Gift & Capital Gains- 3 Important Tax Savings Provisions One Must Know !

Gift of assets to various persons -relative and non relatives  involves different issues under Income tax Act which has many provisions to deal with gift of assets .When a person receives any capital asset as gift and later sells it, the question of capital gains arises. However, this posting will try to dwell on three important...

Surrender of ULIP or Pension Plan-What You Must Know !

Surrender of ULIP or pension plan has its tax implication under Income Tax Act , which many investor to such plans or units may not be aware of . The tax implication on ULIP and pension are different , as both are not same type of financial product.One  reader has asked a question on  ULIP...

Revision of Late Return Filed u/s 139(4) Legally Correct !

Late return can be revised, indeed! It is generally understood that if tax return is filed after the due date (late return) , such return of income cannot be revised . In fact that the common error in belief that once a person files return late , then even when he finds a genuine error...

Can Loss in Commodities F & O Trade be Adjusted With Capital Gains ?

The derivative segments trades (Futures & Options )  in India are done in shares and commodities. While the trade in F & O segments of shares through NSE or BSE is considered business trade now . A confusion arises in mind of tax payers who indulge in F & O trades in commodities segment. For...

54EC: NHAI Issues Capital Gains Bonds !

Section 54EC provides a way of getting exemption from  tax on long term capital gains . You can read six steps to saving tax on long term capital gains u/s 54EC .However, the capital gains bonds specified under section 54EC are scarce and are not available always in market. That is important because the investment...

No Disallowance u/s 14A if Dividend Incidental to Business: Karnataka HC !

The  disallowance u/s 14A of  Income Tax Act for expense related to  earning exempt income like dividend has become  wide spread   after judgement of special bench of Mumbai Tribunal in Daga Capital Management P Ltd  [312 ITR 1 ] case and Delhi Tribunal judgement in ACIT vs Cheminvest Ltd case [124 TTJ 577]  . These...

1 % TCS on Coal , Lignite & Iron Ore

Apart from the bullion and jewelry , Finance Bill 2012 ( Budget 2012-13 ) has proposed to impose the tax at source (TCS )  provision under Income Tax Act  on coal, lignite and iron ore trade . This is done by  inserting amendment in section 206C of the Income Tax Act . This budget 2012-13...

Portfolio Management Services : Business Income or Capital Gains?

Transactions through portfolio management services has the risk of falling in usual controversy of  Capital gains vs business income  under income tax law .As the rate of income tax on capital gains are much lower than business income , the issue is very important. Therefore,before one opts for ubiquitous portfolio management services ,one must carefully...

Patna HC: Search Interrogation at 3 AM by Tax Depratment is Human Rights Violation

It is very common for the investigation wing to continue search for days in premise of the assesses and make interrogation of the tax payer in dead night . That is physically and psychologically humiliation for any tax payer whose premise is searched. Patna High Court in its order dated 2nd Feburary 2012 in Chief CIT...

Deemed Dividend u/s 2(22)(e) in Hands of Firm Even if it is Not Registered Shareholder of Lender !

Section 2(22)(e )  of the Income Tax Act brings to tax as deemed dividend to certain payments made by a company  by way of advance or loan to a shareholder or  to payment to concerns in which shareholder holds substantial interest or any payment on behalf of a shareholder or  for the individual benefit of...