tag:blogger.com,1999:blog-89372837792099967552024-03-06T12:02:28.741-08:00CA. Naresh JakhotiaPartner of M/s. SSRPN & CO.
10, Laxmi Vyankatesh Apartment, Telephone Exchange Square, C.A. Road
Nagpur-440008.CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.comBlogger275125tag:blogger.com,1999:blog-8937283779209996755.post-87017527023886588952017-10-29T18:03:00.002-07:002017-10-29T18:03:49.211-07:00Interest on compensation on acquisition of land: Tax Complexity<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="background: maroon; color: yellow; font-family: "Book Antiqua","serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">TAX TALK</span></b><b><span style="background: white; color: #333333; font-family: "Book Antiqua","serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Helvetica;"><o:p></o:p></span></b></div>
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<b><span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;"><o:p> </o:p></span></b><b><span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">CA. NARESH JAKHOTIA</span></b></div>
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<span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">Chartered
Accountant<o:p></o:p></span></h1>
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<b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; line-height: 115%;">Section
145A(b) provides that interest received by an assessee on compensation or on
enhanced compensation, as the case may be, shall be deemed to be the income of
the year in which it is received. It is
not at all dependant on the method of accounting followed by the assessee.</span></b><b><span style="font-family: "Franklin Gothic Book","sans-serif"; font-size: 13.0pt; line-height: 115%;"><o:p></o:p></span></b></div>
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<b><span style="background: navy; color: white; font-family: "Book Antiqua","serif"; font-size: 25.0pt; line-height: 115%; mso-bidi-font-family: Arial; mso-bidi-language: HI;">Interest on compensation on acquisition
of land: Tax Complexity<o:p></o:p></span></b></div>
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<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 1]</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
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<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">My query is taxability of
interest received under Land Acquisition Act. I own a land at Mouja-Chinchbhuwan
on Amravati road, Nagpur. While widening the high way, my
agricultural land admeasuring 0.1853 H.R. was acquired by National Highway
Authority of India (NHAI). The amount of compensation awarded to me was Rs.
29,741/- only. I filed a case under Arbitration. The case went in my favour and
the Arbitrator awarded me higher compensation of Rs. 8,44,968/-. In addition to
this, I received Rs. 84,496/- being 10% of compensation for loss of easement
rights and Rs. 7,06,148/- as interest @ 9% for the period from the date of
award in Feb. 2008 to the date of judgment in April 2016. I received the entire
enhanced amount in F.Y. 2016-17. Now, I have to file the tax return & the
question is whether the amount of interest received, on which TDS of 10.33 % is
deducted by Land Acquisition officer, is taxable or not?<o:p></o:p></span></b></div>
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<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> In this regard, I would
like to refer to a judgment of Hon’ble Supreme Court. The Supreme Court in case
of Ghanshyam (HUF) - (2009) 315 ITR 1 held that interest under section 28 of
Land Acquisition Act is accretion to the value of compensation and hence it is
the part and parcel of compensation. Thus, taxability of interest u/s 28 will
be same as compensation. Both together will fall under the head capital gains. <o:p></o:p></span></b></div>
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<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Later,
however, amendments have been made in I. Tax Act. Section 145 which prescribe
that interest on such enhanced compensation will be taxable under the head
income from other source in the year of receipt with a deduction of 50% under
section 57. On the other hand, in case of Ghanshyam HUF, the Apex
Court held that interest u/s 28 was not the interest but part of
compensation to be included for computation of capital gains and for taxation
u/s 45(5) of Income tax Act. As per that decision, only interest u/s 34 is the
interest. <o:p></o:p></span></b></div>
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<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Please
advise whether it will be correct to interpret that amendments made w.e.f.
