F.A.Q on Indian Income Tax Laws

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No Deprecaiation On Stock Exhange Memebership Card Rules Mumbai High Court!
2009-09-13 14:20:00
Whether Stock Exchange Card is an asset for the purpose of Depreciation was always a matter of interpretation differently by assessee and income tax department.While the Department had all along treated memebrship card of stock exchange as not an asset for depreciation claim , the assessee claimed otherwise. Till now various benches of Tribunal have given verdict in favour of assessee and allowed depreciation claim on cost of memebrship of stock exchange. Some of these rulings were in follwowing case laws: Techno Shares & Stock Ltd vs ITO [2006]101 ITR 349 Peninsular Capital Market vs ACIT [2008] 19 SOT 421 R.M Valippan vs ACIT [2006] 103 ITD 63 (CH) However, now the Bombay High Court has given verdict overruling many Tribunals judgement including in Techno Shares , regarding allwance of depreciation on memebrship card.The issue before,Court was The ITAT has held that the Bombay Stock Exchange  Membership Card (hereinafter referred to as the 'BSE card') acquired by a...
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Highest Ever Cost Inflation Index Notified For FY 2009-10!
2009-09-13 07:23:00
Highest ever Cost Inflation Index notified by Central Govt. The cost inflation index is used when you compute the long term capital gains on sale of a capital asset. Therefore, higher CII means, less taxable lng term gains. Read the notification below NOTIFICATION NO : 67/2009, Dated: September 9, 2009 In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, number S.O.709(E), dated the 20th August, 1998, namely :- In the said notification, in the Table, after serial number 28 and the entries relating thereto, the following serial number and entries shall be inserted, namely:- ?29 2009-10 632? F.No.142/13/ 2009-TPL (Vijay Kumar Jaiswal) Under Secretary (TPL-IV) Complete list of Cost Inflation Index since 1981 is as under:

Can You Deposit Andhra Pradesh Professional Tax in Orissa?
2009-09-09 03:45:00
We are deducting Professional Tax from the Salary of our employees at Hyderabad Branch .Can we deposit the same in the local Professional Tax Authority in Bhubaneswar.If yes. then no problem.But if no, there should be different rates and procedures for this formality.Please let me know.Brahmananda Mohanty ,Bhubneswar Indian states collect revenue through this source ,however , Uttar Pradesh , Uttaranchal, Jharkhand and Arunachal Pradesh are the only exceptions and have not levied professional tax. Municipal bodies in Goa , Haryana, Himachal Pradesh , Kerala , Rajasthan, Bihar, Punjab and Tamil Nadu are empowered their to collect professional tax while Jammu & Kashmir , Maharashtra, Madhya Pradesh and Andhra Pradesh impose this tax themselves. The original ceiling on the professional tax, as prescribed in the Constitution passed by the Constituent Assembly, was Rs 250 a year. It was raised to Rs 2,500 a year in 1988 and since then both the 11th and 12th Finance Commission ha...
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Can You Claim Exemption u/s 54 & 54EC Simultaneously ?
2009-09-06 17:10:00
I have sold a residential house in April' 09 on which the long term capital gain is working out to be Rs.20 lacs.Also, I purchased a residential house in March'09 (I do not have any other residential property of any kind) for Rs.12Lacs.Can I invest Rs.8 Lacs in NHAI Capital gain bonds (under sec54ec) to get exemption of tax payment to full extent.The query can be summarised as follows: Can I take advantage of both CAPITAL GAIN BONDS and RESIDENTIAL HOUSE in minimizing my long term capital gain liability or is any one of the above options that I need to choose from?A.P.GUPTA , Pune Section 54 of the I T Act is providing exemption from taxation on the amount of long term capital gains arising out of  sale of residential house if amount of gains are applied with stipulated time period in buying/constructing  another residential house.Section 54EC provides exemption from taxation on the amount of long term capital gains arising out of  sale of any kind of capital a...

Pay Income Tax For Buying Property Below Stamp Duty!
