What is Section 6 of income tax?
Section 6 of Income Tax Act, 1961 contains provision relating to Residence in India. The taxability of an assessee is dependent on the Residential status during any Previous Year.
What is residential status for individuals under Sec 6 of IT Act 1961?
Solution: By virtue of section 6(1)(c), an individual will be resident in India in any previous year if he has been in India for a period of at least 60 days during the previous year and at least 365 days during 4 years preceding the previous year.
Who is a person as per Income Tax Act 1961?
In terms of Section 2 (31) of the Income Tax Act, 1961, a person has been defined to include (i) an individual, (ii) a Hindu undivided family, (iii) a company, (iv) a firm, (v) an association of person or a body of individuals, whether incorporated or not, (vi) a local authority, and (vii) every artificial juridical …
What are the two basic conditions as prescribed by Section 6 1?
To determine the residential status of an individual, section 6(1) prescribes two tests. (a) If he is in India during the relevant previous year for a period amounting in all or in aggregate to 182 days or more. After fulfilling one of the above two tests, an individual becomes resident of India.
What is Section 6 6 )( a of income tax?
Section 66A of the IT Act was used to punish online communication which is considered “grossly offensive, menacing, or to send communication which the sender “knows to be false to cause annoyance, inconvenience, danger, obstruction, insult, injury, criminal intimidation, enmity, hatred or ill will.” The provision was …
What is Section 6 1A of income tax?
Note: The Finance Act, 2020 has introduced new section 6(1A) to the Income-tax Act, 1961. The new provision provides that an Indian citizen shall be deemed to be resident in India only if his total income, other than income from foreign sources, exceeds Rs. 15 lakhs during the previous year.
How do you calculate annual value of house?
Procedure for Calculating Annual Value of Property
- A = Actual Rent Received: For let out property, actual rent received is as per agreement between the owner and the tenant.
- B = Fair Rent: It means how much rental income a similar property in the vicinity can fetch with similar facilities and amenities.
What is deduction Chapter 6a?
The Chapter VI A of Income Tax Act contains the following sections: 80C: Deduction in respect of life insurance premium, deferred annuity, contributions to provident fund (PF), subscription to certain equity shares or debentures, etc. The deduction limit is Rs 1.5 lakh together with section 80CCC and section 80CCD(1).
What is HUF full form?
Hindu Undivided Family (HUF) Under Hindu Law, an HUF is a family which consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters. An HUF cannot be created under a contract, it is created automatically in a Hindu Family.
What is section 66 of Income Tax?
Section 66 in The Income- Tax Act, 1995. 66. Total income In computing the total income of an assessee, there shall be included all income on which no income- tax is payable under Chapter VII 1 ].
What is Section 66A of Income Tax Act?
Section 66A provides punishment for sending offensive messages through communication services. These messages may be any information created, transmitted or received on a computer system, resource or device including attachments in the form of…
What is deduction u/s 24 A?
Standard deduction u/s 24(a) 30% of the net annual value is allowed as standard deduction in respect of all expenditures (other than interest on borrowed capital) irrespective of the actual expenditure incurred.
Can we have 2 self occupied property?
The choice of which property to choose as self-occupied is up to the taxpayer. For the FY 2019-20 and onwards, the benefit of considering the houses as self-occupied has been extended to 2 houses. Now, a homeowner can claim his 2 properties as self-occupied and remaining house as let out for Income tax purposes.
What is Chapter VI in ITR?
The income tax law, allows the subtraction of some specified expenditures / investments from your gross total income, for the calculation of taxes. These specified expenditures/investments are covered under Chapter VI-A of the Income Tax Act under various sections (Section 80C -Section 80U).
What is rebate u/s 87A?
Rebate u/s 87A provides benefit on tax payment to a RESIDENT INDIVIDUAL. The only condition to avail the benefit is. “Your total taxable income shall not exceed the threshold limit” Only the taxpayers falling under the specified threshold limit can claim the benefit of rebate u/s 87A.
Can a female be a Karta?
A Woman can be the Karta of a family in her capacity as a coparcener of the HUF, if she is the eldest member of the family. 5.In absence of the father, the elder minor son could act as the Karta of the HUF.
Can husband and wife form HUF?
A husband and wife can form an HUF but a wife can only be a member, not a co-parcener. Therefore, the HUF income will not be assessed separately. A member has equal rights but only a co-parcener can demand the partition of the HUF.
Which income is tax free?
Under Section 10(1) of the Income Tax Act, agricultural income is fully exempt from income tax. However, for individuals and HUFs, an agricultural income of more than Rs. 5000 is added to the total income.
What is section 195 of Income Tax Act 1961?
What is Section 195? Section 195 of Income Tax Act, 1961 is concerned with TDS deductions on payments or income of non-resident Indians. This section enumerates provisions that help avoid double taxation and further focus on tax deductions and accompanying rates applicable to business transactions concerning NRIs.
What is Section 10 of Income Tax Act?
What is Section 10 of Income Tax Act? Section 10 of Income Tax Act, 1961 includes such income that does not form part of the total income while calculating the total tax liability of any person. These incomes are also known as exempted income.
Which amendment made income tax legal?
– Why do you think the income tax was much more popular in 1913 than it is today? – What part has the 16th Amendment played in the expansion of the federal government in the 20th century? – What is the difference between a “regressive” and a “progressive” tax? – Which of the following income taxes—a, b, or c—do you think is the most fair? Explain your answer.
What is dissallowance According to the Income Tax Act 1961?
According to Section 40(a) (ia) of Income Tax Act, 1961, 30% of sum payable of a person on which tax is deductible at source under ‘Chapter XVII-B.’ If this tax has not been deducted or paid after deduction on or before the due date specified in sub-section (1) of section 139, it may have severe limitations.