01-04-2010 do not change the legal position regarding interest u/s 28 i.e., and
interest u/s 28 is to be treated as part of compensation and not interest and
the amount so received must fall under the head capital gains. [Gopal Vanjani-</span></b><a href="mailto:gopalvanj@gmail.com"><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">gopalvanj@gmail.com</span></b></a><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">]<br />
<span style="background: green;">Opinion</span>: <o:p></o:p></span></b></div>
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<b><i><span style="color: red; font-family: "Copperplate Gothic Light","sans-serif"; font-size: 17.0pt; line-height: 115%; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-latin;">“Tax Complexity itself is a kind of tax”</span></i></b><b><i><span style="color: red; font-family: "Copperplate Gothic Light","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-latin;"> </span></i></b><b><span style="color: red; font-family: "Copperplate Gothic Light","sans-serif"; mso-bidi-font-family: "Times New Roman"; mso-bidi-theme-font: minor-latin;">- Max Baucus</span></b><strong><span style="color: red; font-family: "Copperplate Gothic Light","sans-serif"; font-weight: normal; mso-bidi-font-family: "Times New Roman"; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin;"><o:p></o:p></span></strong></div>
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<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">There
is a lot of chaos about taxability of the interest income on compensation or
enhanced compensation received against compulsory acquisition of land. <o:p></o:p></span></div>
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<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Before
replying to specific issues raised in the query, let us first have a look at
the overall legal provision.<o:p></o:p></span></div>
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<!--[if !supportLists]--><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-bidi-font-weight: normal; mso-fareast-font-family: "Book Antiqua";">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;">
</span></span></strong><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Section 145A(b) provides that interest
received by an assessee on compensation or on enhanced compensation, as the
case may be, shall be deemed to be the income of the year in which it is
received. It is not at all dependant on
the method of accounting followed by the assessee.<br />
It may be noted that clause (b) is added to section 145A by the Finance
Act-2009. Reason for adding the said clause is given in the Explanatory
memorandum to FA-2009 which reads as under:<br />
“</span><em><span style="border: none; font-family: "Book Antiqua", serif; font-size: 13pt;"><span style="border: none;">The existing provisions of Income-tax Act provide that
income chargeable under the head “Profits and gains of business or profession”
or “Income from other sources”, shall be computed in accordance with either
cash or mercantile system of accounting regula<span style="border: none;">rly
employed by the assessee. <br />
<span style="border: none;">Further, the Hon’ble Supreme Court, in the case of
Rama Bai Vs. CIT (181 ITR 400) has held that arrears of interest computed on
delayed or enhanced compensation shall be taxable on accrual basis. This has
caused undue hardshi<span style="border: none;">p to tax payers.<br />
<span style="border: none;">With a view to mitigating the hardship, it is
proposed to amend section 145A to provide that the interest received by an
assessee on compensation or enhanced compensation shall be deemed to be </span></span></span></span></span></span></em><em><span style="border: none; font-family: "Book Antiqua", serif; font-size: 13pt;">the
</span></em><em><span style="border: none; font-family: "Book Antiqua", serif; font-size: 13pt;"><span style="border: none;">income for the year in which it is receive<span style="border: none;">d, irrespective of the method of accounting followed by the
assessee. <br />
<span style="border: none;">Further, it is proposed to insert clause (viii) in
sub-section (2) of section 56 to provide that income by way of interest
received on compensation or on enhanced compensation referred <span style="border: none;">to in sub-section (2) of section 145A shall be assessed as
“income from other sources” in the year in which it is received. This
amendment </span></span></span></span></span></em><strong><i><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">will take effect from 1st April, 2010
and shall accordingly apply in relation to assessment year 1998-99 and subsequent
assessment years.”<br />
<u><br />
</u></span></i></strong><strong><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">In short, (b) clause is added to section 145A to provide that the
interest on compulsory acquisition will be taxable in the year of receipt only
and not on accrual/due basis every in different years.<br />
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</span></span></b><!--[endif]--><b><u><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Section
56(2)(viii):<o:p></o:p></span></u></b></div>
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<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">It provides that interest
received on compensation or on enhanced compensation referred to in clause (b)
of section 145A shall be taxable as “Income from other source”.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><b><u><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Section 57(iv):<br />
</span></u></b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">It
provides for allowability of 50% deduction against all income taxable u/s 56(2)(viii).<o:p></o:p></span></div>
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<!--[if !supportLists]--><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">4.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">The Apex Court in the case </span><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">CIT vs Ghanshyam (HUF)</span></strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;"> <b>(2009) 315 ITR 1 </b>vide </span><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">order dated 16<sup>th</sup> July 2009</span></strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;"> in respect of
interest income awarded to the assessee has given following obiter:<br />
<b><u>i. Para 20 of order (Quoting Section
28 of Land Acquisition Act 1894)<o:p></o:p></u></b></span></div>
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<i><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">“20.
We also quote herein below Section 28 of the 1894 Act which reads as under:<br />
Section 28 – Collector may be directed to pay interest on excess
compensation. – If the sum which, in the opinion of the court, the Collector
ought to have awarded as compensation is in excess of the sum which the
Collector did award as compensation, the award of the Court may direct that the
Collector shall pay interest on such excess at the rate of nine per centum per
annum from the date on which he took possession of the land to the date of
payment of such excess into Court.”<br />
<b><u>ii. </u></b></span></i><b><u><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Para 21 of order (Quoting Section 34 of
Land Acquisition Act 1894)<o:p></o:p></span></u></b></div>
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<i><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Section
34 – Payment of interest.-When the amount of such compensation is not paid
or deposited on or before taking possession of the land, the Collector shall
pay the amount awarded with interest thereon at the rate of nine per centum per
annum from the time of so taking possession until it shall have been so paid or
deposited.<o:p></o:p></span></i></div>
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<i><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Provided
that if such compensation or any part thereof is not paid or deposited within a
period of one year from the date on which possession is taken, interest at the
rate of fifteen per centum per annum shall be payable from the date of expiry
of the said period of one year on the amount of compensation or part thereof
which has not been paid or deposited before the date of such expiry.”<o:p></o:p></span></i></div>
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<b><i><u><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">iii. Para 24 of order (Expression of View
by Hob’ble Apex Court on these interests)<br />
</span></u></i></b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">24.
