This article will cover the calculation of taxable perquisite value with regards to quarters provided to employees and hotel charges reimbursed by the employer. Applicable Taxes calculated as per amendments to finance act 2020. A perquisite is a benefit offered to employees by the employer on account of their job or position. The benefits can…
Updated : as per amended finance act 2020 Conveyance allowance is an allowance offered to taxpayers who receive income from salary to meet the cost of transportation in the course of official work. Usually, it is provided to employees only if there is no transportation provided by the employer. Conveyance allowance: It is provided to…
Updated: As amended in finance act 2020 As per section 10(14) of Income-tax, children education allowance and Hostel Expenditure Allowance are eligible for deduction available to individuals employed in India. Children Education Allowance: Up to Rs. 100 per month per child up to a maximum of 2 children is exempt Hostel Expenditure Allowance :Up to…
In terms of section 10(13A) & Rule 2A of the amended finance act 2020, a salaried person can claim the exemption in respect of House Rent Allowance received from his/her employer. The least of the following three amounts is exempt from income tax: a) Actual HRA Received b) 40% of Salary* (50%, if house situated…
Many salaried individuals are working from home during coronavirus pandemic. Besides your traveling time savings, it has been a respite to many office goers who have been roughcast with problems of traffic jams go back and forth everyday, office politics, and even more annoying moments that the calls from the bosses who call too many…
The ‘Transparent Taxation’ platform, launched by Prime Minister Narendra Modi on Thursday, proposes multiple reforms to improve tax compliance, faceless assessment and ease of filing returns while widening the income tax base and checking tax evasion. The Government has also introduced new sections to IT act and is making reporting of certain transactions mandatory to…
In our previous article ‘What is capital gain and how capital gain tax has arrived?”, we have discussed the definition of capital gain, Tax applicable on Short-Term and Long-Term Capital Gains, Exemption of tax available on capital gains, the time limit for reinvestment, how indexation cost of the capital asset has arrived, etc. Through this…
Updated: As per the amended finance act 2020 Any gain arising on the transfer (by sale or exchange) of the capital asset is known as a capital gain. Capital gains are calculated on the cost of acquisition and cost of improvement expenses of a capital nature incurred in making any additions or alterations to the…
Updated: As per amended finance act 2020 Although investments made under Section 80C does offer a major tax-saving deduction, there are other sections that you can explore to reduce tax liability. Here are some important tips about how you can save tax if you opt for an existing (old) tax regime. Click here for Income…
For FY 2020-21, Salaried individuals, who have no business income, will have to choose between the existing and new tax regimes every financial year, as per their convenience. The new income tax rates are lower compare to old tax rate. However, anyone opting for the new tax regime will have to forego most of the…