2009-09-05 12:27:00
  The Clause 26 of the Finance Bill 2009 contains provision to be inserted under Clause (vii) under subsection 2 of section 56 to  provide that an Individual or HUF receiving any immovable property or any property   either without consideration or without adequate consideration from any person other than relative or on occasion of the marriage of the individual or under a will or by way of inheritance or in contemplation of death  of the payer or donor from any  local authority as defined in Explanation to clause (20) of section 10; orFrom any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred in section 10(23C) From any trust or institution registered under section 12AA It means that if you buy any property  from any developer  after 1/ 10/2009 and the value of the property is less than value taken for charging stamp duty o...
More About: Buying , Property , Income , Stamp , Budget

Whether Incentive Bonus Earned By Development Officer Salary or Income From
2009-09-05 12:19:00
Incentive bonus is Salary and actualy expenditure incurred by Development officer and later reimbursed by LIC under Incentive Bonus Scheme 1997 and Reimbursement Scheme 1997 are not be regarded as taxable salary . This is the view of CBDT which was asked Kerala High Court in CIT,Kottayam vs Jhon Varghese in its interim order asked CBDT decide -Whether the incentive bonus paid by LIC to Development Officer s would be assessable under the head ?Salary? or whether it is income from other sources on which 30 % deduction claimed by the Development Officer towards estimated expenditure to earn the income would be allowable. The Board decided as under ?The Board , after examining these two Schemes of LIC of India , has decided that ? the ?incentive bonus? would be taxable as ?salary? in view of the employer ?employee relationship and only such reimbursements that are actual reimbursement of the expenditure incurred would be treated as ?exempt? . Reimbursement of expenditure w...
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Claim of Exemption for Right to Buy Flat Is Valid
2009-09-05 12:18:00
I sold a piece of land in April 2004 with LTCG of Rs 1600000/. At the cost of 1800000/ got the right of purchased OF FLAT endorsed in my favour by the person who originally booked the flat with builder in APR05 .Original allottee has paid to the builder rs 1500000/ as 90% of the cost which was automatically adjusted against the cost of flat to me by the builder.The flat was jointly purchased with my wife the entire sum was paid by me to original purchaser rs 1800000/in April 2005.The last instalment of Rs 82000/ was paid to the builder in June2005 and possession obtained in the same month.  Is my claim of exemption from Capital Gain correct? Jamil Ahmed , Lucknow Section 54F is a relief provision under which it is provided that if the net sale consideration is used for buying house/flat within two years or in construction of a house within three years, the capital gain on the sale of an  asset (other than a house), is exempted from tax.Courts have given judgment to state ...

Is Payment to Detective Agency Subject to TDS?
2009-09-05 12:16:00
Our company paid some amount to detective agency, Is it Liable to deduct TDS, If Liable at what rate under which section. Praveen Kumar Makam ,Hyderabad The detective agency work may be a professional work , however, this is not specified profession under the I T Act. Professional services means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of section 44AA or of this section. Therefore, the work assigned to a detective agency shall come within the purview of section 194C for deduction of tax on contract. The rate of tax is 2.06 % of the amount of payment.
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Can Buying Agriculture Land Get You Tax Exemption on LTCG?
2009-09-05 06:54:00
I am planning to buy a agricultural land ( in rural area), My question is may I get tax rebate on long term capital gain if I use this capital gain in purchasing agricultural land.Prashant Sangale , Pune Answer to your question is Yes and No. No, because the tax exemption or rebate is not allowed for buying agriculture land Yes , because there is  one provision under section 54B  of I T Act which is about capital gain on transfer of land used for agricultural purposes not to be charged in certain cases.The said provision is as under 54B. (1)] Subject to the provisions of sub-section (2), where the capital gain arises from the transfer of a capital asset being land which, in the two years immediately preceding the date on which the transfer took place, was being used by the assessee or a parent of his for agricultural purposes hereinafter referred to as the original asset), and the assessee has, within a period of two years after that date, purchased any other land...
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Can I.T.O Seek Information From Registrar of Companies u/s 131 or 133?
