It happens that a business entity having certain buildings as business asset , is rented out during the year . Say a business entity is having two buildings , used for its business . During the Fy 2014-15 , one of the building was given on rent from , say 1st January 2015. The question related to depreciation on the building which is rented out are : Whether the business entity can claim depreciation ? If yes, whether the
The taxation of subsidies depends upon the nature and circumstances under which the subsidy is given by governments from public accounts money. This is one issue where no fixed rule is possible because the issue has to be settled first is -whether the tax on capital subsidy is imposable depends whether it is actually a capital receipt or a revenue receipt. (more…)
The law of claiming depreciation on asset of business is regulated through section 32 of the Income Tax Act . Further Income Tax Rule provides depreciation rate for various class of assets. Now as it happens with businesses, one needs to reorganize through various ways like amalgamation, or changing the structure of the business etc. In those changing circumstances , the question of depreciation hound every businessman. Nirdesh , Indore asked a similar question The assessee is a company
The persons who are insurance agent or postal agents who receives commission for selling various kinds of investments and insurance products of insurance companies and postal department. One reader Vasantha , Trichy has asked "I am a mutual fund broker, LIC agent & Postal agent. I am getting income by way of commission for my agentship. Please guide me under which head I should show my commission income in itr-4. What is the maximum expenditure can I deduct from my gross income.
Since every indivdiual is provided a basic exemption limit ,the central point of tax planning is to have more tax entities. Each entity gets basic exemption from tax which in aggregate exempts quite a substantial amount of income from tax. When you create a private trust,what you are doing is creating a separate tax entities. You should read first how a private trust is taxed and then following points should be kept in mind to minimise the tax on
While it is clear that Explanation to Section 73 is applicable on shares of a company and units purchase and sale does not come within its purview, there can be sepculative trade in case of mutual fund units u/s 43(5) and if any loss arises from such trades in iunits, it can not be adjusted with business income. This issue was before Kerala High Court in CIT vs Periakaramalai Tea & Produce Co. Ltd. 238 CTR 449 (KER.)