To sum up, interest is different from compensation. However, interest
paid on the excess amount under Section 28 of the 1894
Act depends upon a claim by the person whose land is
acquired whereas interest under Section 34 is for delay in making
payment. This vital difference needs to be kept in mind in deciding this
matter. Interest u/s 28 is part of the amount of compensation whereas interest
under Section 34 is only for delay in making payment after the compensation
amount is determined. Interest under Section 28 is a part of enhanced
value of the land which is not the case in the matter of payment of interest
under Section 34.<o:p></o:p></span></div>
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<div class="MsoListParagraphCxSpFirst" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">5.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">In short, Apex
court in the case of </span><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">CIT vs Ghanshyam (HUF)</span></strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;"> has notably
drawn following conclusions: <br />
<br />
(a) Interest u/s 28 and interest u/s 34 of the Land acquisition Act have
different nature as pointed out in Para 33 of the order. Relevant part of para reads
as under:<br />
“</span><i><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-IN;">It is true
that "interest" is not compensation. It is equally true that s. 45(5)
of the 1961 Act refers to compensation. But as discussed hereinabove, we have
to go by the provisions of the 1894 Act which awards "interest" both
as an accretion in the value of the lands acquired and interest for undue
delay. Interest under s. 28 unlike interest under s. 34 is an accretion to the value;
hence it is a part of enhanced compensation or consideration which is not the
case with interest under s. 34 of the 1894 Act”.</span></i><i><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;"><br />
</span></i><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;"><br />
(b) Interest under section 28 (i.e., interest on enhanced compensation) is to be
treated as part of compensation itself and will be liable for taxation under
the head “Income from Capital gain” u/s 45(5) of the Income Tax Act-1961. <br />
<br />
(c) Interest u/s 34 (i.e., interest on compensation) is truly in the nature of interest
income. <br />
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<!--[if !supportLists]--><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; font-weight: normal; mso-bidi-font-family: "Book Antiqua"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Book Antiqua";">6.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span></strong><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Apex court judgment
in </span><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">CIT Vs. Ghanshyam (HUF)</span></strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;"> was rendered <b><u>in favor of the revenue </u></b>in an
altogether different context at a time when section 56(2)(viii) & 145A(b)
was not there in the statue book.</span><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;"> It will not be
wrong to say that section </span></strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">56(2)(viii) & </span><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">145A(b) are specific provision governing taxability of interest on
enhanced compensation whereas judgement in CIT vs Ghanshyam (HUF)</span></strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;"> was rendered
when no such specific provision existed. To this extent, there are the chances
of further litigation & arguments. The main distinguishing reason for
controversy would be the conclusion drawn that the interest on enhanced
compensation is covered by section 45(5) (i.e., under the head “Income from
Capital Gain”) of the Income Tax Act-1961. <br />
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<!--[endif]--></span><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; font-weight: normal; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold;"><o:p></o:p></span></strong></div>
<div class="MsoListParagraphCxSpLast" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">7.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Considering the
overall legal perspective, in my opinion amendment done by the FA-2009 directly
may not have an overriding effect over the judgment pronounced in </span><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">CIT Vs Ghanshyam (HUF). The </span></strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">reason as mentioned in the explanatory
memorandum to FA – 2009 is different & not superseding the ratio drawn in </span><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">CIT Vs Ghanshyam (HUF). </span></strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Amendment by FA-2009 has just changed the
method of taxability of interest on compensation from year wise accrual to year
of receipt. In absence of any further specific amendment/clarification, Interest
u/s 28 on enhanced compensation can be treated as part of compensation itself as
held in case of Ghanshyam (HUF) 315 ITR 1 & may be not be covered by
section 56(2)(viii) of the Income Tax Act-1961.<o:p></o:p></span></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">[The author is a practicing Chartered Accountant from Nagpur. Readers
may send their direct tax related queries at<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; line-height: normal; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">SSRPN & Co<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; line-height: normal; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">10, Laxmi Vyankatesh Apartment<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; line-height: normal; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">C.A. Road, Telephone Exch. Square<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; line-height: normal; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Nagpur-440008 <o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; line-height: normal; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">or email it at </span></u></b><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; font-family: "Book Antiqua", serif; font-size: 13pt;"><a href="mailto:cassrpn@gmail.com">nareshjakhotia@ssrpn.com</a>]</span></b></div>
</div>
CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com2tag:blogger.com,1999:blog-8937283779209996755.post-25211921205776815052017-10-22T19:57:00.004-07:002017-10-22T19:57:58.029-07:00Taxation of F & O transactions<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="background: navy; color: white; font-family: "Book Antiqua","serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">TAX TALK-23.10.2017-THE HITAVADA<o:p></o:p></span></b></div>
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<b><span style="background: maroon; color: yellow; font-family: "Book Antiqua","serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">TAX TALK</span></b><b><span style="background: white; color: #333333; font-family: "Book Antiqua","serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Helvetica;"><o:p></o:p></span></b></div>
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<b><span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">CA. NARESH JAKHOTIA<o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in; mso-add-space: auto; vertical-align: baseline;">
<span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; line-height: 115%; mso-bidi-font-family: Arial;">Chartered
Accountant<o:p></o:p></span></h1>
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<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt; line-height: 115%;">The most crucial point arises with regard to the determination of the
“Turnover” in the case of F & O. The total of profit and loss (i.e.,
positive and negative figure) shall be taken as turnover. It makes no
difference whether the difference is positive or negative for computing
turnover. Aggregate o the differences, whether positive or negative is
considered as “turnover”.</span></b><b><span style="font-family: "Franklin Gothic Book","sans-serif"; font-size: 13.0pt; line-height: 115%;"><o:p></o:p></span></b></div>
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<b><span style="background: navy; color: white; font-family: "Book Antiqua","serif"; font-size: 25.0pt; line-height: 115%; mso-bidi-font-family: Arial; mso-bidi-language: HI;">Taxation of F & O transactions<o:p></o:p></span></b></div>
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<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 1]</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
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<!--[if !supportLists]--><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">I am
trading in equities; both delivery as well as non delivery based & make
short term capital gain (STCG). Whether it will be treated as "Income from
Business" or any other category of income? What would be tax treatment?
