Knowledgebase

Income of Minor :A person below 15 years of age Can also had valid income out of inherited property our has child artist .such minor also liable payment of taxes but the onus of tax compliance is on guardian . For income from assets transferred b parent is supposed to be clubbed with parents income.

Tax audit :If business income with turn over (total receipts) above Rs 60 lakh and professional receipts above Rs 15 lakh, then getting the accounts audited by a charted accountant is mandatory

Advance Tax :The person is supposed to calculate his annual income and pay proportionate advanced tax to the extent of 30% Before 15th September, another 30% Before 15th December and final 40% before 15th march . Failure of making such payments attracts interest at 1%. If total tax payment is less than Rs 10000 (Taxable income Rs 2.80 lakh) then this provision is not applicable.

Gratuity :Exempt up to lower amount of Rs 10 lakh and 15 days salary per completed year of services. (month is assumed at 26 days)

Pension :Taxed as a salary income. However, Family pension is treated as other income with a 1/3 deduction maximum Rs 15000 per year.

Commutation of pension: :The commuted value up to surrender of 1/3 pension is exempt from tax.

Leave encashment :Exempt for an amount of encashment of leave up to 8 month or Rs 3 lakh whichever is lower.

VRS (Voluntary Retirement) compensation :Exempt up to Rs 5 lakh subject to the scheme is approved by income Tax Department.

Capital gain :The profit you make when you sell an investment for more than you paid for it.A capital loss is when you sell an investment for less than you paid for it.

Capital growth :When the value of your investment (your capital) grows.

Cash advance :A cash advance is when you withdraw money from your credit card account, usually through an ATM. Cash advances are an expensive option because you get charged interest from the day you withdraw the money.