#income tax deductions

[quasistarjudgement]

I have GOT to get out of this country oh my GOD

[cheshirelibrary]

[babygirlwesterberg]

stills from the replacements' bastards of young music video, 1985

[swinging-from-my-cable]

Every time I file taxes

[100dayproductivity]

65/100.

Finished my taxes! Submitted it yesterday.

Last time we talked, I was trying to figure out my business-use-of-home expenses for the pet boarding part of my business. It was making my head hurt trying to figure out how I should calculate this.

I finally decided I should treat pet boarding like a bed and breakfast for the purposes of filing taxes. So to that end, I had to figure out what percentage of my home I use for boarding and for what percentage of the time.

First I considered what percentage of my house is used for boarding. The thing is, all dogs and some cats have free range of the home 24 hours a day. That translates to 100% of the home 100% of the time. But I'm pretty sure that's not gonna fly for deducting business-use-of-home expenses. The CRA wants a "reasonable" prorating of the expenses.

So I thought about what parts of my house I actually use for boarding. Generally, I confine cats to one bedroom. Two cats from the same household stay together in the same room, so it's not one room per cat, it's one room per booking.

For dogs, even though they have free range, they generally follow me around the house, which means that during the day they rarely go upstairs at all. Mostly they are in the two rooms I use the most during the day: the living room and the kitchen. If I leave the house, I'm pretty sure they just nap in the living room the whole time I'm gone. At night, some dogs sleep in the living room, others follow me upstairs to my bedroom and sleep next to my bed. However, if cats are boarding in my room and can't coexist with dogs, then the dog is shut out of my bedroom and lopes back down to the living room, or sleeps outside the bedroom. At this point I was considering dogs as using half the house for calculating purposes.

But then I thought about the times I've had multiple dogs from different households boarding at the same time. Often they just all nap in the living room, but sometimes I have to physically separate them, especially during mealtimes. At those times, I generally either put up physical barriers, or I tether the dogs in different rooms, usually one in the kitchen and one in the living room. I also thought about the fact that I sometimes block off the living room or the kitchen in order to keep a boarding dog away from my own two cats. Furthermore, nobody really hangs out in the dining room, which separates the kitchen and living room. It's more of just a pass-through. So in the end, I decided to consider dogs as using one room per booking as well, as per cats.

I then had to figure out what percentage of my home "one room" constitutes. I didn't want to use square footage, because honestly then I'd have to measure and that would be a huge pain in the butt. But also because it doesn't really matter what size the rooms are, it's the doors and barriers that are important. So I mentally divided my house up into the usable rooms or areas for keeping pets separated, safe and comfortable. Upstairs there's three bedrooms. The bathroom doesn't count because I don't put pets in there. The main floor is open, no doors, but not "open-concept"--there are walls and doorways, so I am able to put up barriers. I considered the main floor as consisting of three rooms.

Now the basement, I mostly just use it for storage, and also I keep the basement door closed, so no one goes down there. However, in high-season when it's super busy with multiple bookings, I do use the basement bathroom as over-flow to house cats. And when it has been super super busy, I have had one cat in the bathroom and another cat outside of the bathroom. There are no rooms in the basement other than the bathroom and the tiny boiler room/washer & dryer nook, where I do NOT house cats. So essentially there are two spaces in the basement cats can be housed: in the bathroom, or outside the bathroom. So for pet boarding purposes, I consider this to be two rooms.

That makes 8 rooms in total: 3 upstairs, 3 on the main floor, and 2 in the basement.

So the portion of my house that a pet/two pets from the same household use when they board with me is 1/8.

Phew!

Next, I had to figure out what percentage of the time a pet uses 1/8th of my house. A pet uses their portion of the house 100% of the time they are staying with me, but I don't have pets staying with me 100% of the time. To figure this out, I needed to add up how many days of the year I had a pet staying with me. I'll walk you through that calculation in the next post.

[taxblgs]

Don’t Miss Out! TDS Payment Deadlines for FY 2024–25 Explained

Filing TDS (Tax Deducted at Source) returns can be straightforward if you know which forms to use. Here’s a concise breakdown of the essential forms required for different types of transactions.

