Under the Income-tax Law, different forms of returns are prescribed for different classes of taxpayers. The return forms are known as ITR forms (Income Tax Return Forms). The forms of return prescribed under the Income-tax Law for filing of return of income for the assessment year 2022-23 (i.e., financial year 2021-22) are as follows: […]
What is a return of income?
ITR stands for Income Tax Return. It is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax Department. It also allows carry -forward of loss and claim refund from income tax department.Different forms of returns of income […]
What is marginal relief and how it is computed?
The concept of marginal relief is designed to provide relaxation from levy of surcharge to a taxpayer where the total income exceeds marginally above Rs. 50 lakh, Rs. 1 crore, Rs. 2 crore, Rs. 5 crore or Rs. 10 crore, as the case may be. Thus, while computing surcharge, in case of taxpayers (i.e. Individuals/HUF/AOP/BOI/artificial […]
What is surcharge and how it is computed?
Surcharge is an additional tax levied on the amount of income-tax. In case of individuals/HUF/AOP/BOI/artificial juridical person, surcharge is levied @ 10% on the amount of income-tax where the total income of the taxpayer exceeds Rs. 50 lakh but doesn’t exceeds Rs. 1 crore. Surcharge is levied @ 15% of income-tax where the total income […]
How to round off the tax liability?
As per section 288B, tax payable by the taxpayer or tax refundable to the taxpayer shall be rounded off to the nearest multiple of ten, following points should be kept in mind while rounding off the tax : First any part of rupee consisting of any paisa should be ignored. After ignoring paisa, if such amount […]
How to compute the total tax liability?
After ascertaining the total income, i.e., income liable to tax, the next step is to compute the tax liability for the year. Tax liability is to be computed by applying the rates prescribed in this regard. Following table will help in understanding the manner of computation of the total tax liability of the taxpayer. Computation of total […]
How to round off total income before computing tax liability?
As per section 288A, total income computed in accordance with the provisions of the Income-tax Law, shall be rounded off to the nearest multiple of ten. Following points should be kept in mind while rounding off the total income: First any part of rupee consisting of any paisa should be ignored. After ignoring paisa, if such […]
When do I have to pay the taxes on my income?
The taxes on income can be finalized only on the completion of the previous year. However, to enable a regular flow of funds and for easing the process of collection of taxes, Income-tax Act has provisions for payment of taxes in advance during the year of earning itself or before completion of previous year. It is also known […]
Which form is to be filed for withdrawal from Capital Gain Account?
As per Rule 9 of Capital Gain Accounts Scheme, 1988, the procedure of withdrawal from Capital Gain Account Scheme is as follows: Withdrawal from Account-A Amount can be withdrawn from Account-A at any time after making initial subscription by depositing Form C along with the pass book in the deposit office. For any withdrawal from […]
Is there any benefit available in respect of re-investment of capital gain in any other capital asset?
A taxpayer can claim exemption from certain capital gains by re-investing the amount of capital gain into specified asset. The following table highlights the assets in respect of which the benefit of re-investment is available: Section under which bene fit is available Eligible Assessee Gain eligible for claiming exemption Asset in which the capital gain […]