Income of a minor child is clubbed with the income of his/her parent whose income is higher. If such income is earned on account of manual work or any activity involving application of his/her skill, knowledge, talent, experience, etc. the same will not be clubbed. However, any additional income from such income will be clubbed with the income of the parent.

Leave encashment received at the time of retirement is fully exempt in the hands of a government employee. In case of a non-government employee such income shall be exempt subject to a prescribed limit. However, If such income is earned while in service it shall be taxed irrespective of whether he is a government or a non-government employee.

Loss from house property can be considered against salary income only to the extent of Rs.2, 00,000.

Scrutiny assessment is to confirm that the taxpayer has not understated the income or has not computed excessive loss or has not underpaid the tax in any manner. To confirm the same, the Assessing Officer carries out a detailed scrutiny of the return of income and will satisfy himself regarding various claims, deductions, etc., made by the taxpayer in the return of income.

If you are not satisfied with the order passed by your Assessing Officer then you can file an appeal to the higher authority. The first appellate authority is the Commissioner (Appeals). Subsequently, the matter can be taken to the Income-tax Appellate Tribunal, then to the High Court and the Supreme Court. Alternatively, instead of going for the appeal mechanism, you can make an application of revision to the Commissioner of Income-tax.

The cost of acquisition of a capital asset is adjusted against inflationary rise in the value of asset thus such benefit is available only for computing long term capital gain.

Stamp duty value is the value adopted by any authority of the state government for the purpose payment of stamp duty. From AY 2019-20 if such stamp duty value does not exceed 105% of the sale consideration such consideration shall be the value of actual sale. In case the stamp duty value exceeds 105% then the same will be considered as full value of sale for the purpose of computing capital gain arising there on.

If the prescribed movable property is received without consideration and the FMV of such property exceeds Rs.50, 000 then the same will be taxable.

If Interest is earned on deposits with bank/ post office/ co -operative societies an amount of Rs.50, 000 can be claimed as deduction and no tax shall be deducted at source against such interest income up to Rs.50, 000.