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What are the different types of Provident Fund

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  Different types of Provident Funds (a) Statutory Provident Fund: Statutory provident fund is the oldest type of fund. It was started in the year 1925 through a Provident Fund Act of 1925. This fund was started with a view of promoting savings amongst government employees. Generally this fund is maintained by Government or Semi- Government departments like Railways, RBI, Colleges, Universities, local bodies, Insurance companies etc. The employer’s contribution towards the employee’s statutory provident fund and the amount of interest earned on the accumulated balance to the employee’s credit balance is not to be included in the income of the employee and so it is ignored. When the employee retires or leaves the service and receives any amount from the accumulated balance to his credit in the statutory provident fund, the amount so received will not be included in employee’s total income [Section 10(11)] being exempted income. Employee’s own contribution will qualify for ded...
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Definition of Salary [Section 17(1)]

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  According to section 17(1) salary includes the following amount received by an employee from his employer, during the previous year: (i)               Wages (ii)             Any annuity or pension ( family pension received by heirs of an employee is taxable under income from other sources) (iii)           Any gratuity (iv)           Any fees, commission, perquisites or profits in lieu of or in addition to any salary or wages (v)             Any advance of salary (vi)           Any payment received by an employee in respect of any period of leave not availed of by him (vii)        The annual accretion to the balance at the credit of an employee participating...
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Basic Concepts under Income Tax Act 1961

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  Some of the basic concepts Under Income Tax Act 1961 are mentioned below: 1. Assessee:  As per section 2(7), an assessee is a person who is liable to pay the taxes under any provision of Income Tax Act 1961. Assessee can also be a person with respect of whom any proceedings have been initiated or whose income has been assessed under the Income Tax Act 1961, Assessee is any person who is deemed assessee under any of the provisions of this act or an assessee in default under any provisions of this Act. 2. Assessment: Assessment is primarily a process of determining the correctness of income declared by the assessee and calculating the amount of tax payable by him and further procedure of imposing that tax liability on that person. 3. Previous year: As per Section 2(34) of the defines Previous Year as (a). Previous year means the previous year as defined in section 3;  (b). As per section 3 of the Income Tax Act 1961, previous year is defined as the financial year which im...
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Scope of total income on the basis of residential status as per Income Tax Act 1961

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 The tax is levied on total income of a person. The total income is based upon the residential status of an assessee. Section 5 provides the scope of total income which varies on the basis of the status.  1. Scope of total income of  'a Resident' [Section (1)]     (a) Income received or deemed to be received in India during the relevant accounting year. The place and date of accrual is immaterial.     (b) Income which accrues or arises or is deemed to accrue or arise in India during the relevant accounting year irrespective of the date and place of its receipts.     (c) Income accruing during the relevant accounting year outside India whether it is brought or not in India during the year. 2. Scope of total income of  'Not Ordinarily Resident' [Section 5(1)]     (a) Income received or deemed to be received in India during the relevant accounting year. The date and place of accrual is immaterial.     (b) Income which ar...
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Income Exempted under section 10 (U/S 10) of Income Tax Act 1961

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Section 10 of Income tax Act is related to incomes which are totally exempted from tax, so in computing the total income of any previous year of any person, any income falling within any of the following clauses shall be exempted: 1. Agricultural Income [Section 10 (1)]:-    Agricultural income from land situated in India is fully exempted. 2. Any sum received by a Co-parcener from Hindu Undivided Family (H.U.F) [Section 10 (2)]:-    Any sum received by an individual as a member of a Hindu Undivided Family, where such sum has been paid out of the income of the family, or in the case of any impartible estate, where such sum has been paid out of the income of the estate belonging to the family is fully exempted. This is subject to the provision of section 64 (2) 3. Share of Income from the Firm [ Section 10 (2A)]:- In case of a person being a partner of a firm, which is separately assessed as such, his share in the total income of the firm shall be fully exempted. The ...
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CUET (UG) 2023

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 CUET 2023 is very important for students who are appearing Class 12 exam and if they dont pass this test they wont be able to take admission in any Central Universities.
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Explain the concept of Internal Check

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 Internal Check is a method of organizing the accounts system of a business concern or a factory where the duties of different clerks are arranged in such a way that the work of one person is automatically checked by another and thus the possibility of fraud or error or irregularity is minimized unless there is a collusion between the clerks. F.R.M De Paula defines internal check as " Internal check means practically a continuous internal audit carried on by the staff by means of which the work of each individual is independently checked by other members of the staff"
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