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“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…