In case of individuals, income tax is applicable on the slab system on total income. As the income increases, the applicable tax rate increases. Some taxpayers in higher income slab may tend to divert some portion of their income to minimize tax burden. Therefore to prevent such tax avoidance, clubbing of income provisions have been incorporated.
So, if you are planning to transfer assets or income to another person in order to avoid tax implications, then such transfers could also be taxable in your hands.
Even genuine gifts to friends and family can also attract clubbing provisions under Income Tax Act. So, it is important to have insight knowledge of clubbing provisions to avoid any tax implications or penalties.
W.e.f. 13th August 2020, the e-assessment scheme of 2019 is amended to be known as “Facelesss Assessment Scheme”.
When there is a sale of long term capital asset, the gains are usually quite large and are taxed at 20 %. Therefore, the tax amount comes out to be a large amount liable to be paid as Long term Capital Gain tax.
However, Govt. has given the option of claiming exemption from long term capital gains tax if the taxpayer reinvests the amount in certain specified forms of investment and can thereby save tax as per following sections:
- Section 54
- Section 54 EC
- Section 54 F
An HUF is a family which consists of all male lineal descendants from a common ancestor, and also the spouses and unmarried daughters of the descendants. While the male members are called coparceners, the females are referred to as members.
The senior-most male member is called the karta, and a typical HUF consists of a karta, his sons, grandsons, and great-grandsons (all of whom are coparceners), and their wives and unmarried daughters (all of whom are members). Even Jain, Buddhist and Sikh families can have HUFs.
Deferred tax is the tax for those items which are accounted in Profit & Loss A/c but not accounted in taxable income which may be accounted in taxable income in future & vice versa. It shall either be paid or has already been settled due to momentary inconsistency between an organization’s income statement and tax statement. The word Deferred has been derived from the word “Deferments” which means setting out for something to happen at a future date.
As soon as the Assessment year comes, the salaried class gets agitated about their tax returns. For you it is foremost to understand the tax slab and what is the meaning of each of your salary breakup component. By acknowledging this, you can figure out how to save tax. Let us understand about your salary components and how you can save tax on your salary income point by point.
Any person, being a buyer who is responsible for paying any sum to Seller for purchase of any goods of the value or aggregate of such value exceeding fifty lakh rupees in any previous year, shall, at the time of credit of such sum to the account of the seller or at the time of payment thereof by any mode, whichever is earlier, deduct an amount equal to 0.1 per cent. of such sum exceeding fifty lakh rupees as income-tax
India is becoming a digitally advanced country in the current times. From shopping to income tax return filing, everything is done online today. Now, you do not have to go through the hassles of doing paperwork to file ITR. The process of Income Tax Return Filing in India is done on the official portal of new income tax.