Easy chart of deductions u/s 80C to 80U every individual should aware of !

deduction u/s 80C

The season of tax has arrived. Therefore , there is need for easy chart of all tax deduction u/s 80c to 80U for an Individual taxpayer?Under Income tax , deduction u/s 80C,80CCC, 80D, 80DD,80DDB,80G , 80GG, 80GGA, 80GGC , 80IAB , 80IB , 80IC , 80ID ,80IE , 80JJA , 80QQB ,80RRB , 80U  are relevant to Individuals depending on the condition fulfillment. The following chart of … [Read more...]

Rule 8D Not Applicable Stock-in-Trade : ITAT Kolkata

Rule 8D

Rule 8D is invoked by assessing officer for computing disallowance u/s Section 14A of the Income Tax Act even in case shares are held as Stock-in-Trade.Thus , the agony of the taxpayers who deals in shares only and does not involves in investment aggravates , because in most of cases  the dividend received are far less than the expense likely to be disallowed as result of … [Read more...]

Delhi ITAT: No Long Term Exemption if Asset is Converted to Stock in Trade


Delhi Income Tax Tribunal Alka Agarwal vs ADIT has recently dwell on the issue whether long term capital gains exemption as provided u/s 10(38) can be claimed in case of a share which was previously held as investment , but converted to stock in trade and when sold after holding them for more than a year.The Tribunal confirmed the order of A.O and CIT(A ) who denied the … [Read more...]

ITAT Clash : Holding Period in Case of Conversion of Stock–in-Trade to Capital Asset


Long term is tax free if sold through recognized stock exchange. Short term is taxed at lower rates of 15% . Stock-in-trade is taxed at higher rates than capital gains. Therefore, many tax payers are resorting to capital gains rather business income. Many convert their holding as stock in trade as capital asset and then sale.In all such cases of conversion of stoc-in-trade to … [Read more...]

What , How and Why of 8% RBI Relief Bond in seven steps?

Once upon a time , the relief bonds issued by Reserve Bank of India used to be tax free with quite handsome amount of interest . So , overall that was quite hassle free ( on account of tax exempt status) investments. Update as on 9/09/2013 : Premature encashment allowed now ! But , now the bonds are not only taxable but also subject to tax at source. The interest @ 8 % … [Read more...]

Sale of capital assets give rise to capital gains only !

Sri Rajiv Banerjee of Kolkata asks "I am doing business of bags,it is proprietorship business in year 1999 i invest in a agricultural land of amount 10 lakhs by my name(it was not registered by the name of company,registered by my name) which is in 8km of municipal limit.i had sold this land 2 months ago.so now i have to pay capital gain tax(ltcg).since i have proprietorship … [Read more...]

Can a second holder of the joint account claim deduction u/s 80C or 80CCF ?

Let us say you want to invest in tax saving fixed deposits which gives you deduction u/s 80C . Let us say , your wife is made first holder and you have given your name as second holder . The question comes , whether you can claim deduction for investment in such tax saving fixed deposits.80CCF also provides additional deduction of Rs 20,000 . Let us say , you have a demat … [Read more...]

What no banker in India will tell you about gold coins sold by them?o you??

The craze about investment in gold in India  is not just based on custom and cultural practices. Many Indians purchases it for its ability to come handy in case of emergency. If you have also the idea that buying gold coins from banks will be very good in case of emergent need of money , then you may experience shock of your life.The only option for a gold coins and the … [Read more...]