Under Section 2(1A) of the Income Tax Act, 1961, the term “agricultural income” is defined as:Income derived from land which is situated in India and is used for agricultural purposes.
Income derived from agricultural operations on the land, such as tilling, sowing, and harvesting.
Income derived from the sale of agricultural produce.
Section 80C of the Income Tax Act, 1961, stands as a cornerstone in India’s tax-saving framework, offering individuals and Hindu Undivided Families (HUFs) a structured avenue to reduce their taxable income. By allowing deductions up to ₹1.5 lakh annually on specified investments and expenditures, Section 80C not only incentivizes savings but also promotes long-term financial planning among taxpayers.
Introduction The concept of set-off and carry forward of losses is a critical feature of the Indian income tax framework,
In the domain of Indian income-tax law, the concept of clubbing of income is a targeted anti-tax avoidance mechanism. Among its various applications, income arising from asset transfers to spouse and income accruing to minor children occupy a central position due to the frequency and ease with which such relationships can be used to redirect taxable income.
The Indian Income Tax Act, 1961, follows a foundational principle that income is taxable in the hands of the person who earns it. However, tax law must not only be equitable but also enforce mechanisms that prevent its misuse. One such critical mechanism is the concept of clubbing of income, provided under Sections 60 to 64 of the Act.
The term “interest on securities” is defined under Section 2(28B) of the Act and broadly covers interest on Central and State Government securities, as well as interest on debentures or similar instruments issued by local authorities, companies, or statutory corporations. The taxation of such income involves careful classification, procedural application, and anti-avoidance safeguards.
Section 56(2)(x) of the Income Tax Act, 1961 serves as a pivotal provision in this context, aimed at taxing certain receipts without consideration or for inadequate consideration that are effectively in the nature of income. The provision brings within its ambit not only gifts of cash but also transfers of movable and immovable properties.
Introduction The Indian Income Tax Act, 1961 is designed to ensure that the entirety of a taxpayer’s income is properly
Section 45 of the Income Tax Act, 1961 provides the charging provision for capital gains, while Section 48 outlines the manner in which such gains are to be computed. The legislative scheme under these provisions serves to tax the economic appreciation in the value of capital assets upon their transfer.
In the domain of Indian income tax law, the concept of ‘transfer’ under Section 2(47) of the Income Tax Act, 1961, is fundamental to the taxation of capital gains. Section 45, the charging provision for capital gains, hinges on the occurrence of a ‘transfer’ of a capital asset.
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