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Is There Any Standard Deduction Available In Case Of Pension Income?

June 29, 2008 By taxworry 2 Comments

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Excerpt: Please advise the IT section no. under which standard deduction from the Pension income is applicable & what is the limit.Also advise, whether the standard deduction is applicable for Pension / Annuity received under LIC Superannuation Scheme. Shirish S. Gandhi ,Anand ,GujaratYour question has two limbs -one regarding pension received from employer and other pension or annuity received under LIC Superannuation Scheme.Pension from employerPension received from employer is charged to tax as “salary” . However, the standard deduction previously allowed from salary u/s 16(1) was deleted from the I T Act from FY 2005-06 i.eAsst Yr 2006-07. So , there…

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Filed Under: Salary

Seven Answers A Resident Must Know Before Buying Property From A Non Resident?

June 29, 2008 By taxworry Leave a Comment

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Excerpt: Since the immovable property sale by non resident entails payment of sale consideration by the buyer who is resident Indian , tax has to be deducted at source and paid to government as per section 195 of the I T Act before paying the sum to the non resident seller of the property .1. Who is responsible for deduction of tax?As per section 195 of the I T Act , the person who is paying any sum to non resident , is responsible for deducting tax before making payment or crediting the payment in his accounts….

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Filed Under: TDS, non-resident Tagged With:

Why Is Form 16 Issued For Period March To Faburary?

June 27, 2008 By taxworry Leave a Comment

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Excerpt: I am a state government employee serving in Judicial department. Our salary for the month of march will be received during April every year and our officials are going to submit statement of income-tax particulars in February salary bill and submit returns for the financial period from 1.3.2007 to 29.2.2008. Whether the Form No.16 is to be issued for the period 1.3.2007 to 29.2.2008 or 1.4.2007 to 31.3.2008. Kindly clarify Prasad , Chikkmaglur Income from salary is taxable on due basis or on receipt basis, whichever is earlier. The salary for the month of March in case of government…

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Filed Under: Salary

Is Free Lunch Coupons of Sodexho Taxable ?

June 25, 2008 By taxworry 1 Comment

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Excerpt: Can you please provide the details of exemption limits on meals provided by employer as well as meal coupons issued by Sodexho. I am informed that there is a provision for getting exemption of Rs 2500 per month under this. Can you please explain with the relevant income tax rule under which this is allowed. P V Gopi Ramanan ,Hyderabad You have not stated whether the employer is a company or a firm or Individual or HUF. From FY 2008-09 , the tax treatment of such facility enjoyed by employee depends on whether the Employer is…

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Filed Under: FBT

Can We Claim Deduction U/s 80G If Donation Was Deducted From Salary?

June 23, 2008 By taxworry 1 Comment

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Excerpt: We have received one circular that the amount as donation will be deducted from our salary to pay to recognized charitable trust (which has 80G deduction number allotted by IT Department) for the hospitalization of cancer patient. Accordingly, amount is directly deducted from our salaries and the lump sum amount is paid by the Employer to that charitable trust through cheque. Charitable trust has issued 80G certificate in the name of the Employer and saying that employees can not claim deduction for this donation. My question is that “Can Employees claim deduction for this donation?” & How? Geeta Thakur ,…

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Filed Under: Deductions Tagged With:

Sub Letting Business May Invite TDS At Two Stages!

June 22, 2008 By taxworry Leave a Comment

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Excerpt: We are marketing service apartments we receive payments from company after deduction of TDS @ 15.45 (TDS on Rent ) and we make the payments to owners after deduction of our commission whether we have to deduct TDS on payments made to owners and TDS made by the companies for our payments is it correct . Ravishankar.B , Banglore The rent of apartment is covered u/s 194I of the I T Act. In your case , you take the apartment on rent ,make it serviceable and then put on rent to other persons. For this , other persons pay…

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Filed Under: TDS Tagged With:

How To Decide The Residential Status Of A Person Being Resident Of India & USA?

June 21, 2008 By taxworry Leave a Comment

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Excerpt: Given a situation where an individual is a resident (ROR) under the domestic tax laws of India and treaty resident of say US. For the India tax purposes he shall be considered as ROR or NR? Which residential status shall prevail for Indian taxation? Jaya Bohra, BangloreAs far as India is concerned, if somebody is Resident under Indian income tax law, he will be considered Resident for computation of income tax as per Income Tax Act. However , for income which are settled under Double Taxation Avoidance Agreement, he shall be considered resident of a state as per the…

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Filed Under: How Tos, Uncategorized Tagged With: , , , , ,

What Should Be Done By A Resident Aggrieved By Action Of Tax Authorities Of Any Other Country Having DTAA With India?

June 17, 2008 By taxworry Leave a Comment

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Excerpt: People get problems from tax authorities of most of the country of the world. These days , carree takes professionals to many countries. Therefore, they have to deal with tax laws of different countries at the same time. For example someone who is resident of India , goes to another country for three months and earns some amount of income there, it may just happen that the income will suffer tax in that country as pe the laws prevailing there. To mitigate the problem of double taxation of such income, countries sign Double Taxation Agreement . India has also signed…

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Whether Surcharge and Eductaion Cess Is Applicable in Case of DTAA?

June 14, 2008 By taxworry Leave a Comment

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Excerpt: Whether 2% education cess and 1% higher education cess is applicable to tax rates mentioned under DTAA or not.Please provide the relevant circular or notification where the said clarification is provided. Also is it possible the tax rate mentioned in DTAA is higher than the rate mentioned under section 195 of income tax act and in this case DTAA superceede the income tax even after having a higher rate of tax. Rakesh Jain , UdaipurClause (iii) of Section 2(37A) of the I T Act provides for meaning of rates of tax in case of deduction u/s 195 of the I…

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What To Do If The A.O Does Not Respond To Your Application For Lower Deduction Certificate?

June 13, 2008 By taxworry Leave a Comment

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Excerpt: For a company, TDS on its income every year far exceeds its tax liability, resulting in refund which is about Rs. 30 lakhs every year. In order to avoid the delay in getting back the heavily blocked amount as refund which usually is about 1 to 2 years, it applied for a certificate u/s 197 before the A.O for a lower tds rate. The A.O is not acting on the application (on the extant oral instruction from CIT possibly for the reason that it could impact the annual revenue collection figures). The A.O is also not passing any wriiten order…

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Filed Under: How Tos, TDS Tagged With: , , , , , , , , , , , , , , , ,
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