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“TDS: DEDUCTOR IS NOT TREATED AS ASSESSEE IN DEFAULT IF DEDUCTEE HAS PAID THE TAX”

TAX TALK-25.02.2013-THE HITAVADA

TAX TALK BY CA. NARESH JAKHOTIA Chartered Accountant
“TDS: DEDUCTOR IS NOT TREATED AS ASSESSEE IN DEFAULT IF DEDUCTEE HAS PAID THE TAX”
Query 1] I am a CA in service in WCL. Recently we have received a notice for short deduction of income tax from salary (TDS) in some cases (statement u/s 200A) for the financial year 2010-11 along with notice of demand u/s 156 from the IT Dept. We have taken the plea that no notice u/s 156 can be issued for the F.Y. 10-11, as the amendment to this effect is applicable from 1.7.2012 only. Similarly our alternate argument is that the statement u/s 200A must include excess TDS recoveries as well and could be for the net amount only. In some cases, excess TDS has been done from our end as well. We have issued Form 16 to the employees to enable them to pay tax on self assessment or claim refund as the case may be. Whether we could be treated as assessee in default even after the amendment in section 201 with effect from 01.07.20…

“SECOND HOUSE PROPERTY HAS A DIFFERENT TAX TREATMENT”

TAX TALK-18.02.2013-THE HITAVADA

TAX TALK BY CA. NARESH JAKHOTIA Chartered Accountant
“SECOND HOUSE PROPERTY HAS A DIFFERENT TAX TREATMENT”
Query 1] I am working in PSU. I have availed Housing Loan in the year 2002 Rs. 5,51,000/- and I had taken the benefit of housing loan (principal amount) installment up to year 2011-12 and also interest benefit under IT Act. Now the said loan is repaid and account closed in Dec-2012. Further, I took new flat and Bank has sanctioned me loan of Rs. 13,43,000/- in the year 2012.I have already taken the possession of the flat in the month of Dec-2012 and at present the flat is vacant. In this connection please advise me: 1.Whether I am eligible for deduction of housing loan installment (principal amount for this New A/c) and if yes up to what extent? 2.Whether I am eligible for interest benefit on this housing loan New A/c? If yes, up to what extent? 3.In this case, what is the annual value if any? 4.In financial year 2012-13, which type of IT return is applic…

“EXEMPTION U/S 54 TO SELF & HOUSING LOAN BENEFIT TO SON”

TAX TALK-11.02.2013-THE HITAVADA

TAX TALK BY CA. NARESH JAKHOTIA Chartered Accountant
“EXEMPTION U/S 54 TO SELF & HOUSING LOAN BENEFIT TO SON”
Query 1] Kindly guide me in the following matter: 1.I am having house in my name under NIT lease. Recently, lease is renewed and expenditure of Rs. 15,000/- is incurred for stamp paper and registration. 2.I have purchased one plot in my name and expenditure of Rs. 22,000/- is incurred for stamp paper and registration fees. Kindly guide whether exemption under 80C is available for above expenditures.[Deepak Pande-d_pande1@yahoo.in] Opinion: 1.Stamp duty & registration expense on renewal of NIT Lease would not be eligible for deduction u/s 80C. 2.Stamp duty & Registration expense for purchase of a residential house property is only eligible for deduction u/s 80C. Expenditure for purchase of plot would not be eligible for deduction u/s 80C.
Query 2] My father had purchased a house for Rs. 7,000/- in 1978.He expired in 2009. Now, the said house wa…

“INCOME TAX IMPLICATIONS ON 2nd HOUSE PROPERTY PURCHASED FOR PARENTS”

TAX TALK-04.02.2013-THE HITAVADA

TAX TALK BY CA. NARESH JAKHOTIA Chartered Accountant
“INCOME TAX IMPLICATIONS ON 2nd HOUSE PROPERTY PURCHASED FOR PARENTS”
Query 1] I am having one house property which is self occupied by me. I had availed the housing loan earlier at the time of purchasing the first property and the same is repaid back and nothing is outstanding as of now. I have availed the income tax benefit on housing loan repayment on such loan. Now, I want to buy another house property by availing the housing loan in my name only. This property will be used by my father and I will not be letting it out. Whether I will be eligible for the tax benefit in respect of this second house property which will be used for self residence of my father? What will be the tax effect of this property? [J.H.Shorte] Opinion: 1.The income from house property is taxable on the basis of its “Annual Value”. The term “Annual value” is elaborated at point No. 6 hereunder. 2.The tax implication / housing loan …