Tag: Indian Tax Act

What is Gift Tax in India

We always have a question regarding Gift Tax or tax treatment of gifts received by an individual or HUF. We have divided this topic (Gift Tax) into three parts as below: Part 1 – Features of gift tax rules Part 2 – Tax implication of various parties involved in gifting process and income clubbing provisions …

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Tax on Income from Salary

Definition of Salary:  If the following amount received by an employee from his employer the amount so received is defined as Salary: includes the following amounts received by an employee from his employer, during the previous year Wages; any annuity or pension; (Family pension received by heirs of an employee is taxable under income from …

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Income Tax Slabs for FY 2016-17 / AY 2017-18

Income Tax Rate Chart / Income Tax Slabs as Applicable for Assessment Year 2017-18 / Financial Year 2016-17 for Individual, HUF, AOP, BOI, Partnership Firms, LLP and Companies. Rates for deduction of income-tax at source from “Salaries”, computation of “advance tax” and charging of income-tax in special cases during the financial year 2016-2017. The rates …

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Income Tax Rates Slabs : Assessment Year 2014-15/Financial Year 2013-14

Income Tax Rates I. For Individuals, Hindu Undivided Families, Association of Persons and Body of Individuals Total Income Tax Rate Upto Rs. 200,000*           Nil 200,001 to 500,000        10% 500,001 to 10,00,000        20% Above Rs. 10,00,000        30% *In the case of a resident individual of sixty years or more but less than eighty …

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Assessment Procedure

Inquiry before assessment. [ Section 142] Inquiry : (1) The Assessing Officer has power to make inquiry from any person (a) who has made a return under section 139 or (b) in whose case the time allowed under section 139(1) for furnishing the return has expired. For the purpose a notice can be issued for …

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Capital Gains In Case Of Slump Sale

Slump Sale means the transfer of one or more undertakings as a result of the sale for a lump sum consideration without values being assigned to the individual assets and liabilities in such sales. Cost of acquisition and cost of improvement in case of slump sale: “Net Worth” of the undertaking or the division. (NO …

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Capital gain on sale of goodwill of a business, trademark or brand name, tenancy rights, route permits or loom hours, right to manufacture or right to carry on any business

The following are chargeable to tax as capital gains: (i) Goodwill of a business. There will not arise any capital gain on the goodwill of a profession. (ii) Trademark or brand name associated with the business;                                                           (iii) Right to manufacture, produce or process .any article or thing, for a consideration e.g. …

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Capital gains on distribution of assets by companies in liquidation

No capital gain to company on distribution of assets to shareholders on liquidation u/s 46(1) provided the distribution of assets in specie (i.e. in the same form). Where a shareholder on the liquidation of a company, receives any money or other asset from the company in lieu of the shares held by him, such a …

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Capital gain on conversion of debentures into shares

(i) Conversion of debentures into shares is exempted u/s 47(x) (ii) In case of subsequent transfer by the transferee, the holding period in the hands of the transferee u/s 2(42A) shall not include the holding period of the earlier asset. (iii) Const of new asset the hands of the transferee u/s 49 shall be the …

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Capital gain on transfer by way of compulsory acquisition of an asset

• Chargeability: It is a transfer u/s 2(47) chargeable to tax under the head Capital Gains. • Taxability of Normal/Original Compensation [Section 45(5)(a)] • Normal or original compensation Is taxable in the previous year in which it is first received. • Whole of the compensation is taxable even if a portion of the amount is …

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