What is form 16 and its Importance while filing return of income

Form 16 is a certificate or a document issued by employer to salaried personnel in India. This form is used by employee as a reference while filing return of income with the tax department. Form 16 also treated as a certificate of payment of TDS by employer to tax department. Last date for issuing form … Continue reading What is form 16 and its Importance while filing return of income

Section 44AD-Computation of profits and gains of business on Presumptive basis

As per section 44AD, an eligible assessee engaged in an eligible business can calculate a sum equal to 8% of the total turnover or gross receipts of the assessee in the previous year on account of such business or as the case may be which shall be deemed to be profits and gains of such … Continue reading Section 44AD-Computation of profits and gains of business on Presumptive basis

How to calculate tax exemption on House Rent Allowance or HRA – section 10(13A)

To meet the expenses in connection with rent, employer gives house rent allowance to employee based on the location of employment. House rent allowance or as popularly known as HRA is taxable under the head salaries to the extent it is not exempted. Tax provisions related to house rent allowance or HRA exemption is specified … Continue reading How to calculate tax exemption on House Rent Allowance or HRA – section 10(13A)

Section 80D – Tax Deduction for health insurance premium and Mediclaim Policies

Both private and public sector insurance companies offer policies known as Health Insurance for the treatment of most of the ailments and hospitalization. It provides security to meet unanticipated medical expenditure in future. Under section 80DD of Income tax act 1961, tax deduction is available on the amount contributed towards medical insurance premium or mediclaim … Continue reading Section 80D – Tax Deduction for health insurance premium and Mediclaim Policies

Section 80DD – Tax deduction for medical treatment of dependent who is a person with disability

In our previous article we have discussed how an individual with disability or severe disability can claim tax deduction up to Rs 75000 or Rs 125000 respectively under section 80U of Income tax act 1961. Today, through this write up we are going to discuss how a person can claim tax deduction under section 80DD … Continue reading Section 80DD – Tax deduction for medical treatment of dependent who is a person with disability

Section 80U – Tax deduction for physical disability of a person

Government of India has introduced section 80U in Income tax Act 1961 to provide tax benefits to those who have physical disability. As per section 80U, an individual being a resident, who at any time during the previous year is certified by the medical authority to be a person with disability there, shall be allowed … Continue reading Section 80U – Tax deduction for physical disability of a person

Tax deduction on interest on deposits in saving account – Section 80TTA

Finance act 2012 has introduced section 80TTA into Income Tax Act 1961 by allowing tax deduction of up to Rs 10000 on interest income from a saving account. Let us know this provision as specified in section 80TTA in detail. With effect from 1st April 2013, tax deduction under section 80TTA is applicable to an … Continue reading Tax deduction on interest on deposits in saving account – Section 80TTA

Tax deduction in respect of contribution to Political parties – Section 80GGB and 80GGC

Donation to any recognized political parties like Congress, BJP, NCP, BJD, RJD, MNS and the Aam Aadmi Party (AAP) is eligible for tax deduction under section 80GGB and 80GGC of Income tax act 1961 if terms and conditions as specified under these sections are satisfied. Section 80GGB is applicable to an Indian Companies and 80GGC … Continue reading Tax deduction in respect of contribution to Political parties – Section 80GGB and 80GGC