Sometimes one get
mistake in calculating the tax liability and ends up with mentally harassment
as well as financial loss. This may be due to ignorance. One needs to know the
income tax liability on different income and percentage of income tax payable
to help him with no hassle what so ever. So these are the points a person must
know for calculating the tax liability.
Agriculture land income
and property income: - if somebody has some land and he does farming and
construct a building in a part and rent out. Suppose he earned 27 lakhs (20
lakhs as agriculture farming and 7 lakhs a rent). What is tax free income?
As per income tax law,
only agriculture income means 20 lakhs is tax free but he need to show this
income on income tax rent. The remaining 7 lakhs income is taxable.
In the case of selling
this land, he need to pay the capital gain on that income as it will not be
treated as agriculture income but income from capital gain.
Keyman insurance policy:
- keyman insurance policy is the policy which is taken by a person for another
like employer taken the insurance policy for employee. On the maturity, the
amount received is not tax free but is a part of salary. This is not tax free
as it is in the case of self insurance policy which is exempted under section
10(10D) of income tax act.
Gifts: - any gift received
by the non-relative is fully taxable if the value exceeds Rs. 50000. However
this rule will not apply on the occasion of marriage.
Loan against FDR: - any
loan which is taken against the fixed deposit, the interest of loan cannot take
off against the interest earned on FD. However there is an exemption when the
loan against FD is taken for the business.
Income from betting
lottery etc: - any income earned from racing, lottery or betting is fully
taxable. On this income the income tax rate is 30% and on this income no
deduction or carry forward is allowed. Even one cannot adjust the lottery
ticket price with the lottery earnings.
Clubbing provision: - there are some provisions in income tax in
which income is clubbed. Like A from his fund make a fixed deposit of Rs. 20
lakh in the name of his wife. With this fds she earns 2 lakhs interest and
invested in some business and makes a profit of 50000. In this case the
interest income will be clubbed with A and the business income relates to his
wife.
Income from sale jewellery and painting: any income from sale of
jewellery and painting is comes on head capital gains. The word jewellery is
not only ornaments but all the things made of precious metals like gold,
silver, diamond or platinum.
Tags-income tax section,income tax on agriculture land,income tax on precious metals,income tax on gold,income tax on silver,income tax on rent,income tax on gifts,income tax on fdr,income tax on lottery,income tax on gambling,income tax clubbing provisions
