F.A.Q on Indian Income Tax Laws F.A.Q on Indian Income Tax Laws The blog is regarding Indian Income Tax Laws.The format is FAQ.Readers can also ask question Articles
Can A.O Reopen The Dropped Case Of Reassessment Proceeding?
2008-04-03 05:43:00 The ITO started reassessment proceedings against me for the AY 2004-05, in May 2006 in a property related matter. After a few months the case was dropped by the ITO. I was informed only in February 2008. The ITO then started reassessment proceedings for the AY 2001-02 and passed an adverse order against me. I have gone in appeal. My question is can he once again restart the Reassessment proceedings against me for the AY 2004-05 once he has passed a written order saying that the case is dropped Joe Rodricks , Mumbai The power under section 147 read with section 148 are very wide. However , if a new facts come in A.O’s eyes and based on the new fact which was not before him when he drooped the proceeding u/s 147 , he is empowered to reopen the case. Read the decision of Supreme Court in Ess Ess Kay Engineering Co P Ltd vs CIT [2001] 247 ITR 818 This is a case of reopening. We have perused the documents. We find there was material on the basis of which the Income-tax Officer ... More About: Case
Can You Claim Exemption For Two Separate Years For Investment In same Hous
2008-04-03 04:18:00 I have been allotted shares of an US company under ESOP scheme in 1996. these shares are not listed abroad. I have sold some of these shares in FY 05-06 and invested the consideration in a residential property. I have availed the exemption u/s 54F to the extent of amount paid to the builders in that FY. In the FY 06-07, i have sold further shares. Can i avail the exemption u/s 54F for the FY 06-07 for the same property towards the balance amount payable to the builder. Please advice. The option was provided to me in the sept 1996. the shares were vested within 6 months from the date of option. some shares were sold in the year 05-06 and the balance in March 07.My CA says that I can get the exemption u/s 54F against the same property for the balance payable. My friend's CA says that I can't get the exemption. please advice. Kavitha, BangloreBefore I express my opinion, let us see what the exemption provison says u/s 54 F of the I T Act. The conditions for claim of exemption u/s... More About: Investment , Years , Capital Gain
Can One Claim Deduction For Expense On More Than One Disable Dependant?
2008-04-01 04:10:00 I have to file income tax return where the assessee has 3 medically disabled person i.e Father , Mother and Uncle (fathers brother). What is the process of getting deduction for the A.Y. 2007-08 , What is the amount and what is deduction. Pinky SitalniSince you have asked regarding three relatives who are physically disable and you want to get deduction for expense on their maintenance , I must opine first on the issue whether you are eligible for one patient or more than one patient who are your relatives and dependent on you.I find the provision has used the word ?a dependant? and ? a person with disability? plain reading of which states that the deduction is allowed in case of one dependant t only. Read the opening lines of section 80DD80DD. (1) Where an assessee, being an individual or a Hindu undivided family, who is a resident in India, has, during the previous year,(a) incurred any expenditure for the medical treatment (including nursing), training and rehabilitation of a dep...
What Every NRI Would Like To Know About Sale or Rent or Gift Of Immovable P
2008-03-31 04:12:00 Previously , the FAQs published by Reserve Bank Of India on the subject of acquisition of immovable property in India was published here. The second in series is the frequently asked question regarding "transfer of properties by various mode like sale,gift etc.Q.1 Can an NRI/ PIO/foreign national sell his residential / commercial property?A.1. (a) NRI can sell property in India to-i) a person resident in India orii) an NRI oriii) a PIO.(b) PIO can sell property in India toi) a person resident in India.ii) an NRI oriii) a PIO ? with the prior approval of Reserve Bank(c ) Foreign national of non-Indian origin including a citizen of Pakistan or Bangaladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan can sell property in India with prior approval of Reserve Bank toi) a person resident in Indiaii) an NRIiii) a PIOQ.2. Can an agricultural land / plantation property / farm house in India owned / held by a non-resident be sold?A.2. (a) NRI / PIO may sell agr... More About: Sale , Gift , Rent
Do The Capital Gains On Sale Of Residence Get Better Treatment Than Gains
2008-03-30 14:25:00 I have recently sold my Commercial property for 31.5 lakhs which was purchased in 1999-2000 for 5 lakhs.According to my CA our capital gains comes around 15 lakhs & we have to pay 20% as a Long term capital gain tax.I want to have clarity on following points.1:-Should I invest 15 lakhs in other property to save tax or I have to invest whole sales proceedings of 31.5 lakhs.2:-What is the amount I have to invest in Capital gain Accounts( Nationalised banks) 15lakhs or 31lakhs if I need time to finalise on the property.3:-In Income tax rules for Commercial & residential properties are same or they are treated differently? Vijay Jaywant Naik , MumbaiGood question.!Yes , income tax law provides better treatment for long term gains on residential property than the commercial property.While the long term capital gains(LTCG) tax rate for both types of gains are same i.e 20 % , the rule for exemption are different .What are the difference ?The exemption for LTCG on residential proper... More About: Sale , Treatment , Capital Gains , Capital Gain
Why Is Pension Fund Investment Not A Great Tax Saving Move?
