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Meaning of Transfer and Capital Asset

The most important terms forming the definition of income from Capital Gains are Transfer and Capital Asset. I will be discussing both terms in detail in this blog. Meaning of Transfer As per section 2(47) of the Income Tax Act, 1961, transfer includes various items: – Meaning of Capital Asset A transaction involving a transfer […]

Items forming part of Income from Other Sources

As per section 56(1), generally, incomes which are not taxable under any other head of income shall be chargeable under Income from Other Sources (herein referred to as IFOS) As per section 56(2) of the Income Tax Act, 1961, there are certain incomes which specifically form part of IFOS: –

Speculative Business

A speculation transaction is the one which includes a contract for the sales or purchase of any commodity including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or the transfer of the commodity or scrips. For example, in case a person buys an agriculture commodity derivative of cotton at […]

Items that always form a part of Profits and Gains of Business or Profession

Certain items that form part of Profits and Gains of Business or Profession (herein referred to as PGBP) As per section 28 of the Income Tax Act, 1961, this is a list of incomes that are always a part of PGBP:- So, this is a list of almost all the incomes (not an exhaustive list) […]

Total income and various heads of income under Income Tax

Heads of income As per the Income Tax act, 1961, an assessee’s income is calculated under various heads which include Salary, House Property, Profits and gains of Business or Profession, Income from Capital Gains and Income from Other Sources. The gross total income of a person is the sum of the incomes under all the […]

Proposed changes to New Tax regime in Union Budget, 2023

In this blog, I will be discussing the changes which have been proposed for the new tax regime. The new tax regime was first introduced in the Budget of 2020 for the financial year 2020-21 under section 115BAC. So, the new regime was applicable from assessment year 2021-22. This scheme is applicable for an Individual, […]

Union Budget, 2023 – Direct Taxes

Our Finance Minister, Mrs. Nirmala Sitharaman presented the budget speech for the upcoming financial year on 1st February, 2023 and in this blog I’ll be covering the key points relating to Direct Tax. There was a major change proposed in the Personal Income Tax slabs for which I’ll be posting a separate blog. For the […]

Virtual Digital Asset

Virtual Digital Asset might be sounding very unfamiliar to many of the readers. I will try to explain it in easy terms. It is nothing but what we all commonly refer to as Cryptocurrency, Crypto Tokens, Non-Fungible Token (NFT) etc. I am sure many of us must have either held them as an investment or […]

Union Budget, 2022

The Union Budget lays down the initiatives to be taken by the Government in the upcoming financial year relating to the allocation of funds for various government projects, to different departments and the changes to direct and indirect tax. In the Union Budget presented on 1st February, 2022, I’ll be covering only the points relating […]

Goods and Services Tax (GST) – An Introduction in India

In July, 2017, a huge change was introduced in the Indian Economy i.e., the introduction of GST with effect from 1st July, 2017. It was introduced with an idea of, “One Nation One Tax” by subsuming various taxes within GST. Earlier there used to be several taxes for different purposes. For example, on sale of […]