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Showing posts from October, 2012

“PURCHASE OF SECOND HOUSE PROPERTY IN JOINT NAME”

TAX TALK-29.10.2012-THE HITAVADA
TAX TALK
BY CA. NARESH JAKHOTIA (Chartered Accountant)
“PURCHASE OF SECOND HOUSE PROPERTY IN JOINT NAME”
Query 1]
I have a house in Mumbai with my name as 1st holder and wife as joint holder. The said property is occupied by us. The loan taken for the same is closed for which I used to take benefit of Interest and Installment. Now, we have invested in property in New Mumbai which is held by wife as 1st holder & me as joint holder. The house is under construction and the loan is taken in my wife’s name. The question is Can my wife take the benefit of interest on housing loan and on installment paid? Please give your valuable view on this. [Sandeep Benegal -benegalss@svcbank.com] Opinion: 1.The tax implication / housing loan benefit for the second house property is not similar/ same as applicable to the first house property. The second house property has a different tax treatment under the Income Tax Act-1961.The issue is discussed in length in my Tax Ta…

AN INTERESTING CASE IN FAVOR OF TAXPAYER:

AN INTERESTING CASE IN FAVOR OF TAXPAYER:

Bombay HC to Income-tax Deptt. can't take advantage of assessee's mistakes in not claiming exemption in IT return not and deny him exemption

The entire object of administration of tax is to secure the revenue for the development of the Country and not to charge assessee more tax than that which is due and payable by the assessee

FACTS

• Assessee-company had claimed exemption under section 10(34) and 10(38) in respect of dividends and long-term capital gains from listed equity shares by showing these incomes in Schedule EI on page 24 of the return. However, he had erroneously shown these incomes in Page 11 under Item 3(b) Long-term capital gains instead of showing 'Nil' there.

• The above error was due to mistake on part of assessee's CA in filling up the return while electronically filing it. As a result intimation based on this return was sent to assessee-company resulting in demand of Rs. 2.44 lacs.

• Assessee filed re…

“CONCEALMENT / INACCURATE FURNISHING ATTRACTS PENAL PROVISION”

TAX TALK-22.10.2012-THE HITAVADA
TAX TALK
BY CA. NARESH JAKHOTIA (Chartered Accountant) “CONCEALMENT / INACCURATE FURNISHING ATTRACTS PENAL PROVISION” Query 1]
Sir, I am an employee at a PSU and I have bought a house in August-2009 from the Housing Board at Bhilai for which I took a House Building Loan from my Company in January- 2010.The construction of the house is still not completed. In the meantime, my company has started deducting the interest of the house building loan. The Certificate shows the following amounts deducted as interest: F.Y. 2010 – 2011:-Rs. 17,024/- F.Y. 2011 – 2012:-Rs. 35,196/- . These amounts are not reflected in my Form 16. My questions are: 1.Whether can I claim these amounts in my IT return as a "Loss from House property", this being my only property? Or 2.Will this interest be treated as pre-construction period interest (will be cumulated & divided by five) and can be claimed only after the construction is over? When can the pre-construction perio…

Interesting Income Tax - Asset having no cost of acquisition - No capital gain arises if asset is acquired without incurring any cost

IT : Asset having no cost of acquisition - No capital gain arises if asset is acquired without incurring any cost

■■■

[2012] 25 taxmann.com 506 (Pune - Trib.)

IN THE ITAT PUNE BENCH 'A'

Dilip G. Sopal Barshi

v.

