A manager by day and a sloth by night. I enjoy writing on topics like personal finance and investments. With 10 years of experience in fintech, creating content that resonates with readers is my forte. I enjoy reading and love my job and my team at ClearTax.
In India, individuals and businesses are liable to pay direct taxes based on their income. Several factors influence tax computation, including costs, tax type, deductions, income and exemptions. Irrespective of the income that an entity earns, he/she has to pay taxes as per the applicable tax rates. Does this mean that companies and individuals earning in crores need to pay crores in taxes? Follow this article to get comprehensive knowledge about the highest taxpayers in India.Top 10 Highest Taxpayers in IndiaWhen you think of taxpayers in India, the common names that come into mind are established businesses such as Reliance, ITC, Tata and many more. However, the list of top taxpayers goes beyond these renowned organisations. Here’s a list of the top 10 highest tax-paying entities in India. Reliance IndustriesReliance Industries Limited (RIL) is a Fortune 500 company and India's largest private sector corporation.
If you are a working professional and have recently switched jobs in search of better pay and opportunities, then how to merge PF accounts is a valid question. When you change jobs, a new EPFO account is created through your old UAN number. In any case, the fund in the old account will not get transferred to the new one. To avail this service, you need to merge your old and new accounts. In this article, we will explain how to merge PF accounts seamlessly.Requisites for Merging PF AccountsIf you are considering merging your accounts, you need to consider certain things.
According to the 3rd amendment of Income Tax Rules 2023, the tax audit report needs to be furnished by charitable trusts, institutions and NGOs to file form 10B. These institutions and trusts must be registered under Section 12A or approved under Section 10(23C) of the Income Tax Act. Keep reading to get a detailed idea about Form 10B of the Income Tax Act.Latest UpdateThe due date to submit From 10B and Form 10BB was originally October 31, 2023. But now, the department has extended the deadline to November 30, 2023.Form 10B of the Income Tax Act Form 10B previously allowed a taxpayer to file an audit report if they were already registered or applied as a charitable or religious trust or institution by filing Form 10A. These trusts or institutions had to be registered under Section 12A.As per income tax (3rd amendment) rules 2023, the focus of applicability of the form for furnishing tax audit reports has a wider scope.
In today's fast-evolving corporate space, books and periodicals are essential for employees to stay updated on news, changes, and policies. Not only that, books and periodicals are interactive and engaging and bring in a sense of relaxation after a long day at work. Most companies include book and periodical allowances in the salary package to ensure employee progress and interest. Since book and periodical allowance is part of your salary, you may have questions regarding the exemption limits, formats and deductions. Keep reading to learn about the book and periodical allowance exemption limit, eligibility, tax benefits, and a lot more.What is book and periodical allowance?Books and periodicals allowance is a part of a special allowance granted to employees for their welfare and interest. As per this allowance, employees get reimbursement for the expenses incurred in purchasing books, magazines, journals, and newspapers. According to section 10(14) of the IT Act 1961, books and periodical allowance is completely tax exempted. Employees are entitled to the allowance only if they claim it within a year of purchase.
In the complex web of taxation laws and exemptions, one that often goes unnoticed but significantly impacts the lives of many employees is the Washing Allowance Exemption. As per Section 10(14)(i), the exemption is offered to salaried employees who incur expenses to clean and maintain the uniforms that they wear on official duty.To properly understand the aspects of Washing Allowance exemption, it is important to get a deeper understanding of the provisions, exemptions and limits under the Income Tax Act. Let us delve deeper into this article to get a proper knowledge of the Washing Allowance Exemption on Income Tax Act 1961.Washing Allowance Exemption LimitThe Washing Allowance Exemption limit is the highest amount an employee may claim as an exemption from their employer's washing allowance. The ceiling for the Washing Allowance Exemption under the Income Tax Act of India is Rs.1,000 per month or Rs.12,000 per year, in accordance with Section 10. This implies that if an employer offers a monthly washing allowance of up to Rs.1,000, the full payment is tax-free. Any sum over this limit, however, is taxed as part of the employee's income.Uniform Washing Allowance ExemptionUniforms are worn by numerous professionals, including security guards, healthcare workers and hotel employees.
