No deductions or tax-free exemptions would be allowed to be deducted from the winnings if they are taxable. So, the tax-payer cannot claim deductions under Chapter VI A of the Income Tax Act (Section 80C, Section 80D, etc.) on the winnings which are taxable. If, however, the award is not approved is honorarium taxable in india by the Central or the State Government or it is given by an unapproved authority, it would become taxable in the hands of the awardee under Section 56 of the Income Tax Act. The money received under the award would be mentioned under the head ‘income from other sources’ and it would be taxed.

B) Such accommodation in hotel is provided on employee’s transfer from one place to another place. 3) The value so determined shall be reduced by the amount of rent, if any, recovered from the employee. C) Leave salary paid abroad in respect of leave earned in India shall be deemed to accrue or arise in India.

Land, building, plant or machinery, in order to shift industrial undertaking from urban area to rural area. R) By HUF where one of its members has converted his self-acquired property into joint family property. Transfer of capital asset by India Infrastructure Finance Company to an institution established for financing the infrastructure and development. E) The period of holding shall be determined on the basis of the first-in-first-out method.

• In a recent case of DCIT Vs. Hydrosult Inc., tax payer had been awarded contract by Chhattisgarh Government for providing consultancy services under the Chhattisgarh Irrigation Development Project.
• Eligible expenditure is allowed as deduction in ten equal installments in 10 previous years.
• Expenditure by way of payment of any sum to a public sector company/local authority/approved association or institution for carrying out any eligible scheme or project .
• Land, building, plant or machinery, in order to shift industrial undertaking from urban area to rural area.
• Actual expenditure incurred by the employer minus Rs. 2400 per month and Rs. 900 per month if chauffer is also provided minus amount recovered from employee shall be taxable value of perquisite.

However, a company can also claim deduction for expenditure incurred by it directly on eligible projects. Expenditure by way of payment of any sum to a public sector company/local authority/approved association or institution for carrying out any eligible scheme or project . 100% of sum paid to such association, university, college, or other institution is allowed as deduction. Where bad debts have been allowed as deduction underSection 36 in earlier years, any recovery of same shall be chargeable to tax.

(ii) Income under the head salary getting by the partners from his partnership firm?

The house will be taken as let-out property and no concession shall be available for the duration during which the property was self-occupied. Deduction for interest on borrowed capital is allowed up to Rs. 30,000 or Rs. 2,00,000, as the case may be. Aggregate Deduction for interest on borrowed capital is allowed up to Rs. 30,000 or Rs. 2,00,000, as the case may be. E) Where deduction has been allowed under this section, no deduction shall be allowed in respect of such interest under any other provision. Salary and allowances received by a teacher /professor from SAARC member state .

Qualifying preliminary expenditure is allowable in each of 5 successive years beginning with the previous year in which the extension of undertaking is completed or the new unit commences production or operation. No deduction shall be allowed https://1investing.in/ to a company engaged in manufacturing alcoholic spirits or tobacco products. Deduction would be allowed in equal installments starting from the year in which such payment has been made and ending in the year in which license comes to an end.

Taxpayers engaged in the business of generation or generation and distribution of power shall have the option to claim depreciation either on basis of straight line basis method or written down value method on each block of asset. 21A.43CBThe profits and gains arising from construction contract or a contract for providing service is to be determined on the basis of percentage completion method, in accordance with the notified ICDS. Value of any benefits or perquisites arising from a business or the exercise of a profession. Where maintenances and running expenses including remuneration of the chauffeur are met or reimbursed by the employer. Taxable value of perquisite shall be computed on the basis of cost to the employer (under an arm’s length transaction) less amount recovered from the employee.

Special allowance in case of business of prospecting etc. for mineral oil in relation to which the Central Government has entered into an agreement with the taxpayer for the association or participation . Salaries payable outside India, or in India to a non-resident, on which tax has not been paid/deducted at source is not deductible. Where deductor has failed to deduct the tax and he is not deemed to be an assessee in default under first proviso to section 201, then it shall be deemed that the deductor has deducted and paid the tax on the date on which the payee has furnished his return of Income. If spectrum fee is actually paid before the commencement of business, the deduction will be available from the year in which business is commenced. Additional depreciation shall be available @35 % of the actual cost of new plant and machinery. Additional depreciation shall be available @20 % of the actual cost of new plant and machinery.