2008-03-29 07:26:00 Under which section surrender value of pension plan is taxable ? Sanjay Chavan, PuneThe contribution in pension funds gives the investor deduction u/s 80CCC upto Rs 1,00,000 . However,the combined deduction under 80CCC + 80C + 80CCD is Rs 1,00,000.Why is it not great tax saving ?The scheme of pension funds of LIC or other private funds are not great tax saving instruments in comparison to other saving instruments because when you receive pension or surrender the fund and receive the amount , it is taxable in the year of receipt.Read the provision given under section 80CCC (2) which is clear as far as taxation of pension or surrender value is concerned.(2) Where any amount standing to the credit of the assessee in a fund, referred to in sub-section (1) in respect of which a deduction has been allowed under sub-section (1), together with the interest or bonus accrued or credited to the assessees account, if any, is received by the assessee or his nominee(a) on account of the surrender... More About: Investment , Great , Pension , Move , Fund
Is Payment To US Based Writer Or Director By Animation Movie Producing Comp
2008-03-27 19:52:00 One of our clients is in to the business of producing animation films for which it enters into contracts with non resident US Individuals in various capacities as writer, director, distributor co-producers etc. Whether the payments to such individuals be considered as Technical Service Fees for TDS. If yes, then what rate should be charged considering DTAA & IT Act. If no, then what procedure should be followed. Is there any provision for no deduction or lower deduction of tax. if yes, then wats the provision & the procedure. An early reply is sought. Amaresh, Bangalore You have asked the question in very general manner because the decision whether a specific service falls under technical service is to be seen case to case. Let us first see what is the meaning of Technical Service as explained under Income Tax Act .As per Explanation to section 9(1)(vi) of the I T Act , the fees for technical service means Explanation 2.For the purposes of this clause, fees for technica... More About: Animation , Movie , Comp , Producing , Payment
Can You Deposit TDS /TCS Online ?
2008-03-27 15:53:00 E- Payment of taxes were made mandatory for corporates & to those assessee to whom Section 44AB applies with effect from 01.04.2008. My question is that whether Payment of TDS will come under this or not and if TDS payments are to be made through E- Payment, then please the procedure involved. K.Muthuswamy, Chennai.The wordings given in the notification for making the payment of tax online mandatory, it is indeed not clear if the TDS is also made mandatory . However, the TDS is not a tax which is paid, but for deductor responsibility is to "Deposit" it. In my view the TDS/TCS is not covered under this mandatory rule. But there is facility for depositing tax deducted at source as well. Click here as per your choice CHALLAN NO./ITNS 281 for (TDS/TCS) from corporates or non-corporates.CHALLAN NO./ITNS 280 (payment of Income tax & Corporation Tax) CHALLAN NO./ITNS 282 (payment of Security Transaction Tax, Hotel Receipts Tax, Estate Duty, Interest Tax, Wealth Tax, ... More About: Online
Should Tax Be Deducted From Frieght Paid To Non Resident Shipping Companies
2008-03-26 05:17:00 We ship our goods by sea and pay Ocean freight to shipping lines in INR. Do we have to deduct TDS from shipping lines? (They refuse so accept it because they say they are exempt from Income Tax in India) .Hirendra Vikani, RajkotFirst of all , the statement of the shipowner that they are exempt from tax is not entirely correct. There is specific provision u/s 172 of the I T Act to assess "shipping business of non-residents". However, there may be cases that income of foreign ship may not be taxable in India on account of Double Taxation Avoidance Agreement with the country of origin of the ship. Read this posting and related circular in this regard.TDS on freight payment to non resident shipping companies?There are three provisions which are to be considered for deciding the issue whether the tax is to be deducted at source.Section 172 provides for assessment of profit of shipping business of non resident ;Section 194C : deals with TDS on contract or sub-contract.Freight is one of th... More About: Companies , Paid , Shipping , Resident
Can School Fee Treated As Perquisite Be Allowed Deduction U/s 80C ?