2009-09-05 06:50:00
Income Tax officers most frequently harass the Registrar of Companies (ROC) calling for copies of balance sheets of companies by using powers under section 131/133 of the Income Tax Act 1956. But all balance sheets of companies, once filed with ROC, goes into public domain (except profit and loss account of private limited companies). Is it lawful for I-T officers to thereaten ROC with section 131 or 133 calling for information which are already available in public domain? D. Bandopadhyay ,Kolkata Yes, the income tax officers have the power to call for information or documents from almost all the persons and categories or class of persons for the purpose of the enquiry or investigation under I T Act. However,  section 131 and 133 are for different occasion and also having different powers embedded in. Section 131 gives very wide powers to A.O and all the powers vested in a Court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit. The  excerpts of sect...
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When is Pension Received From UK Taxable in India?
2009-09-05 06:47:00
A senior citizen uncle is getting pension from UK in respect of contribution made by him during his employment there. He is resident in India & pension is received thru SBI. Till 2007-08, he had shown this as part of his income and return was filed with the SBI ward.Now, he saw article wherein it was stated that as per DTAA with UK, pensions are taxable only in that state. No tax has been deducted/paid in UK because of the amount is less than the personal allowance (i.e. exemption limit for old persons there).If this income is not taxable in India then his total income is below the taxable limit. Should he file his return? If yes, where will this amount be shown? Bharati Saxena . New Delhi First of all , one should understand that in case of Resident of India, his global income is taxable . Section 5 of I.T. Act is about total income of a person taxable under I T Act. Read 5. (1) ?the total income of any previous year of a person who is a resident includes all income fr...
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Indira Vikas Patra Is Not A Capital Asset!
2009-08-02 07:00:00
In decision delivered dated 3 April 2009 ,Kerala High Court in case of Dr R. V.Patel vs CIT  decided that Indira Vikas Patra is not a capital asset , therefore, maturity proceeds paid by post office is not consideration for transfer of capital asset.As such there can not be capital gains . Read the excerpts The specific contention raised by the assessee is that IVP is a capital asset and therefore interest accrued is profit assessable as capital gains. The Tribunal rejected the claim by holding that IVP is nothing but a deposit with the Post Office which entitles die assessee to a specific rate of interest on compoundable basis and assessee can encash the deposit only for the maturity value which is pre-determined. The assessee has relied on several Courts' decisions for the proposition that IVP is a capital asset. IVP is admittedly a deposit scheme framed by the Government of India for making deposits in the Post Offices. Purchase of IVP amounts to depositing a specific a...
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No Service Tax Liability on Remuneration or Commission Paid to Directors of
2009-08-02 05:44:00
There was controversy regarding - (i) applicability of service tax under ?Business Auxiliary service? on commission paid to Managing Director / Directors (whole time, or Independent) by the company, (ii) applicability of service tax on Independent Directors who are part of the Board of Directors under ?Management Consultant service?. CBEC now issued circular to clarify that there is no service tax liability in case of payments of remuneration to directors of companies whether whole time or part time. Read the excerpts below: Circular No. 115/09/2009- ST, dated 31-7-2009 2. Both the matters have been examined by the Board and the clarifications are as under, - (i) Some Companies make payments to Managing Director/Directors (Whole-time or Independent) , terming the same as ?Commission s?. The said amount paid by a company to their Managing Director/Directors (Whole-time or Independent) even if termed as commission, is not the ?commission? that is within the scope of bu...
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Can One Claim Deduction of Interest u/s 24 on Loan Even After Sale of the
2009-07-29 04:38:00
I had taken a home loan [Single Applicant i.e. Me] from HDFC in May 2005 for a flat whose construction was start in year 2005. I had received the allotment letter in June 2005. I had received the offer for possession in July 2008. I'll be taking a formal possession in august 2009. Registration is likely to be done in year July, 2010 after the builder gets the completion certificate from Govt Authority. Already some families are staying in the apartment complex. The loan was completely paid in May 2008 and I already have No Dues Certificate from HDFC. Loan Amount: 15,00,000. (15 Lacs) Net total of amount paid to HDFC starting from May 2005 to May 2009: 21 Lacs (rounded to the nearest Lac figure) That means I have paid principle amount of Rs 15 Lacs and interest of Rs 6 Lacs. Interest amount in four financial years from April 2005 to March 2009 never exceeded the limit of 1.5 Lacs per annum for home loan benefit in income tax. I have not claimed IT benefit of home loan ...
