Readers are already told that section 58 (2)(y) of DTC 2010 has made all kinds of payments taxable . So, what if the life insurance product which you bought was based on the premise that the money collected by the Insurance Company shall be invested in equity market and the payments will be dependent on the result of investment in equity. Is payment under such an policy of life insurance taxable?
Any sum received from Life Insurance Policies -whether it was bonus or other wise was completely tax free under Income Tax Act. Only exception was that if the premium paid in year exceeded 20 % of the sum insured , in that case only exemption of the receipt was taken away.
Till now , the assets are given on long term lease for a heavy deposit or advance are taken . This deposit or advance is shown as liability in one's balance sheet . However, under Direct Tax Code , the tax planning ( read in many case tax evasion ) is now very difficult as far as long term lease or transfer of assets by part payment or transfer of interest in investment asset is concerned .
The Direct Tax Code has fixed the limit of tax on wealth exceeding Rs 1 Crore. It has also defined assets for the purpose...
The good news is that the Direct Tax Code 2010 has increased the limit on which wealth tax is imposable. Now, if your net wealth is exceeding Rs 1 Crore ( Rs 10 million ) only the wealth tax is imposable.
Direct Tax Code 2012 has changed the rule of computation of capital gains and most striking change is that now a tax payer can choose the fair market value as on 01/04/2000 of an asset as "cost of acquisition" for computing "indexed cost of acquisition".
The most popular item of tax laws are deductions which are tools for saving tax. Under Direct Tax code 2010, the deductions are called "tax incentives" and major deductions allowed under chapter VI-A of I.T.Act is being carried on in even Direct tax Code .
Direct Tax Code 2010 has three section 70, sec.71 & section 72 which deals about tax incentive (read deduction ) on premium paid on...
Section 78 of Direct Tax Code 2010 are equivalent to section 80DD. Section 78 provides deduction for expenditure and insurance on treatment , nursing and maintenance of disable dependant person.
First the postive news ! Under the Income Tax Act 1961 , if you have more than one property, there was provison for taxing notional rent even if the second house was not put to rent. However, under the Direct Tax Code 2010 , such aconcept has been abolished.