[Col Sisir Kumar Misra, Indian Army Veteran-</span></b><a href="mailto:sisir_misra@yahoo.com"><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">sisir_misra@yahoo.com</span></b></a><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">]<o:p></o:p></span></b></div>
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<!--[if !supportLists]--><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">I have
incurred the loss in share trading. Whether still I will be required to carry
out the audit? [Kishor Gupta, Lordganj, Jabalpur]</span></b><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;"><o:p></o:p></span></b></div>
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<!--[if !supportLists]--><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">I am
engaged in the future & option in shares. Whether audit is compulsory even
if I have incurred loss in the activities? I am not having any other income
except interest on FDR to the tune of Rs. 1,02,583/- on which TDS of Rs.
10,260/- is done by the bank & SB A/c interest of Rs. 16,253/- I have to file the income tax return for
claiming income tax refund. Which ITR form need to be used for filing it? [<a href="mailto:rao******@gmail.com">rao******@gmail.com</a>]</span></b><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;"><o:p></o:p></span></b></div>
<div class="ox-41e3186e17-gmail-p0" style="background: white; line-height: normal; margin-bottom: .0001pt; margin: 0in;">
<b><span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></b></div>
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<i><span style="font-family: "Book Antiqua", serif; font-size: 13pt; line-height: 115%;">One of the funny things about the stock market is that every time one
person buys, another sells, and both think they are astute- William Feather<o:p></o:p></span></i></div>
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<span style="font-family: "Book Antiqua", serif; font-size: 13pt; line-height: 115%;">Many people believe that share trading &
commodity transaction is one of the simplest ways of making money in the stock
market. Obviously, it is imperative to understand the tax implication on such
transactions.</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt; line-height: 115%;"><o:p></o:p></span></div>
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<!--[if !supportLists]--><b><span style="font-size: 13pt;">1.<span style="font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Income
from Intra-day Share Trading:<br />
</span></u></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">i] As per Section 43(5) of the Income Tax
Act, 1961 speculative transaction means a transaction in which a contract for
the purchase or sale of any commodity (including shares) is settled otherwise
than by the actual delivery/transfer of the commodity or script. <br />
ii] In intra-day trading, there is no actual delivery as the shares are bought
& sold from the trading account on the same date and do not find place in
the de-mat account at all.<br />
iii] Income from intra-day trading in shares is treated as “Speculative Income”
& is taxable under the head “Income from business & profession”.<br />
iv] Tax on profit from intra-day trading in shares has to be computed as per
applicable normal tax slab of an individual. In short, no special tax rate
(like 15% for STCG) is there for taxing speculative profit & the tax
liability would depend on total income & applicable tax slab.<br />
v] If there is unabsorbed speculative business loss, then such loss can be
carried forward for set off against the subsequent year's income from
speculation business only. Such loss cannot be carried forward for more than
four assessment years (AY) immediately succeeding the AY for which the loss was
first computed. <u>Speculation losses can be set off only against speculation
gains and not against any other head of income or non-speculation business
income.</u> <br />
[As per Section 70 of the IT Act, inter-source adjustment is possible in the
same head of income except in respect of (a) loss from speculative business (b)
loss from specified business u/s 35 AD of the IT Act, (c) Long-term capital
loss, and (d) loss from activity of owing and maintaining race horses].</span><span style="font-size: 13pt;"><o:p></o:p></span></div>
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<!--[if !supportLists]--><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Income from delivery based Share Trading:<br />
</span></u></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">i] If shares are purchased on a particular
day and sold next day or afterwards then it is not treated as ‘Speculative
business'. <br />
ii] Income from delivery based transactions could either be categorized under
the head “Income from Business” or under the head “Income from Capital Gain”
depending upon various factors. The prominent factors that play an important
role in determining whether it is a business assets or capital assets are: <br />
(a) Volume/Nature of transactions. (b) Intention/Logic behind investments. (c)
Holding period of shares (d) Investment of own funds or a borrowed fund. (e)
Other business activities of the assessee. Etc.<br />
[Share trading would be categorized as business if there are high & frequent transactions or if it is the main
activities of the taxpayer or if trading is done with a view to earn instant
profit etc. The correct categorization of share trading activity is important
to arrive at the correct tax liability and to comply with the audit & other
provision]. <br />
ii] If treated as capital gain &
the sale transaction is done through stock exchange then (a) Long Term Capital
Gain would be exempt whereas (b) short term capital gain would be taxable @
15%.<br />
iv] If treated as business income then entire income would be taxable like
other regular income of the taxpayer and tax liability would be in accordance
with the applicable tax slab. <br />
v] If share trading activity is considered as business then tax audit would be
mandatory for individual / HUF if (a) the turnover exceeds Rs. 2 Crore or (b)
if the turnover is less 2 Crore & income offered for taxation is less than
8% of turnover or if there is a loss. </span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
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<!--[if !supportLists]--><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Income
from Future & Options (Derivative) Transactions:<br />
</span></u></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">i] Transactions in derivatives are
specifically excluded from the category of “Speculative transaction” if the
transaction is carried out (a) on a recognised stock exchange (b) the
securities transaction tax is paid and (c) trade is supported by contract note.