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Should Interest on Tax Saving Term Deposit Be Shown on Receipt or Accrual B
2009-07-26 11:01:00
I am a salaried employee. I have made a 5 year tax-saving FD for Rs.30000 and a 3 year FD for Rs.10000 in the financial year 2008-09. I am not any income other than salary and interest. I have following two questions: 1) In respect of FD of 3 years, can I pay tax on interest income in the 3rd year (i.e. cash basis) instead of paying it every year on interest accrued ? 2) In respect of tax-saving FD of 5 yrs, can it be taxed like NSC i.e. interest earned be treated as being reinvested and eligible as deduction u/s 80C ? If not, can this also be taxed on cash basis in the year of receipt of interest income? Please help...Sumit Kumar The income of interest can be shown on the basis of cash ( receipt  ) or mercantile i.e due basis. But once you selected a particular system of accounting , you can not change . Therefore, it is perfectly alright if for you to pay the tax on the interest on FD for 3 years on maturity only. But if you follow that rule, you can not choose ...
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New TDS Procedure Kept In Abeyance by CBDT!
2009-06-30 17:10:00
No.402/92/2006-MC (14 of 2009) Government of India / Ministry of Finance Department of Revenue Central Board of Direct Taxes *** New Delhi dated 30th June 2009 PRESS RELEASE The Central Board of Direct Taxes have further decided that the Notification No.31 of 2009 dated 25.3.2009 amending or substituting Rules 30, 31, 31A and 31AA of the Income Tax Rules, 1962 shall be kept in abeyance for the time being.Taxpayers filing their income tax returns for assessment year (AY) 2009-10, or any other earlier AY, may continue to file their returns without mentioning the Unique Transaction Number (UTN) as required under the said Notification. The filing of such returns shall be treated as valid and in compliance to the requirements under section 139 of the Income Tax Act, 1961. Further, the date from which the Notification No. 31 / 2009 shall become applicable on tax deducted at source (TDS) or tax collected at source (TCS) and deposited during the current financi...

Filing Information About Remittance of Foreign Exchange A Must Now!
2009-06-30 04:35:00
CBDT has issued Circular No. 04/2009 dated 29/06/2009 by which procedure to file information regarding foreign exchange remittance electronically is now made must . The gist of the circular is given below:   Section 195 of the Income-tax Act, 1961 mandates deduction of income tax from payments made or credit given to non-residents at the rates in force. The Reserve Bank of India has also mandated that except in the case of certain personal remittances which have been specifically exempted, no remittance shall be made to a non-resident unless a no objection certificate has been obtained from the Income Tax Department. This was modified to allow such remittances without insisting on a no objection certificate from the Income Tax Department, if the person making the remittance furnishes an undertaking (addressed to the Assessing Officer) accompanied by a certificate from an Accountant in a specified format. The certificate and undertaking are to be submitted (in duplicate) to ...
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Can Nominee of Deceased Prevent TDS on Deposit in Senior Citizen Savings
2009-06-08 19:52:00
Yes, the good news is that now nominee of the deceased can file 15G or 15 H Form to the banks where the deceased had made deposits in Senior Citizen Savings Scheme 2004. Please read the circular of RBI to banks in this regardRBI/2008-09/493 Ref. No. DGBA.CDD.H-10566/15.15.001/2008-09 June 5, 2009 The General Manager Government Accounts / Business DepartmentState Bank of India / State Bank of Indore/State Bank of PatialaState Bank of Bikaner & Jaipur /State Bank of TravancoreState Bank of Hyderabad / State Bank of Mysore /Allahabad BankBank of Baroda / Bank of India / Bank of MaharashtraCanara Bank/Central Bank of India /Corporation Bank Dena Bank / Indian BankIndian Overseas Bank / Punjab National Bank / Syndicate Bank / UCO BankUnion Bank of India / United Bank of India / ICICI Bank Ltd / Vijaya Bank/IDBI Ltd Dear Sir, Senior Citizens Savings Scheme, 2004 ? Acceptance of Form 15-G from the Nominees As you are aware, investors under Senior Citizens Savings Sch...
