Figyan

Income Tax

How is tax on gratuity calculated under the head salary

Last reviewed on I By

Gratuity is a voluntary payment paid to employees by the employer in appreciation of services rendered in the past. Its taxable in the hands of employee under the head income from salaries. However, its exempted from income tax under section 10(10) of the IT act, 1961.As per section 10(10), in following cases any death-cum-retirement gratuity received by following person is … [Read more...] about How is tax on gratuity calculated under the head salary

Is pension taxable in India – A income tax guide for pensioners

Last reviewed on I By

Pension is a periodical payment made by the employer after the retirement or death of employees. Pension is fully taxable under the head income from salaries in the hands of all employees. However, employees of UNO and central government employees who have been awarded gallantry awards is fully exempted.It's also known as retirement pension, as periodical payments are made … [Read more...] about Is pension taxable in India – A income tax guide for pensioners

What is gross total income and how it’s calculated

Last reviewed on I By

As per section 80B, Gross total income means total of all incomes computed in accordance to the provisions of income tax act 1961 before making any deduction under chapter VIA.In this article, we have shown you how to calculate gross total income (GTI) of an assessee. To know how to calculate, you are first required to know how total or taxable income is … [Read more...] about What is gross total income and how it’s calculated

What is the previous year and assessment year in Income tax?

Last reviewed on I By

As per the law, income earned by you is taxable in the next year. In this case the year does not start from January and ends in December. It's a 12 month period which starts at the beginning of April and ends on 31st March.The year in which income earned is referred to as previous year and the next year in which such income is taxable is known as assessment year.Most of … [Read more...] about What is the previous year and assessment year in Income tax?

A Beginner’s Guide to the Employees Provident Fund (EPF): Everything You Need to Know

Last reviewed on I By

If you work in India, you've likely heard of the Employees Provident Fund (EPF), but you might not fully understand what it is or how it works. Whether you're an employee or employer, understanding the EPF is important because it’s a key part of India's social security system.In this guide, we’ll break it down in simple terms, so you can understand how it works, why it … [Read more...] about A Beginner’s Guide to the Employees Provident Fund (EPF): Everything You Need to Know