#Income Tax Act 1961

[thetaxguyin]

Deductions which can be claimed under the New Income Tax Regime

Are you navigating the complexities of tax planning under the new income tax regime? Are you looking to maximize your savings by leveraging all available deductions? Look no further! In this definitive guide, we’ll walk you through the myriad deductions offered under the Income Tax Act of 1961 in the new regime, empowering you to make informed financial decisions and optimize your tax…

[jasmelon]

Taxation Rules for non-residents in India including Foreign Citizens

Incidents of taxation on Income earned by non residents in India depends upon his physical presence in India during last financial year. Whether an income earned by an individual in India or outside India, is taxable in India depending upon his stay in India rather than on his citizenship. Invariably, the person holding foreign citizenship remain under wrong impression that taking up foreign citizenship would help them for obtaining tax benefits. The Income Tax Act 1961 (as amended uptill date “the Act”)does not provide any benefit to an assessee on the basis of  his citizenship.  Read More - https://www.pkpconsult.com/blog/taxation-rules-for-non-residents-in-india-including-foreign-citizens.html

[indilegalonline]

Section 24 of Income Tax Act

Section 24 of Income Tax Act –Deductions from income from house property Income chargeable under the head “Income from house property” shall be computed after making the following deductions, namely:—  (a) a sum equal to thirty percent of the annual value;  (b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any…

[ujaglobaladvisory]

Taxation of Bitcoins and Cryptocurrencies in 2025

Cryptocurrencies like Bitcoin have become increasingly popular as both investments and means of transaction. However, their tax treatment can be complex. Understanding how cryptocurrencies are taxed is crucial to staying compliant and avoiding potential penalties. Here’s a comprehensive guide to how Bitcoin and other cryptocurrencies are taxed in 2025. 

In India, the taxation of Bitcoin and other virtual digital assets (VDAs) is primarily governed under Section 115BBH of the Income Tax Act, 1961, which was introduced in the Finance Act 2022. This section and its provisions outline the tax treatment of income arising from the transfer of virtual digital assets, including cryptocurrencies like Bitcoin. 

To know more blog insights, check the link https://uja.in/blog/taxation-times/taxation-of-bitcoins-and-cryptocurrencies-in-2025/

[raindropsofloev]

mera dushman?

INCOME TAX ACT 1961

[pkchopraco-blog]

Income Tax Audit in India

What is a Income Tax Audit in India? Under Section 44 AB of the Income Tax Act, 1961, provision of Income Tax Audit is covered. Income Tax Audit is a way to examine an individual’s organization tax returns by any outside agency. Income Tax Audit done to verify all income

Income Tax Audit in India | Income Tax Audit in Delhi

[toponlinemoneytips]

Sukanya Samriddhi Yojana 2023 Benefits & Interest Rates

Sukanya Samriddhi Yojana (SSY) is a savings scheme launched by the Government of India in 2015 as part of the "Beti Bachao Beti Padhao" campaign. The scheme is designed to encourage parents to save for the future education and marriage expenses of their girl child.

Here are some of the benefits and interest rates associated with Sukanya Samriddhi Yojana:

High Interest Rates: The current interest rate for Sukanya Samriddhi Yojana is 7.6% per annum (as of January 2022), which is higher than most other government-backed savings schemes.

Tax Benefits: Contributions to Sukanya Samriddhi Yojana are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. The interest earned and the final maturity amount are also tax-free.

Flexible Investment Options: Parents or guardians can open an SSY account for their girl child with a minimum initial deposit of Rs. 250. They can make contributions in multiples of Rs. 100, up to a maximum of Rs. 1.5 lakh per annum. The account can be opened until the girl child attains the age of 10 years.

Long Maturity Period: The maturity period for Sukanya Samriddhi Yojana is 21 years from the date of opening the account. This makes it an ideal savings scheme for long-term financial planning.

