To form a partnership firm in India, two or more individuals can come together by signing a contract, popularly known as partnership deed. These individuals are known as partners.Based on your contract or agreement, as a partner, you are liable to tax for following incomes allowed as tax deductions to a partnership firm while calculating tax liability.Share of … [Read more...] about When a partner has to pay tax for income from partnership firms
Income Tax
Basic exemption limits and tax rates applicable to individuals
As per section 4 of income tax act 1961, the total income of the previous year of an assessee shall be charged to income tax at the rates prescribed in the finance act as applicable to the relevant assessment year.Even though, rates are prescribed in finance act, income shall be charged in accordance with and subject to the provisions of the income tax act. Before getting … [Read more...] about Basic exemption limits and tax rates applicable to individuals
How to compute taxable profits and gains of profession on presumptive basis – Section 44ADA
With effect from assessment year 2017-18, government has introduced section 44ADA to allow certain professional to calculate their tax liability based on their estimated or presumptive income.As stated in our earlier articles, benefits of presumptive taxation scheme can also be availed by a person who is in the business of plying, hiring or leasing of goods carriage and … [Read more...] about How to compute taxable profits and gains of profession on presumptive basis – Section 44ADA
How to estimate income of goods carriage business – Section 44AE
Business of plying, hiring or leasing goods carriage has two options to calculate it's business income. It can either choose the normal method of calculating business income by preparing books of account, profit and loss account and balance sheet or choose the presumptive taxation scheme to estimate income under section 44AE.If you are opting for presumptive scheme under … [Read more...] about How to estimate income of goods carriage business – Section 44AE
Presumptive taxation scheme for businesses – Section 44AD
In presumptive taxation scheme, an individual, HUF and partnership firm is required to disclose certain percentage or amount as their income instead of actual profit or loss.We have following three sections under which presumptive business income can be calculated;Section 44AE - Applicable to the business of playing, hiring or leasing og goods carriage Section 44ADA - … [Read more...] about Presumptive taxation scheme for businesses – Section 44AD