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Now Derivative Trading in Foreign Exchange Is Business Activity!
2009-06-01 19:46:00
In India , there are two main commodity exchanges ?Multi Commodity  Exchange of India Ltd (MCX )  and  National Commodity & Derivative Exchange Ltd NCDEX in India where one can trade in derivative contract of different items ?from pulse to metal. Now there is another exchange MCX Stock Exchange Ltd in which one can trade derivatives of foreign exchange.The transactions in derivative segments are regarded as ?Speculative transaction? which has a great bearing on the taxation of one?s income as the loss out of speculation is not allowed to be adjusted with any other income . Speculation loss is allowed to be adjusted with only speculation gain.For example , a person having income of 10 lakhs from share dealing and Rs 10 lakhs loss out of commodity derivatives transaction , has actually did not earn any penny. Still, as per the provision of I T Act , he will have to pay tax on share dealing income of Rs 10 lakhs and the loss of Rs 10 lakhs will have to be carried forward as unadjus...
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The Dilemma of Tax at Source (TDS) & Exchange Rates!
2009-05-31 12:58:00
A foreign vendor provided technical assistance to M/s. ABC co. with a payment terms as follows. $30,000 USD and tax is to be borne by the foreign vendor at applicable rate. M/s. ABC Co. made a liability in its books on 31.03.2008 and deducted TDS u/s 195 of IT Act at applicable rate and deposited the same to IT department.(Dollar rate as on 31.03.08 was Rs.40 per USD, say) Now, actual payment is to be made by M/s. ABC Co. to that foreign vendor(i.e. $30,000 USD) . Dollar rate at the time of payment is Rs.46 per USD, say. Question is: 1. Whether additional TDS is to be deducted on the amount increased due to exchange. Sujit Talukdar, Kolkata The fact is that section 195 prescribes that payer will deduct the income tax at the rates specified either at the time of credit of payment or at the time of payment whichever is earlier. M/s ABC Co did the right thing by deducting the tax on 31/3/2008 when it credited the forign vendor in its books. Only point to see is whether the exchange ra...
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How Income From Flat Given on Leave & License Taxed?
2009-05-31 05:58:00
Nowadays there are Real State Mgt companies who take Flat on Leave & License basis, maintain them & offer License fee to owner.I have a 3BHK Flat which I want to give to such agency. I will also incur furnishing expenses to tune fo Rs 3L. The current License Fee for the Flat is Rs 20K + 2L deposit (Bare flat). However post furnishing, the Mgt co. is offering me Rs 50K pm as License Fee & Rs 5L as deposit.I am a salaried individual & use ITR 2 to file my return. I show my rental income from this flat & claim Loss of Income as my Interest outgo is Rs 3.5L pa.I want to know what will be Tax treatment if I give to Real estate co. Asheet , Mumbai The fact is that you will be putting your flat on rent to a company  . There is separate head for rental properties under I T Act and therefore, the income from rental of property to real estate agency  shall be taxed under the head ?income from house property?. Following tax liability may be foreseen 1. Presumi...

Can TDS Amount Be Increased or Reduced As Per Whims & Fancies Of Deductor?
