The Alternative Minimum Tax (AMT) is a unique provision in India’s tax system. It is designed to ensure that certain taxpayers, especially those with significant deductions and exemptions, still contribute a minimum amount of tax. It primarily targets taxpayers who earn substantial income but manage to pay little or no tax due to various exemptions. …
Goods and Services Tax (GST) and Income Tax are two essential components of India’s taxation system, each serving a distinct purpose but often intertwined in their impact on businesses and individuals. What is GST? GST is a value-added tax that is levied on the sale of goods and services. It aims to streamline the indirect …
Buying a home is a dream for many, and in India, taking a home loan can make that dream more attainable. Apart from owning a house, home loan borrowers can also enjoy significant tax benefits under the Income Tax Act. Let’s explore these benefits and how they can help you save money. Key Tax Benefits: …
Advance tax is a system in India where taxpayers pay their income tax in installments throughout the year, instead of in one lump sum at the end of the financial year. This helps the government manage its cash flow and ensures that taxpayers fulfill their tax obligations on time. Who Needs to Pay Advance Tax? …
In recent years, digital assets like cryptocurrencies and non-fungible tokens (NFTs) have gained a lot of attention in India. With this popularity comes the question: how are these assets taxed? Let’s break it down in simple terms. What Are Digital Assets? Digital assets refer to items that exist in digital form. The most common examples …
Non-Resident Indians (NRIs) often face confusion regarding their tax obligations in India. The Income Tax Act, 1961, defines NRIs and outlines their tax liabilities. Here’s a simple guide to help you navigate NRI taxation. Who is an NRI? An NRI is an Indian citizen or a person of Indian origin who resides outside India for …
The National Pension Scheme (NPS) is a retirement savings scheme launched by the Government of India, designed to provide financial security after retirement. It is particularly beneficial for individuals looking to secure a stable income post-retirement while also enjoying tax benefits. What is NPS? NPS is a government-backed pension scheme that encourages individuals to invest …
Section 80-IAC of the Income Tax Act provides tax benefits to start-ups in India. This section aims to promote entrepreneurship by offering deductions to eligible companies. It thus makes it easier for them to grow and succeed. What is Section 80 IAC? Introduced in 2016, this section allows eligible start-ups to claim a tax deduction …
In India, the Income Tax Act provides various ways for taxpayers to manage their tax liabilities. One of the latest additions is Section 115BAC, which introduces a new tax regime designed to simplify the tax structure and potentially lower your burden. What is Section 115BAC? Section 115BAC was introduced in the Finance Act of 2020 …
If you’re looking to reduce your taxable income while contributing to a good cause, Section 80G of the Income Tax Act is something you should know about. This section allows you to claim a tax deduction for donations made to certain charitable organizations. This is designed to encourage philanthropy and also support for social causes …
#51 – On Donations to Charitable Institutions (Sec. 80G) Read More »