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Showing posts from April, 2013

“TAXATION OF LEAVE SALARY/LEAVE ENCASHMENT”

TAX TALK-29.04.2013-THE HITAVADA

TAX TALK BY CA. NARESH JAKHOTIA Chartered Accountant
“TAXATION OF LEAVE SALARY/LEAVE ENCASHMENT”
Query 1] I have a query on exemption of leave encashment. I request you to please clarify on the same through Tax-Talk column. I have retired on 28th February 2013 from the Post of Executive Engineer from Maharashtra State Electricity Transmission Company limited, a wholly owned corporate entity under the Maharashtra Government, which  was incorporated under the Companies Act, in June, 2005 after restructuring the erstwhile Maharashtra State Electricity Board. I understand that the employees of Central Government as well as the State Government are allowed accumulation of earned leave up to 300 days and are fully exempt from payment of Income Tax on encashment of leave to his credit at the time of superannuation. All other employees of private sector are allowed exemption up to a limit of Rs. 3 Lacs from payment of tax. I am likely to get around Rs. 10 Lacs as a…

“WHETHER HOUSING LOAN BENEFIT IS AVAILABLE AGAINST THE DEMAND OVERDRAFT LOAN AVAILED BY ME?”

TAX TALK-22.04.2013-THE HITAVADA

TAX TALK BY CA. NARESH JAKHOTIA Chartered Accountant
“WHETHER HOUSING LOAN BENEFIT IS AVAILABLE AGAINST THE DEMAND OVERDRAFT LOAN AVAILED BY ME?”
Query 1] 1.I am an re-employed ex-servicemen drawing defense pension @ Rs. 10,756/- per month. I am also drawing salary from my re-employment @ Rs. 32,000/- per month on which I am paying applicable IT as TDS after deductions under 80C and others. My query is -Whether I am liable to pay IT on pension income and what are the provisions for exemption of pension income from IT? 2.Secondly, I have taken a demand loan of Rs. 4,50,000/- in 2011 and invested that amount for purchase of plot with already constructed house. I did not mention the purpose of loan in my DL application to banker as I was not aware of any provision of housing loan exemption from IT. Also the OD account created for this purpose is flexible means I repay my full salary in the account and withdraws as required (through ATM) to meet my other domesti…

“BUILDER ALSO LIABLE TO PAY TAX ON THE DIFFERENCE IF THE STAMP DUTY VALUATION IS HIGHER THAN THE ACTUAL SALE CONSIDERATION”

TAX TALK – 15.04.2013- THE HITAVADA
“BUILDER ALSO LIABLE TO PAY TAX ON THE DIFFERENCE IF THE STAMP DUTY VALUATION IS HIGHER THAN THE ACTUAL SALE CONSIDERATION”

Query 1]
Please refer to your Tax Talk Dated 08.04.2013 which was very informative. In continuation to that, we have been told that there are changes on the taxability in the hands of builders also if the flat/office block/ etc are sold at a price lower than the Stamp Duty Valuation. As of now, we are liable to pay tax on the basis of actual sale price and not on the basis of the Stamp Duty valuation. Is it true? Whether the income tax would be applicable on the basis of the value which may not have been received by us? What is the remedy available? Is there any exception to this provision like date of agreement as mentioned in the last issue of Tax Talk? We also read about the change in the agricultural income tax base? What is the change in the agricultural land taxability? We would be thankful if you can kindly elaborate the pr…

“PURCHASING THE PROPERTY BELOW THE STAMP DUTY VALUATION IS TAXING NOW!”

TAX TALK-08.04.2013-THE HITAVADA

TAX TALK BY CA. NARESH JAKHOTIA Chartered Accountant
“PURCHASING THE PROPERTY BELOW THE STAMP DUTY VALUATION IS TAXING NOW!”
Query 1] I have a query in Capital Gains. Mr. A enters into an agreement with Mr. B for purchase of an Agricultural land and paid Rs. 8,00,000/- as advance. In 2004, the balance of Rs. 1600000/- was to be paid at the time of registry. Mr. B has made another agreement with Mr. C for the same Land. Both Mr. A & C sued Mr. B for performance of contract. In the year 2012, all the three parties made compromise and Mr. A & C withdraws there case against Mr. B and the land was sold to Mr. D for sale consideration of Rs. 48,00,000/- whereas the Market value of stamp duty purpose was Rs. 140,00,000/-. The sale consideration of Rs. 48,00,000/- was shared by all the three parties equally (i.e., Mr. A , B &C each receiving Rs.16 Lacs). In addition to his share in the Sale Consideration of Rs. 16 Lacs, Mr. A further received 1/7th shar…