Profit/Loss in derivatives (futures and options) is treated as non-speculative
business even though delivery is not there in such transactions. <br />
ii] Profit/loss </span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">from such transactions will be considered as normal business income & loss.<br />
</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">iii</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">] No special tax rate (like 15%) is applicable for taxing
profit from derivatives transactions & tax rate shall at normal rates
applicable to an Individual.</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><br />
iv]</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Unabsorbed non-speculative business loss can
be carried forward for eight years to be set off against business income of subsequent
years.<br />
v] </span><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Applicability of Audit in case of derivative (F&O) Trading:</span></u></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><br />
</span></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Taxpayer should carefully note that tax audit provision (as per section
44AB) will be applicable to the transactions in F&O also as income from
derivative trading is considered as normal business income. To be more precise,
if turnover of an individual/HUF from derivative transactions exceeds Rs. 2
Crore, taxpayer would be required to get the accounts audited. In case turnover
is less than 2 cr, tax audit (u/s 44AB r/w section 44AD) will be mandatory if
the net profit from such transactions is less than 8% of the turnover.
Interestingly, in case of Loss from derivative trading, since profit (Loss in
the present case) is less than 8% of the turnover, Tax Audit will be
applicable. The most crucial point
arises with regard to the determination of the “Turnover” in the case of F
& O. The total of profit and loss shall be taken as turnover. Aggregate of
the differences, whether positive or negative is considered as “turnover”. It
makes no difference whether the difference is positive or negative for
computing turnover. While arriving at the taxable profit, all the expenses
incurred for earning income like telephone, mobile, conveyance, depreciation on
assets used for the purpose of business etc would be admissible as deduction. <br />
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<!--[if !supportLists]--><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">4.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><u><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">ITR return filing
for person with F & O Income: <br />
</span></u></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Since income from F&O trading is to be treated as business income,
individual with F&O income/loss has to file return in ITR 3 or 4, as the
case may be. Filing of the return within due date is mandatory if the taxpayer
intends to carry for such loss for set off against its income in subsequent
years.</span><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">
<o:p></o:p></span></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">[The author is a practicing Chartered Accountant from Nagpur. Readers
may send their direct tax related queries at<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; line-height: normal; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">SSRPN & Co<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; line-height: normal; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">10, Laxmi Vyankatesh Apartment<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; line-height: normal; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">C.A. Road, Telephone Exch. Square<o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Nagpur-440008 <o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">or email it at </span></u></b><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; font-family: "Book Antiqua", serif; font-size: 13pt;"><a href="mailto:cassrpn@gmail.com">nareshjakhotia@ssrpn.com</a></span></b><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">]</span></u></b></div>
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CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com1tag:blogger.com,1999:blog-8937283779209996755.post-60901980408243990242017-10-15T20:18:00.003-07:002017-10-15T20:18:55.026-07:00Belated filed return can also be revised now<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="background: navy; color: white; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">TAX TALK-16.10.2017-THE HITAVADA<o:p></o:p></span></b></div>
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<b><span style="background: maroon; color: yellow; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">TAX TALK</span></b><b><span style="background: white; color: #333333; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;"><o:p></o:p></span></b></div>
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<b><span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">CA. NARESH JAKHOTIA<o:p></o:p></span></b></div>
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<span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">Chartered Accountant<o:p></o:p></span></h1>
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<b><span style="font-family: "Franklin Gothic Book","sans-serif"; font-size: 13.0pt;">Error
in income tax return forms can be corrected by filing a revised return.
Earlier, revision option was available only if the original return was filed
within due date i.e., revised return filing option was available in case
original return is filed after due date. However, the law has now been amended
from AY 2017-18 so as to allow the filing of revised return even if the
original return is filed belatedly i.e., after the due date. Now, return filed
belatedly can be revised.<o:p></o:p></span></b></div>
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<b><span style="background: navy; color: white; font-family: "Book Antiqua","serif"; font-size: 25.0pt; mso-bidi-font-family: Arial; mso-bidi-language: HI;">Belated
filed return can also be revised now<o:p></o:p></span></b></div>
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<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 1]</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
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<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">While filing my income tax return for FY 2016-17 (AY 2017-18), there
had been some incorrect entries made by the person preparing the return
on my behalf. The same were corrected immediately by filing a revised
return on 30-07-17. However, after a few days I noticed
another mistake, in the entry of amount of cash deposit (old
denominations) during period 08-11-16 to 30-12-16 in one of my bank accounts.
