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INCOME TAX BENEFITS

INCOME
periodical monetary return with some sort of regularity. Recurring in nature True increase in the amount of wealth which comes to a person during a fixed period of time.

INCOME TAX
tax levied on the income of individuals or businesses (corporations or other legal entities). can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate tax, corporate income tax, or profit tax. Individual income taxes often tax the total income of the individual (with some deductions permitted), while corporate income taxes often tax net income (the difference between gross receipts, expenses, and additional write-offs). Various systems define income differently, and often allow notional reductions of income (such as a reduction based on number of children supported).

INCOME TAX EXCEMPTIONS FOR PROFESIONALS


Meaning of profession or vocation As per section 2(36) profession means those activities for which specialized knowledge and intellectual or manual skills are required Eg: the work of a doctor, lawyer, architect etc

INCOME TAX DEDUCTIONS

FOR BUSINESS OR PROFESSIONAL INCOME


Rent, rates, repaires and insurance of business premises used for the purpose of business of profession. Repaires and insurance of furniture plant and machinery Depreciation

Special deductions from business income


Deduction in respect of Tea Coffee, and Rubber Development (sec 33AB) Deduction in respect of petrolium or natural gass (sec 33 ABA) Expendeture on scientific research (Sec 35) Expenditure of patent or coppywrite (Sec 35 A) Expenditure on eligible project(Sec. 35 AC)

Expenditure by way of payment to rural development fund(Sec 35 CCA) Amortisation of preliminary expenses (Sec. 35 D) Expenditure for amalgamation or de-merger of an undertaking (Sec.35DD)

Deductions allowed for individuals


In respect of medical insurance Deductions in respect of interest on loan taken for higher education Deductions regarding donations given for the scientific research rural development etc