Deduction u/s 80E for Educational Loan – Video Tutorial

Deduction u/s 80E of the Income Tax Act is allowed to individuals who takes education loans for expensive higher studies. The tax benefits in form of deduction has actually made the loan option for funding the education of self or relatives a very popular option for many. Video Tutorial on Deduction u/d 80E for Education…

This content is for Monthly, annual and Semi Annual members only. Please login or Subscribe here. to view this content.

Direct Tax Code Shelved ??

The tone and tenor of the Finance Minister, who is quoted in media saying  “DTC has gone through various versions…I need time to look at DTC. I am only 28 days old (in the finance ministry) … It requires a fresh look,” has clouded the prospect of the implementation of Direct Tax code from 1st April 2013 , as was declared earlier during Pranab Mukerjee term as Finance Minister.

It is for sure that Direct Tax Code may miss the bus and may not get the chance of riding bus before election for 2014. That the answer of Finance Minister is clear indication of the intent is too clear to ignore about the prospect of the implementation of DTC .It is official. Direct tax code (DTC), aimed at simplifying procedures and increasing compliance, is unlikely to be implemented in April 2013.

The code was introduced in Parliament in August 2010 by Pranab Mukherjee, the then Finance Minister. The Bill, meant to be passed in April 2012 , got deferred on account of pendency of report by  parliamentary standing committee on the  controversial retrospective tax proposals.

To a question whether General Anti Avoidance Rules (GAAR) would get postponed again, Chidambaram said, he was awaiting the report of the Shome Committee, which is looking into the concerns expressed by foreign and domestic investors.

10 Multiple Choice Questions on Direct Tax for CA Students

A quiz -multiple choice question on Basic Concepts ,Total Income & Residential Status  for providing  CA students an opportunity to test their preparation of direct tax paper . Most fundamental is the definition section under Income Tax Act  which is section 2 . A constant reference to section 2 is required to understand the true meaning of a word used…

This content is for Monthly, annual and Semi Annual members only. Please login or Subscribe here. to view this content.

Direct Tax Code likely to miss its April 2012 implementation deadline

In another blow to the Government, the Direct Tax Code is once again most likely to miss its already extended deadline of April 2012. It is now being expected to be implemented in April 2013 along with the proposed goods and services taxation (GST).

Direct Tax Code

The DTC that is meant to replace the 50 year old Income tax Act was introduced in the parliament last year and had to come into force in April this year. The Code’s deadline was then later extended to April 2012 since the draft Bill was referred to a Parliamentary standing committee. This committee was to present its report in the ongoing parliament session, but is now most likely to do so in the winter session. A senior finance ministry official stated that “there won’t be enough time. The Act needs to be passed by March 31 for implementation from April 1. If the standing committee report comes in the winter session, the final Bill can at best be tabled in Parliament in the Budget session and it would not be possible to announce the implementation from the next financial year in the Budget without the Act’s passage.” He added that ‘both the IT department and the industry should be given at least nine months to prepare themselves to handle the new framework.’

How Direct Tax Code restricts Non Resident Indians’ stay in India ?

# Do not stay for more than 60 days in a year in India if in previuos four years , he was in India for more than 365 days. If he was not, he can stay in India , safely upto 182 days.
# Also please go through the Double Taxation Avoidance Agreement signed between India and your country and find that what are the income which are taxed only in your country. For example , salary income earned in USA of a resident of USA is to be taxed in USA only even if he also becomes resident of Indi under I T Act.

This content is for Monthly, annual and Semi Annual members only. Please login or Subscribe here. to view this content.

One new provision under Direct Tax Code that will affect you most !

Here is another shocker. The payments by life insurance companies are brought under TDS provision . Readers are already  told  that the payments from life insurance companies are made taxable under Direct Tax Code. However, the clutch of taxation start at the very source as the payments are made subject to tax at source. The rate of tax is given inthe Third  Schedule  as under

Payment made by a life-insurer in respect of a life insurance policy other than the policy referred to in clause (d) or clause (e) of subsection
(3) of section 59—
(i) where the deductee is an Individual                                                         10 per cent.
or a Hindu undivided family;
(ii) any other deductee                                                                                         20 per cent.

14 Deductions under Direct Tax Code every individual should know about .

The most popular item of tax laws are deductions which are tools for saving tax. Under Direct Tax code 2010, the deductions are called “tax incentives” and major deductions allowed under chapter VI-A of I.T.Act is being carried on in even Direct tax Code .

This content is for Monthly, annual and Semi Annual members only. Please login or Subscribe here. to view this content.

Maximum deduction on life insurance, medical insurance & tuition fee restricted to just Rs 50,000 !

Direct Tax Code 2010 has three section 70, sec.71 & section 72 which deals about tax incentive (read deduction ) on premium paid on life insurance, mediclaim and payment of tuition fee respectively. Each section has its own conditions to be fulfilled in order to claim deduction (read incentive ) . However, there is section…

This content is for Monthly, annual and Semi Annual members only. Please login or Subscribe here. to view this content.

How a new condition make you ineligible for claiming deduction u/s 78 (read 80DD) .

Section 78 of Direct Tax Code 2010 are equivalent to section 80DD. Section 78 provides deduction for expenditure and insurance on treatment , nursing and maintenance of disable dependant person.

This content is for Monthly, annual and Semi Annual members only. Please login or Subscribe here. to view this content.

Does Direct Tax Code 2010 allow Interest deduction from house property income?

First the postive news ! Under the Income Tax Act 1961 , if you have more than one property, there was provison for taxing notional rent even if the second house was not put to rent. However, under the Direct Tax Code 2010 , such aconcept has been abolished.

This content is for Monthly, annual and Semi Annual members only. Please login or Subscribe here. to view this content.