As per the provisions of Section 80E of the Income Tax Act, the interest paid on education loan paid on higher education (including vocational studies) can be claimed as a deduction from the taxable income.
Dearness Allowance or D.A. essentially is considered to be as a component of salary, which is some fixed percentage of the basic salary. It is provided to the central government/public sector employees to bear with the consequences of inflation. Furthermore, the D.A varies from place to place and sector in which the employee is employed.
The TDS rates varies from type of taxpayer and the income bracket. The rates of TDS for FY 2021-22 | AY 2022-23 are as follows:
Through the Union Budget, 2021, a new section namely Section 194Q was inserted in the Income Tax Act and this section is similar to the provisions of Section 206C(1H) of the Act. This is so because both of these sections deals with same transaction of sales/purchases above Rs. 50 lacs from party whose turnover whose turnover is previous year exceeds Rs. 10 crore. Further, Section 194Q talks about deducting TDS and Section 206(1H) talks about collecting tax.
Income Tax due dates are notified by Central Board of Direct Taxes for each month. Non-compliance of the various filing can lead to heavy penalties. The due date for compliances in August, 2021 are as follows:
Clubbing of income, as the name suggests is the income of one person is clubbed with the income of the another person. Many of the persons think that if they …
EPF or Employee Provident Scheme is a tax saving scheme cum retirement benefit scheme, which can be availed by the employees of the organisation which are registered under the Employee Provident Fund Organisation (EPFO). Further, the organisations having more than 20 employees are required to obtain EPF Registration.
Due to the pandemic COVID-19, various dates of compliances related to Income Tax has been extended. All the due dates in of July, 2021 are:
Clubbing of Income, in simple terms means that the income of one person is clubbed in the income of the other person. This clubbing of income can be done with the income of spouse, income of minor child, income from assets transferred to son’s wife/spouse, and so on. Having stated this, the income earned by minor is also taxable under the Income Tax Act.
Advance tax is to be paid by all the assessees having total tax liability of Rs. 10,000 or more in a financial year. However, the senior citizens of above 60 years of age, who are not having any income from business or profession are not required to pay advance tax. The taxpayers and independent professionals opting for and who come under presumptive scheme respectively under Section 44AD and Section 44ADA of the Income Tax Act are also required to pay Advance Tax. The procedure for paying advance tax online is as follows: