A Of Your Question

Can Official Liquidator be given notice to file income tax return ?

August 29, 2010 By taxworry Leave a Comment

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Excerpt: Filing of return under Income tax is compulsory for two classes of persons-company and firm. This is provided in proviso to section 139 of the I T Act. What happens when a company goes into liquidation? Darshan Khakhar of Ahmedabad asks “Does an official liquidator appointed by court bear any responsibility of tax? Is it a liability of Official Liquidator to pay tax on income arising out of sale of assets done by him in process of liquidation of company? Is AO correct in his stand for sending any notice for payment of tax/penalty/interest to official liquidator for recovery of tax dues?…

Filed Under: A of Your Question, Case Laws Discussion Tagged With: court, income tax, income tax act, income tax return, khakhar, legal proceedings, liability, Ltd, Return, silk mills

Can NRI extend PPF account for five years after maturity ?

August 26, 2010 By taxworry Leave a Comment

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Excerpt: An Indian resident becoming non resident has one common query. What happens to Public Provident Fund account subscription. Is it allowed ? Can he repatriate proceeds from PPF account ? Can he avail of the facilities to exend the PPF account after 15 years ? Similar question has been asked by Mr Ravindran on 25/08/2010 . He asks I understasnd that a resident who has opened a PPF account subsequently becomes NRI during the currency of maturity period may continue to subscribe to the Fund till it’s maturity on a non-repatriation basis. My question is: Whether this account can be extended for…

Filed Under: A of Your Question, non-resident Tagged With: basis, currency, maturity, maturity date, maturity period, Non, period, public provident fund, ravindran, tax implication

Can one claim exemption from capital gains u/s 54 & 54F simultaneously for buying one house only !

August 25, 2010 By taxworry Leave a Comment

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Excerpt: Section 54 provides exemption if you sale a residential house and buy a residential house. Section 54F provides exemption if one sales capital asset other than residential house and buy residential house. Interesting question has been asked by Kennedy of Chennai on claim of exemption from capital gains on sale of land , building and house. Here is his question Mr.X sells 1) Land and building and 2) 2 flats and 3) 2 plots of land. He is also buying a new residential house the cost of which exceeds the sale proceeds of all the three put together. Can his capital gain be exempted. All…

Filed Under: A of Your Question, capital gains Tagged With: asset, Building, capital asset, different situation, Exemption, land, long term capital, long term capital gains, plots of land, put

Sale of capital assets give rise to capital gains only !

August 23, 2010 By taxworry Leave a Comment

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Excerpt: Sri Rajiv Banerjee of Kolkata asks “I am doing business of bags,it is proprietorship business in year 1999 i invest in a agricultural land of amount 10 lakhs by my name(it was not registered by the name of company,registered by my name) which is in 8km of municipal limit.i had sold this land 2 months ago.so now i have to pay capital gain tax(ltcg).since i have proprietorship business i had shown car and land as investment in my company balance sheet,because this business is the only source of income for me.i had sold the land for Rs 20 lakhs.now the question is that how…

Filed Under: A of Your Question Tagged With: balance, Business, business assets, Capital, capital assets, capital gain tax, company balance sheet, investment, land, short term capital gains

Is TDS allowable expenditure ?

August 23, 2010 By taxworry Leave a Comment

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Excerpt: Goluguri Kodanda Rama Redddy of Hyderabad asks ”One of the assessees paid transport contract amount without deducting TDS.However he remitted TDS to central government account out of his own funds by debiting the transport expenses. On perusal of ledger account of transport expenses ,the above fact of inflation of expenses by TDS amount came to the notice. Whether the TDS liability included in the transport expenses is an allowable expenditure while computing the income under the head ” Profits and gains of business”. In my opinion , tax deduction at source for the payer is legal compliance and it is not an…

Filed Under: A of Your Question, TDS Tagged With: Business, expenditure, Goluguri, government account, Kodanda, ledger account, legal compliance, providion, Rama, transport expenses

A query on TDS u/s 194C !

