Are you a businessman or self employed person??

If you are a businessman or a self employed person then you should aware of the income which is chargeable to tax as per Income tax act, 1961

Following are the incomes which are chargeable to income tax

1.  the profits or gains of any business or profession which was carried on at any time during the previous year

2.  profit on sale of license granted under import (control) order under scheme of exports

3.  cash assistance received or receivable against exports under any scheme of government

4.  duty draw back against exports under scheme of the government

5.  the value of any benefit or perquisite, whether convertible into money or not, arising from any business or profession

6.  any interest, salary, bonus, commission or remuneration by whatever name received by a partner of firm from such firm

7.  any sum received under a key man insurance policy including the sum allocated by way of bonus on such policy

8.  any sum, whether received or receivable in cash or in kind, on account of nay capital asset being demolished, destroyed, discarded or transferred, if whole of the expenditure on such capital asset has been allowed as a deduction under section 35AD

Do write us and give your suggestion for further improvement. You can also get in touch with us for various tax related queries and the matter relating to the tax planning.

For more write us at

tytgroup@live.com

  

SUFFERED ANY LOSS IN BUSINESS????

If you earn losses from business, you can carry forward your loss to the subsequent years where such loss cannot be set-off due to the absence or inadequacy of sufficient profits in the relevant previous year.

Following are the conditions that must be considered for carry forward, carry forward and set-off of losses:-

1.  The loss should have been incurred in business, profession or vocation.

2.  The loss should not be in nature of a loss in the business of speculation.

3.  The loss may be carried forward and set-off against the income from business though not necessarily against the profits and gains of the same business or profession in which loss was incurred, but a loss carried forward cannot under any circumstances, be set-off against the income from any other head other than profits and gains of business or profession.

4.  The loss can be carried forward and set-off against the profits of assessee who incurred that loss, it can now be carried forward and set-off by his successor only if he carried on the same business.

5.  The loss can maximum carry forward for the period of 8 yrs immediately succeeding the assessment year in  which loss was incurred.

6.  As per section 80 of income tax act, 1961, the assessee in order to carry forward the loss to subsequent year, he must required to file income tax return.

For more feel free to write us at

tytgroup@live.com