Income-tax Officer, Ward 2(3), Solapur*

SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER

AND G.S. PANNU, ACCOUNTANT MEMBER

IT APPEAL NO. 421(PN) OF 2011

[ASSESSMENT YEAR 2003-04]

JULY 16, 2012

Section 48, read with sections 45 and 55, of the Income-tax Act, 1961 - Capital gains - Computation of - Assessment year 2003-04 - State Government acquired assessee's land along with a well thereon and paid compensation - State Government granted a special privilege to assessee for lifting water from well by paying nominal rent of Re. one per year - Subsequently Municipal Corporation took over aforesaid land along with well and paid to assessee Rs. 15 lakhs for surrendering his right to lift water from well - Assessee did not dispute amount of compensation - Whether lifting of water …

“COMPULSSORY FILING OF INCOME TAX RETURN FOR RESIDENT ASSESSEE HAVING FOREGIN ASSETS”

TAX TALK-15.10.2012-THE HITAVADA
TAX TALK
BY CA. NARESH JAKHOTIA (Chartered Accountant) “COMPULSSORY FILING OF INCOME TAX RETURN FOR RESIDENT ASSESSEE HAVING FOREGIN ASSETS” Query 1]
Recently, I read in the paper that Indian citizen have to declare their holdings in any foreign country from the Assessment year 2012-13. My close relative is settled in Australia and working there in a software company, earning a salary of about One Lacs aus $ and has a residence building and all membersof the family are overseas citizen of India by having Dual citizen of AUS. and INDIA. Kindly advise about the declaration of assets and holdings as read in the paper. [shivdev_gupta@hotmail.com] Opinion: 1.For the Assessment 2012-13, it is mandatory for resident assessee to file the Income Tax Return if he/she has any foreign assets. The filing is mandatory even if there is no taxable Income or even if the income is below the applicable basic exemption limit. The assets covered include bank accounts, immovabl…

“WHETHER TDS TO BE DONE ON PAYMENT TO CUSTOM HOUSE AGENT?”

TAX TALK-08.10.2012-THE HITAVADA
TAX TALK
BY CA. NARESH JAKHOTIA (Chartered Accountant) “WHETHER TDS TO BE DONE ON PAYMENT TO CUSTOM HOUSE AGENT?” Query 1]
May I have your kind advice on following few points through Tax-talk please: 1.I am recently retired and drawing pension from two sources but none qualify for tax but in my hand they jointly cross the Senior citizen limit. Shall I deposit tax on my own and file the return? 2.I have no house anywhere and staying in rented accommodation. Can these rent amount be deducted from my total pension? 3.How the Bank yearly FD interest calculated and where to add the said income with my pension if the banks haven’t deducted TDS?
Please advice.[N.R.Deb, Jabalpur-nrdeb52@gmail.com]
Opinion: 1.As your income from all the sources taken together exceeds the basic exemption limit, you would be required to pay the tax & would be required to file the income tax return on your own. 2.Any individual who is not in receipt of HRA from the employer is entitl…

“TURNVOER PLUS VAT EXCEEDS RS. 60 LACS- WHETHER TAX ADUIT COMPULSSORY?”

TAX TALK-01.10.2012-THE HITAVADA
TAX TALK
BY CA. NARESH JAKHOTIA (Chartered Accountant) “TURNVOER PLUS VAT EXCEEDS RS. 60 LACS- WHETHER TAX ADUIT COMPULSSORY?” Query 1]
Please answer the following questions:- 1.My Turnover is Rs. 59 Lacs excluding vat amount for Rs. 6 Lacs and in my trading account sales amount shown for Rs. 59 Lacs and VAT amount for Rs. 6 Lacs shown in duties and taxes A/c (not reflected in trading account). Please answer whether I am liable for audit u/s 44AB or not? 2.My mother has gifted me Rs. 2 Lacs in individual status and I have gifted this amount to my HUF. Please explain whether Individual can do gift to his own HUF? It is legal or not and what is tax liability? Would it be treated as cross gift? [Amit Rajak, G.D.Complex, Marhatal, Jabalpur 482002-ankurkhare1979@yahoo.co.in] Opinion: The tax audit u/s 44AB is compulsory for the FY 2011-12 if the Sales, turnover or Gross receipts from business exceeds Rs. 60 Lacs (Rs. 15 Lacs for assessee engaged in t…