 – 2005 2006 – 2009 2010 [...]

A brief Study on International Taxation

International Tax is best regarded as the body of legal provisions of different countries that covers the tax aspects of cross – border transactions. It is concerned with Direct Taxes and Indirect Taxes – Kevin Holmes INTRODUCTION: International taxation in a simple language means the study of Taxation beyond the National Level. Though we all are very much aware about our Indian Taxation Laws but as time is demanding something more so, there is a need to study the taxation at [...]

Deductions under Section 80C of the Income Tax Act

Let's Begin.... 1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed one hundred and fifty thousand rupees (2) The sums referred to in sub-section (1) shall be any sums paid or [...]

BRIEF STUDY ON THE BENAMI TRANSACTIONS (PROHIBITION) AMENDMENT ACT, 2016

 Meaning of Benami Transactions: "Benami transaction" means,— (A) A transaction or an arrangement— (a) Where a property is transferred to, or is held by, a person, and the consideration for such property has been provided, or paid by, another person; and (b) The property is held for the immediate or future benefit, direct or indirect, of the person who has provided the consideration, except when the property is held by— A Karta, or a member of a Hindu undivided family, as the case [...]

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