June 2024 – Page 2 – Sailesh Bhandari & Associates

VALUVATION RULES

Valuation rules under income tax are the rules that are used to determine the fair market value of assets and liabilities for the purposes of computing income tax. These rules are laid down in the Income Tax Act, 1961 and the Income Tax Rules, 1962. Fair market value is defined as the price that the

INCOME FROM OTHER SOURCES

The tax treatment of shareholders under income tax in India depends on the type of income they receive. Dividend income Dividend income is taxable in the hands of shareholders, regardless of whether they held the shares as a trader or an investor. Dividend income is taxed under the head “Income from other sources”. From the

Conditions

The word “conditions” has multiple meanings depending on the context. Here are some of the most common meanings: 1. Circumstances or states of affairs: Conditions can refer to the circumstances or states of affairs that surround or influence something. For example, the weather conditions can affect whether or not you go for a walk outside.

Filling of statement of donation by Donee to cross check claim of donation by Donor

The filling of a statement of donation by the donee (the recipient of the donation) is a crucial step in verifying and validating the claim of donation made by the donor (the person who made the donation). This process helps ensure that donations are genuine and accurately accounted for, contributing to transparency and accountability in

Deduction should be claimed in the return of income

Deductions should be claimed in the income tax return to reduce your taxable income and thereby your tax liability. Deductions are allowed for various expenses that you incur, such as: In addition to these general deductions, there are also a number of specific deductions that are available to certain categories of taxpayers, such as senior

AMALGAMATION OF BANKING COMPANY WITH BANKING INSTITUTION (SEC72AA)

Amalgamation of banking company with banking institution (Section 72AA) is the process of merging two or more banking institutions into a single new entity. This can be done between two banking companies, or between a banking company and a non-banking financial company (NBFC) that has been granted a license to operate as a bank. The

Income from the accretion to assets

Income from the accretion to assets is the income that is generated by the increase in value of assets overtime this income can be realized or unrealized. Realized income is income that has been actually received by the taxpayer. For example, if you sell an asset for more than you paid for it, the capital

Position after issue of circular No. 2/2002

Circular No. 2/2002, dated 15 February 2002, issued by the Central Board of Direct Taxes (CBDT), clarified the tax treatment of income arising from deep discount bonds. The circular stated that the difference between the issue price and the redemption price of a deep discount bond would be treated as interest income and taxed in

Advance money (section56 (2))

Advance money under Section 56(2) of the Income-tax Act, 1961, refers to any sum of money received as an advance or otherwise in the course of negotiations for transfer of a capital asset, if: This means that if you receive money from someone who is interested in buying a capital asset from you, such as

Income from other sources

Basis of charge section 56(1) Section 56(1) of the Income Tax Act, 1961 (ITA) provides a residual basis of charge for income from other sources. This means that any income which is not specifically taxable under any of the other heads of income in the ITA, such as salary, business income, house property income, or

2024 June