Income tax

Cash credits are a significant concern under the Income Tax Act, especially for businesses and individuals who receive unexplained sums of money in their financial accounts. Section 68 of the Income Tax Act deals with the taxation of such unexplained cash credits, ensuring that income is properly accounted for and taxed. In this blog, we […]

Tax planning is a crucial aspect of financial management, and understanding the provisions of the Income Tax Act can help individuals optimize their tax liabilities. Section 64 of the Income Tax Act, 1961, deals with the clubbing of income, which means that in certain cases, the income of a spouse, minor child, or other specified

When computing income under the head “Income from Other Sources,” taxpayers must be aware of expenses that are explicitly not deductible under Section 58 of the Income Tax Act, 1961. This section imposes specific restrictions on deductions, ensuring that certain expenditures do not reduce taxable income. Below, we break down the key provisions of Section

Tax planning is a crucial aspect of financial management, and one of the key provisions under the Indian Income Tax Act is the ability to set off losses against income from other heads. Section 71 of the Income Tax Act provides the guidelines for inter-head loss adjustments, helping taxpayers optimize their tax liabilities effectively. What

When computing income under the head “Income from Other Sources”, Section 57 of the Income Tax Act provides specific deductions that can help taxpayers minimize their taxable income. Understanding these deductions is crucial for individuals and businesses aiming to optimize their tax liabilities effectively. Deduction on Dividend and Interest Income Any reasonable sum paid as

Section 54GB of the Income Tax Act provides an exemption from capital gains tax on the sale of a residential property if the proceeds are invested in an eligible business. This section encourages entrepreneurship by allowing individuals and Hindu Undivided Families (HUFs) to reinvest their gains in startups or small and medium enterprises (SMEs) instead

For industrial undertakings looking to relocate from urban areas to Special Economic Zones (SEZs), Section 54GA of the Income Tax Act provides significant tax relief. This exemption aims to encourage businesses to move to SEZs, which offer various economic benefits and infrastructural advantages. In this blog, we will explore the key provisions of Section 54GA

Capital gains tax can be a significant financial burden for businesses undergoing restructuring or relocation. To incentivize the decentralization of industries from congested urban areas, the Indian Income Tax Act provides relief under Section 54G. This section allows exemptions on capital gains arising from the transfer of assets when an industrial undertaking shifts from an

Capital gains tax is a crucial consideration for individuals and Hindu Undivided Families (HUFs) who sell long-term capital assets. However, under Section 54F of the Income Tax Act, 1961, an exemption is available if the proceeds are reinvested in a residential house. This article delves into the eligibility criteria, conditions, and important considerations for claiming

Section 54EE of the Income Tax Act provides a crucial exemption on long-term capital gains for taxpayers who invest in specified funds. This provision is beneficial for individuals and businesses looking to reinvest their gains while optimizing their tax liability. Understanding Section 54EE – As per Section 54EE, if an assessee earns capital gains from