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Showing posts from May, 2012

“RESIDENT IN LUCKNOW, PROPERTY SOLD IN NAGPUR, WHERE TO PAY INCOME TAX?”

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TAX TALK-28.05.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “RESIDENT IN LUCKNOW, PROPERTY SOLD IN NAGPUR, WHERE TO PAY INCOME TAX?” Query 1] Kindly let me know whether interest earned from Post Office Monthly Income scheme (MIS) is taxable or not? If not, under which section? Also let me know what does the section 80L deal with? [bpmajumdar2006@rediffmail.com] Opinion: Interest on post office Monthly Income Scheme (MIS) is taxable. There is no provision in the Income Tax Act to exempt the interest on post office MIS. Section 80L is no more in vogue. Similar to erstwhile section 80L, the Finance Act 2012 has inserted a new section 80TTA in the Income Tax Act – 1961 which will provide deduction up to Rs. 10,000/- to an Individual/ HUF towards Interest on saving bank A/c maintained with a bank / society / post office. The deduction admissible shall be interest received or Rs. 10,000/- whichever is lower. (It may be noted that saving bank account interestmaintained…

TAX TALK-21.05.2012-THE HITAVADA

TAX TALK-21.05.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “RS. 50 LACS INVESTMENT CEILING FOR INVESTMENT IN REC/NHAI BONDS” Query 1] I have recently sold my inherited property at Rs. 60 Lacs. I want to park the money in the REC/NHAI. I am told that maximum of Rs. 50 Lacs can be deposited there. My queries are: 1.What should I do with the balance Rs. 10 Lacs? If I keep in bank fixed deposit, then am I required to pay tax at the highest slab i.e., @ 30% for this 10 Lacs of Rupees? 2.I am told that the amount parked in REC/NHAI can be kept for 3 years. After three years when this money is transferred to bank, do I need to pay tax on these Rs. 50 Lacs then? [S.K. Roy, Santi Nagar, Bhilai - professor.ulla@yahoo.co.in] Opinion: 1.U/s 54EC of the Income Tax Act-1961, there is a maximum investment ceiling of Rs. 50 Lacs in a financial year for deposit in the specified bonds issued REC/NHAI. For exemption, amount is required to be invested within a period of 6 months fr…

TAX TALK-14.05.2012-THE HITAVADA

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TAX TALK-14.05.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “RIGHT TO CLAIM DEDUCTION ORIGINATE FROM OWNERSHIP” Query 1] I would like to seek your opinion with reference to deduction on repayment of housing loan & Interest under the following scenarios: a.House is jointly owned by husband and wife. Loan is in the name of both.  Their share in the property & loan is not defined.  Wife is not working. Husband is paying entire EMI.  Whether full benefits are to be extended to the husband alone? b.House is jointly owned by husband and wife. Loan is in the name of both.  Their share in the property and loan is not defined. Wife is working and paying full EMI from her account and wants to claim entire benefit of repayment of loan and interest and willing to give undertaking to the extent that husband will not claim exemption from his office. c.House is owned by both husband and wife. Bank insisted for adding spouse’s name as co-borrower.  His / Her income was …

TAX TALK-07.05.2012-THE HITAVADA

TAX TALK-07.05.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “HOUSING LOAN BENEFIT: OLD LOAN REPAYMENT & NEW LOAN AVAILMENT” Query 1] Post Budget 2012-13, what are the provisions to get tax exemption on home loan's principal amount and interest amount? [vimal_sontake44@rediffmail.com] Opinion: There are no changes proposed in respect of deduction available towards principal repayment & interest payment u/s 24(b) or U/s 80C of the Income Tax Act-1961. For the mass benefit, we are elaborating the income tax benefit towards principal & interest available in respect of home loan, as under: Interest payable on Home loan: 1.U/s 24(b) of the Income Tax Act-1961, deduction up to Rs. 150,000/- is admissible against the interest payable on the loan availed for purchase / construction of the self occupied house property.
[However, the acquisition or construction of the house property should be completed within 3 years from the end of financial year in which hom…