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You are here: Home / Archives for January 2007

Principal Amount of Loan Allowed Even If Interest Is Not Allowed!

January 31, 2007 By taxworry Leave a Comment

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Excerpt: Suppose, somebody is taking exemption on rent can he also be eligible on Housing Principal & Interest benefit? rajendra.panditrao@……………..comYes,interest is allowed even if you are getting exemption on HRA is allowed. The HRA exemption is allowed when you pay rent whereas the deduction u/ s 24 of the I T Act of Interest on borrowed fund for construction of house which is self occupied or for the reason that the owing to your employment , you could not occupy.or the house is put on rent. In all these cases , you are allowed to have…

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Filed Under: A of Your Question, Deductions, House Property Tagged With:

Capital Gains May Arise Without Registration of Conveyance Deed.

January 31, 2007 By taxworry Leave a Comment

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Excerpt: pkumar_chn@dataone.in Asked: A person sold his free hold land to a builder developer so that he creates flats to be sold. As usual no registration or conveyancing takes place now say in Jan 07. Only Power of attorney is given. Consideration for the same is partly payable in cash and partly in kind by way of allotments of constructed flat. Cash component is payable in 5 equal installment. Only one such installment is received before March 07 and that will be utilised in full for payment of bank dues so as to clear the document from bank. Under these…

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Filed Under: A of Your Question, capital gains

Interest & 80C Deductions Allowed to Non Residents Too!

January 31, 2007 By taxworry Leave a Comment

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Excerpt: shankers_1999@……com Asked : I was NRI and working in DUBAI till Dec 14th 2007 ( Went to Dubai in 26th July 2003). Returned back to India on 15th Dec 2007 and joined an MNC here. I have 2 question for filing my Income tax return,( FY 2006-2007) a) I am paying interest on Housing loan amounting to Rs 72076/- for the full year of 2006-2007 & principal Component of Rs 39944/- for the full year 2006-2007. Can i take the full interest component of the whole year for deduction and exemption for computation of Income tax or only on…

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Filed Under: A of Your Question, Deductions, House Property Tagged With:

Profit of Commodity Future Maybe Business or Speculation Income. Facts Will Decide.

January 30, 2007 By taxworry Leave a Comment

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Excerpt: bubna.manish@………in Asked : I want to know that commodity trading (Futures) profits/ loss comes in which chapter/head in Income tax? whether it is a business profit/ capital gain/ speculation gain? The trading in commodity futures can happen either with delivery or without delivery. In normal circumstance, when delivery takes place ,the future commodity trading shall be taken as as business income . If the contract is settled without delivery , such future trading of commodity comes within the meaning of Speculation Business . Explanation 2 under the provision 28 of the I T Act ,describe that if…

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Filed Under: A of Your Question, Business Income Tagged With: ,

Excess TDS Was Deducted &Deposited .Is there Any Remedy?

January 29, 2007 By taxworry 1 Comment

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Excerpt: In case ,you have , for some reason deducted Excess TDS from someone and deposited the tax deducted at source to the government, you need to do two things:Do Not Issue Certificate of Deduction to the Person for higher tax .Claim refund of excess tax dedcuted.CBDT issued circular No 285 [F No 275/77/79-ITB] dt 21/10/1980 which is given below and self explainatory”Procedure for regulating refund of amounts paid in excess of tax deducted and/or deductible 1. The Board have been considering the manner of refunding the amount paid in excess of the tax deducted and/or deductible…

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Filed Under: TDS Tagged With:

Market Price As On 01/4/1981 is Cost of bunglow.

January 27, 2007 By taxworry Leave a Comment

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Excerpt: My father owns a bungalow bought in year 1974. If he sells now what would be the rate of LTCG tax. What would be the rate of indexation for the purpose calculation the tax. and How about investment in 54EC bonds etc.Please let me know in detail.cheminpex@……com The rate on long term capital gain tax is 20 % . Since your father had bought the bungalow in 1974, you have the option of taking the market value as on 1/4/1981 . You can get valuation done by registered valuer for market price as on 1.4.1981 and…

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Filed Under: A of Your Question, capital gains

Your Salary is taxable in India , even If You Paid tax in USA.

January 27, 2007 By taxworry Leave a Comment

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Excerpt: agrawal.rm@…….com Hello,I was in US in year 2005 for about 4 months. I was employed by an Indian company in US where I was paid salary in US$ on which I was paying income tax to US govt. Some 10% of the salary which was already tax paid to US govt. was being paid in India in INR by deducting relevant Income Tax to Indian govt. So it is a case of double taxation.I already filed the return in 2006 for year 2005 to US govt. on the earned salary in US by paying the applicable income tax over there….

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Filed Under: A of Your Question, Salary, non-resident

USA Allows Credit of Tax Paid in India by its Citizen

January 27, 2007 By taxworry 1 Comment

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Excerpt: I am a US citizen of 54 years. I will be accepting a job in India with an Indian pharmaceutical company. I will be relocating to India, but also keep my residence in California, USA. My cash compensation will be over $275,000 – includes base salary and bonus. Plus I will be paid $ 60, 000/year for housing and car and other. I will be paid in India.Approximately what is my tax liability in India.?Approximately what is my tax liability in USA ?My goal is to know if for the above situation will I be paying overall more income tax…

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Filed Under: A of Your Question, Salary, non-resident

Day Trading Loss May Not be Adjusted with Short Term Capital Gain or Business Profit.

January 26, 2007 By taxworry 4 Comments

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Excerpt: daga.akshay@gmail.com Asked how is income from day trading in shares taxed? Is it added with the total income of the assessee and taxed as per slab, or does it have a separate structure?The day trading involves transactions in shares purchase and sale without taking delivery. Under the Income tax Act, the transaction without delivery is called “Speculation ” . How does it effect your total income?While the speculation income of Day Trading is added as Normal Income and taxed as per tax slab.However,the Speculation loss in day trading will only be adjusted with other speculation income .For example,…

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Filed Under: A of Your Question, Shares Business, capital gains

When Is Salary Earned in UAE Become Taxable in India?

January 26, 2007 By taxworry 1 Comment

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Excerpt: DEEPAK_DELHI_007@….COM AskedI m working in Dubai since september 2006 till today in a bank. (4 months). However i have the appointment letter of an outsourcing company of the bank. I m planning to resign and go back to Delhi. around 26000 In delhi I have earned around 1,00,000/- rupees and in Dubai dirhams {312000/- rupees} and i have not completed 182 days in dubai. living in a bed space in Iamdubai and paying 1000 AED as rent but I dont have any rent slip for it + i have expenditure for food around 500 Dirhams.How will the tax calculation…

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Filed Under: A of Your Question, Exemption, non-resident Tagged With:
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