Blog – Sailesh Bhandari & Associates

DEDUCTION IN RESPECT OF INTREST ON LOAN TAKEN FOR RESIDENTAL HOUSE PROPERTY [SEC.80EE]

Section 80EE of the Income Tax Act, 1961 allows an individual taxpayer to claim a deduction of up to Rs 50,000 per financial year for interest paid on a loan taken for the purchase or construction of a residential house property. This deduction is available in addition to the deductions available under Section 24 and

AMOUNT OF DEDUCTIONS

The amount of deduction under income tax varies depending on the specific deduction being claimed. However, some of the most common deductions and their corresponding limits include: EXAMPLE There are many different types of deductions available to taxpayers in India, and the amount of deduction that is available can vary depending on the specific state

DEDUCTION IN RESPECT OF NATIONAL SAVINGS SCHEME [ Sec.80CCA Applicable for the assessment -years 1988-89 to 1992-93]

Under the Income Tax Act, 1961, Section 80CCA provides a deduction for deposits made in certain National Savings Schemes. This deduction was applicable for the assessment years 1988-89 to 1992-93. The maximum deduction that could be claimed under Section 80CCA was Rs. 60,000. The deduction was available on deposits made in the following National Savings

DEDUCTIONS IN RESPECT OF LIFE INSURACE PREMIA, DEFERRED ANNUITY, CONTRIBUTIONS TO PROIVDENT FUND SUSBSCRITION TO CERTAIN EQUITY SHARES DEBENTURES ETC. [ SEC.80C, APPLICABLE FROM THE ASSESMENT UNDER INCOME TAX

Section 80C of the Income Tax Act of India allows for a deduction of up to Rs. 1.5 lakh per annum for certain investments and expenses, including: This deduction is available to individual taxpayers and Hindu Undivided Families (HUFs) only. Specific deductions in respect of life insurance premia, deferred annuity, and contributions to provident fund

CONSEQUENCES OF CLAIMING DEDUCTION UNDER SECTION 10AA

Claiming deductions under Section 10AA of the Income Tax Act, 1961 (IT Act) provides significant tax benefits to entrepreneurs operating units within Special Economic Zones (SEZs). However, there are certain consequences associated with claiming these deductions, which entrepreneurs should be aware of. Tax Benefits under income tax act: Section 10AA allows for a deduction of

CONSEQUENCES FOR MERGER AND DEMERGER

Merger under income tax act: Demerger under income tax act: CASE LAWS Merger under income tax act In the case of a merger, the transferor company is dissolved without winding up, and its assets and liabilities are transferred to the transferee company. The transferee company is considered to be the successor to the transferor company,

PERIOD OF DEDUCTIONS

The period of deductions under income tax in India is generally the financial year (FY) in which the expense is incurred or paid. For example, if you pay a life insurance premium in FY 2023-24, you can claim a deduction for it in your income tax return for AY 2024-25. However, there are some exceptions

CARRY FORWARD AND SET OFF LOSS FROM HOUSE PROPERTY

Shiv Kumar Jatia v. ITO (2021) Issue: Whether loss from sale of long-term capital share on which security transaction tax has been paid should be allowed to be carried forward for set off even though income from such transfer of long-term capital asset is exempt under section 10(38). Held: Yes, the loss should be allowed

INCOME FROM ASSESTS TRANSFERRED TO SON’S WIFE

Income from assets transferred to the son’s wife is taxable under section 64(1)(a) of the Income Tax Act, 1961. This section states that if any person transfers any asset, directly or indirectly, by way of gift or otherwise, to his or her spouse or minor child, the income arising from such asset will be taxable

AMOUNTS NOT DEDUCTIBLE BY VIRTUE OF SECTIONS 115A,115B,115AB115AC,115AD,115BBA,115D

Section 115A under income tax act Section 115B under income tax act Section 115AD under income tax act Section 115BBA under income tax act Section 115D under income tax act EXAMPLE Section 115A under income tax act Section 115B under income tax act Section 115D under income tax act State-specific examples under income tax act: