Financial Savvy

The deduction of Chapter VI-A of the Income Tax Act is not available for Goods Transport Agency (GTA) services. As per Section 80-IA(2)(iv), deduction under Chapter VI-A is not available for income earned by a taxpayer from the business of providing services as a goods transport agency. Therefore, taxpayers who provide GTA services cannot claim deductions under Chapter VI-A for any expenses incurred in providing these services, such as salaries, fuel costs, maintenance expenses, etc. However, taxpayers can still claim deductions under other sections of the Income Tax Act for expenses incurred in providing GTA services. For example, expenses related to owning and maintaining vehicles used for GTA services can be claimed as a deduction under Section 32 of the Income Tax Act. Similarly, expenses related to depreciation of assets used for GTA services can be claimed as a deduction under Section 32 of the Act. It is important for taxpayers who provide GTA services to consult a tax professio

Income tax is a crucial component of a country's revenue system. It is an amount levied on the income of individuals, organizations, and entities. In India, the Income Tax Act of 1961 governs the provisions and regulations related to income tax. While paying taxes is a civic duty, there are ways to reduce the tax burden legally. In this blog, we will discuss some of the ways in which one can save income tax in India. Invest in tax-saving instruments : The government of India provides tax benefits to those who invest in specific financial instruments such as Public Provident Fund (PPF), National Savings Certificate (NSC), tax-saving mutual funds (ELSS), and Fixed Deposits (FDs) with a minimum lock-in period of five years. The amount invested in these instruments can be claimed as a deduction from taxable income under Section 80C of the Income Tax Act up to a maximum of Rs 1.5 lakh per year.                                                                                             

Introduction Income tax is a tax levied by the government on the income earned by individuals, companies, and other entities. It is a major source of revenue for the government and is used to fund various social welfare programs, infrastructure projects, and public services. The tax rates, exemptions, and deductions vary from country to country, and are based on the income earned by the individual or entity. In this blog, we will discuss the basics of income tax, its calculation, and its importance. Basics of Income Tax Income tax is a tax levied on the income earned by individuals, companies, and other entities. The income can be in the form of salaries, wages, interest, dividends, capital gains, and other sources. The tax is calculated as a percentage of the income earned, and the rates vary depending on the income bracket. In most countries, income tax is progressive, which means that the tax rate increases as the income increases. In addition to the tax rate, there are