August 21, 2010 By taxworry Leave a Comment

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Excerpt: Mr Vijay Kumar of Vishakhapatnam asks regarding his taxworries on TDS u/s 194C.” I’m working for company. We had given a part of our work on contract basis to a contractor – Vishnu Eng. Works for Rs.15K. After 2 months again we had given a seperate contract to the same contractor for Rs.15K.We paid the full amount seperately without TDS u/s 194C @ 2% on a view of Sec 194C that the both the invoices (seperately) values doesn’t exceed Rs.20 K. Now, we are about to give some job work to the same contractor for Rs.38,000. Now could you…

Filed Under: A of Your Question, TDS Tagged With: aggregate, Bill, contract basis, Exemption, payment, reson, seperately, vijay kumar, vishakhapatnam, work

Is employer bound to issue Form 16 to every employees ?

August 8, 2010 By taxworry Leave a Comment

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Excerpt: Form 16 is the prescribed form for tax deducted at source from salary by an employer. There is confusion regarding the issue of TDS certificate in case where salary is not taxable. Tushar Singh of New Delhi asks ”in my last company my income was not taxable. Am i eligible for form 16 from my last company.Please tell me the way of getting a form 16 as i need it to apply for car loan ” . This issue was already explained earlier in posting Can Employer Decline To Issue Form 16? . Confusion arises among employees regarding Form 16 is on following…

Filed Under: A of Your Question Tagged With: car loan, creditor, employer, issue, loan, NEW DELHI, Rule, tax deducted at source, tax return, TDS

Can you get deduction of interest & principal on loan borrowed for buying land ?

August 7, 2010 By taxworry 1 Comment

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Excerpt: In my earlier posting , confusion regarding claim of interests on loan borrowed for buying land was explained. One can read Is Ineterest on Loan for Buying Plot /Land Allowed Dedcution ? . Similar question has been asked by Vijay Kumar Babu residing in Visakhapatnam who asks ” I have decided to buy a plot of land through home loan from PNB or HDFC Home Loan. its costs Rs.5 Lakhs. For your information at present I’m residing in my own residence.Now my query are 1. Can I claim the both the Interest and Principal amounts as deduction under Se. 80. what I…

Filed Under: A of Your Question, House Property Tagged With: EMI, home, lakhs, land, loan, plot of land, principal amounts, property, vijay kumar, Visakhapatnam

Payment for Crane Hiring Is Subject to TDS!

July 22, 2010 By taxworry 2 Comments

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Excerpt: Sir, we are an Indian company engages in providing cranes on hire. Some Public Sector companies charter hire truck mounted cranes of 40 MT capacity from us on regular monthly hire basis. My question is in 2 parts: (a) Is the crane classified as a material handling equipment or a transport vehicle in the IT Act? (b) At what rate the TDS is required to be done by the PSU from our bills? Promesh [ yog108@sify.com] There is no such definition differentiation between two types of vehicle given under the I T Act. However, in Gujco Carriers vs CIT [2002] 256ITR50 ,Gujarat High…

Filed Under: A of Your Question, TDS Tagged With: Building, gujarat high court, Hiring, material handling equipment, mt capacity, PSU, public sector companies, truck, truck mounted cranes, vehicle

Do you get any deduction for gifts you make to relative?

July 21, 2010 By taxworry 2 Comments

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Excerpt: Gift is a symbol of love and affection and is very part of human relation and more so of Indians.Under income tax Act , there is express provision regarding taxation of gifts.So , like other Sri Radhe Shaym Garg of New Delhi has also queries on this . He asks “I have gifted a sum of Rs.50,000/- by way of cheque to my married daughter. In what way and under what section of the IT Act, may I get tax benefit?” First of all , one should know that there is absolutely no deduction or exemption or relief on account…

Filed Under: A of Your Question Tagged With: affection, garg, Gift, human relation, income tax act, receipient, relation, section 56, symbol, Taxation

India Income Tax Made Simple

Can Official Liquidator be given notice to file income tax return ?

Can NRI extend PPF account for five years after maturity ?

Can one claim exemption from capital gains u/s 54 & 54F simultaneously for buying one house only !

Sale of capital assets give rise to capital gains only !

Is TDS allowable expenditure ?

A query on TDS u/s 194C !

Is employer bound to issue Form 16 to every employees ?

Can you get deduction of interest & principal on loan borrowed for buying land ?

Payment for Crane Hiring Is Subject to TDS!

Do you get any deduction for gifts you make to relative?

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