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“SAVING TAX ON LONG TERM CAPITAL GAIN- ISSUES INVOLVED”

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TAX TALK-23.12.2013-THE HITAVADA
TAX TALK
CA. NARESH JAKHOTIA Chartered Accountant
“SAVING TAX ON LONG TERM CAPITAL GAIN- ISSUES INVOLVED”
Query 1] I am presently residing in a house purchased from DDA in 1986 in the joint names of self and wife by also taking loan from the Bank. A case regarding my father’s residential property was decided by the Court in March, 2005 and property was divided by court in  3 equal shares – 1/3rd for my brother, 1/3rd for myself and 1/3rd for my father as my sisters relinquished their right in favor of my father. 1/3rd share of my brother was disposed off by him and after sale expired as well. My father who was residing with me has made a Registered Will of his 1/3rd share in my favor. My mother expired in 2002 and father in March, 2010. In this way, I became owner of 2/3rd share of that house (1/3rd mine share and 1/3rd my Father’s share by virtue of Will). Now, I have sold this 2/3rd portion of house for Rs. 29.99 Lacs with area approx. 50 sq. mts. and Sale …

“AMOUNT RECEIVED ON SURRENDER OF TENANCY RIGHT IS TAXABLE !”

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TAX TALK-16.12.2013-THE HITAVADA
TAX TALK
CA. NARESH JAKHOTIA Chartered Accountant
“AMOUNT RECEIVED ON SURRENDER OF TENANCY RIGHT IS TAXABLE !”
Query 1] A mother of my friend who is a widow seeks clarification/advice from you regarding income from ancestral property. As per the tax law, income received through disposal of ancestral property comes under Capital Gain Tax & to avoid Capital Gain Tax amount received through disposal of property should be utilized in purchasing of house or in construction of house. Her share after disposal is so small that no house can be purchased or can be constructed. Then, 1.How  to  save  Capital  Gain  Tax  on  such  amount ? 2.Can amount be invested in regular fixed deposits in Bank? 3.Can  whole  amount  or  part  of  it  can be  gifted  to  her son or  daughter? 4.Can  amount be utilized  by  her  for  day  to  day requirements  of  life? 5.If it is done so, then what will be the tax implication? She is a housewife & not coming under the bracket o…

CIT v. Bhagwati Steels {PLIniaIJ & Haryana HC)

TDS not deductible on freight Chargers Shown
separately in Goods Purchase Bill

CIT v. Bhagwati Steels {PLIniaIJ & Haryana HC) In the instant case. it was helcl that

the payment ef freight charges hy the assessee to the truck drivers was based en

incliviclual GRs 1which represented incliviclual ancl separate contracts and there was no

single eentraet fer carriage er transportation ef geecle referred to between assessee

and the impugnecl parties `which would make the assessee liable for deduction of tax

at source under section 194C of the Act.

It is evident that the expenses cffreight incurred by Mis Tata Steel, which have been shcwn

separatelyr in the invoices raised cn the assessee, cannct be construed tc infer that the

assesses has paid any amcunt for transportation cf gccds separately than the ccst cf the

gcccls purchased by it. Ostensibly, in such circumstances, there would nct arise any

necessity of deduction of tax at source on the freight amount separately shown in the

Inv…

“JOINT DEVELOPMENT AGREEMENT WITH THE BUILDER FOR DISMANTLING OF THE HOUSE & INCOME TAX IMPLICATIONS”

TAX TALK-03.06.2013-THE HITAVADA

TAX TALK BY CA. NARESH JAKHOTIA Chartered Accountant
“JOINT DEVELOPMENT AGREEMENT WITH THE BUILDER FOR DISMANTLING OF THE HOUSE & INCOME TAX IMPLICATIONS”
Query 1] Mr.X has an old house in a city say measuring 4,000 sq ft. He enters into a joint venture with a builder "Y" for dismantling the said house & erecting 6 flats on such Land. It is agreed upon between them that each of them shall take over 3 flats after the construction is over. All the expenses including sanction of map & building these flats are borne by "Y". Now, the construction is over & each of them takes over 3 flats. Please advise under I.T. Act, how each of them shall meet their tax liabilities? Suppose the builder has spent Rs. 60 Lacs on construction of 6 flats. The sale price of each flat is say 15 Lacs i.e., Rs. 90 Lacs in total. Three flats of "Y" shall be sold by Mr. X as he is the owner of land & he himself takes over the remaining 3…