1. Form 24Q

Purpose: This form is crucial for employers as it reports TDS on salaries.

Key Point: Employers must submit this quarterly to reflect tax deductions from employee salaries.

2. Form 27Q

Purpose: Use this form to report TDS on payments made to non-residents.

Examples: This includes payments such as interest, dividends, and other sums payable to foreign entities or individuals (excluding companies).

3. Form 26Q

Purpose: This form covers TDS reporting in various scenarios, such as professional fees and interest payments.

Application: It's essential for a range of payments outside of salaries.

4. Challan-cum-Statement Forms

Form 26QB: For TDS under Section 194-IA (related to property sales).

Form 26QC: For TDS under Section 194-IB (applicable to lease payments).

Form 26QD: For TDS under Section 194M (payments made to contractors).

Timely Submission

Remember, these forms must be submitted within 30 days from the end of the month in which TDS was deducted. Ensuring timely filing can save you from penalties and maintain your compliance with tax regulations.

Conclusion

Understanding the specific forms for TDS filing is vital for smooth compliance. Choose the correct form based on your transactions to ensure hassle-free returns. Stay tuned for more updates on TDS regulations and best practices!

Read also: How to check your TDS Refund? , Books of account under section 44aa, Notice issue ? get expert help

[thatrandombystander]

What the FUCK do you mean the government changed the rules for voluntary higher education repayments earlier this year? They no longer count towards your compulsory repayment?? They're no longer factored into your tax statements????

I thought I was gonna get $2,000 back in tax return 😭

[paisainvests-1]

How Income Tax Return Online Filling

Filing your income tax return online can feel like navigating a labyrinth, but with the right guide, it’s more like a walk in the park. We’ll break down each step, simplify the jargon, and get you filing with confidence. Let’s dive in!

Why File Your Income Tax Return Online?

Filing your income tax return online isn’t just about following trends; it’s about leveraging modern technology to make your life easier. Here’s why you should consider it.

Convenience and Accessibility

Gone are the days of standing in long queues or filling out mountains of paperwork. Online filing lets you submit your return from the comfort of your home, anytime. It’s like having a tax office at your fingertips!

Accuracy and Efficiency

Online portals are designed to minimize errors. With built-in calculators and validation checks, you’re less likely to make mistakes. Plus, it speeds up the whole process, so you can get your refund quicker.

Step-by-Step Guide to Filing Your Income Tax Return Online

Ready to get started? Follow these steps to file your income tax return online efficiently and correctly.

Step 1: Gather Necessary Documents

Step 2: Register or Login into the Income Tax Portal

Step 3: Select the Appropriate ITR Form

Step 4: Fill in Your Personal Details

Step 5: Provide Income Details

Step 6: Claim Deductions and Exemptions

Step 7: Review and Verify Your Return

Give your return a thorough once-over. Check for any errors or missing information. Think of it as proofreading an important email.

Step 8: Submit Your Return

Once satisfied, hit the submit button. Congratulations, you’ve filed your return!

Step 9: E-Verify Your Return

E-verification is the final step to validate your return. You can do this through methods like Aadhaar OTP, net banking, or EVC. It’s like signing off on your work.

Common Mistakes to Avoid

Even with the best tools, mistakes happen. Here are common pitfalls to watch out for.

Incorrect Personal Information

Ensure all personal details are correct. Errors in your name, PAN, or bank details can lead to processing delays.

Misreporting Income

Be accurate with your income details. Misreporting can trigger unwanted scrutiny and penalties.

Not Claiming All Deductions

Maximize your tax savings by claiming all eligible deductions. Missing out means paying more tax than necessary.

Benefits of E-Verifying Your Return

Why bother with e-verification? It’s not just a formality—it comes with real benefits.

Faster Processing

E-verified returns are processed quickly, meaning you’ll get your refund sooner. Who doesn’t like faster refunds?

Reduced Chances of Manual Errors

E-verification reduces the chances of manual errors in data entry, making your filing experience smoother and more reliable.

Conclusion

Filing your income tax return online doesn’t have to be daunting. With the right preparation and a systematic approach, you can navigate the process smoothly. Happy filing!

