Section 198:Tax deducted is income received.

Tax deducted is income received.198. All sums deducted in accordance with the foregoing provisions of this Chapter shall, for the purpose of computing the income of an assessee, be deemed to be income received :Provided that the sum being the tax paid, under sub-section (1A) of section 192 for the purpose of computing the income of an assessee, shall not be deemed to be … [Read more...]

Is MCX Futures & Options Trade Speculative or Business Activity?

Futures & Options

There is great confusion regarding the nature of Futures & Option (derivative) trades executed through MCX . The confusion has, perhaps, aggravated after the recent decision dt 17/09/2012 by Mumbai Tribunal in case of ACIT vs Arnav Akshay Mehta IT Appeal No. 2742 (Mum.) of 2011 in which the issue was whether the derivative transaction (Futures & Options ) … [Read more...]

Section 194LA: TDS as per Law Applicable on Payment Date

A writ petition was filed in Mumbai High Court stating that provision u/s 194LA is unconstitutional and that in the facts of the case that the under section 12(2) of the Land Acquisition Act, the compensation for land acquisition was payable to the petitioners immediately after the award dated 30-5-1995 .In that case, there would have been no question of deducting tax at source … [Read more...]

Scrutiny Notice u/s 143(2): What Should I do?


Getting income tax scrutiny notice u/s 143(2) is perplexing for many tax payers , because a whole clouds hand over the duties of tax payer. He remains worried about the questions being asked in the scrutiny proceeding . Sri Manish Bhardwaj, who is salaried employee has received one such notice of scrutiny u/s 143(2) and has asked this questionI have received income tax … [Read more...]

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 example , Hitesh of Mumbai askes :We are trading in derivatives on … [Read more...]