Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: articles on VAT and GST in India :: form 3cd :: VAT RATES :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: cpt :: TDS :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: ACCOUNTING STANDARD
 
 
Direct Tax »
 CBDT clarification on Ind-AS makes tax calculation harder for companies
 I-T department to share companies' tax info with corporate ministry
 CBDT comes out with clarification on MAT for Ind AS companies
 No penalty for late ITR this year but here are 4 important reasons to file it in time
 12% growth in income tax collection
 CBDT gameplan to enhance TDS collection
 Don't curry political favours for transfers, CBDT tells taxmen
 CBDT: GST not to be added for TDS computation
 Five interest incomes you are likely to forget to include in your tax return
 GST not to be added for TDS computation
 GST not to be added for TDS computation

You turn a year older on day before birthday: CBDT
July, 30th 2016

The Central Board of Direct Taxes has decided that, for tax purposes, a person would be deemed to have attained a certain age on the day preceding their birthday, rather than on the birthday itself.

The issue is of importance to those turning 60 or 80 years of age on April 1, since those two ages bring with them income tax exemptions applicable to senior and very senior citizens, respectively. The questions arose as to whether a person whose 60th birthday is on April 1 has completed 60 years of age on March 31 or on April 1.

“The Central Board of Direct Taxes, in the exercise of powers under section 119 of the Act, hereby clarifies that a person born on April 1 would be considered to have attained a particular age on March 31, the day preceding the anniversary of his birthday,” the CBDT said in a circular. “It is a good move since those individuals will benefit from the senior citizens exemptions in the year they turn 60 rather than in the next year,” Kuldip Kumar, Partner & Leader, Personal Tax, at PwC India.

While acknowledging that there is no specific provision to decide this in the Income Tax Act, the CBDT cited a Supreme Court judgement (Prabhu Dayal Sesma vs. State of Rajasthan &, another 1986) as the basis for its decision.

“… At first impression, it may seem that a person born on January 2, 1956, would attain 28 years of age only on January 2, 1984 and not on January 1, 1984,” the judgement read. “But this is not quite accurate. In calculating a person’s age, the day of his birth must be counted as a whole day and he attains the specified age on the day preceding the anniversary of his birthday.” Senior citizens do not have to pay any tax on an income up to Rs.3 lakh a year while very senior citizens have an exemption limit of up to Rs.5 lakh a year.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions