Mamtora & Associates
Chartered Accountants

Section 6 of Income Tax Act lists the conditions for determination of residential status of an Individual.

DIRECT TAX RELATED AMENDMENTS Proviso to Section 87A added to provide following benefits to individual residents w.e.f. 01.04.2024: 100% tax rebate for total income upto Rs. 7 Lakhs under New Tax Regime.  For assessees with total income exceeding 7 Lakhs, instead of 100% tax rebate, Marginal Relief will be provided under New Tax Regime. Basic exemption limit under New Tax Regime increased from earlier Rs. 2.5 lakhs to Rs. 3 Lakhs  Changes in tax slabs under New Tax Regime as under: Total Income Tax Rates Upto Rs. 3 Lakhs Nil Above Rs. 3 Lakhs upto Rs. 6 Lakhs 5% Above Rs. 6 Lakhs upto Rs. 9 Lakhs 10% Above Rs. 9 Lakhs upto Rs. 12 Lakhs 15% Above Rs. 12 Lakhs upto Rs. 15 Lakhs 20% Above Rs. 15 Lakhs 30% Salaried/Pensioners can now claim benefit of Standard Deduction of Rs. 50,000/- under New Tax Regime Family Pensioners can now claim benefit of deduction u/s 57 under New Tax Regime Amount paid/deposited in Agnive...

Buying a house is a dream for each one of us. It is one of the costliest asset in our portfolio too. Hence most of us cannot afford to buy it without opting for a Housing Loan. Even governments encourage taxpayers to buy a house by providing multiple tax benefits. In this article we will study some of the important tax benefits of a home loan that you should not forget to claim while filing your ITR. CONCENT OF SOP-LOP : Before we deep dive into the intricacies, we need to understand two concepts regarding House Property taxation viz. Self-Occupied Property & Let-Out Property SOP (Self-Occupied Property) means  a property used for owner’s own residential purpose or a property that cannot be occupied owing to employment/business at other place and the owner has to reside at that other place in a rented premise. LOP (Let-Out Property) simply means a rented property. An assessee can claim maximum two house properties as his SOP for any financial year. TAX BENEFIT / DEDUC...

What is advance tax ?   Advance Tax means income tax paid in advance instead of lump sum payment after year end. It is also known as pay as you earn tax. Advance tax is calculated by estimating the current year’s annual income and finding tax liability on such estimated annual income. These payments have to be made in installments as per its due dates.  Particulars Amount Estimated Annual Tax Liability XXX Less: TDS / TCS / MAT Credit (XXX) Annual Advance Tax Liabilty XXX Who is liable to pay advance tax ? If an assessee’s tax liability is Rs. 10000/- or more in a financial year than they have to pay their whole income tax liability in advance. Exemption from Advance Tax :  Resident Senior citizens (i.e. age 60 years or more) who do not have any income from  business/profession. Due Dates for payme...

Digital Rupee is India's first official Central Bank Digital Currency (CBDC) issued & regulated by RBI. CBDC is a digital form of sovereign currency notes issued by a country's central bank.  There will be two categories of Indian Digital Rupee viz. e-Rupee Wholesale (e₹-W) & e-Rupee Retail (e₹-R).  Retail Rupee would be available for use by all viz. private sector, non-financial consumers and businesses while Wholesale Rupee would have restricted access for select financial institutions only. e-Rupee differs from cryptocurrency for the following reasons : Cryptocurrency is a decentralized currency while e-Rupee is highly centralized form of digital currency. It will be controlled & regulated by RBI, the sovereign central bank of India. There will be no fluctuations in the value of e-Rupee unlike a cryptocurrency.  e-Rupee will be a legal tender in India while cryptocurrencies are not. Initial launch phase of e₹-Wholesale has already been started w.e.f 01 Nove...

1. Order Cheque A cheque which is payable to a particular person or his order is called an order cheque. 2. Bearer Cheque A cheque which is payable to a person whosoever bears, is called bearer cheque. 3. Blank Cheque A cheque on which the drawer puts his signature and leaves all other columns blank is called a blank cheque. 4. Stale Cheque The cheque which is more than six months old is a stale cheque. 5. Multilated Cheque If a cheque is torn into two or more pieces, it is termed as mutilated cheque. 6. Post Dated Cheque If a cheque bears a date later than the date of issue, it is termed as post dated cheque. 7. Open Cheque A cheque which has not been crossed is called an open cheque. Even if a cheque is crossed and subsequently the drawer has cancelled the crossing at the request of the payee and affixes his full signature with the words “crossing cancelled pay cash”, it becomes an open cheque. 8. Crossed Cheque A cheque which carries too ...

We all know about Home Loan, Rite!! The opposite of home loan is Reverse Mortgage. Under Reverse Mortgage all you need to do is place your fully owned house under lien with the loan provider such as banks or credit union, and receive monthly payment from them till the tenure of the loan. Reverse mortgage goes hand in hand with the owner and the spouse, if any one dies during the tenure of the loan the lender continues to provide monthly installment, but if both dies, the lender gives option to owner’s legal heir to either settle the loan amount and regain the ownership or allow lender to sell the house and recover the amount. Any balance amount left over, after settling the loan amount passes over to the legal heir. The tenure of loan could be 10 to 20 years. One point to know: If the tenure of the loan gets over, and the owner and spouse or any one of them stays alive, the lender will stop paying monthly instalments but will not force them to vacate the house till they or an...

One of the popular, preferred, and prominent tax saving investments is PPF – Public Provident Fund. We all know about PPF. But do we know all about PPF? Let us discuss in detail about PPF in this article and understand it comprehensively and completely. 1. Where to open the PPF account? PPF accounts can be opened by a resident individual in a post office or in selected bank branches. The regular KYC documents need to be submitted for opening a PPF account with a minimum investment of Rs.500. 2. What is the interest rate? PPF interest rate is notified every quarter. Present interest rate is 7.1% 3. How is the interest calculated? For the balance amount in your PPF account the interest is compounded annually. However, the interest is calculated every month on the basis of lowest balance between 1st and 5th date of the said month. If your contribution to the PPF account is credited on or before 5th of that month, then that contribution will bear interest...