Against an actual deposit of Rs. 90,000/- in this account, the amount entered
was Rs. 1,88,000/-. Due to this, the total cash deposited in all my accounts,
which was actually below Rs. two lakhs (Rs. 1,97,000/-) seemed to exceed
Rs. two lakhs. When asked to correct this error, I was informed that the ITR
can be revised only once and since ITR is already revised, no further
amendment is possible. Now, although the actual details can easily
be verified from bank records if required by IT Department, can I correct
the details proactively from my side so as to avoid any IT notice? Kindly advice.
[</span></b><a href="mailto:bharatdube@gmail.com"><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">bharatdube@gmail.com</span></b></a>]<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
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<b><span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></b></div>
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<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Income tax return forms requires not only details of income
but also various other details. One needs to be very cautious while filing
income tax return as furnishing inaccurate information or false information
carries penal consequences. The funny part, leaving column blank could also be
penalizing. Error & mistake are often the results of new changes in the
forms ignored while filing income tax returns. <span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial;">Some of the
important changes in the current year form includes: <o:p></o:p></span></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">Reporting of cash deposits during
demonetization period in saving & current bank accounts if it exceeds Rs. 2
Lakh.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">All bank accounts of the taxpayers.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">Aadhar Card & Passport Number<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">4.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">Taxpayer whose income exceeds Rs 50 lakh
per annum had to file a declaration of assets & liabilities.<o:p></o:p></span></div>
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<br /></div>
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<span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">Error in income tax return form can be
corrected by filing a revised return. Earlier, revision option was available
only if the original return was filed within due date i.e., revised return
filing option was not available in case original return is filed after due
date. However, the law has now been amended from AY 2017-18 so as to allow the filing
of revised return even if the original return is filed belatedly i.e., after
the due date. Now, return filed belatedly can also be revised. <o:p></o:p></span></div>
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<span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">There is no restriction on the number of
times a return could be revised. Once a revised return is filed [u/s 139(5)],
the original return [U/s 139(1)] is supplanted by the revised return as a
result of amendment made in the original return as effected by the revised
return. A revised return supplants the original returns by effecting a revision
therein [Niranjan Lal Ram Chandra vs. CIT (1982) 134 ITR 352]. However, the
facility should be used sparingly as it may increase the chances of return
being selected for scrutiny. It is always in the interest of taxpayer to file
your original I-T return with utmost care, avoiding the chances of any error or
omission. One can however still use the opportunity provided by law to rectify
mistakes in your return, if any, before it is too late.<o:p></o:p></span></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">How to file a revised return?</span></u></b><u><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;"> </span></u><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><br />
</span></u><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">For filing the revised
return, taxpayer is quote the acknowledgement number and the date of filing of
the original return in the revised form. If anyone is filing a revised return
more than once then at first and every subsequent revision, acknowledgement number
and the date of filing relating to the original return only is required to be
filled. <o:p></o:p></span></div>
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<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 2]</span></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
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<!--[if !supportLists]--><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><span style="background: white; font-family: "Book Antiqua", serif; font-size: 13pt;">My Daughter is a staff working in the Government of
Maharashtra’s Hospital at Mumbai and falls under 10% Income Tax bracket. For
the FY 2016-17, they have not given the Form No. 16 till date and she has not
filed the IT return. On enquiry, it is informed that it is in
process. They are citing the reason of staff shortage for correction in
the TDS. Will the IT department take up the matter with the hospital
authorities to rectify the mistakes? I would like to know through your good
self whether there is any deadline for issue of Form No. 16 and any provision
for sending the Form No. 16 by post to the employee? Kindly also let me
know the course of action to be taken by the undersigned / my daughter to set
right the things. Whom shall I approach?</span></b><span style="color: #767676; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-weight: bold;"><o:p></o:p></span></div>
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<!--[if !supportLists]--><span class="position"><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;">
</span></span></b></span><!--[endif]--><b><span style="background: white; font-family: "Book Antiqua", serif; font-size: 13pt;">In the financial year 2015-16, the Hospital authorities
deducted TDS of Rs. 4,000/- and given Form No. 16 also. Accordingly, she
filed the IT return claiming Rs. 800/- as refund. Unfortunately, few days
later the IT department from Bangalore sent her a notice that no
remittance were done by your employer and take up the matter with them for
correction and re-submit the IT return. She has taken up the matter with
the DDO of the Hospital and asked for ‘Traces Form No. 16” but till date the
hospital authorities neither given the same nor corrected the mistake and it is
still pending. [T.Varkey - </span></b><a href="mailto:pvthomas_57@rediffmail.com"><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">pvthomas_57@rediffmail.com</span></b></a><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">]</span></b><span class="position"><span style="color: #767676; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-weight: bold;"><o:p></o:p></span></span></div>
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<b><span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <br />
<u>First part:</u> <o:p></o:p></span></b></div>
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<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Tax Deduction at Source (TDS) is one of the
main sources for the Government in widening tax base & ensuring regular inflows
of taxes. Despite so many awareness & penal consequences, there are still
numerous instances of non compliance. Without payment of tax & quarterly filing
of TDS by the Deductor, TDS amount would not get reflected in the 26AS
statement of the deductee & results in denial of legitimate tax credit.
