No. This is great relief and right relief for all persons having more than one house . Under the Income Tax Act 1961 , if you have more than one property, there is provison for taxing notional rent even if the second house was not put to rent. However, under the Direct Tax Code 2010 , such a concept has been abolished.

Archived; click post to view. Excerpt: Shocking , but true. Under the Income Tax Act , the definition of capital asset excluded agriculture land situated out side specified limits of municipal corporation. So, if the agriculture land was sold outside such limits , it was exempt as the capaitl gains  does not arise on sale [...]

Archived; click post to view. Excerpt: Under the Income Tax Act , 1961 , if the residential house or any other long term investments were sold  and residential house is purchased , in that case exemption from captal gains u/s 54 or 54F  is allowable. The Direct Tax Code 2010 has also similar provision u/s [...]

No, unlike Income Tax Act 1961, the new Direct Tax Code 2010 , likely to be effective from 01/04/2012 , does not prescribe any special tax rate. Now the long term or short term are part of total income and is taxed at the normal tax rate applicable to you. Note following points regarding taxation of capital gains.

Archived; click post to view. 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 [...]

The power of summon u/s 131 of the I T Act is great power vested with income tax authorities. These powers are equivalent to powers vested in judge of a court under the Code of Civil Procedure, 1908 (5 of 1908), when trying a suit. The section u/s 131 of the I.T.Act is as und

Archived; click post to view. Excerpt: Under Income Tax Act, A.O has power to reopen a case upto six years from the end of relevant assessment year. So, for example, an A.O can reopen a case pertaining to Assessment year 2001-02 upto 31/03/2008. The issue is if he issues notice for reopening on last week [...]

Section 56(2)(vii) is among many exceptions provides under clause (d) that if an individual or HUF receives any sum of money without consideration (read as gift ) in contemplation of death , the receipt will not be taxable. The issue is what is the meaning of phrase “in contemplation of death ” which is not explained any where in the Income Tax Act.

Cost Inflation Index is very important index as it helps you to compute the indexed cost for the purpose of computing capital gains. Therefore, if you sell any long term asset in FY 2010-11 , you will require to compute the indexed cost for the purpose computing capital gains in FY 2010-1

The direct taxes code (DTC) Bill and a constitutional amendment bill to implement the goods and services tax (GST ) are likely to be introduced in the Monsoon session beginning next week. The DTC is expected to replace the five decades-old Income Tax Act to make the direct taxes simpler to understand and have less exemptions and a taxpayer-friendly regime.

Archived; click post to view. 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 [...]

Archived; click post to view. Excerpt: Many readers who are investors of shares are confused about law of tax audit under Income Tax Act. Today only , Mr. Jay of Chennai asks “I have a long term capital gain of about rs. 30 lakhs from one time sale of shares only, and income of 12 [...]