(vi) Income as Remuneration paid to College lecturer for setting up question bank paper by a university

For this section employer and employee relationship means where employee is appointed by employer and employer have control over the work of employee, and employer must have a right to terminate or discharge the employee. Taxability of an income in India in terms of DTAA depends upon the classification of income under the right clause of DTAA. In this regards, one finds that the scheme of classification of income in DTAAs is quite different from that is given in the Income Tax Act.

However, no such adjustment is required to be made if value adopted for stamp duty purposes does not exceed 110% of the sale consideration. Transfer of a capital asset (being work of art, manuscript, painting, etc.) to Government, University, National museum, etc. C) Date of contract of sale as declared by parties provided it is followed up by actual delivery of shares and the transfer deeds. Presumptive income of eligible business shall be 8% of gross receipt or total turnover. Income from eligible business can be computed on presumptive basis if turnover of such business does not exceed two crore rupees. B) Public company registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of residential houses in India.

Ahmadabad Tribunal finally ruled in the favor of taxpayer mentioning that these payments were in the nature of fees for Independent Personal services and hence taxable only in the country of residence of the receiver. For coming to the conclusion, the tribunal examined the agreement between the consultants and the tax payer in great details and held the services performed in terms of the agreement to be of independent nature. 100% of capital expenditure incurred for the purpose of business is allowed as deduction provided specified businesses commence operations on or after the prescribed dates.

Q- Who is required to deduct TDS from winnings?

Capital Asset that held for more than 36 months or 24 months or 12 months, as the case may be, immediately preceding the date of transfer is treated as long-term capital asset. Income of a foreign company engaged in the business of civil construction or the business of erection of plant or machinery or testing or commissioning thereof, in connection with turnkey power projects shall be computed on presumptive basis . Income of a non-resident engaged in the business of providing services or facilities in connection with, or supplying plant and machinery on hire used, or to be used, in the prospecting for, or extraction or production of, mineral oils shall be computed on presumptive basis .

A) Where the consideration for issue of shares is received by a venture capital undertaking from a venture capital company or venture capital fund or a specified fund. M) Consequent to transfer of share (in case of demerger as referred to in Section 47 of a foreign company which derives, directly or indirectly, its value substantially from the share or shares of an Indian company held by a demerged foreign company to resulting foreign company. Transfer of capital asset , by a shareholder or unit holder or interest holder, held by him, in original fund in consideration for share or unit or interest in the resultant fund in a relocation. Expenditure incurred wholly and exclusively for the business of PE or fixed place of profession in India shall be allowed as deduction. Any increase or decrease in the liability incurred in foreign currency pursuant to fluctuation in the foreign exchange rates shall be adjusted with the actual cost of such asset only on actual payment of the liability.

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A) Provided that this section is not applicable to the person, who opts for presumptive taxation Scheme under Section 44AD and his total sales or turnover does not exceed Rs 2 crores. Tax paid by the employer on non-monetary perquisites provided to employees is not deductible if the tax so paid is not taxable in the hands of employees by virtue ofSection 10. However, where in respect of any such sum, tax is deducted or deposited in subsequent year, as the case may be, the expenditure so disallowed shall be allowed as deduction in that year. Any sum payable to a resident, which is subject to deduction of tax at source, would attract 30% disallowance if it was paid without deduction of tax at source or if tax was deducted but not deposited with the Central Government till the due date of filing of return.

Following salaries are not treated as income under the head of salary: —

B) Medical insurance premium paid or reimbursed by the employer is not chargeable to tax. C) Food in office premises or through non-transferable paid vouchers usable only at eating joints provided by an employer is not taxable, if cost to the employer is Rs. 50 per meal. B) Loan is provided for treatment of specified diseases like neurological diseases, Cancer, AIDS, Chronic renal failure, Hemophilia . However, exemption is not applicable to so much of the loan as has been reimbursed to the employee under any medical insurance scheme.

They discharge their duties for public interest within their respective constituency, so they cannot treated as a government employee for Income Tax Act prospective. A Member of Parliament is not an employee of Govt & therefore, Salary received by him as a Member of Parliament /Member of Legislative Assembly shall not be chargeable to tax under the head “Salaries”. On the other hand it shall be taxable under “Income from other Sources” head.