Set Off & Carry Forward of Losses

INTRODUCTION If income is one side of the coin, loss is the other side. When a person earns income, he pays tax. However, when he sustains loss, law affords him to have benefit in the form of reducing the said loss from income earned during the subsequent years. Thus, tax liability is reduced at a …

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Income from others sources

INCOME FROM OTHER SOURCES – BASIS OF CHARGE [Sec. 56] This is the residual head of charge of income. Where a source of income does not specifically fall under any one of the other heads of income viz. Salaries, Income from House Property, Profits and Gains of Business or Profession, Capital gains, such income is …

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Tax on Capital Gains under the income tax act, 1961

Below is the full explanation of Capital Gain tax under the Income Tax Act, 1961 CHARGING SECTION: 45(1) Any profits or gains arising from the transfer of any capital asset shall be chargeable to income-tax as Capital Gains and shall be deemed to be the income of the previous year in which the transfer took …

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Profits and Gains from Business or Profession

The income from business and profession is known as profit and gains. While calculating the profit and gains, we deduct various expenses from it. The expenses to be deducted for calculating the gain are defined in the income tax act. Sections 30 to 37 cover expenses, which are expressly allowed as deduction while computing business …

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Income from House Property

In this section we will be discussing the below topics: Annual value is the basis of chargeability under the head income from house property Deemed Owner for a house property Property Income is Exempt from Tax to Certain Persons Recovery of Unrealised Rent Receipt of Arrears of Rent Unrealized Rent Municipal Tax Deduction from Net …

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Agricultural Income and Tax Liability

Agricultural income has been placed in the State list and as such the Central Government cannot levy tax on agricultural income. Sec. 2(1A)provides definition of the term. ‘Agricultural income’ means – (a) any rent or revenue derived from land which is situated in India and is used for agricultural purposes. (b) any income derived from …

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