“PERSON WITH DISABILITY ARE ENTITLED FOR THE INCOME TAX BENEFIT U/S 80U”

TAX TALK-27.05.2013-THE HITAVADA

TAX TALK BY CA. NARESH JAKHOTIA Chartered Accountant
“PERSON WITH DISABILITY ARE ENTITLED FOR THE INCOME TAX BENEFIT U/S 80U”
Query 1] Kindly enlighten me in the following matter through your Tax Talk column: A person is polio affected, with disorder in his legs. 1.What is the relief available at the hands of employer for TDS in salary payments? 2.How much and under which section TDS relief is available? 3.Whether any documentary proof he needs to submit and at what frequency? [d_pande1@yahoo.in] Opinion: Deduction U/s 80U Section 80U of the I.T. Act, 1961 allows a deduction to an individual who is resident and who at any time during the previous year is certified by a medical authority to be a person with disability. The deduction under this Section is a sum of Rs 50,000/- in normal cases and if the person is suffering from a severe disability (80% or more) then a sum of Rs. 1,00,000/- is allowable as deductions. “Person with Disability” for the purpose of sectio…

“HOW TO CARRY OUT THE CORRECTION IN THE TAX PAYMENT CHALLANS?”

TAX TALK-20.05.2013-THE HITAVADA

TAX TALK BY CA. NARESH JAKHOTIA Chartered Accountant
“HOW TO CARRY OUT THE CORRECTION IN THE TAX PAYMENT CHALLANS?”
Query 1] While filing the online tax return for the period Assessment Year 2011-2012, we came to know of PAN being wrongly entered in the Tax Challan. Can this amount so deposited by an error be adjusted in subsequent return/statement or refund can be claimed by us? Kindly guide us on the process involved? [MPBPL- A R Temurnikar- miners_bookshop@yahoo.co.in] Opinion: There are numerous instances where there is an error while making payment of Tax either electronically or manually. To rectify these errors, Income-Tax Department has issued new guidelines effective 01-09-2011 which allows Banks to correct physical challans only. For correction in electronic challans, request will have to be made to the concerned Assessing Officer. For general benefit, I am elaborating the the procedure for correction in the tax challan. a] Correction in physical cha…

WANT TO INVEST THE MONEY FROM SALE OF “AGRICULTURAL LAND & PLOT” FOR PURCHASE OF “A READYMADE HOUSE”: INCOME TAX SAVING

TAX TALK-13.05.2013-THE HITAVADA

TAX TALK BY CA. NARESH JAKHOTIA Chartered Accountant
WANT TO INVEST THE MONEY FROM SALE OF “AGRICULTURAL LAND & PLOT” FOR PURCHASE OF “A READYMADE HOUSE”: INCOME TAX SAVING
Query 1] I am in Government job and purchased an agriculture land for total amount of Rs. 4.00 Lacs in the year 2008 and a plot in city area for total amount of Rs. 6.50 Lacs in the year 2011 (through loan & self saving). I want to sell these properties in the FY 2013-14. Please provide following information: 1.Tax liability on capital gain; 2.Presently, I do not own any house and want to invest above money to purchase a readymade house (new or old). What would be tax liability in FY 2013-14 or onwards if house is purchased after 2013-14?;and 3.Till investment in readymade house, I want to do investment in Fixed deposit/ Bonds of Government owned bank/ company, Post office certificates etc. What would be tax saving as per Income Tax Act? [Dilip Singh-om1950lal@yahoo.co.in] Opinion: Ta…