TAX DESTINATION

Arrear Salaries Taxation Arrear salaries means salary received for past period. Let us understand with an example how one can receive arrear salary- Mr X salary was 10,000 p.m. In April he received a hike of 5,000 effective from last year's January month. So, as in last quarter he has received a salary of 30,000 for 3 months instead of 45,000. So, a salary of 15,000 becomes an arrear salary. Relief when salary, etc., is paid in arrears or in advance. Where an assessee is in receipt of a sum in the nature of salary, being paid in arrears, in any one financial year, due to which his total income is assessed at a rate higher than that at which it would otherwise have been assessed, the Assessing Officer shall, on an application made to him in this behalf, grant such relief as may be prescribed. Taxpayer must meet certain conditions to claim relief under Section 89. The reliefs can be claimed on any of the following received during a particular year: a) Salary received in

Hello Everyone! Welcome back. You must have heard that the income tax has launced mobile app AIS for taxpayer.  Annual Information Statement (AIS) is a comprehensive view of information for a taxpayer displayed in Form 26AS. Taxpayers can provide feedback on information displayed in AIS.  AIS shows both reported value and modified value (i.e. value after considering taxpayer feedback) under each section (i.e. TDS, SFT, Other information).  The objectives of AIS are: 1) Display complete information to the taxpayer with a facility to capture online feedback 2) Promote voluntary compliance and enable seamless prefilling of return 3) Deter non-compliance What is the Difference between AIS and Form 26AS? AIS is the extension of Form 26AS. Form 26AS displays details of property purchases, high-value investments, and TDS/TCS transactions carried out during the financial year. AIS additionally includes savings account interest, dividend, rent received, purchase and sale transaction

Hello Everyone! Welcome back. You must have heard that the income tax has launced mobile app AIS for taxpayer.  Annual Information Statement (AIS) is a comprehensive view of information for a taxpayer displayed in Form 26AS. Taxpayers can provide feedback on information displayed in AIS.  AIS shows both reported value and modified value (i.e. value after considering taxpayer feedback) under each section (i.e. TDS, SFT, Other information).  The objectives of AIS are: 1) Display complete information to the taxpayer with a facility to capture online feedback 2) Promote voluntary compliance and enable seamless prefilling of return 3) Deter non-compliance What is the Difference between AIS and Form 26AS? AIS is the extension of Form 26AS. Form 26AS displays details of property purchases, high-value investments, and TDS/TCS transactions carried out during the financial year. AIS additionally includes savings account interest, dividend, rent received, purchase and sale transaction

Pension scheme refers to a type of investment option where you get a regular payment after a certain period of time. It ensure you get a amount at a fixed interval so that you can enjoy your retirement. One such scheme is National Pension System (NPS). NPS is a voluntary retirement savings scheme open for citizen of India. Who can open a NPS account under All Citizen Model ? A citizen of India, whether resident or non-resident, whose age is between 18 – 70 years can submit an application and comply with KYC norms prescribed to open a NPS account. Benefits of NPS Account: i) Low Cost:- NPS is considered to be the world’s lowest cost pension scheme. Administrative charges and fund management fee are also lowest. ii) Simple:- All applicant has to do is to open an account with any one of the POPs being run through all Head Posts Offices across india and get a Permanent Retirement Account Number(PRAN) iii) Flexible:- Applicant can choose his/her own investment option and Pension Fund or se

Pension scheme refers to a type of investment option where you get a regular payment after a certain period of time. It ensure you get a amount at a fixed interval so that you can enjoy your retirement. One such scheme is National Pension System (NPS). NPS is a voluntary retirement savings scheme open for citizen of India. Who can open a NPS account under All Citizen Model ? A citizen of India, whether resident or non-resident, whose age is between 18 – 70 years can submit an application and comply with KYC norms prescribed to open a NPS account. Benefits of NPS Account: i) Low Cost:- NPS is considered to be the world’s lowest cost pension scheme. Administrative charges and fund management fee are also lowest. ii) Simple:- All applicant has to do is to open an account with any one of the POPs being run through all Head Posts Offices across india and get a Permanent Retirement Account Number(PRAN) iii) Flexible:- Applicant can choose his/her own investment option and Pension Fund or se

The government has announced Marginal Relief for small taxpayer earning income above 7 lakh. The Marginal Relief will be available only to the people who are opting to pay tak under new tax regime. Let us look at the rate under new tax regime to understand it better. In the budget 2023, the tax structure in the new tax regime was made more attractive by reducing the number of slabs to five and increasing the tax exemption limit to 3 lakh. The new tax rates are: 0-3 lakh -    Nil                3-6 lakh -    5% 6-9 lakh -    10% 9-12 lakh -  15% 12-15 lakh-  20% Above 15 lakh- 30% Moreover in this budget there is no tax for those earning upto 7 lakhs. As rebate u/s 87A- Income rebate limit increased to Rs 7 lakh from Rs 5 lakh in new tax regime.  With the increase in rebate to 7lakh, there may arise a situation where the person earning more than 7 lakh has to pay higher tax than the additional income earned. The marginal relief will benefit the person who is earning more than 7 lakh. Le