What is Section 35 of IT Act?

1) Expenditure on scientific research. (i) any expenditure (not being in the nature of capital expenditure) laid out or expended on scientific research related to the business.

What would be the criteria for allowing deduction u/s 35 for expenses incurred on scientific research related to assessee’s own business *?

The deduction is allowable only if the payment is made to any of the following agencies: a research association which has the object of undertaking scientific research; or. a university, college or other institutions to be used for scientific research.

What is weighted deduction?

Under the existing provisions of Section 35(2AB) of the Income-tax Act, a company is allowed weighted deduction at the rate of 200% of expenditure (not being in the nature of cost of any land or building) incurred on approved in-house research and development facilities.

Can gift be given in cash?

Experts say that cash gift up to Rs 50,000 from anyone will not have tax implications in normal circumstances. However, in case of cash gift from husband, there is no such limit on how much cash can be gifted without tax implications. In other words, a man can gift any amount to his wife without any tax implication.

On which assets depreciation is not claimed?

You cannot claim depreciation on Goodwill and cost of land.

What is charged to tax under profits and gains from business?

Income earned through your profession or business is charged under the head ‘profits and gains of business or profession. ‘ The income chargeable to tax is the difference between the credits received on running the business and expenses incurred.

What is illegal business in income tax?

Commissioner Of Income-Tax vs Shivlal Dhirajlal on 26 June, 1991. illegal business is a business within the meaning of the Income-tax Act and, if profits from illegal business business even though that business involved entering into contracts some of which were, in the eye of law, illegal.

How much gift from parents is tax-free?

all gifts are charged to tax Hence, if the aggregate value of gifts received during the year exceeds Rs. 50,000, then total value of all such gifts received during the year will be charged to tax (i.e. the total amount of gift and not the amount in excess of Rs. 50,000).

Can husband give interest free to wife?

Therefore, generally speaking, a husband should not make any gift to his wife. On the other hand, the husband can give a loan to his wife, who may, in turn, invest the loan amount either in the purchase or construction of a house-property or in the acquisition of shares, or in other investments.

What is the rate of depreciation on furniture?

The depreciation rate for furniture and fitting under the Income Tax Act is 10%.

Can we claim depreciation on second hand car?

Normal rates of depreciation shall apply in those cases. Higher rate of depreciation is also applicable for second-hand or previously used motor cars or motor vehicles there is no condition that eligible vehicle should be new.

Is profit from business taxable?

Presumptive taxation for businesses is covered under section 44AD of the income tax act. Any business which has a turnover of less than Rs 2 crore can opt to be taxed presumptively. They must declare profits of 8% for non-digital transactions or 6% for digital transactions, whichever one is applicable.