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 Head of Income: Profits and Gain of Business and Profession Section 23 is called Profits and Gains of Business and Profession.           The following incomes shall be chargeable to income tax under "Profits and Gains of Business or Professions": Profits and gains of any business or profession Any compensation or other payment due to received by any person specified in Section 28(ii) Income of Trade or Professional Association Profit on sale of import license Cash assistance received or receivable against export Duty drawback of customers and central excise duty The value of any benefit or prerequisite received by a person either in connection with his business activities or in the course of his professional services Any interest salary, commission,, bonus or remuneration  received by a partner from firm Any sum received for not carrying out any activity in  relation to any business or not to share any know-how, patent, trademark, copyright,...

 Salary under Income Tax Act Basis of Charge Salary is taxable on due or receipt basis whichever is earlier as per Section 15. Computation of income under the head "Salaries" Salary                                                        xx Allowances                                           xx Prerequisites                                     xx                                                              ...

 Head of Income: Capital Gains Whenever we listen to the word capital, a sudden surge of mental block or brain fogging is associated with it. We think a big company, with lots of assets, or to put in simpler words things, which it will sell and whatnot.          However, what if a told you that it is a simple concept which can be understood by an Eighth Grade student who would learn profit and loss, selling price and cost price etc. Feeling confused about how it can be? I guarantee you, that this blog would work wonders if read with a view just as an Eighth Grade student, who would learn Profit and Loss without much burden on his head.  So put the thinking cap on, and let us get started. Introduction So what are capital assets? Capital Assets are defined under Section 2(14) of the Income Tax Act, 1961. Capital Assets mean property of any kind held by the assessee whether it is connected with his business or profession or not.  The term 'assets' in...

 Head of Income: Other Sources Though the other "Heads of Income" cover everything extensively, what if I won some lottery? Would it be taxable? What if I won in a casino or in a horse race? In order to avoid the tax evasion from the sources which form the part as a casual income, i.e. income earned by some kind of wagering contract would be included here. Or in other words, we can say, those which happened due to a ' matter of luck' involved in it would be covered here. This section is a residuary section which covers the miscellaneous provisions related to taxation. It would be a surprise for the novice, that even the gift received which is above the 50000/- limit would also be taxable!  However, certain relations are exempted (in case the gift is received during the marriage of an individual). However, here the twist comes, and that is #cousins are not involved in this list! Although, even by reading this much the income tax act may seem like havoc, trust me it isn...

 Memorandum of Association  Introduction Meaning of Memorandum of Association What is the charging section of the 'Memorandum of Association'? What are the components of the 'Memorandum of Association'? Conclusion The Memorandum of Association is a document that governs the relations of a  company with the outside world. It is one of the most important documents needed for the incorporation of a company.  The Memorandum of Association is charged under Section 399 of the Companies Act, 2013 The MoA is considered as the constitution of the company. It provides the foundation to the structure or the building of the company. The MoA is defined as a company's charter. It defines the limitation of the company's powers. Particular parts of the memorandum can be altered whenever and however required. The MoA enables the shareholders, creditors and investors to know the permitting range of the company. It regulates  the company's external affairs. Importance of...

Can all Customs become Law? by Harmanjot Kaur What is Custom In various parts of the world, we see various customs of varying degrees. These help in the regulation of human behaviour. These are adopted consciously or unconsciously. However, we see reciprocal rights and obligations related to them. Law based on customs is known as customary law. We see Hindu law, and Muslim Law based on the customs and traditions of the respective community. Similarly, we have Parsi law and Christian Act regarding their personal rights and rituals. However, we see not all customs become law. In this blog, we will see what are the conditions, which a custom should fulfil to make it valid in the eyes of law. Position of custom in various ancient Legal Systems Unlike any other source of law, the custom is also given the status as the source of law. In case it fulfils certain conditions. In most of the ancient legal societies, we see that there were Smritis, Yajnavalkya and other important sources such a...

 Administration of Justice Introduction The  administration of justice is one of the most important pillars of the Government. Law exists there to bind the people together and the community. There are times when people started behaving in an anti social element. Thereafter, the sovereign has to administrator constables to punish the wrong doer behind the bars.   Development of the concept According to Salmond, "Men being what they are keen to see his own interest and passionate to follow it - society can exist only under the shelter of the State and the law and justice of the State is a permanent and necessary condition of peace, order and civilisation.   At the time of inception, the concept of tooth for tooth and an eye for eye was propounded. Then slowly the concept of compensation started to commence.  However, Keeton and Maitland, termed the monetary compensation as botless  term. The compensation is no remedy. There are certain situations where the pu...