An individual must file Form 10BA to get the deduction for the rent paid for rental property under section 80GG. The section provides relief for individuals who don’t receive a house rent allowance (HRA) from their employers. However, they will still have to pay the rent expenses for their residential accommodation. The Form 10BA of the Income Tax Act helps you decrease your taxable income and tax liability.Is Form 10BA Mandatory?The answer is yes if you need clarification about whether Form 10BA is mandatory. It is compulsory to claim a deduction for rent remunerated under Section 80GG of the Income Tax Act.

Form 10 is a crucial form used by some religious and charitable organisations to claim income exemptions under specified sections of the Income Tax Act of 1961. Every organisation seeking these exemptions must know about Form 10. What is Form 10?Form 10 is an application form to be furnished by religious or charitable trusts and institutions to claim tax exemption on income derived from property held in the name of the trust if the trust or institution wants to accumulate more than 15% of the income derived from the property held in the name of the trust, subject to certain conditions, as explained below.Critical Purposes of Form 10Accumulation or Setting Apart of Income: Section 11 of the Income Tax Act allows for income accumulation or setting apart of 15% of the income derived from the property held under the trust indefinitely. However, if a religious institution wants to accumulate more than 15% of its income to be applied in the future by charitable or religious institutions for religious or charitable purposes. In that case, they have to file Form 10 specifying the purpose for which it is being accumulated and the period which shall not exceed 5 years. Form 10 enables the institution to inform the Income Tax Department of its intention.

Term Insurance is a type of life insurance that offers coverage to the policyholder. However, this coverage is only valid for a particular period. If the policyholder dies during this time frame, then the term insurance-providing company pays the insured money to the beneficiary. However, one must know a few terms and conditions before taking term insurance. Apart from this, term insurance also has several tax benefits under the sections 80C, 80D, and 10D. In this article, we will learn about these benefits and how to claim them.Key Tax Benefits of Term InsuranceAccording to the Income-tax Act,1961(ITA), several tax benefits are levied on term insurance.

The National Pension Scheme (NPS) was launched with the aim of helping people during their retirement years. This scheme lets people create a pension fund that provides a steady income after retirement. Another noticeable feature is its tax benefits. Not only can you avail up to Rs. 1.5 lakh in tax deductions under Section 80C, but you can also get additional deductions of up to Rs. 50,000 for your investment.

Circular No. 11 of 2022, dated June 03, 2022, the Central Board of Direct Taxes (CBDT) clarified the requirements for Form No. 10AC's cancellation of Trusts & Institutions' registration or approval. The CBDT Clarification on Form 10AC is discussed in this article.What is Form 10AC?According to the Indian Income-tax Act 1961, Form 10AC refers to an order for registration or provisional registration or approval or provisional approval by the Principal Commissioner or Commissioner of Income-tax approved by the Board. These religious trusts, institutions, or charitable institutions can apply for registration to exempt themselves from certain taxes in India.What is the Registration Process for Form 10AC?Let’s look at how someone can register as per the Form 10AC:EligibilityOnly religious trusts, charitable organisations, and institutions seeking approval or registration under sections 12A, 12AB, 12AA, and 80G of the Indian Income-tax Act,1961, are eligible.ApplicationLog in to the official income tax website and fill out Form 10A or 10AB as applicable.

Many individuals earning income from a foreign country are confused about whether they should use the Foreign Earned Income Exclusion or the Foreign Tax Credit. While both have advantages and disadvantages, choosing the most appropriate option for yourself becomes an important task.In this article, we will examine the major concepts of foreign earned income exclusion and foreign tax credit, determine the key differences between them, and help you decide which option is most appropriate.What is Foreign Earned Income ExclusionIf an American citizen earns money from a foreign nation, they are exempt from paying double taxes with the help of Foreign Earned Income Exclusion or FEIE. If you are an American citizen and you make money abroad, you will be taxed on your income by the foreign country. Furthermore, the US Internal Revenue Service may tax your entire income again. Therefore, FEIE ensures you don't pay taxes twice and get a general tax relaxation.Through the FEIE, qualified persons can exclude a portion of their overseas income from US taxation.What is a Foreign Tax CreditA Foreign Tax Credit, or FTC, is a credit that can be claimed by US citizens who pay taxes to a foreign country.

Under the Income Tax Act, 1961, certain deductions are allowed when computing a person's total income. Section 16 of the Income Tax Act deals with deductions that are allowed to be deducted from a person's gross salary. Read along to know more about the deductions allowed under section 16 of the Income-tax Act,1961.What is Section 16 of the Income-tax Act?Section 16 of the Income-tax Act, 1961 allows for deductions from your salary income, which reduces your taxable income and in turn lowers your tax burden.Section 16 offers three types of deductions:Standard Deduction (Section 16(ia)): Employees in India are eligible for a standard deduction. This deduction is either Rs. 50,000 or their total salary, whichever amount is lower. It is a flat deduction that you can deduct from your salary.

