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Interest on compensation on acquisition of land: Tax Complexity

TAX TALK CA. NARESH JAKHOTIA Chartered Accountant
Section 145A(b) provides that interest received by an assessee on compensation or on enhanced compensation, as the case may be, shall be deemed to be the income of the year in which it is received.  It is not at all dependant on the method of accounting followed by the assessee.
Interest on compensation on acquisition of land: Tax Complexity


Query 1] My query is taxability of interest received under Land Acquisition Act. I own a land at Mouja-Chinchbhuwan on Amravati road, Nagpur. While widening the high way, my agricultural land admeasuring 0.1853 H.R. was acquired by National Highway Authority of India (NHAI). The amount of compensation awarded to me was Rs. 29,741/- only. I filed a case under Arbitration. The case went in my favour and the Arbitrator awarded me higher compensation of Rs. 8,44,968/-. In addition to this, I received Rs. 84,496/- being 10% of compensation for loss of easement rights and Rs. 7,06,148/- as interest @ 9% for th…

Taxation of F & O transactions

TAX TALK-23.10.2017-THE HITAVADA
TAX TALK
CA. NARESH JAKHOTIA Chartered Accountant
The most crucial point arises with regard to the determination of the “Turnover” in the case of F & O. The total of profit and loss (i.e., positive and negative figure) shall be taken as turnover. It makes no difference whether the difference is positive or negative for computing turnover. Aggregate o the differences, whether positive or negative is considered as “turnover”.
Taxation of F & O transactions
Query 1] 1.I am trading in equities; both delivery as well as non delivery based & make short term capital gain (STCG). Whether it will be treated as "Income from Business" or any other category of income? What would be tax treatment? [Col Sisir Kumar Misra, Indian Army Veteran-sisir_misra@yahoo.com] 2.I have incurred the loss in share trading. Whether still I will be required to carry out the audit? [Kishor Gupta, Lordganj, Jabalpur] 3.I am engaged in the future & option in shares. Wh…

Belated filed return can also be revised now

TAX TALK-16.10.2017-THE HITAVADA
TAX TALK
CA. NARESH JAKHOTIA Chartered Accountant
Error in income tax return forms can be corrected by filing a revised return. Earlier, revision option was available only if the original return was filed within due date i.e., revised return filing option was available in case original return is filed after due date. However, the law has now been amended from AY 2017-18 so as to allow the filing of revised return even if the original return is filed belatedly i.e., after the due date. Now, return filed belatedly can be revised.
Belated filed return can also be revised now
Query 1] While filing my income tax return for FY 2016-17 (AY 2017-18), there had been some incorrect entries made by the person preparing  the return on my behalf. The same were corrected immediately by filing a revised return on 30-07-17. However, after a few days I noticed another mistake, in the entry of amount of cash deposit (old denominations) during period 08-11-16 to 30-12-16 in one…

Merger, Demerger & Amalgamation- Tax implications on shareholder

TAX TALK-09.10.2017-THE HITAVADA
TAX TALK
CA. NARESH JAKHOTIA Chartered Accountant


There is a tax concession to the Shareholder of an Amalgamating Company where the shareholder transfer shares held by him in the amalgamating company in consideration of allotment of shares in amalgamated Indian company.


Merger, Demerger & Amalgamation- Tax implications on shareholder Query 1] 1.1000 equity shares of face value of Rs. 10 in N.F.C Ltd were allotted in March 1991. Consequent to composite scheme of arrangement and amalgamation of three companies, 1100 equity shares of Face value of Rupee 1 was allotted in N.F.C. Ltd. and 1000 equity shares of rupees one face value was allotted in another company in October 2011. Kindly clarify as to how Rs. 10,000/- invested in N.F.C. Ltd. in March 1991 is to be allocated between the above two companies and whether Profit/Loss on sale of the above said units is to be calculated only from October 2011? Further, please elaborate with relevant sections of the In…