Is Alimony Paid To Wife Taxable In Her Hand?

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 [...]

Easiest HRA Exemption Calculator

January , Feburary & March is taxing months. Everyone who earns taxable income certainly thinks about its at least once. Here is simple excel tool to help you compute the tax exemption out of House Rent Allowance.
Play with tool and please report error if any or any improvement.

Please report any error !

How to Minimise Tax on Gains on Sale of HUDA Land ?

I bought a Residential Plot from HUDA in Ambala in the yr 1998 and got the Conveyance Deed done in 2004. Now i am planning to sell it off as soon as I find a buyer. I am also planning to reinvest the sale proceeds into another Residential Property at the earliest. Please advise me [...]

Can You Claim Exemption u/s 54F for Modification or Expansion of An Existing House ?

No , said the Kerala High Court in Meera Jacob vs ITO [ dt of order 9/06/2008 ] 313 ITR 411 . The small order of Hon,ble High Court is as under :
 
The question involved is whether the assessee, in the computation of long term capital gains, is entitled to deduction under Section 54F of [...]

Is Exemption u/s Sec. 54 Allowed Even if New House is Purchased from Borrowed Funds ?

Section 54 provides relief to a tax payer who gets gains on account of sale of residential house. The provision u/s 54 provides that tax will not be imposed on long term gains on sale of residential house up to the extent gains  same is utilised for buying house within two years from the date [...]

Two Recent Judgments Proving Very Taxing For Assessee!

Income Tax Act has a provision u/s 14A which states, in simple terms , that any expense incurred by a taxpayer on earning of income which is exempt from tax is not allowable as deduction. There was however , no method of computation provided and thus considerable litigation ensued between Income Tax Department and the [...]

Can You Claim Exemption u/s 54 & 54EC Simultaneously ?

I have sold a residential house in April’ 09 on which the long term capital gain is working out to be Rs.20 lacs.Also, I purchased a residential house in March’09 (I do not have any other residential property of any kind) for Rs.12Lacs.Can I invest Rs.8 Lacs in NHAI Capital gain bonds (under sec54ec) to [...]

Claim of Exemption for Right to Buy Flat Is Valid

I sold a piece of land in April 2004 with LTCG of Rs 1600000/. At the cost of 1800000/ got the right of purchased OF FLAT endorsed in my favour by the person who originally booked the flat with builder in APR05 .Original allottee has paid to the builder rs 1500000/ as 90% of the [...]

What Are The Tax Benefits to Winners of Galantry Awards?

I am an army officer who has been awarded Sena Medal for Gallantry. I am in active service, what kind of tax benefits/exemptions do I get. Please tell me the authority, act etc which I can quote to the relevant authorities. 
Abhishek Singh, Delhi 

Sena Medal is  an Indian Military decoration which is awarded to members of the [...]

Can Exemption u/s 54F Be Claimed For Buying Two Adjacent Flats Joined By Breaking Internal Wall?

I plan to buy two adjacent flats in Mumbai. These two flats are already joined by breaking-down the internal wall between these flats. As these two flats are in the name of two different people (spouse of each other) there would be two sale agreements. The source of the funds to buy these two flats [...]

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