Category Archives: Income Tax FAQ

No disallowance u/s 14A because Dividend Income (Exempt) not earned

By | April 17, 2019

The Hon’ble High Court in the case of Cheminvest Limited , has held that if no dividend income is earned during the year, no disallowances u/s 14A of the Act is warranted All ITAT ACIT Vs  Prabhatam Advertising (P) Ltd.   ITA No. 1439/Del/2015 Date of Judgement: 12/06/2018 Related Assessment Year : 2011-12 This appeal by… Read More »

​Is leave encashment taxable as salary?​​

By | December 4, 2017

​Is leave encashment taxable as salary?​​ It is taxable if received while in service. As per Section 17(1) of Income Tax Act  : (1) “salary” includes— —- (va) any payment received by an employee in respect of any period of leave not availed of by him; Leave encashment received at the time of retirement is exempt in the… Read More »