Partial Withdrawals Allowed: Partial withdrawals of up to 50% of the balance in the account are allowed once the girl child attains the age of 18 years, for the purpose of higher education or marriage.

Account Transferable: In case of a change in residence of the account holder, the account can be transferred anywhere in India.

Overall, Sukanya Samriddhi Yojana is a great savings scheme for parents who want to secure their daughter's future education and marriage expenses. It offers high interest rates, tax benefits, and flexible investment options, making it a popular choice among investors.

[news365timesindia]

bySubhash Chandra Agrawal Much awaited new Income Tax Act is announced to be introduced shortly in the Union Budget for fiscal-year 2025-26 to replace six decades old Income Tax Act 1961. It should be expected that new Income Tax Act will simplify Direct Tax system. Rather it would have been better that new Income Tax Act would have been simultaneously introduced with the Union Budget. Drastic cut in tax-slabs is welcome, but there is no clarity if surcharges and cess exist or not. Tax-payer is confused if income is tax-free till rupees 12 lakhs per annum with tax-slabs existing for incomes between rupees 4 lakhs and 12 lakhs. Evidently normal tax-payer is not educated enough that it will be possible only due to relief available under section 87A of Income Tax Act 1961. Incomes exceeding rupees 12 lakh will deprive tax-payer of relief available under section 87A of Income Tax Act 1961. Direct tax-system could be most simplified by raising basic tax-exemption limit anywhere between rupees 4 lakhs and rupees 12 lakhs but abolishing confusing relief available under section 87A of Income Tax Act 1961. There should be only one tax-regime abolishing old tax-regime. Net tax-rate should not exceed 30-percent abolishing system of surcharges and cess to be in tune with most other countries of the world in accordance with recommendations of Raja Chelliah Committee for better tax compliance. With tax-slabs drastically cut, tax-exemptions including on charity, donation, contribution to political parties and even agricultural-income which are largely misused should be abolished. An ordinary farmer does not earn more than rupees four lakhs per annum, and the provision is grossly misused by ultra-rich persons including known celebrities to declare their unaccounted income as agricultural income through some village-land purchased only for whitening the black income without having any agricultural produce. India should step towards cashless economy like in Sweden by taking bold steps to bring cash in circulation in banking economy as was visualised at time of demonetisation of currency on 08.11.2016. A permanent Voluntary Disclosure Scheme can be introduced whereby provision may be there in tax-return to declare at highest suggested tax-rate of 30-percent, any income without disclosing source of income. This will make cash-transaction specially in property-deals accounted if registration-fees on property-deals is also reduced to say just five-percent inclusive of municipal taxes and capital-gain further cut to 10-percent like on shares. Names of all those disclosing incomes under suggested highest 30-percent slab should be on website according to income disclosed so that status-conscious persons may race to disclose more incomes. LK Jha committee recommendations to make calendar-year as fiscal-year should be implemented to be in line with most countries of the world, thus abolishing another British legacy of following April-March presently as Fiscal Year. It is ridiculous to have different Depreciation-Rules for Tax and Corporate audits. There should be a single and unified Tax and Corporate Audit. All sale-purchases above rupees 10000 must be compulsorily through bank-transactions. For this, transaction-charges on credit-cards should be slashed down to just half-percent (GST-exempted) that too to be borne by central government with all incentives on purchases made through credit-cards abolished. Present high two-percent transaction-charges on credit-cards make traders charge it separately from customers specially where trade-margins are low. System will fetch much higher tax-revenue for government, than through half-percent transaction-charges to be borne by government. Banks issuing credit-cards will get much-more earning even with half-percent transaction-charge because of manifold use of credit-cards. Two sets of credit-card swapping-machines should be compulsory for every GST-registered dealer so as to avoid declining payment through credit-cards with usual excuse that swapping-machine is out of order.