An invalid XML error in ITR arises whenever the taxpayer attempts to generate the XML file using the ITR utility’s older version. It is one of the most common errors people encounter while filing income tax returns. The XML file is generated from the ITR form. The error occurs when you try to upload this file after editing it. Reason for Invalid XML Error in ITR You may have encountered an ‘invalid XML’ message while trying to file your income tax return. The invalid XML errors in ITR may occur due to various reasons.

As a US citizen residing in a foreign country, you must have encountered the term “Foreign Earned Income Exclusion”. But do you know what is foreign-earned income exclusion?The Foreign Earned Income Exclusion, or FEIE, was designed to prevent citizens of the United States from paying double taxes if they earn income from a foreign country. As an American citizen, if you earn income from overseas, the foreign country will tax your income. Additionally, the United States Internal Revenue System can again tax your entire income. Hence, FEIE ensures that you are not subjected to double taxation and receive a tax relaxation overall.The Foreign Earned Income Exclusion taxation policy is also essential for citizens residing in the United States.

According to Section 35AD of the Income Tax Act 1961, the government provides tax deductions to promote certain industries involved in specific sectors. This section explains deductions applicable to tax incentives for specified businesses. Let’s overview Section 35AD of the Income Tax Act, eligibility criteria for deductions, the list of specified businesses, and more.What is Section 35AD of the Income Tax Act?Section 35AD of the Income Tax Act allows taxpayers to claim deductions for specific types of capital expenditures reserved for specified businesses during any financial year. The expenditure must fulfil the criteria mentioned in this section.This section specifies that a taxpayer is eligible for deduction for all capital expenditures incurred solely for their business operations during the previous year in which the expenditures were made. Section 35AD of the Income Tax Act allows deductions of certain expenses incurred by a specified business. Conditions for Claiming Deductions Under Section 35ADThe following conditions must be fulfilled to claim deductions under Section 35AD:The deduction u/s 35AD would be applicable only if the taxpayer opts to file under the old tax regime.When a company builds, operates, and maintains the present infrastructure resource apart from managing it:The business must be established and registered in India.It should have signed a legal agreement to develop, manage, run, and uphold the existing infrastructure with a statutory organisation, a state, a local government, or the federal government.The specified business must not have been set up by splitting up/ renovating an existing business.The specified business must not have been established by  using second-hand plant and machinery (up to 20% of plant and machinery can be second-hand)Here are the additional conditions to be met by the business of laying and operating cross-country natural gas or crude or petroleum oil pipeline network for distribution:The company must be established and registered in India It must gain approval by the Petroleum and Natural Gas Regulatory Board.A certain minimum share of its overall pipeline must be available for use by any other entity on a common carrier basis, according to the Petroleum and Natural Gas Regulatory Board.When the specified business is developing/ operating and maintaining/ developing, administering and operating the new infrastructure facility:The company must be established and registered in India.It should have signed an agreement with the State Government, Central Government, local authority, or any other statutory body to develop/operate and maintain/develop, administer, and operate the new infrastructure facility.A business can’t claim deductions for expenses incurred towards the purchase of land/financial instrument/goodwill.Deductions can’t be availed when a payment exceeds INR ₹10,000 made to a person within a day and received via cash, crossed cheque, or bearer cheque.The deduction is allowed only if the assessee's accounts have been audited by a chartered accountant and the audit report is furnished along with the Income tax return.Any asset in respect to which a deduction is claimed and allowed under section 35AD shall be used only for the specified business, at least for a period of 8 years.Section 35AD Specified Business ListThe below list showcases the specified businesses as per Section 35AD of the Income Tax Act:Date of CommencementSpecified businessOn or after 01.04.2017   Operating, developing, and maintaining an established infrastructure facilityOn or after 01.04.2014   Setting up and operating a semiconductor fabrication plantOn or after 01.04.2014Operating and installing a sludge pipeline for transportation of iron oreOn or after 01.04.2012Setting up and operating a storage facility for sugarOn or after 01.04.2012Manufacturing and apiculture of honey or beeswaxOn or after 01.04.2012Setting up and operating a Container Freight Station (CFS) or an Inland Container Depot (ICD) sanctioned or reported under the Customs Act, 1962.On or after 01.04.2011   Manufacture of fertiliserOn or after 01.04.2011Building and developing affordable housing initiatives under a specified program provided by the State or Central Government program.On or after 01.04.2010   Setting up and managing a hospital with at least 100 beds for patientsOn or after 01.04.2010Establishing and overseeing a hotel rated 2-star or higher in India, as per the notification released by the Central Government.On or after 01.04.2009   Establishing and overseeing a warehousing facility to store agricultural produceOn or after 01.04.2009Establishing and overseeing a cold chain service for certain goodsOn or after 01.04.2010Constructing and advancing a housing initiative for slum rehabilitation or refurbishment according to a scheme specified by the State or Central Government.On or after 01.04.2007Operating and installing a crude oil/petroleum/natural gas pipeline network (as a key component of the network) for distribution purposes.Deduction Amount Under Section 35ADThe deduction of 100% of the capital expenditure incurred during the previous year, wholly and exclusively for the specified business, as mentioned above, would be allowed as a deduction from the business income to the assessee under section 35AD. However, expenditure incurred on the acquisition of land, goodwill, or financial instruments would not be eligible for deduction.