2008-03-25 19:44:00 I am working in a school & getting 100% rebate on Tuition fee on my 2 children's fee. The amount of rebate is added as a perquisite in my gross salary which increase the amount of TDS on salary but I am not getting the rebate of the same under section 80C why ?. I have been told that since you are not paying the tuition therefore you will not get the rebate under section 80C. Please clear me is this rule is ok.When this amt is added to my salary then why can't I get the rebate on the same. Gayatri Bajpai Section 17(2)(iii) clearly provides that the value of any benefit or amenity granted or provided free of cost or at concessional rate shall be taken as perquisite. Income TaxRule 3(5) states (5) The value of benefit to the employee resulting from the provision of free or concessional educational facilities for any member of his household shall be determined as the sum equal to the amount of expenditure incurred by the employer in that behalf or where the educational institutio... More About: School , Salary
Is Distance Education Eligible For Deduction ?
2008-03-25 06:00:00 Does a Distance learning course of Management via satellite also qualify for the aforesaid deduction? Rajesh ,HyderabadIs the tuition fees for M.B.A (Distance Education ) paid for self is allowable for deduction u/s 80C of the Income Tax Act . Prem Kumar,ChennaiDo distance education fees gets IT exemption ? Ganesh R ,BangloreIncome tax Act provides two types of deduction for education . These are 1. Tuition fee paid for children u/s 80C subject to maximum Rs 1,00,000. 2. Interest on education loan for studies of self or spouse of children without any limit u/s 80ENow the question raised is :whether correspondence or distance education is covered under those sections of the I T Act for thr purpose of claiming deduction? Let us see what is the meaning of "studies" for the purpose of section 80C and 80 E.Section 80C(xvii) provides as under (xvii) as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admissi... More About: Distance Education
Is Distance Education Eligible For Deduction ?
2008-03-25 05:57:00 Does a Distance learning course of Management via satellite also qualify for the aforesaid deduction? Rajesh ,HyderabadIs the tuition fees for M.B.A (Distance Education ) paid for self is allowable for deduction u/s 80C of the Income Tax Act . Prem Kumar,ChennaiDo distance education fees gets IT exemption ? Ganesh R ,BangloreIncome tax Act provides two types of deduction for education . These areTuition fee paid for children u/s 80C subject to maximum Rs 1,00,000.Interest on education loan for studies of self or spouse of children without any limit u/s 80ENow the question raised is :whether correspondence or distance education is covered under those sections of the I T Act for thr purpose of claiming deduction? Let us see what is the meaning of "studies" for the purpose of section 80C and 80 E.Section 80C(xvii) provides as under (xvii) as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission o... More About: Distance Education
Check Your Refund Status Online Now!
