India Tax Made Simple

Can A.O Ask For Accounts From Salaried Employees During Scrutiny ?

I am a salaried employee. I had received a notice for assessment last year in 2009. Then it was adjourned sine die. It was revived again in March, 2010, and in first hearing itself AO asked for statement of affairs including capital account and credit card statements for last 3 years. I am only wondering [...]

Should We Deduct Tax on Payments to IAS Assocaition ?

Is event sponsorship subject to tax deduction at source?My company paid a certain sum to an IAS association for their organising an event. What we paid was a certain % of total cost.This association does not have its PAN and as such, payment was made without tax deduction at source. Vimal Kishore Soni , Barmer The provision [...]

Limit For Gratuity For Private Employees Enhcnaced to Rs 10 Lakh!

The Union cabinet today cleared a proposal to raise the ceiling for payment of gratuity to private sector employees from Rs 3.5 lakh to Rs 10 lakh. The Government employees already get enhanced gratuity of Rs 10 Lakh vide acceptance of recommendation of Sixth Pay Commission. Till now , however , the exemption is limited [...]

Is Non Resident Eligible For Exemption u/s 54F or 54EC?

My elder brother is aged around 74 years was born in India and went to USA. He has been a NON-RESIDENT in India in 9 out of 10 previous years. He visited India in the years 2004 and 2000 and lived in his parental home around 60 days. He has got ancestral shops, which he [...]

What Deduction is Allowable For Persons Spending on Relative Suffering From Cancer ?

Can any Govt. staff member’s Medical Reimbursement of Blood Cancer of son should deducted from income tax? Is there any tax exemptions for the same? Pandit Shashank , Kolahpur Yes, u/s 80DDB a person who spends on his spouse, children, parents, brothers and sisters of the individual or any of them who are suffering from malignant [...]

Eleven Tax Propsal of Budget 2010-11 Affecting Business & Companies

Settlement Scope Increased Now search and seizure cases pending for assessment is eligible for application for settlement to Settlement Commission . Extra Deduction of Rs 20,000 For Individuals & HUF A deduction u/s 80CCF for an additional amount of Rs.20,000 for investment in long-term infrastructure bonds as notified by the Central Government has been proposed. . [...]

Five Tax Budget Proposal Affecting You Seriously!

Tax Slabs Expanded New tax labs are as under Upto 1,60,000 Exempt Rs 1,60,001 to Rs 5,00,000 10 % Ra 500001 to Rs 8,00,000 20 % Over Rs 8,00,000 30% Therefore , majority of tax payers will get some kind of relief from tax. Deduction u/s 80D on Central Government Health Scheme Till now , deduction was being allowed on medical insurance u/s [...]

e-Payment of Service Tax Compulsory For Payer of Rs 10 Lakhs or More in F.Y 2009-10

The electronic payment option for payment of service tax was available only to those who had paid a service tax of Rs 50 lakh or more including utilisation of Cenvat credit. Now , the Central Board of Excise and Customes has made electronic payment of service tax compulsory from April 1, 2010, vide notification No.1/2010, [...]

When Are You Liable to Pay Advance Tax?

I am 57 years old housewife and my total earnings from Bank FD’s for FY 2009-2010 will be approx Rs 388600 and i will be making an investment of Rs 100000 under ELSS. Need to know, how do i pay income tax on my interest income. Should i pay this at the time of IT [...]

Is Children Education Allowance Taxed Twice?

Why children education allowance is taxable ? The amount expended on Children Edu is paid from salary and taken into account for tax calculation, again when the same amount considered as income when it is reimbursed as CEA? Earlier RTF was also considered in the same way. F Saxena, Katni Children Education allowance is not taxed [...]