Showing posts from April, 2012


TAX TALK-30.04.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “HOUSE RENT ALLOWANCE & INCOME TAX IMPLICATION” Query 1] My question is regarding HRA deduction from Salary. I am working in a private institution based in Nagpur. My consolidated salary is approx Rs. 25k per month. Is there any provision for HRA deduction from my consolidated salary while computing my income tax liability? If yes, what amount can be claimed as deduction for income tax purpose? [] Opinion: 1.Assessee receiving HRA from Employer:
Salaried Assessees who are in receipt of House Rent Allowance (HRA) from an employer can claim an exemption u/s 10(13A) of the Income Tax Act-1961 read with Rule 2A of the Income Tax Rules, 1962.
The least of following can be claimed as deduction u/s 10(13A):- a.An amount equal to 50% of salary, where the residential house is situated at Bombay, Calcutta, Delhi or Madras and an amount equal to 40% of salary where residenti…


TAX TALK-23.04.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “SECTION 80TTA TO GIVE DEDUCTION OF RS. 10,000/-TOWARDS INTEREST ON SAVING A/C” Query 1] My friend was admitted in the hospital and died almost after 19 days in the hospital, Our Company sanctioned medical reimbursement worth Rs 2.15 Lacs but the audit department deducted Income Tax of almost Rs. 65000/-. Is there any provision to get that back as death claim, his family already spend that money & they got back the amount as reimbursement only. The same is not an income for his family. Deduction of Income tax of Rs 65,000/- is a big amount for that family. Is there any provision to get that amount back from the Income tax department? If so, kindly advise.  [] Opinion: 1.The legal provision for taxability of medical expenses reimbursement in respect of medical facilities in India in the hands of employee is as under:
- The fixed medical allowance given to an employee is taxabl…


TAX TALK-16.04.2012-THE HITAVADA TAX TALKBY CA. NARESH JAKHOTIA (Chartered Accountant)“CLOSURE OF CAPITAL GAIN ACCOUNT SCHEME-1988” Query 1]I had opened capital gain account after the sale of my house and the amount deposited in the account has been used by me for the flat under construction. I have been told by bank to get the application of closing account signed by the IT department of concerned circle which for me is Bhandara but they failed to understand and directed me to get it done at Nagpur with a request application which I deposited there and I was told I shall get the document by post duly signed. For the last one month I did not get it and I have proof of deposition of application with me. How can I get my account closed now please advise. []Opinion:CBDT Notification No. GSR 724(E) dated 22/06/1988 contains the salient features of Capital Gain Accounts Scheme-1988. Under Rule 13 of the said scheme, the account can be closed by submitting an application in …


CAPITAL GAINSACCOUNTS SCHEME, 1988[GSR 724(E), DATED 22-6-1988]In exercise of the powers conferred by sub-section (2) of section 54, sub-section (2) of section 54B, sub-section (2) of section 54D, sub-section (4) of section 54F and sub-section (2) of section 54G of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby frames the following Scheme, namely :—Short title, commencement and application.1. (1) This Scheme may be called the Capital Gains Accounts Scheme, 1988.(2) It shall come into force on the date of its publication in the Official Gazette.(3) It applies to all assessees who are eligible for exemption under section 54, 54B, 54D, 54F or 54G of the Income-tax Act, 1961 (43 of 1961).Definitions.2. In this Scheme, unless the context otherwise requires,—(a)“account” means a deposit account under this Scheme;(b)“account-A” means deposit account-A mentioned in paragraph 4 of this Scheme;(c)“account-B” means deposit account-B mentioned in paragraph 4 of this Scheme;(