Deductions and Allowances allowed under the Income Tax Act - Professionals - Taxation - TIK Share
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Deductions and Allowances allowed under the Income Tax Act


CA Pulkit Sharma

2014-01-24

Under the head Salaries:

  1. Entertainment Allowance (Section 16(ii))
  2. Tax On employment-Profession Tax (Section 16(iii))

Under the head Income From House Property

  1. Local Taxes by authorities paid by owner (Section 23(1), proviso)
  2. Standard Deduction of 30% (Section 24(a))
  3. Interest On Borrowed Capital (Section 24(b))

Under the head Capital Gains

  1. Expenditure incurred wholly and exclusively in connection with transfer of capital asset
  2. Cost of Aquisition of Capital Asset and improvements

Under the head Income from Other Sources

  1. Any reasonable sum paid to realise the divident/Interest on securities
  2. Repairs, Insurance and depreciation of buildings, plant and Machinary and furniture.