Strict-most action must be there against those refusing payment through credit/debit cards.  Input-Tax-Credit system in GST-regime in manufacturing-sector is biggest corrupt practice of tax-evasion where left-out GST-invoices by ordinary customers are sold by traders to consuming manufacturers or producers to avail false Input-Tax-Credit where cash is paid back by traders to those purchasing left-out GST-invoices of actual consumers bringing more currency in circulation, this being the reason of rapid and regular rise in currency-circulation. Annual forensic audit may be made compulsory on claims made for Input-Tax-Credit by manufacturers/producers to avoid false claims of excessive Input-Tax-Credit in these sectors. Rather study should be made if with abolition of 18-percent GST slab, Input-Tax-Credit can be altogether abolished from manufacturing/producing sectors, retaining it only on tradable commodities.  Input-Tax-Credit system under GST should not be available on expenses like has rightly be done in case of car-expenses for non-commercial use. With such large-scale reduction in Input-Tax-Credit and merging GST-slabs of 3 and 5 percent into a new slab of 6-percent apart from raising 28-percent GST slab to 30-percent, it may be possible to abolish 18-percent GST-slab thus reducing GST-slabs to just 6, 12 and 30-percent. India is the only country which has so many GST-rates. Gradually even slabs of 6 and 12 percent may also be replaced by a new 10-percent tax-structure. Zero-percent GST may only be retained on totally unbranded raw-materials which cannot be consumed without giving a finishing touch like agricultural-products, fish, meat, cotton-yarn etc. All items of long-term use like cars, air-conditioners, TV-sets, refrigerators etc may attract 30-percent GST while their parts may uniformly attract 12-percent GST. It is ridiculous that clutch-plate and clutch-bearing are under different GST-slabs of 18 and 28 percent. Likewise different food-items like sweets, biscuits, namkins etc attract different GST-slabs with luxury sweets causing diabetes attracting just 5-percent GST. Invoices for items like gold-jewellery can be drawn in two parts, one for metal and embodied items and the other for making-charges so that suggested 12-percent GST may be payable only on making-charges. Cess on extra-luxurious items should be replaced by additional GST-slabs in multiples of 60-percent, also bringing petroleum products under GST-regime to ensure uniform pricing of petrol and diesel in all states.  With GST-slab of 18-percent abolished and service sector then attracting just 12-percent GST, those with income of rupees ten lakhs or more (instead of present rupees 20 lakhs) can be brought under GST-regime like was the system before GST-regime with lawyers also coming under purview of GST-regime. Useless system of Tax-Deducted-At-Source for GST, which is hardly used in practice, should be altogether abolished. All government-payments can be considered to be exempted from GST to avoid unnecessary government-accounting by putting tax from one government-pocket to other. It is illogical that some premium postal-services like Speed-Post may attract GST while other postal-services do not attract GST. Even illogical and irrational postal-rates (both inland and foreign) need simplification for equal rise of postal-tariff for equal rise in slab-weight in multiples of 50 gms. of inland postal-article with all postal-tariffs being in multiples of rupees ten except for registered-newspapers and post-cards which may cost rupee one with abolition of outdated Inland-Letter-Cards. Presently a postal-article weighing 200 gms sent locally by reliable and fast Speed Post costs just rupees 30 but if sent by unreliable ordinary post, it will cost rupees 50. Likewise foreign-mail tariffs can be fixed for 20 gms or part slab-weight independently for air and sea-surface-mail. Writer is Guinness World Record Holder for writing most letters and RTI Consultant

[thetaxguyin]

Late Fees for Default in Filing Income Tax Returns

Filing income tax returns is a crucial responsibility for taxpayers, ensuring compliance with the provisions of the Income Tax Act of 1961. However, failure to file returns within the stipulated deadline may attract late fees and penalties. In this blog post, we explore the implications of late fees for default in filing income tax returns, shedding light on the provisions laid down under the…

