Interest on REC Bond Is Taxable Yearwise!

REC Bonds purchased to get the benefit of Capital Gain Tax on redemption after 3 yrs. whether the amount will attract any kind of tax to be paid by me? mukund.m@……com
The REC bond can not be transferred within three years. Interest is payable annually on 30th June every year till date of redemption. Therefore [...]

Both Parents Can Claim Deduction u/s 80DD !

Myself and my wife are earning people and we both have taxable income of Rs.5lakh .Our doubt is can we both claim Rs.50000 each for maintaining handicapped child we have : rshetigar@rediffmail.com

Yes , both can be allowed because there is no such restriction in Section 80DD which starts as

“80DD. (1) Where an assessee, [...]

Hedging Loss is Buisness Loss , not Speculation Loss!

Can a loss from hedging of commodities be set off against normal profit of a related commodity merchant? agrawalneeraj@sify.com
Yes, there is express provision under the I T Act ,by which loss from hedging of commodities are allowed to be taken not as Speculation Loss and thus on characterized as Business Loss , is allowed [...]

A Complicated Situation Indeed!

when the person deducting tds follows cash basis accounting system and person receiving tds certificate follows accrual method of accounting and the payment towards expenditure has been made after three years. should recipient claim tds certificate as it is not of the income of that year : CARYTHM@YAHOO.CO.IN
Although the case you have narrated a hypothetical [...]

Exemption Can Not Be Claimed if House is Purchased in Relatives Names!

Mr XYZ sold a house which was in solely in his name. To save capital gain tax, Mr XYZ deposited money in the capital gain account with a bank.Now Mr XYZ wants to buy a house, in which the first owner is the daughter in law of Mr XYZ and the second owner is the [...]

Rental Income From NRI’s House Is Taxable in India

I am a NRI living in the US since Nov 2003. I bought an apartment in India in Aug 2005 and since then I have been paying EMIs. I have 2 questions.1) I am planning to rent out the apartment starting next month. I was told that once I start receiving the [...]

Even Service Tax or Sales Tax Is liable to TDS!

Whether TDS has to be deducted on the Gross amount of Bill, inclusive of service tax and sales tax if any. Are we supposed to deduct tax on tax i.e. service tax agarwalrohit_k@…………com

The word used in TDS provision is “Any sum” , therefore all sum whether service tax or sales tax, TDs [...]

Letting Out of Factory Along With Machinery- Buisness Income or House Property Income ??

The assessee Company was doing job work with its own machinery.In F.Y.2004-05 it give the premises with machinery on lease.Whether the income should be assessed u/the head Income from House property or business income.kirans_agrawal@,,,……….com

This is a classic question and decision whether the income is from house property or business income is a matter of [...]

No Dedcution For Tuition Fee Paid For Dependents!

I am employed in a private firm and my annual income is more than 4.5k. Here the query is I have paid an amount of Rs 80k for my sister’s education. Since my parents are no more and I am still unmarried and obviously don’t have any kid for whom I pay tuition fees. Is [...]

Sales Tax Liability Can Not Be Disallowed If State Govt. Considered It As Deemed Collected !

Advanced Topic
An assessee had been allowed sales tax claim u/s 43B pursuant to a scheme of the state government whereby the government had converted his sales tax liability into a loan. The CBDT had issued two circulars—No.496 in 1987 and 674 in 1993—to provide that in cases where incentives were granted to an assessee by [...]

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