If rent has to be charged to tax under “Income from House Property”, the property that has been given on rent must be a building or a land appurtenant thereto. Since the shop falls under the definition of a building, the rental income from such shop must be offered to tax under “House Property only”.
What are the conditions for taxability under the head of house property?
Sometimes, the owner may have to pay tax on ‘deemed rent’ in case the property is not let out or vacant. The income from house property would be taxable if it satisfies the following three essential conditions: The assessee is the owner of that property. The property must consist of house, buildings and/or land.
What is the basis of charge of income under the head income from house property?
Basis of Charge
The charge is not because of the letter of any income but is on the inherent potential of house property to generate income. The annual value is the amount for which the property would reasonably be expected to let from year to year.
Which of the following income are taxable under the head income from other sources?
Income which is not exempt and cannot be charged under the heads of salary, income from house property, profits and gains from business or profession, or capital gains, form income from other sources for taxation purpose. 2. All dividends received are taxable under the head of income from other sources.
What are the condition to be fulfilled for charging of income under the head capital gain?
Section 45 of Income Tax Act, 1961 provides that any profits or gains arising from the transfer of a capital asset effected in the previous year will be chargeable to income-tax under the head ‘Capital Gains’. Such capital gains will be deemed to be the income of the previous year in which the transfer took place.
Which of the following is not taxable under the head salary?
Exceptions – Remuneration, bonus or commission received by a partner from the firm is not taxable under the head Salaries rather it would be taxable under the head business or profession.
What are the conditions for Scheme of partial integration?
It is done only in cases of those assessees who get the benefit of slab rate like Individual/HUF/AOP/BOI and that too only if Agricultural Income >5000 and Non Agricultural Income > non taxable slab rate.
What are the income chargeable to tax under the head profits and gains of business or profession?
Income earned through your profession or business is charged under the head ‘profits and gains of business or profession. ‘ The income chargeable to tax is the difference between the credits received on running the business and expenses incurred.
Which of the following is taxable under the head profit and gain from business profession?
Profits derived from the aforesaid business activities are not taxable under section 28, under the head “Profits and gains of business or profession”. Profits and gains of any other business are taxable under section 28, unless such profits are exempt under sections 10 to 13A.
Which of the following conditions are to be fulfilled for charging an income under the head profits and gains of business or profession?
There should be a business or profession. The business or profession should have been carried on by the assessee. The business or profession should be carried on for some time during the financial year. The charge is in respect of the profits and gains of the financial year of the business or profession.
What are the rules for income tax?
Any Indian citizen aged below 60 years is liable to pay income tax, if their income exceeds Rs 2.5 lakhs. If the individual is above 60 years of age and earns more than Rs 2.5 lakhs, he/she will have to pay taxes to the Government of India.
Which of the following is not included in the term income under the Income Tax Act 1961?
In Income Tax Act, 1961, deduction under sections 80C to 80U cannot exceed .
|Q.||Which of the following is not included in the term Income under the Income Tax Act, 1961?|
|B.||Profits and gains of business or profession|
|D.||Profit in lieu of salary|
|Answer» d. Profit in lieu of salary|