2008-03-23 16:06:00 A News You Can Use NSDL which established Tax Information Network on behalf of income tax department has put following on its website for tax payers. The refund banker pilot scheme has commenced from 24th Jan 2007. It is now operational for taxpayers assessed in Delhi in salary charges i.e. CIT XIV, XV,XVI and one business charge i.e. CIT IX. It is also operational in Patna for CIT I, II and Central. From September 30, 2007 the pilot has been extended in few other stations i.e. Bangalore, Chennai, Delhi, Kolkata, Mumbai (except for company and exemption refunds). In the pilot scheme all Income tax Returns will be processed by Assessing officers. ITOs, Asst. Deputy Commissioners, Commissioners. The refunds (by ECS or paper cheques)will be sent by CMP branch of SBI. Taxpayers will get status of refund 10 days after the refund has been sent by their Assessing Officer for refund banker. Status will be available only for those taxpayers whose refunds are to go through refund ba... More About: Check , Online
Here Is A Recent Good Decison For All Claimants of Dedcution Under Section
2008-03-17 05:16:00 I sold a flat in Sep'07 and intend to re-invest (jointly with mother) in another (self-occupied).1) Can the LTCG made on sale of flat be re-invested any time before due date for filing return (31-7-08) or do we have to deposit the LTCG in the capital gains account scheme before 31-03-08?Jaishankar Motiram Talreja , Mumbai The provision under subsection 4 of section 54of the I T Act states as under 54(4) The amount of the net consideration which is not appropriated by the assessee towards the purchase of the new asset made within one year before the date on which the transfer of the original asset took place, or which is not utilised by him for the purchase or construction of the new asset before the date of furnishing the return of income under section 139, shall be deposited by him before furnishing such return [such deposit being made in any case not later than the due date applicable in the case of the assessee for furnishing the return ofincome under sub-section (1) of section ... More About: Recent , Good , Section , Capital Gain
Can One Claim Relief For Tax Paid In A Country With Which India Has No DTAA
2008-03-16 09:19:00 I worked in Hongkong for the period of 1/4/2007 to 30/6/2007 on Salary basis in a company. I was transferred in India in July 2007 in a branch of the same company, when i left Hongkong in July 2007 the Income Taxes is paid by me to the Government of Hong Kong. Now i wanted to file my return for the Financial Year 2007-08.Is their is any DTAA's of India with Hong Kong, if yes, how my tax liability will be calculated ?Is there any benefit will be available to me in respect of taxes paid by me in HongKong ? Is Hongkong is Part of China for DTAA's point of view ? In new form of the return thier is no column for showing DTAA's then how I should file my Return ? Arvind Chauhan , FaridabadYour salary earned in Hongkong is definitely taxable in India and India has no treaty with Hong Kong for avoidance of double taxation. I presume , you were out of country for six months only ,you are resident in India .Still , you should not worry because Indian Income Tax Act has provisions of relief ... More About: Country , Paid , Relief
Is No Objedtion Certificate Required From IT Department Before Remiting P
2008-03-16 07:46:00 We are in process of constructing a hotel in Gurgaon. to provide Civil, Architect, Horticulture Consultancy we appoint a firm from Singapore to advice to construct the hotel. now we want to make some advance to him. now bank is asking for certificate from CA.1. TDS u/s 195 will apply or not?2. What will be TDS Rate ?3. For all such remittance we need CA certificate ?4. What is the basis on which we have not to deduct TDS.Aishwarya Goyal, GurgaonSince the non resident company is giving you consultancy to be used in constructing hotel , it is definitely liable to tax at source in India. The rate is 10 % as per Double Taxation Avoidance Agreement between India and Singapore. Article 12 of the DTAA between two countries statesArticle 12 : Royalties and fees for technical services - 1. Royalties and fees for technical services arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.2. However, such royalties and fees for techn... More About: Department
Should DDO Insist Upon Evidence Of Payment For Deduction u/s 80DD?
2008-03-16 04:33:00 I have query regarding Section 80E of Income Tax Act for the deduction of Interest paid on Higher Education Loan. One has not claimed as deduction interest paid on higher ed. loan in P.Y.2006-07 and filed return without claiming Section 80E. Now whether he can take benefit of the interest paid in 2006-07 while filling the return of A.Y.2008-09. Also please advise whether employer can consider the interest paid in P.Y. 2006-07 while deducting tax for the A.Y.2008-09 as same was not claimed and considered while deduction tax at source in A.Y.2007-08. So how an employee can get the benefit of unclaimed interest on higher ed. loan of A.Y.2007-08. Sabir F. Mulla , Ahmedabad I do not think that the interest paid on educational loan for FY 2006-07 i.e Asst Yr 2007-08 can b e claimed in Asst Yr 2008-09. However , assessee has two ways to claim the deduction which he forgot to claim by mistake . These areFiling Revised returnFiling application u/s 119(2)(b) of the I T Act. Fil... More About: Evidence , Payment
Is Interest To Tax Exempt Educational Trust Subject To TDS?