By Paisainvests.com

[mustapharatibllc]

Understanding the fundamental principles of bookkeeping is essential for any business, regardless of its size or industry. Effective bookkeeping lays the foundation for accurate accounting and tax services, ensuring financial stability and compliance with regulations.

[davidl2001]

Mastering Deductions to Shrink Your Tax Bill

Navigating tax season can be a daunting task, especially when the goal is to save as much money as possible. Fortunately, understanding how to maximize deductions and minimize taxes can significantly lighten your financial load. This guide will offer practical tips and insights that will help you keep more of your hard-earned money. Understanding Tax Deductions Tax deductions are expenses that…

[sonalj]

Income Tax Deductions & Exemptions under Sections 80C, 80D & 80DDB

What are Tax Deductions?

Tax deductions are specific expenses or investments that reduce an individual’s taxable income, thereby lowering the amount of income tax they are required to pay. These deductions in income tax are allowed by the government to encourage individuals to save and invest, purchase insurance policies, and contribute to specific funds and schemes.

Various Types of Tax Deductions in India Understanding the nuances of tax deductions is crucial for taxpayers to make informed decisions about their financial choices and ensure compliance with tax regulations. This knowledge empowers individuals and businesses to explore legitimate ways to maximize tax benefits while contributing to the nation’s economic growth.

Income Tax Deduction Under Section 80C Section 80C is one of the most popular tax-saving provisions in India. Under this section, taxpayers can claim deductions up to ₹1.5 lakhs in a financial year. Some eligible investments and expenditures under Section 80C include

a. Employee Provident Fund (EPF)

b. Public Provident Fund (PPF)

c. Equity-Linked Savings Scheme (ELSS)

d. National Savings Certificate (NSC)

Income Tax Deduction Under Section 80CCD This section includes the contribution to the Atal Pension Yojana. It allows a contribution of up to 10% of the total salary of salaried employees and 20% of the gross income of non-salaried to the government-notified pension schemes. The contribution can be deducted from the taxable income under Section 80 CCD (1). If the employer also contributes to the scheme, the entire contribution amount can be claimed as a tax deduction under Section 80CCD (2).

It is important to remember that the complete deduction under Section 80C, Section 80CCC, and Section 80CCD (1) cannot exceed ₹15,00,000 in aggregate. However, the additional tax deduction amounting to ₹50,000 under Section 80CCD (1B) is above this limit.

Income Tax Deduction Under Section 80DD An amount of ₹75,000 may be claimed as a deduction for spending on medical treatments of dependents with a 40% disability. This limit is ₹1,25,000 in case of severe disability.

Income Tax Deduction Under Section 80DDB Deduction for Medical Expenditure on Self or Dependent Relative:

Deduction for Medical Expenditure for individuals and HUFs below age 60Income Tax Deduction under Section 80DDB, a deduction of up to ₹40,000 is available to an individual or a HUF below 60 years of age. It is for any expenses towards treating specified critical ailments for self and dependents.Deduction for Medical Expenditure for senior citizens and super senior citizensPreviously, for FY 2017-18, the limit was ₹60,000 for senior citizens and ₹80,000 for super senior citizens. It has been changed to ₹1,00,000 for all senior citizens, including super senior citizens. Income Tax Deduction Under Section 80CCG This section which offered the tax benefits of the Rajiv Gandhi Equity Savings Scheme, has been withdrawn. Still, if an individual has claimed a deduction in the previous financial year, you are eligible to continue with the same for the next two financial years.

Income Tax Deduction Under Section 80EE Individuals buying a home for the first time may claim an additional deduction of ₹50,000 on the home loan interest paid. This includes a clause that the loan should be sanctioned in or after FY 2016-17, and the loan amount should be less than ₹35,00,000. Furthermore, the house’s value should not exceed ₹50,00,000, and the individual should not own any other residential house under his name.

Income Tax Deduction Under Section 80EEA Section 80EEA allows a deduction for interest payments up to ₹15,00,000. This deduction is over and above the deduction of ₹2,00,000 available under section 24. An individual should not own any house on the date of a loan sanction to claim this deduction.

