2010 January

Can I Claim Deduction u/s 80DD for Expense on Sister Despite My Father Being Alive ?

January 29, 2010 By taxworry 1 Comment

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Excerpt: My father is a pensioner and his pension is less than my salary. My sister is a disabled dependant with 90% disability. She is dependant on me. Can I get rebate under section 80DD ? My DDO says that your father is alive and is getting pension; so you cannot claim deduction. Is it true? Chiranjib Mitra , Siliguri You DDO is not correct. The deduction u/s 80DD is for dependent of an individual tax payer. The meaning of dependant is given in explanation below section 80DD which is as under. …

Filed Under: Deductions Tagged With: brothers and sisters, DDO, Deduction, Deductions, dependant, father, Mitra, pensioner, Section, tax payer

Motor Insurance Made Simple on Five Points !

January 23, 2010 By taxworry Leave a Comment

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Excerpt: What are types of Motor Insurance covers?There are mainly two types of motor insurance- Comprehensive insuranceThird Party Insurance.While the Comprehensive insurance covers you against any loss or damage causing by Natural Calamities which includes fire, explosion, self ignition or lightning,earthquake (fire and shock damage),flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, and frost etc Third Party insurance covers only damage or loss to the third party in terms of injury or damage caused to the property. You can also opt for Add on Covers by paying extra premium against damage to the Electrical / Electronic…

Filed Under: Uncategorized Tagged With: Ahmedabad, Bangalore, Chennai, claim, cng lpg, damage, electronic fittings, Five Points Article, hurricane storm, Hyderabad, India, insurance, Mumbai, natural calamities, nbsp, NEW DELHI, premium, typhoon hurricane

Five Points To Decide Which is Better- Fixed Deposit in Company orThe Bank?

January 23, 2010 By taxworry Leave a Comment

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Excerpt: What happens when company or bank becomes bankrupt?company fixed deposits are unsecured debt instruments Whereas FD with Bank is insured upto Rs 1 lakh.Deposit Insurance and Credit Guarantee Corporation of India guarantees repayment of Rs 1 lakh in case a bank defaults. Companies offering this product offer no such guarantee and the safety of your deposit depends much on the financial health of the company.Watch for credit ratings . While the health of bank is generally okay in India , thanks to constant effort of RBI, the health of a company and its offering of FD can be…

Filed Under: Uncategorized Tagged With: Bank, bankrupt company, Company, Credit, credit guarantee corporation, debt instruments, deposit insurance, Don, Five Points Article, fixed deposits, India, interest, nbsp, Read Seven

Should Payment For Booking Exhibition Space Abroad Suffer TDS?

January 21, 2010 By taxworry Leave a Comment

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Excerpt: We are running an educational institution and accordingly we have booked an exhibition floor space in uae as a part to promote our institution . now the question is that the company which is organizing is a foreign company say ( international exhibition llc). it is not having any permanent establishment in iIdia . do we have to make any tds on such space floor booking charges if yes then what is the rate of tds / if any dtaa is applicable or not.RAJARAM SHENOY, MangloreIn my opinion , you need not deduct tax on payments to foreign company which…

Filed Under: TDS Tagged With: Company, exhibition, exhibition floor space, exhibition space, I T Act, Income, India, india section, international exhibition, nbsp, payment, permanent establishment, TDS

Is Gift At the Time Of Marriage Tax Free?

January 21, 2010 By taxworry 1 Comment

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Excerpt: I, my wife and unmarried daughter are three members of my HUF. My daughter will get married in near future. I don’t have much individual income. I want to gift good amount of gold ornaments, Cash and other gifts to my daughter and my son in law from corpus of my HUF. Can I as a karta of HUF give these without any tax burden on my daughter and son in law? Yogendra Vansia, Valsad Section 56(2)(vii) effective from 1st October 2010 has provisions under which an Individual person or an HUF receiving gifts of moneyimmovable property being…

Filed Under: Gift Tagged With: archaeological collections, Daughter, Gift, gift deed, gift money, gold ornaments, HUF, institution, Section, unmarried daughter

Seven Years Exemption From Wealth Tax to Non Residents or PIO!

