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Can Interest Paid On Loan Taken For Acquiring Asset Be Deducted For Computation of Capital Gains?

October 31, 2008 By taxworry 3 Comments

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Excerpt: In case of Capital gains on sale of residential flat, when considering the cost of acquisition, is Interest on housing loan is also taken into account?For eg. My flat cost is Rs 15L. I have Hsg loan of Rs 10L & total Hsg Lona interest paid till date of sale (5 yrs after buying flat) is Rs 7L. Can I show my cost of acuisition as Rs 15L+Rs7L = Rs 22L? Asked by Sanjay Meaning of  cost of improvement and cost of acquisition are given under  section 55 (1) and 55(2) respectively. While the definition of ‘cost of improvement…

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Filed Under: capital gains

Approach Ombudsman of Bank For 15 G Grievance!

October 31, 2008 By taxworry Leave a Comment

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Excerpt: I have retired from Private Job and I have deposited all my PF & Gratuity in Fixed Deposit. Even after Filling up Form 15G, Bank is deducing TDS. My Total Income on Fixed Deposit Interest is less than 1 Lakh and I am 62 years old.What is upper limit on interest earned till which Bank cannot deduce TDS after filling up form 15G. Prana Mukul, Delhi Form15 G is for those people who are below 65 years and has no taxable income , yet are likely to be suffered with TDS on any income . So, first check…

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Filed Under: Grievance

Who Will Be taxed For Interest On Fixed Deposit In Wife’s Name Made By Husband ?

October 30, 2008 By taxworry 1 Comment

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Excerpt: Mr.ABC gifted R.3.00 lacs to his wife. His wife invested the amount in a FDR for 15 months @ 10% on 01.04.06. The interest on FDR has been clubbed in Mr.ABC for the year 06-07 and 07-08 and returns filed. The FDR matured on 30-06-07 and the proceeds were invested in Gold. The Gold was sold on 01.04.08 for Rs.3.00lacs and sale proceeds was again deposited for six months @ 10%. How long the clubbing provisions are to be applied and income to be clubbed in Mr.ABC’s income.Whether the same law applies  for Gift to HUF also, in place of…

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Filed Under: Clubbing of Income

How To Tax Plan Through Private Trust?

October 29, 2008 By taxworry 1 Comment

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Excerpt: The central point of tax planning is to have more tax entities. Each entity gets basic exemption from tax which in aggregate exempts quite a substantial amount of income from tax. When you create a private trust,what you are doing is creating a separate tax entities. Following points should be kept in mind to minimise the tax on trust , thereby , resulting in tax savings. 1. Trust should be in writing , because oral trust can be charged to tax on maximum marginal rate, 2. A private trust should refrain from carrying out any business or profession…

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

How A Private Trust Taxed?

October 28, 2008 By taxworry Leave a Comment

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Excerpt: A private trust can have one trustee or more than one trustee who  are  treated as "representative assessee" for the purpose of assessment of the private trust .Representative Assessee is defined u/s 160(1)(iv) and 160(1)(v) of the I T Act. As per section 161(1) ,  trustee or trustees are taxed as if  it is their income and assessment is done in his name. Remember , however , an assessment on him as trustee  u/s 161(1) is separate and distinct from his personal assessment.(refer section 161(2) ) How the tax computed for total income of private trust ?  …

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

How A Private Trust Can Help Your Daughter,Handicapped Dependent or Wife ?

October 28, 2008 By taxworry 5 Comments

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Excerpt: India live in families. We remain concerned about the family members . The question remain foremost important in ones mind what happens after one’s demise.In many unfortunate circumstances like below , one’s concern is very real…… A daughter or son in the family paralysed and completely handicapped. Son is busy with his own family and has no time for parents, who will take care of your wife who is suffering from many problems. A daughter who is married , but son -in-law is not reliable. You fear after you he…

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Filed Under: Trust Tagged With:

For Exemption u/s 54F , Net Sales Consideration Should Be Invested or Used and Not The Capital Gains !

October 26, 2008 By taxworry Leave a Comment

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Excerpt: I have sold a residential plot on 24/12/2007.and deposited the amount of Capital Gain in Capital Gain Account scheme of SBI before July 2008. Now I want to purchase a Flat with this amount. If i booked today and paid basic cost of flat today(from capital account scheme), but flat would be ready after 3 year from now(in year 2011) can it be OK or i got tax benefit of capital Gain account scheme. The flat is from reputed builder (Supertech Limited). please advice what doc would be required from the builder to get the benefit of tax on Capital…

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Filed Under: Exemption Tagged With:

Is Money Received By A Widow Under A Will In Favour Of Husband Taxable?

October 12, 2008 By taxworry 1 Comment

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Excerpt: My widowed sister is not a salaried person. Her sustenance was meted to by her brothers and daughter.Last month she was settled with an amout of 4lacs by her husband’s brother being a share of the will written in her husband’s favour (1/3rd) of their family property at Vellore. Accordingly my sister has given her consent which was documented and registered in a registrar’s office.I would like to ask you whether this amount (4lacs)received being a share in the family’s property not made as a sale deed would attract income tax. My sister has no means for her survival. A…

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Filed Under: Exemption Tagged With:

Is Dividend From Cooperative Society Exempt?

October 12, 2008 By taxworry 2 Comments

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Excerpt: I am receiving dividend from cooperative bank.Coop banks are paying full tax before paying dividend.So my question is that whether I have to pay income tax on dividend ? Whether it will amount to double taxation?Please clarify and guide.Shrivallabh Randad , PuneThe dividend from co-operative society is taxable in hand of recipient of dividend and yes, it amounts to double taxation.As far as double taxation of dividend is concerned , even dividend from companies, which is tax free in hands of shareholder u/s 10(34) of the I T Act is double taxed. The companies pay tax on profits…

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Filed Under: Deductions, Exemption Tagged With: ,

When Is Tax Audit Not Required Even if Turnover is More Than 40 Lakhs?

October 11, 2008 By taxworry 2 Comments

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Excerpt: I am doing transport business .I have 06(six) heavy vehicle taken on lease for ten year and paying @ Rs. 5000 per month as lease rent to the owner of the truck.Now, my query is am i liable to pay tax of Rs. 3500X06.- Amar Nath Dubey, DimapurUnder presumptive tax scheme given u/s 44AE of the I T Act , if a person is owner of maximum 10 goods carriage or a person bought the vehicles on hire purchase or instalment basis (maximum 10 ) and employs goods carriage in business of plying , hiring or leasing…

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Filed Under: Business Income Tagged With:
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