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ITR (Income Tax Return)

Income Tax Return is the form in which an assessee files information about his Income and tax thereon to Income Tax Department. Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. Only those Forms which are filed by the eligible Assessees are processed by the Income Tax Department of India.

Documents required for company Registration ?

     Address Proof(aadhar Card)

     PAN Number

     FDR Copy

     Bank Statement

     Post office saving A/c

     NSC

     LIC premium Receipt

     Deductions proof

     TDS(if any deduct on sale of property)

     Share Statement(if any)

     Any other(attach it)

Frequently Asked Questions ?
FAQ on Salary

   What things are included in Salary?

(a)Wages b) Annuity c) Pension d) Gratuity e) Fees, Commission, Perquisites, Profits in lieu of or in addition to Salary or Wages f) Advance of Salary g) Leave Encashment


   Which emlpyer's are included in salary?

Former Present & Prospective employer


   Whether salary only taxable on payment basis?

No, salary is taxable on due as well as on receipt basis whichever is earlier.


   What are the various retirement benefits in salary?

There are various benefis- Gratuity,Pension,Provident Fund,Laeve Encashment salary.


   How bonus is taxable?

Bonus is taxable on due basis If not taxable on due basis then taxable on receipt basis


   What do you mean by perquisites?

Casual Emoluments or benefits attached to an office or position in addition to salary or wages.


   When arrear salary become taxable?

Taxable in the year of receipt. However relief under section 89 is available


   Who are specified employees under head salary?

The following employees are deemed as specified employees:  1) A director-employee  2) An employee who has substantial interest (i.e. beneficial owner of equity shares carrying 20% or more voting power) in the employer-company  3) An employee whose monetary income under the salary exceeds Rs.50,000


FAQ on Capital Gain

   What is capital Gain?

Capital gain is an increase in the value of a  capital asset (investment or real estate) that gives it a higher worth than the purchase price.


   What are the types of Capital Gain?

A capital gain may be short-term (one year or less) or long-term (more than one year) and must be claimed on income taxes.


   What is Capital Loss?

When the asset value(sale price)is less then the purchase price then capital loss incurred.


   How short term Capital gains are taxable?

These gains are taxed as ordinary income based on the individual's tax filing status and adjusted gross income


   What is the rate of long term Capital Gain taxability?

These are taxable at the rate of 20%.


   What is LTCG u/s 10(38)?

As per section 10(38), long-term capital gain arising on transfer of equity share or units of equity oriented mutual fund or units of business trust is not chargeable to tax in the hands of any person, if following conditions are satisfied:  The transaction i.e. the transaction of sale of equity shares or units of an equity oriented mutual fund or units of business trust should be liable to securities transaction tax.  Such shares/units should be long-term capital asset. Transfer should have taken place on or after October 1, 2004.


   Is deduction under sections 80C to 80U are allowed from LTCG?

No deduction under sections 80C to 80U is allowed from long-term capital gains.


FAQ on House Property

   What is house property?

House property consists of any building or land appurtenant thereto of which the assessee is the owner. "house property‟ includes flats, shops, office space, factory sheds, agricultural land and farm houses. Further, house property includes all type of house properties, i.e., residential houses, godowns, cinema building, workshop building, hotel building, etc.


   What are the conditions to be fulfilled to taxed the income under head of house property?

The following three conditions must be satisfied before the income of the property can be taxed under the headproperty; “Income from House Property”: The property must consist of buildings and lands appurtenant thereto; The assessee must be the owner of such house The property may be used for any purpose execpt for his own use.


   When Muncipal taxes are allowed to be deducted from Gross annual Value?

it is allowed if they are borne and actually paid by the owner.Muncipal taxes etc are allowed if they are paid during the financial even if they are related to any previous years.


   How much interest is exempt u/s 24?

 If the self occupied property is acquired or constructed after 1 April 1999 (and such acquisition/construction is completed within three years) then you are allowed to claim deduction of interest up to Rs. 1.5 lakh. For loans taken to reconstruct the house the limit is only Rs. 30,000.


FAQ on Business Income


   What do you mean by income from business & profession?

 It  means any income which is shown in profit and loss account after considering all allowed expenditures.


   What is Business?

According to sec 2(13), Business includes any trade,commerce, manufacture or concern in the nature of trade,commerce or manufacture.


    What is the limit of deduction of salary,bonus,commisision or remuneration in a partnership firm?

 The firm will be allowed the deduction upto the extent- 1. Loss or profit up to 3,00,000 -1,50,000 or 90%of book profit which ever is more 2.On the balance   ‐  60% of book profit


   What is Speculation Business?

 Speculation transaction mean a transaction in which a contract for purchase or sale of any commodity including stocks and shares is periodically or ultimately settled otherwise than by actual delivery or transfer of the commodity or scrips . if this transaction done by assess treated as speculation business.


   What is unabsorbed deprectiation and treatment of it?

  If the amt. of depreciation cannot be adjusted in the previous year   total income other than income from salary, such amt. of depreciation is known as unabsorbed depreciation. This amt. may be set off from income of next year other than salary. it can be carry forward upto indefinite period there is no such time limit.


FAQ on Other Income


   What is income from other sources?

 All income other than income from salary, house property, business and profession or capital gains is covered under 'Income from other sources'.


   which incomes are included under the head of income from other sources?

 Incomes like dividened,interest received,gifts. Winnings etc are covered.


FAQ on Deductions


   how much deduction is allowed u/s 80TTA for Saving bank account interest?

 A deduction of Rs. 10000 is allowed to be Claimed from the interest earned from saving bank account.


   What deduction is allowed u/s 80D?

  Deduction for Payment of Medical insurance premium and health checkup are allowed to an individual/HUF who paid premium for himself,spouse and dependent children. Deduction amount depend upon senior citizen or non-senior citizen.


   Is there any deduction allowed on payment of interest on education loan?

 yes, it is allowed u/s 80E, an individual is allowed deduction on repayment of interest on education loan taken for higher education of himself, spouse or dependent children whether education is taken in India or Outside India.


FAQ on Income Tax


   What is Income Tax Return?

Income Tax Return is the form in which an assessee files information about his Income and tax thereon to Income Tax Department.


   Who comes under an obligation of Law to file return of Income?

 Individuals who fulfill any one of the following conditions should by law file their Income Tax Returns during a financial year Possesses a valid Credit Card Pays for foreign travel, either for himself or another individual Is the member of a Club where entrance fees charged is twenty five thousand or more Occupies a particular floor area of an immovable piece of property Is the owner of a vehicle h) Annual accretion to the balance of Recognized Provident Fund i) Transferred balance in Recognized Provident Fund j) Contribution by Central Government or any other employer to Employees Pension Account as referred in Sec. 80CCD