‘Tax-Free Incomes & Investments’ is another important title from an Indian taxation authority. Most
of us, including salaried class, business people, entrepreneurs are not clear about
tax free income. Even if known they are not clear about clauses and sub-clauses that make provision for tax free income. At this juncture the ‘Tax Guru’ has come out with an A-Z ready-reckoner of zero tax incomes and investments. Wonderful! There are more than one hundred tax free incomes and investments. Each item is dealt individually under appropriate headings. The entries are arranged alphabetically with suitable cross references to enable even the novice reader to consult the headings easily. As usual the book is full of practical examples. But it is applicable for the year 2007-2008 only. However the readers may apply the latest amendments to understand most of the clauses. It is more useful to all from a novice to the consultants, tax practioners.
Complete with practical examples, India’s top taxation expert briefs you on more than 100 items of tax-free incomes and investments which result in tax-free income. All these are described under appropriate headings arranged in an alphabetical order, and with suitable cross references.
The important headings the author has covered include: agricultural income, casual income, share of profit of a partner from a partnership firm, dividends on shares and units of mutual funds, interest on relief bonds, moneys received from the lic, interest income of nris on deposit in Non-Resident (External) Account and various types of allowances granted to an employee like the conveyance allowance, uniform allowance, d.a., t.a., etc. The tax-free income is also applicable to new industrial undertakings established in Free Trade Zones and 100% eous which enjoy a 5 to 10-year complete tax holiday.
There are different income categories which enjoy a tax-free treatment in the form of deductions, such as interest on bank deposits, 5-year complete tax holiday to new industrial undertakings in certain backward States, Union Territories and districts, export profits, etc. Many more income items specifically held to be tax free by the decisions of various High Courts and or Supreme court of India deserve tax free income status.