Tax Treatment Of Various Forms Of Salary Like ‘Bonus’, ‘Overtime Pay’, ‘Salary In Lieu Of Notice Period’, Etc. (Practical)

1.
Tax Treatment Of Advance Salary
2.
Tax Treatment Of Advance Salary
3.
Tax Treatment Of Arrears Of Salary
4.
Tax Treatment Of Nature Of Bonus
5.
Tax Treatment Of Arrears Of Bonus
6.
Tax Treatment Of Commission
7.
Tax Treatment Of Commission
8.
Tax Treatment Of Salary In Lieu Of Notice Period
9.
Tax Treatment Of Gifts Received From Employer
10.
Tax Treatment Of Gifts Received From Employer
11.
Tax Treatment Of  Compensation Received From The Employer
12.
Tax Treatment Of Pay For Extra Work
13.
Tax Treatment Of Allowances, Perquisites And Retirement Benefits
14.
Tax Treatment Of  House Rent Allowance
15.
Tax Treatment Of  Transport Allowance
16.
Tax Treatment Of  Children’s Education Allowance
17.
Tax Treatment Of  Hostel Allowance
18.
Tax Treatment Of  Transport Allowance
19.
Tax Treatment Of  Perquisite In Respect Of Concessional Accommodation
20.
Tax Treatment Of  Perquisite In Respect Of Reimbursement Of School Fees
21.
Tax Treatment Of  Perquisite In Respect Of Provision Of Movable Asset
22.
Tax Treatment Of  Perquisite In Respect Of Transfer Of Movable Asset By The Employer
23.
Tax Treatment Of Leave Encashment
24.
Tax Treatment Of Gratuity
25.
Tax Treatment Of Commuted Pension
26.
Tax Treatment Of Salary Received By A Partner
27.
Tax Treatment Of Salary Received By An Indian Citizen Deputed Outside India
28.
Tax Treatment Of Salary Received By An Indian Citizen Deputed Outside India
29.
Tax Treatment Of Surrender Of Salary To The Central Government
30.
Tax Treatment Of  Computation Of Relief In Respect Of Arrears Of Salary

Presumptive Taxation Scheme Of Section-44AE (Theory & Practical)

To give relief to small assessees, the Income-tax Law has incorporated a simple scheme commonly known as Presumptive Taxation Scheme. There are two schemes viz. the scheme of section 44AD and the scheme of section 44AE. An assessee adopting these provisions is not required to maintain the regular books of account and also exempt from getting the accounts audited. In this advance learning we will cover the provisions of the presumptive taxation scheme provided in section 44AE.

The scheme of section 44AE is designed to give relief to small assessees engaged in the business of goods carriage. The detailed provisions in this regard are as follows:

Presumptive Taxation Scheme’ Of Section-44AD (Theory & Practical)

Provisions Relating To Maintenance Of Books Of Account As Given In Section-44AA

1.      Meaning
 In this advance learning we will learn about the provisions relating to maintenance of books of account as given in section 44AA. These provisions are as follows:

The provisions relating to maintenance of books of account can be classified as follows:

        Provisions relating to a person engaged in specified profession.
        Provisions relating to a person engaged in non-specified profession.
        Provisions relating to a person engaged in business.

Let’s first understand the meaning of terms “specified professions” and “non-specified professions”.

        For the purpose of maintenance of books of account, following professions are treated as “Specified professions”:
        Legal
        Medical
        Engineering
        Architectural
        Accountancy
        Company secretary
        Technical consultancy
        Interior decoration
        Authorised representative (*)
        Film artist ($)
        Information technology

(*) “Authorised representative” means a person who represents any other person on payment of any fee or remuneration before any Tribunal or authority constituted or appointed by or under any law for the time being in force, but does not include an employee of the person so represented or a person carrying on legal profession or a person carrying on the profession of accountancy.

($) “Film artist” means any person engaged in his professional capacity in the production of a cinematographic film, whether produced by him or by any other person as an actor, a cameraman, a director, a music director, an art director, a dance director, an editor, a singer, a lyricist, a story writer, a screenplay writer, a dialogue writer, and a dress designer.

        For the purpose of maintenance of books of account following professions are treated as “non-specified professions”:

“Non-specified professions” means professions other than “Specified professions” mentioned above.

        Provisions in case of an assessee carrying on a specified profession, whose gross receipt exceeds Rs. 1,50,000 :

Every person carrying on specified profession, whose gross receipt from such profession exceeds Rs. 1,50,000 in all the three years immediately preceding the previous year (in case of new profession if the gross receipts of the first year are likely to exceed Rs. 1,50,000), shall maintain such books of account and other documents as are prescribed by rule 6F (see list given below).

Practical Aspects Of The Provisions Of Section-44AA (Maintenance of Books of Account)


In this advance learning we will learn about various practical aspects of the provisions of section 44AA.

TDS On Rent U/s 194-I and 194-C

The person (not being an Individual or HUF) who is responsible for paying any income to resident by way of rent is liable to deduct tax at source in case the aggregate of the amount of such income credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to payee exceeds Rs. 1,80,000/-. Individuals and /or HUFs who are subject to tax audit are also under an obligation to deduct the tax at source. The limit of Rs. 1,20,000/- was enhanced to Rs. 1,80,000/- w.e.f. 1.7.2010.

Subscribe to: Posts (Atom)