[news365times]

bySubhash Chandra Agrawal Much awaited new Income Tax Act is announced to be introduced shortly in the Union Budget for fiscal-year 2025-26 to replace six decades old Income Tax Act 1961. It should be expected that new Income Tax Act will simplify Direct Tax system. Rather it would have been better that new Income Tax Act would have been simultaneously introduced with the Union Budget. Drastic cut in tax-slabs is welcome, but there is no clarity if surcharges and cess exist or not. Tax-payer is confused if income is tax-free till rupees 12 lakhs per annum with tax-slabs existing for incomes between rupees 4 lakhs and 12 lakhs. Evidently normal tax-payer is not educated enough that it will be possible only due to relief available under section 87A of Income Tax Act 1961. Incomes exceeding rupees 12 lakh will deprive tax-payer of relief available under section 87A of Income Tax Act 1961. Direct tax-system could be most simplified by raising basic tax-exemption limit anywhere between rupees 4 lakhs and rupees 12 lakhs but abolishing confusing relief available under section 87A of Income Tax Act 1961. There should be only one tax-regime abolishing old tax-regime. Net tax-rate should not exceed 30-percent abolishing system of surcharges and cess to be in tune with most other countries of the world in accordance with recommendations of Raja Chelliah Committee for better tax compliance. With tax-slabs drastically cut, tax-exemptions including on charity, donation, contribution to political parties and even agricultural-income which are largely misused should be abolished. An ordinary farmer does not earn more than rupees four lakhs per annum, and the provision is grossly misused by ultra-rich persons including known celebrities to declare their unaccounted income as agricultural income through some village-land purchased only for whitening the black income without having any agricultural produce. India should step towards cashless economy like in Sweden by taking bold steps to bring cash in circulation in banking economy as was visualised at time of demonetisation of currency on 08.11.2016. A permanent Voluntary Disclosure Scheme can be introduced whereby provision may be there in tax-return to declare at highest suggested tax-rate of 30-percent, any income without disclosing source of income. This will make cash-transaction specially in property-deals accounted if registration-fees on property-deals is also reduced to say just five-percent inclusive of municipal taxes and capital-gain further cut to 10-percent like on shares. Names of all those disclosing incomes under suggested highest 30-percent slab should be on website according to income disclosed so that status-conscious persons may race to disclose more incomes. LK Jha committee recommendations to make calendar-year as fiscal-year should be implemented to be in line with most countries of the world, thus abolishing another British legacy of following April-March presently as Fiscal Year. It is ridiculous to have different Depreciation-Rules for Tax and Corporate audits. There should be a single and unified Tax and Corporate Audit. All sale-purchases above rupees 10000 must be compulsorily through bank-transactions. For this, transaction-charges on credit-cards should be slashed down to just half-percent (GST-exempted) that too to be borne by central government with all incentives on purchases made through credit-cards abolished. Present high two-percent transaction-charges on credit-cards make traders charge it separately from customers specially where trade-margins are low. System will fetch much higher tax-revenue for government, than through half-percent transaction-charges to be borne by government. Banks issuing credit-cards will get much-more earning even with half-percent transaction-charge because of manifold use of credit-cards. Two sets of credit-card swapping-machines should be compulsory for every GST-registered dealer so as to avoid declining payment through credit-cards with usual excuse that swapping-machine is out of order.

