Tax On Only 40 % of Arrears Of Sixth Pay Commission -CBDT Issues Circulars!

All government servants who are concerned about taxation on arrears of  of ‘moolah ‘ given by Sixth Pay Commission  should be relieved now. The confusion has been cleared by issue of Circular by CBDT that the tax source has to be deducted on the first instalments of 40% of the total arrears only and not [...]

Is Additional Depreciation Compulsory To Charge?

Whether additional deprecaition is compulsory to charge?
Baljeet Singh, Nagpur
Depreciation is now not optional on account of insertion of Explanation 5 below clause (ii ) of subsection 1 of section 32. This explanation reads as under.
Explanation 5.For the removal of doubts, it is hereby declared that the provisions of this sub-section shall apply whether or [...]

Can Short Term capital Loss Be Adjusted With Commission Income?

Can short term capital loss from sale of shares of a pvt ltd co be adjusted against business income from commission received. Raj Desai , Pune
The provision regarding adjustment of short term capital losses (STCL)is provided under sub-section 2 of Section 70 of the I T. Act as under
(2) Where the result of the computation [...]

Is Date Of Agreement To Sale Always The Date of Transfer For Counting Period Of Holding Of Asset?

My company has sold a property, The date of agreement being 31st March, 2008 but as the payment was not received in time I have registered the property on 31st July 2008 and handed over the possession on the same date. My question is in which year would I be liable to pay capital gain [...]

Is Audit Report Required Even If MAT Is Not Payable?

If normal tax payable is more than the MAT, then the provisions of MAT are not applicable. However is it necessary for the company to obtain certificate in form 29B from the Chartered accountant . Radha Krishna, Hyderabad
MAT in its current version is covered u/s 115JB of the I T Act which starts as under [...]

Can A.O Disallow Expense If TDS Is Deposited Before Filing Of Return?

I am following your blog very much ,and running a blog site simple tax India.I would like to know about section 40(a)(ia) amendment in recent finance act .Whether the relief has been given only for the month of march ? I have written a post about it but after receiving so much queries on it [...]

Why Winning Lottery or Prizes Mean Losing Some Money In Tax!

I won a ‘Rs. One lac Gift-Hamper’ in a TV contest titled as “Godrej Life Bana De Contest” organised by Sony Entertainment Television during the IPL Cricket tournament. As a prize, I have to receive shortly a Gift hamper from GODREJ which can be used by me for free purchase of Godrej Appliances worth Rs.1.00 [...]

Should Refund Of Duties Paid Earlier Be Taxed On Receipt or Due Basis ?

We are into imports of wood and there’s a duty of 5 % (basic) and 4% (SAD) on our imports. WEF 14/09/2007 the government has decided to issue refund of the SAD (4%) component of the duty. To file a claim for duty refund we have to show in our accounts that this is a [...]

Is Award Given By Government Exempt From Tax ?

If the sport woman has won an international event in badminton, which has got her a lot of recognition worldwide, & endorsing her achievement Govt. of India has announced a cash reward of Rs 1 cr for her. Is this income taxfree or taxable?Please als0 mention the sections & circular if any.
Shifa Hasanali, Mumbai
Not all [...]

What Is The Rule Of Taxation Of Subsidy?

We have SSI unit in Maharashtra manufacturing cotton bales. We have received Subsidy through District industrial centre from Central & state govt. Under Special capital incentive scheme P.S.I.2001.I want to know how I should account for the amount of incentive received. Praful Agrawal,khamgaon
The taxation of capital subsidy depends upon the nature and circumstances under which [...]

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