Did you know that Income under some of the categories can be negative sometimes. In that case I can get an adjustment of such negative income or loss against my other incomes, so that my net ot total income is lower. But this is not always. This is called Set Off of Losses.
There are some catches though. Sometimes I may need to include my spouses income in my income, just when I tried to be smart and put my interest earning investments in spouses name, the tax authorities are smarter and say No, this is my income. This is called Clubbing of Income.
The Clubbing Times Read More »
At the end of the year, I need to work out my Gross Total Income. This is nothing but a sum total of my incomes under 5 categories below. Salaries House Property Business Gains and Profession Capital Gains Other Sources So, I just go about finding out my Income under the category or categories out
The Parts I need to total up Read More »
This module will tells me what is my Gross Total Income and how do I arrive at Gross Total Income. We go by: The Parts I need to total up The Clubbing Times The Setoff Times The Carry Forward Times Conclusion
Objective-Gross Total Income Read More »
We just understood the income categories If I want, I can go further looking more deeply at my various income categories I just talked about by understanding Heads of Income
Conclusion-Income Categories Read More »
Similarly, Income is categorised for tax purposes into five segments, I may be having income from one or more of these segments. Lets define these segments first: Income from Salaries (Here I include myself if I am employed somewhere during the year, or if I am getting pension) Income from House Property (Here I include
Defining Segments or categories Read More »
A person may perform one or more roles together. For example I as working woman may be doing – going on job, looking after family, cooking, handling home finances; Or I as a grandfather may be playing with my grandchildren, doing kitchen, indulging in share market, and doing some RWA or gardening work; Or I
Categories introduced Read More »
What is included in my income (Heads of Income) Objective: This module will tell you to: Introduce categories Define which are categories of Income I fall in, which is the start button to find how do I work out income under each of these.
Objective – Income categories: Read More »
If my sell value is lower than Cost (or indexed or inflation adjusted cost), I have a loss rather than income. It is allowed to remember (carry forward) this loss and adjust against any future capital gains I may have in next 8 years, but to get this right, I must file my tax return
What if I have a loss Read More »
There are others too, like there’s one deduction called Section 54F which says if I am selling any long term asset other than residential house, but putting the money to get a house (much similar to the house option mentioned viz buy 1 year before or within 2 years after, or construct within 3 years,
Other benefits I can take Read More »
