Exemptions under Section 10 of the Income Tax Act - Enterslice (2024)

FAQs

What is Section 10A of the Income Tax Act? ›

Section 10A of the Income Tax Act is a significant provision that incentivizes businesses to invest in SEZs and promote industrial growth and development. The deduction of 100% of profits and gains for the first five consecutive assessment years provides a substantial tax benefit to newly established undertakings.

Tax-exempt refers to income or transactions that are free from tax at the federal, state, or local level. The reporting of tax-free items may be on a taxpayer's individual or business tax return and shown for informational purposes only. The tax-exempt article is not part of any tax calculations.

By section 10(34A), any income in the hands of shareholders on which tax is to be paid under section 115QA is exempt. Tax on Buy-Back is to be paid within 14 days from the date of payment of any amount to the shareholders.

1) For the purpose of the first and second provisos to clauses (11) and (12) of section 10, income by way of interest accrued during the previous year which is not exempt from inclusion in the total income of a person under the said clauses (hereinafter in this rule referred to as the taxable interest) shall be ...

(2)[ This section applies to any undertaking which fulfills all the following conditions, namely:- (i)it has begun or begins to manufacture or produce articles or things or computer software during the previous year relevant to the assessment year- (a)commencing on or after the 1st day of April, 1981, in any free trade ...

What is Section 10 (10D) of the Income Tax Act? Individuals can claim tax exemption on the sum assured and accrued bonus (if any) received through their life insurance policy claim under Section 10 (10D) of the Income Tax Act of 1961. (maturity or death benefit).

There are two types of exemptions-personal and dependency. Each exemption reduces the income subject to tax.

What are exemptions? A dollar amount that can be deducted from a taxpayer's total income, thereby reducing their taxable income.

A single filer with no children should claim a maximum of 1 allowance, while a married couple with one source of income should file a joint return with 2 allowances. You can also claim your children as dependents if you support them financially and they're not past the age of 19.

a. Sec 10(23F) – any income by way of dividends or long-term capital gains of a venture capital fund or a venture capital company from investments made by way of equity shares in a venture capital undertaking.

What is Section 10 1 )( H of the Income Tax Act? ›

Section 10(1)(h) of the Act provides that an amount of interest which is received by or accrues to a person that is not a resident is exempt from normal tax in South Africa, unless (i) the person is a natural person who was physically present in South Africa for a period exceeding 183 days in aggregate during the 12 ...

section 34a restriction on unabsorbed depreciation and unabsorbed investment allowance for limited period in case of certain domestic companies income tax act 1961 2021.

Section 80DD can be claimed by both HUFs and individuals who are caring for a disabled dependent. The deductions are applicable on expenses related to caring for a disabled dependent. The deduction amount will also cover insurance premium paid to specific insurers for the purpose of maintenance of a disabled dependent.

Section 11(2) of Income Tax Act

Now, institutions must utilise accumulations beyond 15% within the next 5 years. However, this amount will not fall under the institution's total income in the case of the following: Institutions invest the funds in modes specified under Section 11(5). In case they submit Form No.

Rule 11UA of the Income Tax prescribes the valuation methodology for determining the FMV of various types of assets (including unquoted equity shares), not only for the purposes of the angel tax provision but also for other anti-abuse provisions involving transfer of assets without consideration or at a value less than ...

Section 10A of the U.S. Securities Exchange Act of 1934 requires that an auditor report to the Securities and Exchange Commission (SEC) when, during the course of a financial audit, an auditor detects likely illegal acts that have a material impact on the financial statements and appropriate remedial action is not ...

Section 10AA is a provision under the Income Tax Act which allows taxpayers to take deductions for businesses which are established in Special Economic Zones (SEZ).

The standard deduction is a specific dollar amount that reduces the amount of taxable income. The standard deduction consists of the sum of the basic standard deduction and any additional standard deduction amounts for age and/or blindness. In general, the IRS adjusts the standard deduction each year for inflation.