Under how many heads the income of a taxpayer is classified? ​​ ​​​​Section 14 of the Income-tax Act has classified the income of a taxpayer under five different heads of income, viz.: Salaries Income from house property Profits and gains of business or profession Capital gains Income from other sources   What is gross total income?… Read More Computation of Tax

FAQs on Set Off and Carry Forward of Losses If income from any source is exempt, then can loss from such source be adjusted against any other taxable income? ​ If income from a particular source is exempt from tax, then loss from such source cannot be set off against any other income which is… Read More Set Off and Carry Forward of Losses

FAQs on Clubbing of Income What is the meaning of clubbing of income? Normally, a person is taxed in respect of income earned by him only. However, in certain special cases income of other person is included (i.e. clubbed) in the taxable income of the taxpayer and in such a case he will be liable… Read More Clubbing of Income

FAQs on Gifts received by an individual or HUF Are monetary gifts received by an individual or Hindu Undivided Family (HUF) taxable?   If the following conditions are satisfied then any sum of money received (i.e, monetary gift may be received in cash, cheque, draft, etc.) by an individual/ HUF will be charged to tax… Read More Gifts received by an individual or HUF

  What incomes are charged to tax under the head “Capital Gains”?     Any profit or gain arising from transfer of a capital asset during the year is charged to tax under the head “Capital Gains”. What is the meaning of capital asset? Capital asset is defined to include: a) Any kind of property… Read More Capital Gains