2008-03-14 17:45:00 I am a trustee of an educational Trust . The Trust is registered u/s 12AA. Should the banks deduct TDS on our FD interest? Chandan Naha , Kolkata Yes, the Bank is correct to deduct the tax at source even though you are registered u/s 12AA . The bank is only doing their duty and they can not take the role of Assessing Officer . As per CBDT Circular : No. 4/2002, dated 16-7-2002, all entities having income fully exempt u/s 10 is not out of TDS clutch. The said circular is given below which states in what conditions ,TDS may not be made . Applicability to entities whose income is fully exempt under section 10 - Subsequent to the amendment to section 197A made by the Finance Act, 2002 whereby a new sub-section (1B) has been inserted with effect from 1st June, 2002, representations have been received seeking clarification whether the prescribed self-declaration under the said section can be submitted by entities exempt from tax under section 10 even if the pay... More About: Educational , Interest , Subject
Is Interest Accrued on RBI Bond Taxable & Subject To TDS?
2008-03-11 05:47:00 I had purchased RBI 8% Bond s 5-6 years back and they are about to mature now.Now I want to know about their taxability part - I understand that they are taxable now.So: a) how do I need to pay tax on them - when I receive all the matured amount (including interest) b) Are RBI Bonds subject to any TDS ? Barat You have not stated type of bond bought from RBI five or six years ago. If it was 8% Relief Bond, then, it was not taxable as per section 10(15)(iiic) . The said Relief Bond ceased to be issued after 28/2/2003. Therefore, if you hold those bonds , there is no taxation on the interest and also there is no TDS . What is the present position ? At present , RBI issues 8% Savings Bond(Taxable) which is also subject to TDS after 1/7/2007 . Some of the features of 8% Savings Bond (Taxable) are Limit of Investment : No Limit. Face Value of Bond: Rs 1000. Interest : 8% payable half yearly. Type of issue: Cumulative and non cumulative. That is you can ... More About: Subject
Is ELSS Better Option As A Tax Saving Investment ?
2008-03-08 07:46:00 The crash of stock market in the month of March is good opportunity for investors to opt for Equity Linked Saving Scheme because unit price of those scheme shall also be lower on account of crash in stock market. That is not the only reason for recommending ELSS as an investments . The other reasons are 1. Claim Deduction upto Rs 1 lakh Those readers who have still trying to search for an investment option for tax savings, can get deduction u/s 80C which by virtue of clause 2(xiii) gives deduction up to Rs 1 lakh . 2.Minimum lock in period. The PPF or NSC gives you risk free returns but they have lock in period of six years, whereas ELSS has only 3 years of lock in period . SO , after three years only you can get your wealth back . 2. Tax free gains While interest from PPF is tax free , interest from NSC is taxable. Whereas in case of ELSS, not only tax on the long term capital gains is tax free, even dividends you receive are tax fre... More About: Investment
One Insurance Policy, Two Claimants Of Deduction U/s 80D Possible Now !
2008-03-05 04:45:00 Budget 2008 -Fine Prints 3 Budget 2008 has brought some very nice changes in section 80 D . These are : Additional Rs 15,000 for medical insurance on parents. If the insured parent is senior citizen , additional insurance amount is Rs 20,000 (Not Rs 15,ooo). Parents of individual or of spouse , both are ,covered. Parents need not be dependent on the assessee. If part payment is done by you and part payment by the parent, both can claim deduction to the extent of their contribution subject to maximum allowed. Read the reason with example for such an amendment by the Government as given in Memorandum to Finance Bill 2008 "Section 80D of the Income-tax Act provides for a deduction of up to fifteen thousand rupees to an assessee, being an individual or a Hindu undivided family. The deduction is allowed for making a payment to effect or keep in force an insurance on,- (a) the health of the assessee or on the health of the wife or husban... More About: Insurance , Policy , Budget
Can Divorce Settlement Be Done In Cash?
