#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.

[prakashasblog]

Income Tax Audit Services in Bangalore – Praksha & Co: Ensuring Compliance and Financial Success

In today’s fast-paced business environment, ensuring that your company’s financial records are accurate and compliant with tax regulations is crucial. Income tax audits play a key role in maintaining financial transparency and avoiding potential legal issues. If you’re a business owner in Bangalore looking for reliable and professional income tax audit services, Praksha & Co is here to help.

Why Are Income Tax Audits Important?

Income tax audits are essential for businesses of all sizes to ensure compliance with the Income Tax Act, 1961. These audits help businesses identify discrepancies in financial records, reduce the chances of tax evasion, and avoid penalties. A thorough audit also provides clarity and transparency, which is crucial for the smooth functioning of a business.

In India, businesses with an annual turnover above a specified threshold must undergo an income tax audit. For small and medium-sized enterprises (SMEs), these audits are an excellent way to ensure financial health and build trust with stakeholders, including investors and regulatory authorities.

Praksha & Co’s Income Tax Audit Services in Bangalore

At Praksha & Co, we offer comprehensive Income Tax Audit Services in Bangalore to help businesses navigate the complexities of tax compliance. Our team of skilled professionals conducts detailed audits of your financial statements to ensure accuracy and compliance with the latest tax laws. We ensure that your business is free from any discrepancies or errors that could lead to potential audits from tax authorities.

Here’s what you can expect from our services:

Accurate and Thorough AuditsOur team meticulously reviews all financial records, including income statements, balance sheets, and other key documents, to ensure they align with tax laws.

Timely Filing and ComplianceWe help you stay ahead of deadlines by ensuring timely filing of your tax returns, reducing the risk of late fees or penalties.

Tax Optimization and PlanningWe offer expert advice on how to optimize your tax structure, reduce liabilities, and ensure the best possible tax planning for your business.

Minimized RiskBy having professionals handle your tax audits, you minimize the risk of non-compliance, audits, or penalties from the tax authorities.

Why Choose Praksha & Co?

With years of experience in handling income tax audits, Praksha & Co is one of the trusted names in Bangalore for tax-related services. We combine our deep knowledge of tax regulations with a client-centric approach, providing personalized solutions that align with your business needs.

Our goal is to offer you peace of mind, knowing that your income tax audits are handled professionally and with the utmost care.

Conclusion

An income tax audit is an essential part of running a business in Bangalore. With the help of Praksha & Co’s Income Tax Audit Services, you can ensure compliance, reduce risks, and optimize your business’s tax structure. Contact us today to schedule a consultation and experience the difference of having expert professionals manage your tax audits.

[news365timesindia]

[ad_1] As we step into the fourth quarter of the financial year, tax planning takes centre stage for many investors. However, people often view tax saving and wealth growth as two separate investment buckets.   Bajaj Finserv ELSS Tax Saver Fund   What if there was a way to get both benefits in one place? ELSS mutual funds give investors an option to bridge this gap, combining the benefit of tax savings under Section 80C of the Income Tax Act, 1961 (eligible for Old Regime) and long-term growth potential through equities.   The newest entrant in this space is the Bajaj Finserv ELSS Tax Saver Fund. Launched by Bajaj Finserv Asset Management Limited, Period, this scheme opened for subscription on December 24, 2024. The NFO period will on till January 22, 2025.   This article tells you more about ELSS funds and Bajaj Finserv AMC’s latest scheme.   Why ELSS is your best tax-saving partner For Indian investors, Section 80C of the Income Tax Act, 1961, has long been an effective way to reduce taxable income and continues to be a popular choice for investors who have opted for the old regime of the Income Tax Act, 1961. Under this section, investments of up to Rs. 1.5 lakh per scheme in various schemes can be deducted from the taxpayer’s taxable income. There are several schemes eligible for this benefit, including: Contribution towards PPF. Employees' Provident Fund (EPF) Tax Saver Fixed Deposits. Life insurance premiums National Savings Certificate   However, these traditional avenues usually prioritise stability and offer low or moderate return potential. ELSS funds, on the other hand, provide market-linked returns while also offering tax benefits. They invest at least 80% of their portfolio in equities. As a result, they offer investors the potential to build wealth over time, though they come with high risk, unlike the more traditional avenues.   What makes the Bajaj Finserv ELSS Tax Saver fund different? The new Bajaj Finserv ELSS Tax Saver Fund combines these benefits with a long-term stock selection process, seeking investments in stocks that show the potential for relatively stable growth over time.   Stock selection: Fund managers will analyse companies based on fundamentals like revenue growth, profitability, and industry position to identify businesses that have the potential to offer steady growth over the long term. Diversified portfolio: By spreading investments across industries and sectors, the fund will seek to provide an optimal risk-return balance. Long-term focus: Equity markets can be unpredictable in the short term, but over a longer horizon, quality investments have the potential to yield high returns. ELSS funds encourage disciplined investing by locking in your capital for three years, giving your money time to potentially grow. InQube edge: The fund leverages Bajaj Finserv AMC’s in-house InQuBe philosophy – the Information edge, Quantitative Edge and Behavioural Edge. This approach seeks to combine superior information collection with advanced data processing models and insights from behavioural finance to seek to stay a step ahead of the curve and potentially outperform the market in the long term.  Timing matters With January almost here, the race to meet tax-saving goals for FY25 is on. Many taxpayers leave their tax-saving decisions for the last minute, often leading to hasty investments. The Bajaj Finserv ELSS Tax Saver Fund offers an opportunity to plan investments in a more structured manner.   By choosing ELSS, you’re not just ticking off a box but also setting the stage for long-term financial growth potential.   How to invest in the Bajaj Finserv ELSS Tax Saver Fund The NFO period for this scheme is on till January 22, 2025. Investors can purchase units at a face value of Rs. 10 during this period. Investments start at Rs.

