There is a fundamental difference between Sales tax and Service tax. In case of Sales tax , the seller is responsible to deposit the sales tax even if he has not collected that from the customer but in case of service tax the liability of service provider arises only when he has received the value of taxable service from the customer. Section 68 read with Rule 6 of Service Tax Rules show...
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.
The aforesaid question was answered in negative by Bombay High Court in Commissioner Of Income Tax. v. M. P. Poncha. 211 ITR 1005 . The Facts of the case The assessee was employed as general manager of Premier Auto Electric Ltd. and derived his salary from the said company. He also had income from dividends
deduction for investment in ULIP taxation : My friend has invested 4 lacs as single premium in unit linked pension plan. If for some reason he surrenders the policy after 5 years ( i.e before the vesting age). On what amount will he have to pay tax. He has not claimed any tax benefit u/ s 80c. Pawan Kumar , Delhi Two
I invested in ULIP single premium of Bajaj Allienz (1.04.2005) on 1 Lac and got the sum assured Rs 5 Lac. Subsequently invested in Top up Rs 5 lac on that. All sum was invested in Equity oriented fund . After three years now the fund value is Rs Rs 8 lac ( on 15.12.2009)
How are the following items treated in income tax?1. Amount received after 5 years from a LIC Money back policy2. Amount received from PF Withdrawl3. Gratuity Amount received from an firstname.lastname@example.org LIC PaymentsThe amount received from Insurance companies are Generally non taxable . However there are three types of payments under life insurance policy that are not tax free . These are : (a) any sum received under sub-section (3)...