What is Section 57 IIA income tax?

What is eligible deduction under section 57 IIA?

“For family pension, a standard deduction u/s 57(iia) is available under which an amount of Rs 15,000 or 1/3rd of the uncommuted pension received, whichever is less, shall be exempt.

What is section 57 of income tax?

(a) Collection charges [Section 57(i)]: Any reasonable sum paid by way of commission or remuneration to a banker, or any other person for the purpose of realising the interest. (b) Interest on loan [Section 57(iii)]: Interest on money borrowed for investment in securities can be claimed as a deduction.

What is the maximum amount of deduction from family pension is?

The maximum exemption limit for an individual is Rs. 250000. However, for senior citizen of age 60 years or more but less than 80 years is Rs. 300000 and for 80 years or above it is Rs.

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What is section 58 of Income Tax Act?

Expenses not deductible under Section 58

Section Nature of Income
58(1)(a)(ii) Interest subject to tax, which is payable outside India (there has been no previous tax deduction on this interest)
58(1)(a)(iii) ‘Salary’ payable outside India on which no tax is deducted at source or paid
58(1A) Wealth-tax

What are the new tax exemptions for 2020?

The personal and senior exemption amount for single, married/RDP filing separately, and head of household taxpayers will increase from $122 to $124 for the 2020 tax year 2020. For joint or surviving spouse taxpayers, the personal and senior exemption credit will increase from $244 to $248 for the tax year 2020.

What is Section 56 2 of income tax?

Tax on sum/property received without consideration

Section 56(2)(x) provides that following receipts shall be taxed in hands of any person where received from any person or persons on or after 01.04. 2017 during any previous year. (a) Any sum of money exceeding Rs. 50000 in aggregate without consideration.

What is section 59 of Income Tax Act?

Section 59 in The Income- Tax Act, 1995. (1) The provisions of sub- section (1) of section 41 shall apply, so far as may be, in computing the income of an assessee under section 56, as they apply in computing the income of an assessee under the head” Profits and gains of business or profession“.

What is amount not deductible u/s 58?

PERSONAL EXPENSES [Section 58(1)(a)(i)] – Any personal expenses of the assessee is not deductible. INTEREST [Section 58(1)(a)(ii)] – Any interest (which is chargeable under the Act in the hands of recipient) which is payable outside India on which tax has not been paid or deducted at source, is not deductible.

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Which of the following is not deductible under section 57?

Personal expenditure is not allowable as deduction. So the amount invested for purchasing the ticket cannot be allowed as deduction since it amounts to investment.

What dividends are tax free?

As per existing tax provisions, income from dividends is tax free in the hands of the investor up to Rs 10,00,000 and beyond than tax is levied @10 percent beyond Rs 10,00,000.

Is dividend taxable in India?

Dividends declared and distributed on or after April 1, 2020, are taxable in the hands of recipient shareholders. Such dividend income is subject to 10% TDS, if the amount received exceeds Rs 5,000 in a year.

What is the limits for deduction u/s 57 in respect of family pension?

In respect of family pension, deduction u/s 57(iia) of Rs. 15000 or 1/3rd of the amount received, whichever is less, is available. (i) The maximum amount not chargeable to tax in respect of senior citizens is Rs. 3,00,000.

Is FD interest taxable?

FD Interest is taxable at your slab rate along with applicable surcharge/cess. … It will face a tax of Rs 31,200 (tax rate of 30% and 0.4% cess). The TDS rate on fixed deposits (FDs) is 10% if the interest amount for the entire financial year exceeds Rs 10,000 for AY 2019-20.

How do I calculate tax on my pension?

The 10% of the total pension of 10 years will be given in advance as lump sum amount. Therefore, 10% of Rs. 20,000 x 12 x 10 = Rs. 2,40,000 will be the computed pension.

Calculation of Income Tax for Pensioners.

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Income Slab Tax Rate
Income up to Rs. 300000 No Tax
Rs. 3,00,000-5,00,000 5%
Rs. 5,00,000-10,00,000 20%
Above Rs. 10,00,000 30%