500 for Systematic Investment Plan as well as lumpsum. Both Growth and IDCW (Income Distribution cum Capital Withdrawal) options are available.   Once the NFO period ends, the fund will re-open for subscription in a few business days. Investors can then purchase units at the prevailing Net Asset Value (NAV).   You can invest directly with Bajaj Finserv Asset Management Ltd. on www.bajajamc.com or by visiting your nearest branch. You can also invest through Registrar and Transfer Agent KFin Technologies Ltd, both online and offline. Moreover, you can invest through a mutual fund distributor or a registered aggregator.   Here’s how you can get started: Identify how much you need to invest to meet section 80C of the Income Tax Act, 1961, deduction limit. You can also invest more for your long-term goals. Choose between lumpsum and SIP investment. Open an account: Choose whether you want to invest online or offline, through Bajaj Finserv AMC or a third party. Track and review: While your money is locked in for three years, regular reviews of your portfolio’s performance can help you stay aligned with your financial goals. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. !function(f,b,e,v,n,t,s) if(f.fbq)return;n=f.fbq=function()n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments); if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0'; n.queue=[];t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t,s)(window,document,'script', 'https://connect.facebook.net/en_US/fbevents.js'); fbq('init', '311356416665414'); fbq('track', 'PageView'); [ad_2] Source link

[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]

[ad_1] As we step into the fourth quarter of the financial year, tax planning takes centre stage for many investors. However, people often view tax saving and wealth growth as two separate investment buckets.   Bajaj Finserv ELSS Tax Saver Fund   What if there was a way to get both benefits in one place? ELSS mutual funds give investors an option to bridge this gap, combining the benefit of tax savings under Section 80C of the Income Tax Act, 1961 (eligible for Old Regime) and long-term growth potential through equities.   The newest entrant in this space is the Bajaj Finserv ELSS Tax Saver Fund. Launched by Bajaj Finserv Asset Management Limited, Period, this scheme opened for subscription on December 24, 2024. The NFO period will on till January 22, 2025.   This article tells you more about ELSS funds and Bajaj Finserv AMC’s latest scheme.   Why ELSS is your best tax-saving partner For Indian investors, Section 80C of the Income Tax Act, 1961, has long been an effective way to reduce taxable income and continues to be a popular choice for investors who have opted for the old regime of the Income Tax Act, 1961. Under this section, investments of up to Rs. 1.5 lakh per scheme in various schemes can be deducted from the taxpayer’s taxable income. There are several schemes eligible for this benefit, including: Contribution towards PPF. Employees' Provident Fund (EPF) Tax Saver Fixed Deposits. Life insurance premiums National Savings Certificate   However, these traditional avenues usually prioritise stability and offer low or moderate return potential. ELSS funds, on the other hand, provide market-linked returns while also offering tax benefits. They invest at least 80% of their portfolio in equities. As a result, they offer investors the potential to build wealth over time, though they come with high risk, unlike the more traditional avenues.   What makes the Bajaj Finserv ELSS Tax Saver fund different? The new Bajaj Finserv ELSS Tax Saver Fund combines these benefits with a long-term stock selection process, seeking investments in stocks that show the potential for relatively stable growth over time.   Stock selection: Fund managers will analyse companies based on fundamentals like revenue growth, profitability, and industry position to identify businesses that have the potential to offer steady growth over the long term. Diversified portfolio: By spreading investments across industries and sectors, the fund will seek to provide an optimal risk-return balance. Long-term focus: Equity markets can be unpredictable in the short term, but over a longer horizon, quality investments have the potential to yield high returns. ELSS funds encourage disciplined investing by locking in your capital for three years, giving your money time to potentially grow. InQube edge: The fund leverages Bajaj Finserv AMC’s in-house InQuBe philosophy – the Information edge, Quantitative Edge and Behavioural Edge. This approach seeks to combine superior information collection with advanced data processing models and insights from behavioural finance to seek to stay a step ahead of the curve and potentially outperform the market in the long term.  Timing matters With January almost here, the race to meet tax-saving goals for FY25 is on. Many taxpayers leave their tax-saving decisions for the last minute, often leading to hasty investments. The Bajaj Finserv ELSS Tax Saver Fund offers an opportunity to plan investments in a more structured manner.   By choosing ELSS, you’re not just ticking off a box but also setting the stage for long-term financial growth potential.   How to invest in the Bajaj Finserv ELSS Tax Saver Fund The NFO period for this scheme is on till January 22, 2025. Investors can purchase units at a face value of Rs. 10 during this period. Investments start at Rs.