An allowance is a monetary benefit to employees to meet specific requirements or compensate for their efforts and contributions. An ad-hoc allowance is one such allowance where the employee receives special compensation for a particular purpose as necessary. It is not a part of the basic salary. Keep reading to learn about the diverse aspects of ad hoc allowance, its meaning, tax benefits, deductions, and exemptions.What is an ad hoc allowance?An ad hoc allowance in the salary is a one-time compensation given to the employees for a specific purpose in an unplanned manner. This allowance is disbursed in response to unique scenarios like exceptional performance, additional job responsibilities, project costs, missed payments, tax payments, and advances. It falls out of the normal payroll processing cycle as it is disbursed to cater to specific and immediate requirements. In simple terms, for example, if you make a remarkable contribution to a specific project, your employer may offer you an ad hoc incentive. The main purpose of an ad hoc allowance is to offer extra compensation to an employee for a particular purpose, and it is taxed at the same rate as the employee’s basic pay.
Several economic conditions force families and individuals into unemployment, making it impossible to make ends meet. Therefore, the Indian Government has introduced several allowances and benefit schemes to financially assist the unemployed and job-seeking individuals. Unemployment allowance is one such governmental scheme that offers financial support to individuals who have lost their jobs under no fault of their own. Most Indian states have incorporated unemployment allowance schemes to render economic assistance and eradicate unemployment. If you are looking for more information about unemployment allowance, this blog will help you to learn about schemes related to unemployment allowance in India, important documents and the application process.What is an unemployment allowance?An unemployment allowance in India is a financial aid provided by the Government, where a fixed sum of money is offered to unemployed individuals to cover their basic living expenses. It is paid up to a maximum of one year to the employees who have contributed towards an organisation for a minimum of three years. However, unemployment allowance is granted to those unemployed individuals who have lost their jobs due to reasons like layovers, retrenchment, factory closures, and economic downfall. If you are unemployed for personal reasons, you will not be eligible for an unemployment allowance.Usually, an unemployment allowance is 50% of a worker’s daily average earnings.
YouTube, in recent years, has emerged as a significant source of income. This social media website has transformed from a video-sharing platform to a content-creation platform, opening a lucrative income option to all. Budding vloggers are making money from this social media, but most are unaware of whether this income is taxable as per the Income Tax Act 1961.In this article, we will provide you with a comprehensive guide on taxes applicable to your income from YouTube.Income Tax on YouTube Earning YouTube is such a social media platform where there is no age constriction regarding vlogging or content creation. Creative minds can come together to share their experience and knowledge and earn a significant sum. Nature of YouTube IncomeThe nature of income of YouTubers varies as per the posts they make. Here are the types of income earned by YouTubers - YouTube advertisementsAffiliate sales or freelance income from the content createdPayment from YouTube for engaging viewers - assessed mainly as per the number of views, comments and reachConsultancy service for video design, creation, and optimisation, assisting to reach a big audienceIncome Tax Implication on YouTube EarningsThe income tax payable on your YouTube business can be classified under 'Income from Other Sources' or 'Income from Business and Profession'. However, in most cases, the earnings are regarded as business income.
People worldwide were waiting for the changes introduced on Twitter after Elon Musk acquired the social media platform in October 2022. The business magnate and investor changed Twitter’s legal name in April 2023. Now, this famous social media platform is officially known as X Corp. Soon after, Musk made a business decision to share ad revenues with content creators who are active on the rebranded platform. The payment of ad revenues depends on the engagement that creators generate. Read on to know how the income earned by Indian users from X will be taxed. How Content Creators’s Earnings from Twitter Will Be Taxed? Let’s explore how the content creators will earn from X in detail. Musk has recently announced that people who have subscribed to X Premium (blue) are entitled to receive the company’s share.
One of the primary sources of revenue for the Indian Government is the tax paid by individuals, companies and others. To reduce tax evasion and encourage tax payment, the Indian Government provides benefits in the form of exemptions and deductions to the taxpayers. However, few companies took advantage of such deductions and became a zero tax-paying unit.Therefore, to maintain a balance between levying tax on zero tax-paying units and allowing deductions, the Alternate Minimum Tax (AMT) was introduced under Section 115JD of the Indian Income Tax Act. This article shall discuss Section 115JD in detail, its applicability and the provisions considered.What is Section 115JD?When the regular tax amount falls short of AMT liability, Section 115JD of the Income Tax Act discusses the application of Alternate Minimum Tax (AMT). AMT credits come into play to rectify any disparity between tax paid by a standard taxpayer and AMT.The Income Tax Act of 1961 introduced Section 115JD to offer respite to specific taxpayers holding accumulated long-term capital gains (LTCG) who aspire to transform their capital assets into new ones.