Deductee are in a fix when the payer deducts tax but doesn’t deposit it or
after deposits either doesn’t file TDS return or file it erroneously without
correctly mentioning the details of deductee. This is the most common grievance
that is faced by many deductees across the country. The problem arises not only
at the time of claiming tax credit but also arises at the time of e-filing of
return. <br />
The person deducting the tax at source is duty bound to:<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">a.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Deposit the amount
of Tax Deducted at Source (TDS) within prescribed time in the Government
Treasury.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">b.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">File the Quarterly
TDS return within a prescribed time.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">c.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Issue the TDS
Certificate to the Deductee within a prescribed time.<o:p></o:p></span></div>
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<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">There is a penalty
on deductor for non compliance with each & every obligation mentioned above.
More importantly<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">i.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Non
filing of TDS Return within prescribed time attracts a fine of Rs. 100/- per
day, <span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">subject to maximum of TDS amount</span> [u/s 272A(2)(k)].<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">ii.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Mandatory
late filing fee of Rs. 200/- per day <span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;">subject to maximum of TDS
amount,</span> is also leviable u/s 234E. <o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">iii.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Penalty
of Rs. 10,000/- to Rs. 1,00,000/- is there for non filing or inaccurate filing
of TDS return [u/s 271H].<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">iv.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Non
issuance of TDS Certificate within a prescribed time attracts penalty u/s 272A
(2) (g) @ Rs. 100/- per day,<span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;"> subject to maximum of TDS
amount, </span>during which the failure continues<o:p></o:p></span></div>
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<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">In your case, you have already approached
the deductor for issuance of TDS certificate. However, you are not able to get
it so far. You can adopt following sequential approach: <o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">i.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Write
a letter to the Deductor incorporating:<br />
a] The details of payments done and the tax deducted thereon.<br />
b] Provision of Section 203 read with rule 31 which requires the employer to
issue TDS certificate by 31<sup>st</sup> May. <br />
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<!--[endif]--><o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">ii.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Keep
the proof of letter issued to the Deductor <br />
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<!--[endif]--><o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">iii.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">If
despite this the certificate from TRACES is not issued, write a letter to Joint
Commissioner or Addl. CIT of TDS wing who has jurisdiction over the employer (Mumbai
in your case) mentioning the detailed facts elaborated above.<o:p></o:p></span></div>
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<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Readers may note that TDS wing of Income
Tax department is working pro actively and very rigorously initiating the penal
proceeding against the defaulters who are illegally withholding the amount of
TDS thereby causing hassles to the deductee.<o:p></o:p></span></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Second part:</span></u></b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;"><o:p></o:p></span></div>
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<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">There
is an important instructions issued by CBDT for grant of TDS credit to the
deductee even if the same is not deposited by the deductor. The copy of the
same is re-produced hereunder for the benefit of masses:<br />
<b><i><u>“Instructions No.
275/29/2014-IT-(B), dtd.1-6-2015<br />
</u></i></b><i>1. Grievances have been
received by the Board from many taxpayers that in their cases the deductor has
deducted tax at source from payments made to them in accordance with the
provisions of Chapter – XVII of the Income Tax Act, 1961 but has failed to
deposit the same into the Government account leading to denial of credit of
such deduction of tax to theses tax payers and consequent raising of demand.<br />
2. As per section 199 of the Act credit of TDS is given to the person only if
it is paid to the central Government Account. However, as per section 205 of
the Act, the assessee shall not be called upon to pay the tax to the extent tax
has been deducted from his income where the tax is deductible at source under
the provision of Chapter- XVII. Thus, the Act puts a bar on direct demand
against the assessee in such cases and the demand on account of tax credit
mismatch cannot be enforced coercively.<br />
3. This may be brought to the notice of all the Assessing Officers in your
region so that if the facts of the cases so justify, the assessee are not put
at any inconvenience on account of default of deposit of tax into the
Government account by the deductor.<br />
4. This issues with the approval of Chairperson, CBDT.”<br />
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<!--[endif]--></i><b><u><o:p></o:p></u></b></span></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">[The author is a practicing
Chartered Accountant from Nagpur. Readers may send their direct tax related
queries at<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">SSRPN & Co<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">10, Laxmi Vyankatesh Apartment<o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">C.A. Road, Telephone Exch. Square<o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Nagpur-440008 <o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">or email it at </span></u></b><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; font-family: "Book Antiqua", serif; font-size: 13pt;"><a href="mailto:cassrpn@gmail.com">nareshjakhotia@ssrpn.com</a></span></b><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">]</span></u></b></div>
<br />
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<br /></div>
</div>
CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com0tag:blogger.com,1999:blog-8937283779209996755.post-46163813384774701262017-10-08T18:02:00.001-07:002017-10-08T18:02:07.608-07:00Merger, Demerger & Amalgamation- Tax implications on shareholder<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="background: navy; color: white; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">TAX TALK-09.10.2017-THE HITAVADA<o:p></o:p></span></b></div>