500 for Systematic Investment Plan as well as lumpsum. Both Growth and IDCW (Income Distribution cum Capital Withdrawal) options are available.   Once the NFO period ends, the fund will re-open for subscription in a few business days. Investors can then purchase units at the prevailing Net Asset Value (NAV).   You can invest directly with Bajaj Finserv Asset Management Ltd. on www.bajajamc.com or by visiting your nearest branch. You can also invest through Registrar and Transfer Agent KFin Technologies Ltd, both online and offline. Moreover, you can invest through a mutual fund distributor or a registered aggregator.   Here’s how you can get started: Identify how much you need to invest to meet section 80C of the Income Tax Act, 1961, deduction limit. You can also invest more for your long-term goals. Choose between lumpsum and SIP investment. Open an account: Choose whether you want to invest online or offline, through Bajaj Finserv AMC or a third party. Track and review: While your money is locked in for three years, regular reviews of your portfolio’s performance can help you stay aligned with your financial goals. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. !function(f,b,e,v,n,t,s) if(f.fbq)return;n=f.fbq=function()n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments); if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0'; n.queue=[];t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t,s)(window,document,'script', 'https://connect.facebook.net/en_US/fbevents.js'); fbq('init', '311356416665414'); fbq('track', 'PageView'); [ad_2] Source link

[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…

[aakashmalhotra]

Section 54F of Income Tax Act – Exemption of Capital Gains

The Mumbai Bench of the Income-tax Appellate Tribunal has recently clarified an important aspect of tax law relating to capital gains. Specifically, the tribunal ruled that profits derived from the sale of a long-term capital asset, which may typically be classified as short-term capital gains under the stipulations of section 50 of the Income-tax Act, 1961 (ITA), are still eligible for certain tax exemptions when claimed under section 54F of the ITA. 

Furthermore, the tribunal emphasized that in situations where an asset has been depreciated—meaning depreciation deductions were claimed in prior years—the calculation of income upon the sale of that asset must take into account the provisions outlined in section 41 of the ITA. This ruling highlights the need for careful consideration of the tax implications when dealing with the sale of both long-term and depreciable assets, ensuring compliance with the relevant tax regulations.

The taxpayer is a driven individual who generates income through their successful garment manufacturing business and savvy investments that yield interest income. This unique combination of entrepreneurship and financial acumen positions them for sustained growth and financial stability.

What is Section 54F?

Section 54F of the Income Tax Act provides a framework for taxpayers to claim an exemption on capital gains arising from the sale of properties that are not residential houses. This provision is beneficial for individuals seeking to reinvest the proceeds from such sales while minimizing their tax liabilities. However, to qualify for this exemption, taxpayers must adhere to specific conditions outlined in the legislation. 

This exemption is subject to specific conditions, which are as follows:

The taxpayer is advised to reinvest the net proceeds from the sale of the old asset into the acquisition of a new residential property. This approach not only optimizes financial resources but also aligns with prudent investment strategies.

The new residential property must meet the following requirements:

Purchased: either 1 year before or 2 years after the sale of asset Or 

Constructed: within 3 years of sale of old asset

For individuals seeking to claim a tax exemption under this section, it's important to note that they should not own more than one residential property at the time of sale, except for the property being purchased to claim the exemption.

The taxpayer should not buy another house within 2 years or build one within 3 years from the date of transfer.

If the above conditions are not met, then exempt the Capital Gains that are taxable in the year when another residential house is purchased or constructed.

Exemption under Section 54F  

Section 54F provides a tax exemption for capital gains resulting from the transfer of a long-term capital asset, excluding residential house properties, provided that the net sale proceeds are invested in a single residential house property in India within the stipulated time frame.

The exemption is available exclusively to individuals and Hindu Undivided Families (HUFs). 

To successfully claim an exemption under Section 54F, a taxpayer must purchase a new house within one year before or two years after the transfer of the old house. Additionally, the taxpayer can construct a new house within three years from the date of transfer.

If the taxpayer cannot use the money from the sale to buy or build a home by the time they file their tax return, they can deposit that money in a specific account to receive a tax exemption on capital gains. 

The funds deposited in the Capital Gains Account Scheme are required to be utilized within the designated time frame for the purpose of acquiring or constructing a residential property.

The exemption could be refused if the taxpayer possesses more than one residential property as of the date the original asset is transferred, excluding the house obtained within one year prior to the transfer date.

Conclusion 

Section 54F offers a good chance to save on taxes by reinvesting profits from selling an asset into residential property. To benefit from this, taxpayers need to follow specific deadlines, meet reinvestment rules, and adhere to ownership requirements. Planning carefully and following these rules are crucial to make the most of this section.