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    November 16, 2018

    Income Tax

    What is an 'Income Tax'?

    Income Tax

    On your Self Assessment tax return you’ve said you have income from UK property over £1,000 including foreign property income. This is the section of the tax return you go to. Don’t start filling in this section if:

    ● you receive income from letting furnished accommodation in your home that amounts to a trade - for example, you run a guest house or offer bed and breakfast. Fill in the ‘self-employment’ section instead.

    ● your property is outside the European Economic Area - fill in the Foreign’ section.

    ● your property income was from a partnership - fill in the Partnership section. Enter details about your property on these pages.

    This is where you claim any Rent a Room relief. If your income was above the Rent a Room threshold you make an adjustment for the exempt amount later.You can claim the £1,000 property income allowance here, but remember you can’t then deduct any expenses against your income. See the question mark for further guidance. From April 2018 the default basis for calculating your income and expenses is cash basis. If you use traditional accounting select ‘Yes’ here, otherwise select ‘No’

    UK tax is only taken off if you’re a non-resident landlord. Then, your total income from property is calculated. This is where you enter your running costs. Allowable expenses include the cost of repairs where you’re restoring an asset to its original condition but not for improvements or upgrades. These are a capital expense. In the tax year 2018-19 finance costs for residential properties are restricted to 75%. The figure you enter here will be 75% of your total residential finance costs and you’ll claim a basic rate tax reduction shortly. This doesn’t affect commercial lettings, see the guidance for more details. less any Loan interest and financial costs, these must be entered separately. Adjustments go here. For residential lettings only, this is where you claim the cost of replacing domestic items. Use the question mark for more information. If you’re claiming Rent a Room relief but received more than the threshold, enter the exempt amount here. The adjusted profit for the year will be calculated for you. If there’s a profit you must enter any unused losses from earlier years. The taxable profit or adjusted loss will display below and the loss to carry forward will be calculated for you.


    Here we are discussion about Income Tax : 

    Income Tax

    Income Tax

    Assessment Years 2018-2019(F.Y-2017-2018) as Per Bill

    A) Income Tax Rates

    a) Individual / HUF/AoP

    Income Slab                 Senior Citizen                                   Super Senior Citizen         Other
                                       (60 yrs. or more)                                   (80 yrs. Or more)   

    up to 2,50,000                      NIL                                              NIL                                  NIL

    Rs. 2,50,001 to 3,00,000      NIL                                              NIL                                  5%

    Rs. 3,00,001 to 5,00,000      5%                                               NIL                                  5%

    Rs. 5,00,001 to 10,00,000    20%                                               20%                                20%

    Above 10,00,000                   30%                                               30%                               30%
    (Surcharge @ 10% on Tax if Income > Rs. 50 Lakhs, Subject to marginal relief)
    (Surcharge @ 15% on Tax if Income > Rs. 1 Cr. Subject to marginal relief)
    Education Cess @ 3% on Tax plus Surcharge (if any)

    (Domestic Co. having Turnover not exceeding 50 Cr. - 25%)
    (Surcharge on firms @ 12% on Tax if income > 1 Cr., Subject to marginal relief)
    (Surcharge on Co. @ 7% on Tax if income > 1 Cr. & 12% if income > 12% if income > Rs. 10 Cr., Subject to marginal relief)

    Education Cess @ 3%  on Tax plus Surcharge (if any) 

    a) u/s 24(b)
    interest on Housing Loan (Self Occupied House) - upto Rs. 2,00,000

    b) u/s 80c/80CCC/80CCD
    LIC, Pension Fund, PF, Tution Fees etc-upto Rs. 1,50,000 + Additonal Rs. 50,000 u/s 80CCD

    c) u/s 80D
    Medical Insurance (incl. Preventive Health Checkup) (for Self, spouse and dependent children) - upto Rs. 25,000
    (where any of the above insured is > 60 yrs. - upto Rs. 30,000)

    d) u/s 80TTA
    Saving Interest from Banks, Post office, Co operative Societies exempt upto Rs. 10,000

    e)u/s 87A
    Deduction of tax upto Rs.2,500 or actual tax whichever is less, if total income is Rs. 3.5 Lacs or less


    a) Companies covered under Transfer Pricing - 30th Nov'
    b) Others Companies / Others (including working Partner of a firm) where accounts are audited - 30th Sep'
    c) Other - 31st Jul

    D) ADVANCE TAX (only if tax liability exceeds Rs. 10,000)

    a) No Advance tax in case assessee is a senior citizen who does not have any income from business of profession.
    b) In case of person declaring income u/s 44AD & 44ADA - 100% before 15th March.

    c) In all Other cases:-
                                                                  Date:                        % of Total Tax
    1st Installment                                     15th Jun'                            15%
    2nd Installment                                   15th Sep'                             45%
    3rd Installment                                   15th Dec'                              75%
    4th Installment                                   15th Mar'                             100%


    E) RATES OF TAX DEDUCTED AT SOURCE (TDS) (Other than Salaries)

    Nature of Payment                                                                      Payment to
                                                                                  Individual/HUF                 Other
    a) Interest on Loan                                                           10%                       10%
    b) Contracts                                                                         1%                      2%
    c) Commission/Brokerage                                                  5%                      5%
    d) Rent - for Machinery / Equipments etc.                       2%                      2%
                 - for Land/Building/Furniture & Fittings          10%                      10%
    e) Professional / Technical Services                                  10%                     10%
    f) On Purchase of Immovable Property of 
        Rs. 50 Lacs or More (Other than Agricultural Lands) 1%                    1%

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