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Is tax clearance certificate needed on leaving India ?

September 30, 2006 By taxworry Leave a Comment

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Excerpt: NO , tax clearance procedure in case of going abroad permanently or temporarily has been changed for good. So,before leaving India clearance is required from I T Department in  only specific types of cases. The provision in force today are as  follows: A) If you are domiciled in India and wants to go out of India. As per Section 230(1A) , a person is required to tell the Assessing Officer (a) the permanent account number allotted to him under section 139A. In case , PAN is not required or the income is below the exempted income as usch no return…

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I carries two business , the combined turnover is above Rs 40lacs. Should I get the accounds audited ?

September 23, 2006 By taxworry Leave a Comment

Yes, you are required to get your accounts audited along with a tax audit. It is better way to maintain your accounts anyway.

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I could not pay demand for paucity of funds. The interest part of the demand is huge now. I am not in postion to pay such demand .What to do?

September 23, 2006 By taxworry Leave a Comment

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Excerpt: Sure, you can apply before Commissioner of Income tax or Chief Commissioner of Income Tax , on plane paper u/s 220(2A) which says : “Chief Commissioner or Commissioner may reduce or waive the amount of interest paid or payable by an assessee under the said sub-section if he is satisfied that (i) payment of such amount has caused or would cause genuine hardship to the assessee ; (ii) default in the payment of the amount on which interest [has been paid or] was payable under the said sub-section was due to circumstances beyond the control of the assessee ; and …

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The commission I earn, is subject to TDS which is huge and I have to claim refunds always ? Is there way out?

September 17, 2006 By taxworry Leave a Comment

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Excerpt: Yes , You can apply to the A.O in Form 13 given in IT Rule 28 stating that you may either be exempt from TDS or TDS should be at a rate lower than the prescribed rate. For this you will have to attach the estimated income of last years to make your point. Remember , The CBDT has delegated the power to either exempt you from TDS or lower rate to A.O of TDS wings. So where ever you are get in touch with the A.O having jurisdiction over you…

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All you ever wanted to know about PAN!

September 10, 2006 By taxworry Leave a Comment

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Excerpt: What is PAN ?This is Permanent Account Number- a unique 10 digit number allotted to each taxpayer for his identification. Section 139A of the I T Act deals with PAN.Why PAN ?The govt. wants to track the expenditure ,investments,payments and receipts so as to keep a tab on potential tax evaders. The system is being in put in place that moment you buy or sale or transacted or paid or got receipt of sums above a certain limit the the Assessing Officer of the persons involved in such transaction will be notified automatically. How , simply the system will…

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I sold some shares gifted by my husband, but the A.O taxed my husband on those gains. Now the company annanoced Bonus.Will that also be clubbed ?

September 8, 2006 By taxworry Leave a Comment

No, the Bonus received on the shares GIFTED to you by your husband can not be clubbed in his income because the bonus was never belonging to him.There are court ruling on this issue . You can refer
CIT vs M P Birla [1983] 142ITR377 [Bombay High Court]
CIT vs T Sarswathi 133 ITR 315.

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Filed Under: Clubbing of Income, Gift Tagged With: , , , , , , , ,

My father in law has a house in Delhi . He wants to transfer the house in my name. Is the rent taxable in my hand?

September 7, 2006 By taxworry Leave a Comment

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Excerpt: No , Rent is not taxable as your income if the transfer of the house was done without receiving the consideration……why? This is beacuse of clubbing provision in the I T Act .Section 64 (vi) of the I T Act states:In computing the total income of any individual, there shall be included all such income as arises directly or indirectly” to the sons wife, of such individual, from assets transferred directly or indirectly on or after the 1st day of June, 1973, to the sons wife by such individual otherwise than for adequate consideration;”Hence , the…

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My taxable income is Rs 2.2 Lakhs. If I gift Rs 20,000 to my son, who is a 23 yr old student, will my taxable income reduce by Rs 20,000 to Rs 2.0 Lak

September 7, 2006 By taxworry Leave a Comment

No, There will not be any reduction. You will have to pay tax on 2.2 lac. Your sons receipt will be tax free.

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Claimed dedcution u/s 80 DD of Rs 50000. A.O says deduction shall be allowed only for expense for which I show proof .Is he right?

September 3, 2006 By taxworry 5 Comments

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Excerpt: In my view , the action of A.O is not according to the provision of the Section 80DD of the I T ACT. Even a ruppee you spend on dependent person for his medical treatment and maintenance , you are allowed a deduction of Rs 50000.Section 80DD states :”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 dependant, being a person with disability; or (b) paid or deposited…

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Six months have passed since I received the assessment order . I forgot to appeal before CIT(Appeal).Can I file appeal now?

September 3, 2006 By taxworry Leave a Comment

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Excerpt: Normally, the law provides u/s 249 that Appeal shall be filed within 30 days from the receipt of the order of the Assessing Officer. However , u/s 249(3) provides that CIT(A) may condone the delay if he founds that the appellant was prevented from filing appeal due to genuine reasons. You can also get relief by filing an application u/s 264 before the jurisdictional Commissioner of Tax for quashing the order passed by the A.O. The time limit for filing appeal u/s 264 of the I T Act…

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