Income Tax Deduction Under Section 80GG The deduction amount for this section is ₹60,000 per annum, and the section applies to only those who neither own a residential house nor receive a House Rent Allowance. Therefore, the amount of deduction will be the least of the following:

25% of the total income ₹5,000 per month amounts of 10% of the adjusted total income deducted from the rent paid

Income Tax Deduction Under Section 80U This section allows a deduction for individuals who are physically and mentally challenged.

Income Tax Deduction Under Section 80D Section 80D provides deductions on health insurance premiums paid by individuals and HUFs (Hindu Undivided Families). The eligible deduction amount varies based on the age of the insured and the number of family members covered under the policy. Additionally, deductions for preventive health check-ups are also available.

Income Tax Deduction Under Section 24(B) Section 24(b) deals with deductions on the interest paid on home loans. For self-occupied properties, taxpayers can claim up to ₹2 lakhs per annum. In the case of let-out properties, there is no upper limit on claiming the interest paid on the home loan.

Income Tax Deduction Under Section 80E This section allows taxpayers to claim deductions on the interest paid for education loans. These loans must be taken for higher education, either for the taxpayer, spouse, children or for a student the taxpayer is the legal guardian of.

Income Tax Deduction Under Section 10(14) Section 10(14) offers deductions on various allowances received by salaried individuals, such as House Rent Allowance (HRA), conveyance allowance, and medical allowance.

Income Tax Deduction Under Section 80G Donations made to specified funds and charitable institutions are eligible for deductions under Section 80G. The deduction varies from 50% to 100% of the donated amount, depending on the nature of the recipient organization.

Income Tax Deduction Under Section 80TTA And 80TTB Under Section 80TTA, individuals can claim deductions of up to ₹10,000 on interest earned from savings accounts. For senior citizens, Section 80TTB provides deductions of up to ₹50,000 on interest earned from savings accounts, fixed deposits, and recurring deposits.

[entrepreneurbar]

Understanding the taxation of agricultural income

Taxation of agricultural income in India is governed by specific provisions under the Income Tax Act. Agricultural income enjoys a special status and is generally exempt from income tax. In this detailed explanation, we will discuss the taxation of agricultural income in India, including its exemptions, clubbing provisions, reporting requirements, and relevant considerations.

1. Definition of Agricultural Income:

The Income Tax Act does not specifically define agricultural income. However, it includes income derived from activities related to agriculture, such as cultivation of land, the process of raising agricultural produce, and the use of land for agricultural purposes. Income generated from dairy farming, poultry farming, beekeeping, and other allied agricultural activities may also be considered as agricultural income.

2. Scope of Agricultural Income:

Agricultural income includes various types of income generated from agricultural activities. It encompasses income from the following sources:

Cultivation of Crops: The primary and most straightforward source of agricultural income is the cultivation of crops. Income generated from growing and selling crops, whether food grains, fruits, vegetables, or cash crops, falls within the scope of agricultural income.

Livestock and Dairy Farming: Revenue generated from activities related to livestock, such as the sale of milk, wool, or other products, is considered agricultural income. Income from dairy farming and animal husbandry is integral to the scope of agricultural income.

Poultry Farming: Income derived from poultry farming, including the sale of eggs and poultry products, is treated as agricultural income.

Forestry and Plantation: Revenue generated from the cultivation and sale of timber, wood, or other forest produce is considered agricultural income. Plantations of tea, coffee, and rubber also fall within the scope.

Agro-Processing and Allied Activities: Income derived from processing and allied activities directly related to agriculture, such as milling, pressing, or other processing of agricultural produce, is included in the scope of agricultural income.

Agritourism: In recent times, income generated from agritourism, where agricultural land is used for recreational and tourism purposes, may be considered agricultural income.

Rent from Agricultural Land: Rent received from leasing agricultural land is part of agricultural income. The tenant, in this case, may also be eligible for exemptions on the income derived from such land.

To read continue:- Taxation of agricultural income

[ifindtaxpro]

Elevate your yoga studio or wellness center's financial wellness with smart tax planning! Learn how to leverage holistic health deductions, optimize yoga teacher income, and stay compliant with tax regulations. #YogaStudio #WellnessCenter #TaxPlanning #HolisticHealth