Strict-most action must be there against those refusing payment through credit/debit cards.  Input-Tax-Credit system in GST-regime in manufacturing-sector is biggest corrupt practice of tax-evasion where left-out GST-invoices by ordinary customers are sold by traders to consuming manufacturers or producers to avail false Input-Tax-Credit where cash is paid back by traders to those purchasing left-out GST-invoices of actual consumers bringing more currency in circulation, this being the reason of rapid and regular rise in currency-circulation. Annual forensic audit may be made compulsory on claims made for Input-Tax-Credit by manufacturers/producers to avoid false claims of excessive Input-Tax-Credit in these sectors. Rather study should be made if with abolition of 18-percent GST slab, Input-Tax-Credit can be altogether abolished from manufacturing/producing sectors, retaining it only on tradable commodities.  Input-Tax-Credit system under GST should not be available on expenses like has rightly be done in case of car-expenses for non-commercial use. With such large-scale reduction in Input-Tax-Credit and merging GST-slabs of 3 and 5 percent into a new slab of 6-percent apart from raising 28-percent GST slab to 30-percent, it may be possible to abolish 18-percent GST-slab thus reducing GST-slabs to just 6, 12 and 30-percent. India is the only country which has so many GST-rates. Gradually even slabs of 6 and 12 percent may also be replaced by a new 10-percent tax-structure. Zero-percent GST may only be retained on totally unbranded raw-materials which cannot be consumed without giving a finishing touch like agricultural-products, fish, meat, cotton-yarn etc. All items of long-term use like cars, air-conditioners, TV-sets, refrigerators etc may attract 30-percent GST while their parts may uniformly attract 12-percent GST. It is ridiculous that clutch-plate and clutch-bearing are under different GST-slabs of 18 and 28 percent. Likewise different food-items like sweets, biscuits, namkins etc attract different GST-slabs with luxury sweets causing diabetes attracting just 5-percent GST. Invoices for items like gold-jewellery can be drawn in two parts, one for metal and embodied items and the other for making-charges so that suggested 12-percent GST may be payable only on making-charges. Cess on extra-luxurious items should be replaced by additional GST-slabs in multiples of 60-percent, also bringing petroleum products under GST-regime to ensure uniform pricing of petrol and diesel in all states.  With GST-slab of 18-percent abolished and service sector then attracting just 12-percent GST, those with income of rupees ten lakhs or more (instead of present rupees 20 lakhs) can be brought under GST-regime like was the system before GST-regime with lawyers also coming under purview of GST-regime. Useless system of Tax-Deducted-At-Source for GST, which is hardly used in practice, should be altogether abolished. All government-payments can be considered to be exempted from GST to avoid unnecessary government-accounting by putting tax from one government-pocket to other. It is illogical that some premium postal-services like Speed-Post may attract GST while other postal-services do not attract GST. Even illogical and irrational postal-rates (both inland and foreign) need simplification for equal rise of postal-tariff for equal rise in slab-weight in multiples of 50 gms. of inland postal-article with all postal-tariffs being in multiples of rupees ten except for registered-newspapers and post-cards which may cost rupee one with abolition of outdated Inland-Letter-Cards. Presently a postal-article weighing 200 gms sent locally by reliable and fast Speed Post costs just rupees 30 but if sent by unreliable ordinary post, it will cost rupees 50. Likewise foreign-mail tariffs can be fixed for 20 gms or part slab-weight independently for air and sea-surface-mail. Writer is Guinness World Record Holder for writing most letters and RTI Consultant

[indilegalonline]

Section 16 of Income Tax Act 1961

Section 16 of Income Tax Act 1961-Deductions from salaries The income chargeable under the head “Salaries” shall be computed after making the following deductions, namely :—   (i) [***] (ia) a deduction of fifty thousand rupees or the amount of the salary, whichever is less;  (ii) a deduction in respect of any allowance in the nature of an entertainment allowance specifically granted by an…

[odnewsin]

Govt to introduce new income tax bill next week, says FM Sitharaman

New Delhi: The government will introduce a new Income Tax bill in Parliament next week, replacing the six-decade-old income tax act of 1961. Finance Minister Nirmala Sitharaman, in her 2025-26 Budget speech, said the new I-T Bill will carry forward the spirit of “Nyaya” (justice) based on the concept of “trust first, scrutinise later”. “The new bill will be clear and direct in text with close to…

[pkchopraco-blog]

Income Tax Audit in India

What is a Income Tax Audit in India? Under Section 44 AB of the Income Tax Act, 1961, provision of Income Tax Audit is covered. Income Tax Audit is a way to examine an individual’s organization tax returns by any outside agency. Income Tax Audit done to verify all income. contact us: +91 98101 58561