An income tax notice is a formal communication from a tax authority, such as the Indian Income Tax Department, informing a taxpayer of a discrepancy, error, or other issue with their tax return or tax account. The notice may request additional information, clarification, or payment of taxes owed. It is important to respond to an …
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Salary refers to the compensation that an employee receives from their employer for the work they perform. This compensation can be in the form of cash, bonuses, benefits, and/or stock options. Maintaining proof is especially important in the context of income tax. This is because tax authorities require taxpayers to provide documentation to support the …
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An income tax notice is a formal communication sent by the tax authorities to a taxpayer regarding any discrepancy in the tax return filed or any additional tax liability. It could also be sent to request missing information or clarification on certain points in the tax return. Dealing with an income tax notice requires prompt …
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Property is a well-liked investment option in India due to its ability to produce a steady stream of income through rental payments. NRIs who own property in India can lease it out and receive rental income, which is considered taxable in India. The tax is classified under the “Income from House Property” category and is …
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The Non-Residential External (NRE) account is a type of savings or current account specifically designed for Non-Resident Indians (NRIs). It allows NRIs to maintain their savings in India while they are living abroad. The funds held in an NRE account are held in Indian Rupees and are fully repatriable, meaning that the NRI can transfer …
Employee Stock Option Plan (ESOP) is a form of compensation provided to employees in the form of stock options. It gives employees the right to purchase a certain number of shares of the company’s stock at a fixed price (also known as the “exercise or strike price”) within a specified period of time. The purpose …
What is Hindu Undivided Family (HUF)? The Hindu Undivided Family (HUF) is defined as a separate entity for tax assessment under the Income-tax Act, 1961. As per section 2(31) of the Act, HUF is considered a “person”. In accordance with Hindu Law, an HUF consists of individuals descended from a common ancestor, including wife and …
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Taxable income for salaried employees is calculated by subtracting tax-deductible allowances and expenses from their total taxable salary. This taxable salary is calculated by adding basic salary, any dearness allowances, house rent allowances, and any other taxable allowances, and subtracting any exemptions available under section 10 of the Income Tax Act, 1961. The final taxable …
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A tax nomad is an individual who chooses to live a location-independent lifestyle, earning an income while travelling and living in different countries. This type of lifestyle allows individuals to take advantage of different tax laws and regulations in different countries, allowing them to minimize their tax liability. Tax nomads often work in industries that …
The tiebreaker rule for residential status refers to the criteria used to determine an individual’s primary place of residence, usually for tax purposes. The primary place of residence is important for tax purposes as it is used to determine where an individual must pay income tax. For individuals who live in multiple jurisdictions, it is …
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