January 21, 2010 By taxworry Leave a Comment

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Excerpt: I will return to India for permanent settlement in June 2007.Am I exempted from wealth tax for the next seven years?Please explain the existing wealth tax rule for bank deposits. purackal@hotmail.comSection 5 of the Wealth Tax Act is regarding the exemption granted to certain types of case. Sub-section (v) of section 5 deals with the cases of Non resident or Person of Indian Origin returning India with the intention to settle permanently in India. The provision is clear and given as under”in the case of an assessee, being a person of Indian origin or a citizen of India (hereafter in…

Filed Under: A of Your Question, Wealth Tax Tagged With: date, exchange regulation, grand parents, India, indian origin, origin, person, regulation act, tax, wealth, Wealth Tax

Whether Commission Earned in Foreign Exchange Taxable in India?

January 20, 2010 By taxworry Leave a Comment

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Excerpt: I am negotiating with a US based supplier of goods to arrange the order from India. They will pay commission to me based on the confirmed order/payment from the buyer. The commission will be in foreign currency. What is the income tax liability on such commission received from the overseas supplier. Vandana Kumar , Gandhidham Since the commission will be received by you as RESIDENT of India from a foreign entity , it is fully taxable in your hand. There is no deduction under any provision of I T Act under which you will get the…

Filed Under: Uncategorized Tagged With: commission, Deduction, foreign currency, foreign exchange, gandhidham, I T Act, income tax liability, India, Kumar, order, payment, provision, supplier, Uncategorized, US

Can Wife Also Claim Interest Deduction Despite Husband Paying EMI of Home Loan?

January 20, 2010 By taxworry 2 Comments

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Excerpt: Me and My husband have taken a home loan last year. It was a joint loan on a property. EMI is paid from my husband’s salary account. Can I take tax benefits for it even though I am not contributing to paying EMI. The interest statement has names of both of us. Rashmi, Delhi Yes, wife can also claim the deduction u/s 24 of the I T Act because the deduction u/s 24 is on due basis and not on the basis of actual payment . Therefore, husband and wife can…

Filed Under: Deductions, House Property Tagged With: Deduction, Deductions, Delhi, EMI, Husband, husband and wife, I T Act, interest statement, loan, loan applicant, Rashmi, tax benefit, wife

Should Alimony Paid Out of Salary Be Deducted From Salary For Tax Purpose?

January 20, 2010 By taxworry 1 Comment

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Excerpt: The aforesaid question was answered in negative by Bombay High Court in Commissioner Of Income Tax. v. M. P. Poncha. 211 ITR 1005 . The Facts of the case The assessee was employed as general manager of Premier Auto Electric Ltd. and derived his salary from the said company. He also had income from dividends, interest, etc. A suit was filed by the assessee in the Parsi Chief Matrimonial Court at Bombay, claiming divorce from his wife. A decree dated April 8, 1968, was passed by the court by the consent of the…

Filed Under: Deductions, Salary Tagged With: assessee, auto electric, Bombay, bombay high court, consent decree, Deductions, electric ltd, Income, M. P. Poncha, premier auto, Salary, sum, V. G. Bhuta, wife

Is Alimony Paid To Wife Taxable In Her Hand?

January 20, 2010 By taxworry Leave a Comment

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Excerpt: What will be the tax implications of the following payments received by a divorced lady from her former husband: Fixed maintenance charges at Rs.25,000 p.m. for six to eight months (after the divorce) followed by two lump sum payments of Rs.5 lakhs each as final settlement (can we call this alimony?). Will there be any difference in the nature of taxability in case the lady in question is a Muslim? AP Thazhathethil , AhmedabadThe higher legal authorities have considered the isse which type of receipt comes in the category of income liable to be taxed under Income Tax Act. Every…

Filed Under: Exemption Tagged With: alimony, assessee, decree, Devi, Exemption, hindu marriage act, hindu marriage act 1955, Income, income tax act, lump sum payments, nullity of marriage, Princess Maheshwari, receipt

India Income Tax Made Simple

Can I Claim Deduction u/s 80DD for Expense on Sister Despite My Father Being Alive ?

Motor Insurance Made Simple on Five Points !

Five Points To Decide Which is Better- Fixed Deposit in Company orThe Bank?

Should Payment For Booking Exhibition Space Abroad Suffer TDS?

Is Gift At the Time Of Marriage Tax Free?

Seven Years Exemption From Wealth Tax to Non Residents or PIO!

Whether Commission Earned in Foreign Exchange Taxable in India?

Can Wife Also Claim Interest Deduction Despite Husband Paying EMI of Home Loan?

Is Alimony Paid To Wife Taxable In Her Hand?

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