We always do a large amount cash transactions without knowing their implications. In India, cash transactions are carefully regulated by Income Tax Act, 1961, the Prevention of Money Laundering Act (PMLA), 2002, and various banking regulations. The purpose of these regulations is to ensure transparency, minimize the use of unaccounted wealth, and prevent money laundering. […]
Income Tax
Section 22 Deduction on House Property Income
Owning a house can provide financial security and regular rental income. However, homeowners also incur expenses such as home loan interest, repairs and municipal taxes. Fortunately, the Income Tax law allows certain deductions while calculating taxable income from house property. Earlier, Section 24 of the Income-tax Act, 1961 allowed homeowners to claim a standard deduction […]
Loss From House Property Taxation
Many people purchase residential properties to live in or earn rental income. However, owning a house does not always result in taxable income. Sometimes, the interest on a home loan exceeds the rental income and other eligible amounts. As a result, the property may generate a loss for income tax purposes. The Income Tax law […]
TDS On Interest U/s 194A: Rates, Exemptions & Computation
Section 194A of Income Tax Act deals with TDS On Interest U/s 194A on Interest other than interest on securities. On which income section 194A is applicable? It is applicable on interest other than interest on securities. It covers interest received from banks, post office, cooperative society. It excludes interest on securities. Securities means shares, […]
Tax Harvesting Complete Guide
Introduction Tax harvesting is a smart tax planning strategy used by investors to reduce their tax liability on investments. In simple words, it means selling investments in a planned way to book gains or losses so that the overall tax becomes lower. Many investors hold shares or mutual funds for the long term. However, sometimes […]