2008-03-04 04:07:00 I am in a software company, hence i am in salaried class. I am getting divorce from my wife through mutual consent in court, for which i need to make permanent alimony of Rs 15 lakhs. I have the source of income for this amount. My wife is asking the complete amount in Cash (not agreeing for Demand Draft), which will be settled infront of the Judge. Is there any violation of IT law if i pay this amount in the form of cash. Is there any limit for Cash transaction for Divorce settlement.Logu , Chennai Yes, you can pay divorce alimony in cash.There is no restriction of any kind as far as Income Tax Act is concerned. If you have confusion regarding section 40A(3) or section 269SS or 269T , be assured that non of these provisions are applicable to your case because while provision under section 40A(3) which prohibits payment of expenditure exceeding Rs 20000 in cash is applicable for business income , section 269SS or 269T prohibit accepting or repaying a loan or deposit exceeding Rs 20,... More About: Settlement
Is Sound Recording Service To Film Liable To Service Tax?
2008-03-03 02:54:00 I and a couple of friend of mine run a partnership firm which is in the business of providing Sound post production for feature Film s ,So could you please tell me about TDS & Service Tax, applicable to us and payable by us.to whom are we entitled to charge service tax and entitled to deduct TDS, at which amount onwards do we need to charge service tax from our client & fill TDS. Someone told us we will liable to deduct TDS only after we cross a turnover of Rs.40 Lakhs in FY. Could please fill us with details so that we don't default on our taxes. ALLWIN REGO, Mumbai You have not stated exactly what type of work you get done from others . I presume it is some specialised professional or technical work and on that presumption , am answering your question. TDS necessary? First of all you should know that the criteria of 40 Lakhs turnover is not for a firm , but only for individual or HUF. Since you are having a partnership firm , you will have to deduct tax for any professi... More About: Recording
Budget 2008 proposal-Non Cooperation With A.O Can Be Beneficial!
2008-03-02 09:05:00 Budget 2008 -Fine Prints 1 The Finance Bill 2008 has proposed a very important change. Suppose you did not receive any scrutiny notice u/s 143(2) and suddenly one day you get a call from income tax officer that your case is selected for scrutiny , that the notice u/s 143(2) required for selection of case for scrutiny was sent by registered post .After this you or your lawyer or C.A appeared before the A.O and submitted details . The compliance on verbal information given by the A.O is often done because the authorised representative or the assessee , do not want to earn the ire of the officer concerned and also in the hope that the cooperation may result in small addition and will save the assessee from harsh assessment . However if the the A.O passed the order with heavy additions. assessee used to appeal before CIT (Appeal) and raise the issue of non receipt of the first notice u/s 143(2) . Now, a new section 292 BB is inserted to state as under Where an asses... More About: Cooperation , Proposal , Budget
What is The Date After Which Your Return Can Not Be Selected For Scrutiny ?
2008-03-02 08:59:00 Budget 2008 -Fine Prints 2 As on today, when A.O selects your case for scrutiny , a notice u/s 143(2) is served on you . This notice must be served within twelve months from end of month of filing of your return. So let us say , for Asst Yr 2007-08, you filed return on 29/7/2007, the A.O must serve on you a notice u/s 143(2) by 31/7/2008 . Budget 2008 proposes to fix that A.O can not select your return for scrutiny after six from the end of financial year in which the return was filed. The amendment in section 143(2) is proposed is as under : (b) in sub-section (2), in clause (ii), for the proviso, the following proviso shall be substituted,namely ‘‘Provided that no notice under clause (ii) shall be served on the assessee after the expiry of six months from the end of the financial year in which the return is furnished.”. In practical sense , if you file return for Asst Yr 2007-08 by due dates or by 31st March 2008 , and you ... More About: Budget , Return , Scrutiny
Should TDS Return For Payment of Rent To NRI Be Filed?
