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Is Exemption Allowed If Home Loan Is Paid From Sale Proceeds of Another Property?

August 23, 2008 By taxworry Leave a Comment

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Excerpt: I have a land property which I inherited recently. I am planning to buy an apartment by taking a loan. Down the road around five years from now, I plan to sell off my property and use that amount to payoff my loan. Do I have to pay capital gains taxes on the sale amount or will it be treated as reinvestment.Ritika, HyderabadYou are actually asking is : whether the loan repayment out of the sale proceeds you get after five years of purchase of a house , out of sale of land , shall be treated as investment…

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Solving Problem Of Wrong TAN On Tax Payment Challan!

August 23, 2008 By taxworry Leave a Comment

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Excerpt: A partnership firm has been paying TDS in the bank and it has mentioned wrong TAN number in TDS challan. The firm has paid Rs 3,00,000 as TDS during FY 2007-08 . What has to be done to rectify the wrong TAN number is TDS challan.The wrong TAN which mentioned in TDS challan belongs to a government organisation. V S A PRASAD , VishakhapatnamMatter is complex but not an impossible task.Relax! The tax payment , as on today, is recognised as per PAN for the deductee and by TAN for deductor. Therefore, mentioning correct TAN is…

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Filed Under: TDS Tagged With:

Why Should You Not Surrender PAN?

August 23, 2008 By taxworry Leave a Comment

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Excerpt: My Uncle runs a manufacturing concern.he is thinking to close down the same.I want to know is it compulsory to surrender Permanent Account Number in this case?And what are the consequences of not surrendering the PAN card? I will be grateful for your assistance in this matter.Shruti Goel, New DelhiThere is no provision of surrender of PAN because PAN has no relationship with any business or income. PAN – Permanent Identification Number – is a number identifying a person . This number is required for completing a transaction even if the person is having no taxable income or person is…

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Filed Under: PAN

Cost Inflation Index For FY 2008-09 Notified!

August 19, 2008 By taxworry Leave a Comment

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Excerpt: Good news for everyone who was waiting for Cost Inflation Index for FY 2008-09. It is notified .August 13, 2008Notification No. 86/2008Section 48, Explanation (v) of the Income-Tax Act, 1961 -Notified Cost of Inflation Index for the Financial Year 2008-09In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government, having regard to seventy-five per cent of the average rise in the Consumer Price Index for the Financial Year commencing from the 1st day of April, 2007 and ending on the 31st day of March,…

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Filed Under: capital gains

Can A Person Get Deduction of Interest Paid On More Than One Loan Borrowed for Purchase or Construction Of House?

August 19, 2008 By taxworry 1 Comment

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Excerpt: I and my wife are both salaried employees. We are purchasing a house jointly. I am taking a loan of Rs 25 Lakhs from Govt and another loan of Rs.10 Lakhs from HDFC which is on joint name of both self and wife. Total interest outgo will be approx Rs. 2.5 Lakhs in initial years. My question is- can we split the total interest equally between self and wife for the purpose of claiming deduction under Sec 24 C or only the interest component from Rs 10 Lakhs loan (which is in joint name) can be shared ? Also how…

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Filed Under: House Property

Whether Surrender Of ULIP Before Maturity Date Make You Liable For Tax?

August 17, 2008 By taxworry Leave a Comment

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Excerpt: Can you please clarify what taxes will be in the following cases.I paid a premium of Rs.30,000 per year for two years in a ULIP. I used these premiums for claiming deductions under Section 80C. If I surrender this policy after two years, do I have to pay any taxes on the gains at the time of surrender.I paid a premium of Rs.30,000 per year for 12 years in a ULIP. I used these premiums for claiming deductions under Section 80C. I surrendered the policy at the end of 12 years. The actual term I enrolled for when taking the…

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Filed Under: capital gains

Can The Loss From F & O Be Adjusted With Brokerage Earned?

August 16, 2008 By taxworry Leave a Comment

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Excerpt: I am a sub broker.I am getting brokerage from the broker and they are deducting 10% TDS from me.I have huge loss this year in Share trading also in Futures& options.I am not a long term investor.Can we offset the loss from futures against the income received as brokerage.How to account the short term loss from the share trading(speculation or day trading).Please advice.Jose Mathew ,KalpettaYes, you can adjust the loss incurred on F & O from income out of brokerage. The reason is that income from brokerage in your case is income from business of broking and the transaction in…

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Filed Under: Shares Business Tagged With:

Will Husband Be Taxed If He Gifts Shares To Wife?

August 15, 2008 By taxworry Leave a Comment

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Excerpt: I am holding few shares of listed company received through ESOP in 2004 & 2005. They are eligible for LTCG if I am selling through online trading transaction involving STT. However I wish to transfer these shares to my wife’s demat account which will be off-market transaction (without involving STT). What will be treatment given as regards to LTCG since they will be transferred without any consideration. When they are transferred to wife’s account, how capital gains will be calculated as cost of acquisition is not known. Dhananjay Section 45 deals with capital gains. Capital gains arises when gains arises…

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Simple Terms Related to ESOP Explained !

August 15, 2008 By taxworry Leave a Comment

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Excerpt: What is the “date of transfer” for ESOP. Is it “date of vesting” or “date of exercise”. Also how would this differin shares exercised before 1st April 2007 (before FBT) and after (under FBT) ?. “Date of transfer” is important in calculating period of holding, which decides whether gain is short-term or long-term. For example, company has offered 1 share @ Rs 100 on 1st Jan 2004, and vesting date is 1st Jan 2005. Employee exercised this on 1st Feb 2006 and sold on 1st Mar 2006 for Rs 300. Is the gain of Rs 200 is short-term or…

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Filed Under: Salary, capital gains

Can Form 16 or TDS Certificate Be Submitted After The Return Is Filed?

August 12, 2008 By taxworry Leave a Comment

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Excerpt: Well, I filed my brother’s returns for the assesment year 2005-06 on 31.10.2007 without attaching his Form-16. When I consulted with one of my friends, she said that The Form-16 can be submitted after the AO sends the demand notice. The reason for late filing was due to the ignorance of my brother.The details (as per the return filed) are:Total income was Rs 1,73,935Tax Payable -Rs. 9984TDS- Rs.16,153Refund due-Rs6169On 18th of July 2008 we received the demand notice from the AO, charging Interest on the above tax amount and pay Rs.14358(Tax-Rs.9968, Int 234A-1500, 234B 2700, 234C-370). How should I…

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