Deductions made on Actual Payment u/s 43B

Deductions made on Actual Payment u/s 43B

A. Nature of expenses Any sum payable by an employer by way of contribution to PF or superannuation fund or other fund for the welfare of the employees Tax, Duty, Cess or any fee payable Bonus or commission payable to employees Interest payable on loan or borrowing from a public financial institution or interest on […]

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 Special deductions in case of trade professional or similar association (Section 44A)

Special deductions in case of trade professional or similar association (Section 44A)

Income earned by a mutual concern from mutual activities is no taxable whereas income earned from non-mutual activities is chargeable to tax. Applicability: Applicable to trade or professional or similar associations, which do not distribute any part of income to its members. Exception: Association for the purpose of control, supervision, regulation or encouragement of the […]

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 Provisions relating to Tax Audit (Section 44AB)

Provisions relating to Tax Audit (Section 44AB)

1. Applicability: Assessee carrying on any business where Total Sales or Turnover or Gross receipts exceeds Rs.60 lakhs. Assessee carrying on profession where gross receipts exceeds Rs.15 lakhs. Assessee carrying on business referred to u/s 44AD/AE/AF/BB/BBB and declaring lower income than prescribed 2. Audit: The audit shall be conducted by an accountant as explained u/s […]

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 Taxability of sums received as Royalties and Fees for technical services by non-residents in India (Section 44DA)

Taxability of sums received as Royalties and Fees for technical services by non-residents in India (Section 44DA)

1. Applicability: Paid by Government or Indian Concern. Received by Non-resident (not being Company) or a Foreign Company. 2. Conditions: Agreement entered  after 31-3-2003 The non-resident carries on business in India through a permanent establishment in India or performs professional services from a fixed place of profession. Maintain books of accounts u/s 44AA and gets […]

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 Special provisions for commission income of agents

Special provisions for commission income of agents

1. Applicability: The amount of deductions available in respect of commission income earned by life insurance agents, UTI agents, post office/Government securities agents, agents of notified mutual funds are laid down. 2. Categories: These agents may be broadly divided into the following two groups: Commission earned is less than Rs.60,000: If the aggregate commission from […]

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 Speculation Business (Section 43(5))

Speculation Business (Section 43(5))

Meaning: Speculation transaction means a transaction involving a contract for purchase and sale of commodities, including stocks and shares which is periodically or ultimately settled other than by actual delivery or transfer of commodities. Exceptions: A contract entered into to guard against loss due to price fluctuation in the following cases- In respect of raw […]

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