Category Salary Income

Loss from Income from Property

There may be circumstances where the allowable deductions are more than the income earned fromproperty. In this case, loss arising from the head income from property can be adjusted against any other head of income except income taxable under final…

Tax on Rent Deposit

If the owner of the building receives any amount on the form of deposit which is not adjustable against the rent payable, then this amount is treated as chargeable rent. This will be charged to rent in equal proportion during…

Self Hiring Rent Income from Property Tax

There may be circumstances where employeeor his/ her spouse owns an accommodation. But due to the terms of employment, the employer has to provide house rent perquisites. In this case, income tax rate would be as follows: actual rent paid…

Income from Property Tax Rates

Rent income for the tax year is treated on accrual basis of accounting in most of the tax regimes and as such chargeable to tax. Rent comes under the head income from property.  Rent can be in the form of…

Tax on Share of Profit from AOP

AOP (Association of person) includes a hindu undivided family, a partnership firm and any body of persons developed under a foreign law. However, AOP does not include company. AOP has to pay tax on its profit @ 35 {1bb28fb76c3d282be6cfd0391ccf1d9529baae691cd895e2d45215811b51644c}. However,…

Tax Credit on Education Expenses

If the taxable income of an individual is less than 1.5 million, then such individual can claim deductable allowance. Deductable educational allowance shall be lower of the following: 25 {1bb28fb76c3d282be6cfd0391ccf1d9529baae691cd895e2d45215811b51644c} of the taxable incomeo of the individual, 5 {1bb28fb76c3d282be6cfd0391ccf1d9529baae691cd895e2d45215811b51644c} of…

Tax on Profit on Debt

If any individual obtains a loan from a bank approved by the regulatory authoity of the country, then such individual can claim allowance for tax credit of the amount of profit or markup paid. However, loan obtained for the purpose…

Head of Income in Income Tax

Under income tax laws of various countries, income is taxable uner any of the following five heads of income: income from salary, income from property, income from business, capital gains, income from other sources. Total income = salary income +…