Definition and Purpose Standard deduction is a fixed amount deducted from gross income to reduce taxable salary or pension. It simplifies tax computation by allowing a flat deduction without the need for bills or proof. It replaces earlier exemptions like transport...
General Taxability of Rental Income Yes, rental income from a property is generally taxable under the head Income from House Property. It applies to residential, commercial, or industrial properties that are rented out. Tax is levied on the Gross Annual Value (GAV) of...
Overview of Section 24 Section 24 of the Income Tax Act deals with deductions from income earned through house property. It provides relief by allowing specific deductions from the Net Annual Value (NAV) of the property. These deductions apply to both self-occupied...
Basis of Taxation Income from house property is taxed under a separate head in the Income Tax Act. It applies to rental income or notional income from owned properties. Even if the property is vacant or self-occupied, tax implications may arise. Ownership is...
Tax Treatment of Pension Income Pension received by retired employees is considered as salary income under the Income Tax Act. It is fully taxable under the head “Income from Salary.” Pension is taxed in the year of receipt or when it becomes due, whichever is...
Components of Salary Income Includes basic salary, dearness allowance, and bonuses. Covers house rent allowance (HRA), leave travel allowance (LTA), and special allowances. Perquisites such as rent-free accommodation, company car, or stock options are included....
Eligibility to Revise a Return Yes, income tax returns can be revised if they were originally filed on or before the due date. Only filed returns under Section 139(1) are eligible for revision. Belated returns filed after the due date cannot be revised. Revision is...
Late Filing Penalty (Section 234F) A fee of ₹5,000 is charged if the return is filed after the due date but before 31st December. If total income is below ₹5 lakh, the penalty is reduced to ₹1,000. This fee is payable before submission of the belated return. It is...
For Individual Taxpayers (Non-Audit Cases) The due date is 31st July of the assessment year. Applicable to salaried employees, pensioners, and freelancers not requiring audit. Filing beyond this date attracts late fees under Section 234F. Interest under Section 234A...
ITR-1 (SAHAJ) For resident individuals having total income up to ₹50 lakh. Income sources include salary, one house property, and other sources (like interest). Agricultural income, if any, should not exceed ₹5,000. Not applicable if income includes capital gains or...