The Dilemma of Tax at Source (TDS) & Exchange Rates!

A foreign vendor provided technical assistance to M/s. ABC co. with a payment terms as follows. $30,000 USD and tax is to be borne by the foreign vendor at applicable rate. M/s. ABC Co. made a liability in its books on 31.03.2008 and deducted TDS u/s 195 of IT Act at applicable rate and deposited [...]

How Income From Flat Given on Leave & License Taxed?

Nowadays there are Real State Mgt companies who take Flat on Leave & License basis, maintain them & offer License fee to owner.I have a 3BHK Flat which I want to give to such agency. I will also incur furnishing expenses to tune fo Rs 3L. The current License Fee for the Flat is Rs [...]

Can TDS Amount Be Increased or Reduced As Per Whims & Fancies Of Deductor?

Our client is an insurance company (PSU). The company had taken a premise on rent in New Delhi since 1996-97. The PSU had enhanced rent twice during the FY 2004-05 w.e.f. March 2003. The company had deducted TDS on such enhancement during the year 2004-05. Also it has been came into the knowledge of the [...]

Now Derivative Trading in Foreign Exchange Is Business Activity!

In India , there are two main commodity exchanges –Multi Commodity  Exchange of India Ltd (MCX )  and  National Commodity & Derivative Exchange Ltd NCDEX in India where one can trade in derivative contract of different items –from pulse to metal. Now there is another exchange MCX Stock Exchange Ltd in which one can trade [...]

Why All Written Off Liability Is Not Taxable?

I have been showing certain amount as a liability in my balance sheet since last 6-7 yrs, which was to be paid back as interest to some loan. Loan was paid long back but no correspondence has taken place with the creditor re. the interest over 6-7 years. Now i would like to "Write Back" [...]

Can Non Resident File Form 15G or 15 H?

Sri Rajaratnam, the famous tax expert from Chennai, in his regular tax column in The Hindu, has opined that a Non resident can submit form no 15G to avoid tax being deducted on interest income, in all such cases where there is no taxable income. This would obviously save the assessee from needless filing of [...]

Beware of Most Dangerous Tax Amendment For Charitable Society !

One of my clients is a charitable society having more than twelve various activities like schools, charitable clinics, naturopathy centres, creches, old age homes, pension for widows, library, Masala Centre where various spices are prepared by poor ladies. Spices prepared by these ladies are sold over the counter which results in some income to the [...]

Is Gift Received by An NRI From Another NRI Taxable In India?

I am an NRI and staying in Canada. One of my Distant Cousin(not relative) who is also an NRI in Gulf wants to Give an Gift of Rs.300000/- into my Indian Account. What will be the Tax Implications in India. I heard earlier that there is no Gift tax, but one of my friend says [...]

Can I Claim Deduction of Interest & 80C for Construction on The Property Owned as per Will of Father But Not Yet Registered ?

I had built a house in my ancestral property owned by my Father. As per Will registered I will be the sole owner of the property after my father. With the will,property document and no objection certificate from my mother and only sister I approached a state bank and after clearance from there legal department [...]

Should Return Filing Discontinued in Case Of Death of an Individual?

My aunt died on 18.04.2009. whether her income tax file should be filed for the assessment year 2009-10 or not ?. if not then why and if yes then who will sign the ITR papers in what capacity ?. Shall her file continue to be filed there after or discontinue ?. what will be the [...]

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