While there are no specific tax benefits for medical professionals, they may claim the benefit of presumptive taxation scheme for computing income from profession.
While there are no specific tax benefits for medical professionals, they may claim the benefit of presumptive taxation scheme for computing income from profession. The scheme applies to any specified profession (such as legal, medical, engineering or architectural profession or the profession of accountancy, technical consultancy, interior decoration or any other notified profession) having total gross receipts not exceeding Rs 50 lakh. Under this scheme, income from profession shall be presumed to be 50% of receipts.
An assessee opting for the scheme is not obliged to maintain books of account or have them audited. All deductions, including depreciation, will be deemed to have been already allowed. However, they can claim deduction under Chapter VI-A (80C, 80D etc.). The scheme is optional, and a person can claim that his income from the profession is lower than the presumptive profit i.e. 50 %, subject to the obligation of maintaining accounts and getting them audited. This scheme is applicable from assessment year 2017-18.
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Q. My husband gifted me an immovable property earlier this month. I plan to gift the same to my brother. What will be the tax implications? (By: Sushma Nath)
A. Transfer by way of gift is not considered as transfer for the purpose of capital gains and therefore, there will be no capital gain tax either in the hands of your husband and subsequently, in your hands when you will gift it to your brother. Further, gift received from specified relatives is exempt in the hands of a recipient under Section 56(2)(x). Definition of ‘relative’ includes spouse and brother of the individual. So, a gift received from your husband and subsequently gifted to your brother will be exempt from income tax.
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