Institutes Run By Even Trusts , Non Profit Organisation Are Liable To Service Tax Clarifies CBEC Circular.

CBEC issues circular F.No137/23/2007-CX.4 dt 28/01/2009 stating that even institutes run by no profit organization or Trusts are liable to Service Tax . Only colleges approved by AICTE or deemed university and vocational courses institutes are out of service tax .The excerpt of circular is given below
COMMERCIAL NATURE OF INSTITUTE
Service tax is leviable on [...]

Whether Proceeds From Jeevan Aastha Policy Tax Exempt?

Whether maturity proceeds under LIC’s Jeevan Aastha policy are eligible to earn exemption u/s 10(10)d. if yes,under which circular.Salunkhe j b , Jalgaor
Jeevan Aastha policy is single premium and period is 5 or 10 Years. The sum assure is six times of first years premium and two times of second year premium.
 
The  provision u/s [...]

Why Is Salary Taxed on Due Basis Whereas TDS On Salary Is Only On Payment Basis ?

For a salaried employee, please let me know whether income tax is to be deducted by the employer on the salary paid or on the accrued salary ? Leeladhar B , Chennai
The provision u/s 192 deals with the deduction of tax at source from salary. The said provision is as under
192. (1) Any person responsible [...]

What Are Direct Tax Implications if Foreign Company Transfer Shares of Indian Company To Its Subsidiary Company Without Consideration?

A Foreign company hold the share of Indian company (22%), and foreign company transfer the share to the subsidiary company without any consideration. tell me what are the tax implication of this case. Mukesh Gupta, New Delhi

The share is an asset and when the asset is transferred to another person , there is certainly [...]

Can I Claim Exemption u/s 54 For House Bought More Than A year Ago?

I had purchased a residential house in 2003 and now I wish to sell it. I had purchased a second house in March 2007 but it is under construction as possession is not given . Can I claim a deduction under section 54 ?” Leena Kavthekar , Pune
Section 54 states
54. (1) Subject to the [...]

CBDT Notifies Enhanced Depreciation and Changes Due Date For Filing Quarterly Statements of TDS in Case Of Non Residents

Two News you can use
1. Enhanced Depreciation on Commercial VehicleEnhanced depreciation @ 50% on new commercial commercials purchased and put to use on or after 01.01.09 and before 01.04.09 for the purpose of business or profession have been allowed vide notification S.O. 197(E) dated, 19th January, 2009 of CBDT which can be downloaded from here.
(via) [...]

Taxation Effect On Not Getting Interest On Money Borrowed On Interest And Advanced To Firm Without Any Interest!

Mr. A is having income from business amounting Rs. 4.00 laksh for the year 2007-08. He has taken a loan of Rs. 50.00 lakhs during the year 2007-08 from a bank and invested that amount as his capital contribution in the firm XYZ & Co. The firm has not paid any interest on the capitals [...]

Is Deduction u/s 80C For Payments To LIC Not Allowable Only if Paid In Cash?

Please confirm if LIC premium towards a child when paid by the parent is allowed as deduction under sec 80c if within the overall limit and when paid by cash. I have been told that it is eligible for deduction ONLY if paid by cheque. Vidut Saklani , DehradunThe said provision regarding the deduction under [...]

Why Is Recruitment As Consultant Not Preferable ?

Recently while during switching of jobs , today to the next potential employer at Mumbai , I asked for , higher take home,the HR Mgr told that , within the offer which they provided , they have another option , to show me as a Consultant , that will attract Income tax of only 12.5% [...]

Is Deduction u/s 80DDB Allowed If Relative Is Not Dependant On You?

I have a small query. my father’s brother who is aged above 45 is suffering from brain tumour and I paid his hospital expenses such as operation, medical expenses. can i claim for an exemption for this from our income tax. Please clarify me this query. Sandhya Rani Guntupalli , Hyderabad
First of all, deduction u/s [...]

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