Tax Audit U2FS 44AB

Introduction of Tax Audit:

The Finance Act, 1984 inserted section 44AB to introduce provisions related to tax audit in Income Tax Act, 1961 w.e.f 1st April 1985. As per this section, it is the obligation of every assessee having income / loss from business or profession to get his books of accounts audited by a CA in practice.


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House Rent Allowance and Income Tax Benefit for Rent Paid

House Rent Allowance is one of the important components of salary. Particularly if you are living in a rented house and your salary income is taxable, House Rent Allowance can provide some tax relief for you. However, entire amount of HRA received cannot be claimed as deduction. Income Tax Act prescribes a specific formula through which amount of exempt HRA can be determine. In this article we shall focus on important rules related to claiming exemption for HRA and House Rent paid.


Provisions Related to Advance Tax under Income Tax Act 1961

Liability for Payment of Advance Tax (Section 208):

  • As per section 208 of Income Tax Act, 1961, every person whose estimated tax liability for the year is Rs. 10,000 or more, shall pay his tax in advance, in the form of “advance tax”. Such advance tax must be paid in four instalments on or before due dates of advance tax payment. In this article we shall discuss about various provisions related to Advance Tax and applicable interest in case of non-conformance to such provisions.
  • We know that income earned during the financial year 2018-19 shall be charged to tax in the assessment year 2019-20. But the assessee is required to pay tax, in advance, on the taxable income of financial year 2018-19 during the financial year 2018-19 itself.
  • Advance Tax, as computed in accordance with the provisions of this chapter, shall be payable during a financial year, only when the amount of such advance tax payable by the assessee during that year is Rs. 10000 or more.


Housing Loan Income Tax benefits

To own a house is dream of one and all. However, the stark inflation in real estate market has proven to be a nightmare for young couples in India who aspire to own a house. Thanks to Income Tax Act which has given Home Loan borrowers a reason to cheer. There are two sections under Income Tax Act i.e. Section 80C and section 24 under which a Home Loan borrower can claim deductions in relation to Home Loan.


Deduction U2FS 80E Interest on Education Loan

Keeping in mind highly competitive job market in India and across the globe, many of us prefer to enrol for higher education to add extra feathers to our cap. However, considering rising cost of good quality education, one may prefer to take education loan to fund additional cost of higher studies. If you are one such person, section 80E of Income Tax Act, 1961 can bring some tax relief for you.

Section 80E deals with deduction from gross total income in respect of payment of interest on loan taken for higher education for self, spouse, children or a student of whom you are legal guardian.


Deduction U2FS 80E Interest on Education Loan 1

Considering the rising inflation in health care sector in India, medical insurance policy has become a must for all. However, government has offered a sigh of relief particularly to lower and mid income group assessees by extending the amount of deduction which can be availed in respect of medical insurance premium. Section 80D of Income Tax Act, 1961 deals with this matter. According to section 80D, a deduction from gross total income can be availed in respect of medical insurance premium paid by an individual / HUF assessee up to certain limit. Such deduction can be claimed for premium paid for self, spouse, dependent children and parents. Similarly, an HUF can claim deduction in respect of premium paid for any of the members of HUF.

Who can claim deduction u/s 80D?

Financial Management