2009-05-31 05:49:00
Our client is an insurance company (PSU). The company had taken a premise on rent in New Delhi since 1996-97. The PSU had enhanced rent twice during the FY 2004-05 w.e.f. March 2003. The company had deducted TDS on such enhancement during the year 2004-05. Also it has been came into the knowledge of the company that earlier i.e. since 2001 the company was deducting the TDS @2% only. Hence, branch manager had decided to deduct the difference of prevailing rates of TDS and the amount deducted earlier with intt. Can PSU do it? please also note that the rent was paid to MCD, against the dues of landlord due to attachment. Landlord filed recovery suit agst the PSU. Advise. Vinod Gupta , New Delhi   The responsibility to deduct the tax in case of rent payment is on the payer. So, if the PSU has not deducted or short deducted during a year or applied a rate much below the rate prescribed under section 194I , fault squarely lies with the PSU and not the assessee. Now the issue is whe...

Why All Written Off Liability Is Not Taxable?
2009-05-30 06:52:00
I have been showing certain amount as a liability in my balance sheet since last 6-7 yrs, which was to be paid back as interest to some loan. Loan was paid long back but no correspondence has taken place with the creditor re. the interest over 6-7 years. Now i would like to "Write Back" the amount. Will this reversed amount be subject to tax? Reading Sec. 41 of the I. Tax Act and certain judgements, I feel that unless there is a cessation or remission of a liability, liability, though unenforceable, still exists. Thus even if the liability is written back, the same can not be treated as profits and thus not taxable. Please advise, if i should offer this amt to tax. Swati Raut , Mumbai Section 41 has five sub-section ? 1 to 5 .  Subsection 1 ,4 & 4A starts with the words ? allowance or deduction has been made or allowed ?. Which means that the provisions u/s 1 , 4 or 4A of Section 41 is not applicable if allowance or deduction was not allowed in any assessment yea...

Can Non Resident File Form 15G or 15 H?
2009-05-19 04:54:00
Sri Rajaratnam, the famous tax expert from Chennai, in his regular tax column in The Hindu, has opined that a Non resident can submit form no 15G to avoid tax being deducted on interest income, in all such cases where there is no taxable income. This would obviously save the assessee from needless filing of return and running round the income tax officer to get the refund. The form 15G clearly provides by asking a question whether the applicant is a resident or Non resident. N Rabindranath With due respect to the taxation stalwart, in my opinion , a Non Resident is NOT eligible to file form 15 G or 15 H . The reason of such an opinion is as under 1. The Form s 15G & 15H are declaration in prescribed forms to prevent tax at source from payments of certain types . The provision of submitting declaration in Form 15G or 15H are  given in  section 197A of the I T Act. 2. Section 197A(1)  clearly states  that declaration filed by individual RESIDENT in India. ...
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Beware of Most Dangerous Tax Amendment For Charitable Society !
2009-05-18 08:59:00
One of my clients is a charitable society having more than twelve various activities like schools, charitable clinics, naturopathy centres, creches, old age homes, pension for widows, library, Masala Centre where various spices are prepared by poor ladies. Spices prepared by these ladies are sold over the counter which results in some income to the society. Besides sometimes a hall in building of the society is also given on rent to some commercial organisation for sale purposes.Pl confirm whether in light of the latest amendments in the Income tax Act, the activities like sale of spices and rent receipt will be liable for taxation ? Mahesh Kumar, New Delhi.Before , I answer your specific question, it is important to clarify the position of taxation of charitable entities post Finance Act 2008 , because the govt has brought in an amendment which has far reaching consequences on the charitable entities of the country.The income of an entity whose object is charitable are allowed exe...
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Why Interest From Kisan Viaks Patra Must Be Shown Every Year!
2008-06-07 16:08:00
Can paying tax on interest accrued on investments in KVP / NSC / GOI bonds be deferred for a year ie based on receipts? Melwyn D'souza Interest income is generally assessed under the head "Income from other sources".There are two general methods of accounting of income or expense. The receipt basis (Cash accounting ) or accrual basis (mercantile system).Section 145 of the I T Act prescribes "method of accounting" to be followed for computation of income . The said provision states as under 145.(1) Income chargeable under the head Profits and gains of business or profession or Income from other sources shall, subject to the provisions of sub-section (2), be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. As one can see from the aforesaid provision that in case of business or income from other sources , an assesse has the option of maintaining accounts either on cash(receipt) basis or accrual basis. The interest o...