2008-02-28 05:05:00 I want to know that whether a NRI having rental income more than minimum income not chargeable to tax is required to obtain PAN no or not?If the answer to the above question is no, Person paying rent is a company and in my view will deduct tax u/s 195.How a Company paying rent to NRI and deducting tax will file its TDS return with a fact that total no. of deductees are only two? Atul Goel, New Delhi The non resident Indian should get the PAN allotted for following two reasons Getting the credit for the TDS as the TDS statement to be filed now require quote of PAN. The NRI is required to file income tax return as he will have taxable income. The return can not be filed without PAN. How to get the PAN for non resident can be read here. Filing of TDS return Regarding the obligation of filing TDS return by the payer company , it should be known that the law requires that the company paying rental amount u/s 195 should deduct the tax and file return in ... More About: Return , Payment , Rent
How To Create Charitable Trust ?
2008-02-26 16:51:00 Income Tax Act has specific provisions for exempting income of a charitable trust and also giving deduction u/s 80G to persons giving donation to approved charitable trusts.The process of setting up a charitable trust , there fore , has two steps: Registering a Trust deed with registering authority. Applying before Commissioner of Income Tax for registration of trust for the purpose of exemption. Registering a trust deed Prepare the trust deed on non-judicial stamp paper. [Compute value of stamp paper as per the value of the property of the trust deed] Submit it the office of District Registrar . Important points to incorporate in the trust deed Name of the trust deed. Name of the authors or settler of the trust. Name of the trustees Clearly mention if the public at large are beneficiaries. Details regarding ... More About: Create
How To Use Capital Gains Account Scheme To Save Tax?
2008-02-26 16:24:00 What Is Capital Gains Account Scheme? If you get long term capital gains , Income Tax Act provides certain exemptions under section 54,54B,54D,54F and 54G .In short these exemption are for capital gains earned on account of Sale of a residential house (Sec 54) Sale of agricultural land (Sec. 54B) Compulsory acquisition of land & building (Sec. 54D) Sale of any long term capital asset (Sec. 54F) Transfer of assets in case of shifting of industrial undertaking. (Sec 54G) In all these cases, an assessee is given exemption if the sale proceeds are utilised for some specific purpose. But it happens that the money can not be utilised within short span of time. In that case, there is provision that the money is deposited in designated bank in a special kind of account called Capital Gain s Account Scheme and utilise the money for that specific purpose within extend period given in those section. Therefore , all those assesse... More About: Save
Are Print Media Liable To Service Tax On Advertisements?
2008-02-24 16:31:00 Whether magazine publishers are liable to pay service tax for the advertisements published . Ravi M , Margoa, Goa There are two sections under Service Tax Act which cover services related to advertisements . These are : Advertising services. [Section 65(105)(e)] Space selling Service [65(105)(zzzm)] Advertising services. [Section 65(105)(e)] Section 65(105)(e) defines taxable service for advertising service as under "Taxable service means any service provided or to be provided to a client , by an advertising agency in relation to advertisements in any manner" First of all this section is applicable on advertising agency which a newspaper or magazine is not. Secondly service tax under this section is not payable for the actual making or display or exhibition of advertisement , but on the service connected with these activities. So, there is no service tax payable on advertisement charges paid to print me... More About: Media , Print , Advertisements
Can Non Residents Subscribe PPF?
More articles from this author:2008-02-23 17:42:00 I am an Overseas Citizen of India and also a Canadian Citizen. I had a PPF account in India which I opened before leaving India and I am still continuing to contribute. It is expiring and I want to extend it for next five years or so. Is it legal to continue such account.Raman,Toronto, Canada NRIs are prohibited from opening a PPF account or investing in any of the Post office schemes as well as the RBI savings Bonds. Circular GSR 585(E) dt. 25.7.03 prohibits NRIs from opening a PPF account. The wording in Public Provident Fund 1968 which is amended time to time, is as under with respect to issue of subscription by Non Resident Non Resident Indians are not eligible to open an account under the Public Provident Fund Scheme:- Provided that if a resident who subsequently becomes Non Resident Indian during the currency of the maturity period prescribed under Public Provident Fund Scheme, may continue to subscribe to the Fund till its maturity on a Non Repatri... More About: Subscribe 1, 2, 3, 4, 5, 6, 7 |
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