Income from Salary & Allowances, Calculation, Perquisites

Income from Salary

Every payment made by an employer to his employee for service rendered would be chargeable to tax as ‘Income from Salary”. For the purpose of Income-Tax Act, 1961 the term salary includes both monetary payments like basic salary, bonus, commission, allowances, etc. and non-monetary facilities like housing accommodation, medical facility, interest-free loans, etc. It must be noted that any salary, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm from the firm shall not be regarded as “salary”. Thus, income would…

Read More

House Rent Allowance (HRA) – Section 10(13A)

HRA is an allowance paid to an employee by his employer for covering their house rent and is taxable in the hand of the employees. U/S 10 (13A), an employee who does not live in his own house and pays rent in excess of 10% of his salary for his residential accommodation, can claim exemption on House Rent Allowance (HRA) received by him. House Rent Allowance U/S 10 (13A) This section does not allow self-employed individuals to claim any deduction. An individual is not entitles to receive HRA in the…

Read More

What is Hindu Undivided Family (HUF) ?

A Hindu Undivided Family or HUF is a legal term related to the Hindu Marriage Act and is very effective and legal way to save tax. The term HUF is not defined in Income Tax Act; it is defined under the Hindu Law as a family. A Hindu Undivided Family (HUF) consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters. There are many families in India, which are undivided and incomes earned by such families are joint income as compared to individual incomes. Hindu…

Read More

Filing of ITR for the Deceased by Legal Heir

Filing of ITR

Filing of ITR is mandatory for those, whose income exceeds the exemption limit. ITR filing for a dead person is also mandatory if his income during the financial year exceeds the exemption limit. As per the Income Tax Act, 1961 section 159, in case a person dies, his legal representative is responsible for paying any sum which the deceased would have been liable to pay if he had not died, in a similar manner and to the same extent as the deceased. Filing of ITR for the Deceased A legal…

Read More

Due Date for Tax Filing for AY 2017-18

Due Date for Tax Filing for AY 2017-18

Due Date for Tax Filing for AY 2017-18 The due date for filing Income Tax Return is provided U/S 139 of the Income Tax Act. Mode of filing income tax return and correct form is prescribed under the rule 12 of income tax rules, which have been amended, vide notification dated 30th March 2017. The Due Date for Tax Filing for AY 2017-18. The due date for filing income tax return for an individual is 31st July of the assessment year, which immediately follows the financial year. Now, the filing…

Read More