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REC Bonds Issued. Hurry Up!
2008-06-05 15:14:00
We want to invest interest gained on National Saving Certificates in REC or NHA bonds. Can we get benefit under Sec. 54-EC ? Babu hai Choudhari , AhmedabadI sold my plot in Dec2007 and got Long Term Capital Gain of about Rs.7.6 Lacs. Currently there is no TAX Saving Bonds Scheme available from NABARD, REC & NHAI where this amount can be invested to save TAX. V K Gupta, SonepatThe readers who have earned long term capital gains on any asset and were waiting for the bonds in the market for claiming exemption u/s 54EC should rejoice as the Rural Electrification Corporation Ltd has come to market for subscription of its Capital Gains Tax Exemption Bonds - Series-VIII which opened on 28th May 2008 .Further details can be from the links provided belowIssue Highlights of 54EC Bonds - Series VIII Information Memorandum of 54EC Bonds - Series VIII Application Form of 54 EC Bonds - Series VIII (SAMPLE) (Application Form can be downloaded from the website : http://rec.rcmcdel...
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What Are the Types Of TDS For Which Form 15G or 15H Can Not Be Filed?
2008-06-05 10:03:00
I am doing an internship in a software company. Supposing I will be paid 25k per month and am working for ONLY 2 MONTHS. Is there any way where I can get exempt from tax. I heard that form 15G is something for that. But .. Am I eligible to fill that form?? I had NOT paid any tax before and don't have a pan card too. I am sure that my income for this financial year won't exceed 1lakh(which I heard is the max amount for which tax is not applicable). Sasidhar Kasturi , HyderabadSection 197A of the I T Act provides that persons suffering tax at source in case of certain types of income earned by them can get relief from TDS if declaration in Form 15 G or 15 H are filed by resident individuals .The said provision is as under197A. (1) Notwithstanding anything contained in section 194 or section 194EE, no deduction of tax shall be made under any of the said sections in the case of an individual, who is resident in India, if such individual furnishes to the person responsible...
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Is Salary or Pension Received By Employees Of United Nations Tax Free?
2008-05-25 07:36:00
Yes is the emphatice answer .The provision given under the United Nations (Privileges And Immunities) Act, 1947 shall override all other laws passed in India , is given in section 2 which is as under :2. Conferment on United Nations and its representatives and officersand certain privileges and immunities.(1) Notwithstanding anything to the country contained in any other law, the provisions set out in the Schedule to this Act of the Convention on the Privileges and Immunities, adopted by the General Assembly of the United Nations on the 13th day of February, 1946, shall have the force of Law in India.The salary or emoluments received by employees of United Nations organization are not taxable because of the express provision u/s 18(b) of the United Nations (Privileges And Immunities) Act, 1947 . The said section provides as underSECTION 18.Officials of the United Nations shall;(a) ?????..(b)Be exempt from taxation on the salaries and emoluments paid of them by theUnited Nations;Is ...
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Is Transfer Of Loan or Deposit By Book Entreis Liable To Penalty U/s 269SS
2008-05-24 16:37:00
There is a private company. It has taken loan from a party exceeding RS 20,000. Now party wants to transfer this money to someone's name. Can private company do that? Will that book transfer fall under mischief of any section of the I T Act. Ritha BangIn my opinion , there will not be any penalty u/s 269 SS or 269T , because if such transfer is done with consent of the lender and the person on whose name it is to be transferred, there is no illegality in such action. Such , adjustment is perfect as far as I T Act is concerned.Section 269SS prohibits acceptance of loan or deposit exceeding Rs 20,000by any mode other than account payee cheque or draft . Section 269TT prohibits repayment of loan exceeding Rs 20,000 by any mode other than account payee cheque or draft.Section 269SS appears in Chapter XX B which came to be inserted by the Income tax (Second Amendment) Act, 1981, with effect from July 11, 1981. The said Chapter was inserted to counteract evasion of tax by controlling t...
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