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<b><span style="background: maroon; color: yellow; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">TAX TALK</span></b><b><span style="background: white; color: #333333; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;"><o:p></o:p></span></b></div>
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<b><span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">CA. NARESH JAKHOTIA<o:p></o:p></span></b></div>
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<span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">Chartered Accountant<o:p></o:p></span></h1>
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<b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">There
is a tax concession to the Shareholder of an Amalgamating Company where the
shareholder transfer shares held by him in the amalgamating company in
consideration of allotment of shares in amalgamated Indian company.</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> </span></b><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; font-weight: normal; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold;"><o:p></o:p></span></strong></div>
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<b><span style="background: navy; color: white; font-family: "Book Antiqua","serif"; font-size: 25.0pt; mso-bidi-font-family: Arial; mso-bidi-language: HI;">Merger,
Demerger & Amalgamation- Tax implications on shareholder<o:p></o:p></span></b></div>
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<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 1]</span></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
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<!--[if !supportLists]--><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><span style="background: white; font-family: "Book Antiqua", serif; font-size: 13pt;">1000 equity shares of face
value of Rs. 10 in N.F.C Ltd were allotted in March 1991. Consequent to
composite scheme of arrangement and amalgamation of three companies, 1100
equity shares of Face value of Rupee 1 was allotted in N.F.C. Ltd. and 1000
equity shares of rupees one face value was allotted in another company in
October 2011. Kindly clarify as to how Rs. 10,000/- invested in N.F.C. Ltd. in
March 1991 is to be allocated between the above two companies and whether
Profit/Loss on sale of the above said units is to be calculated only from
October 2011? Further, please elaborate with relevant sections of the Income
Tax Act. [Krishnaswamy Raghavan- </span></b><a href="mailto:raghavankrishnaswamy2011@gmail.com"><b><span style="background: white; font-family: "Book Antiqua","serif"; font-size: 13.0pt;">raghavankrishnaswamy2011@gmail.com</span></b></a><b><span style="background: white; font-family: "Book Antiqua", serif; font-size: 13pt;">]<o:p></o:p></span></b></div>
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<!--[if !supportLists]--><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">My wife is holding 50 shares of Larsen & Tubro Ltd which was
purchased by her in Rs. 11,200 through stock exchange. As a result of
arrangement between Grasim & L &
T for transfer of the cement business of L&T, she was allotted 20 shares of
UltraTech Cement Ltd and 20 shares of L&T in July 2004. What will be the
capital gains implications on her if she now sell the shares that are held by
her in the new allotment of UltraTech and L&T? [<a href="mailto:radh******@gmail.com">radh******@gmail.com</a>] </span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
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<b><span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></b></div>
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<b><i><span style="color: red; font-family: "Copperplate Gothic Light","sans-serif"; font-size: 17.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">“Tax
Complexity itself is a kind of tax”</span></i></b><b><i><span style="color: red; font-family: "Copperplate Gothic Light","sans-serif"; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"> </span></i></b><b><span style="color: red; font-family: "Copperplate Gothic Light","sans-serif"; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">- Max
Baucus</span></b><strong><span style="color: red; font-family: "Copperplate Gothic Light","sans-serif"; font-weight: normal; mso-bidi-font-family: Calibri; mso-bidi-font-weight: bold; mso-bidi-theme-font: minor-latin;"><o:p></o:p></span></strong></div>
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<br /></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">First
query:</span></u></b><strong><span style="font-family: "Book Antiqua", serif; font-size: 13pt; font-weight: normal;"><o:p></o:p></span></strong></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><u><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">Tax Relief to the shareholders of an
Amalgamating Company:<br />
</span></u><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">There
is a tax concessions to the shareholders of an Amalgamating Company where the
shareholder transfers shares held by him in the amalgamating company in
consideration of allotment of shares in amalgamated Indian company in the
scheme of amalgamation. Such transfer of shares is not regarded as transfer
under section 47(vii) of the Income Tax Act & consequently no capital gain
is attracted in the hands of the shareholder of amalgamating company. <o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">The
cost of acquisition need to be worked out in accordance with sub section (2) or
(2C) or (2D) to section 49. In your case, against 1000 shares of Rs. 10 each in
N.F.C. Ltd, you have been allotted 1100 equity shares of Rs. 1 each of N.F.C.
Ltd & 1000 equity shares of Rs. 1 each in some other company. <br />
The cost of acquisition of Rs. 10,000/- need to be apportioned in between the
NFC Ltd & the new company on the basis of ratio net book value of the
assets transferred in a demerger bears to the net worth of the demerged company
immediately before such demerger. That is to say, you would be required to obtain/extract
the net book value of the assets transferred to the new company and on the
basis of ratio of assets transferred to the new company out of the total net
book value of the assets, cost of acquisition of the shares of new company
would be required to be worked out [Section 49(2C)]. Rs. 10,000/- as reduced by
the amount calculated in accordance with 49(2C) would be the cost of
acquisition of 1100 shares of Rs. 1 each in N.F.C. Ltd allotted in
October-2011.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">As
far as the Period of holding of shares is concerned,
it may be noted that the holding period of shares in amalgamated / resulting
company will also include the period for which the shares in the amalgamating /
demerged company were held by the share holder [Sections 2(42A)(c) and
2(42A)(g))]. In your case, you have acquired original shares in 1991 & it
would be considered so for the new shares so allotted in a composite scheme of
amalgamation. <o:p></o:p></span></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Second
query:</span></u></b><strong><span style="font-family: "Book Antiqua", serif; font-size: 13pt; font-weight: normal;"><o:p></o:p></span></strong></div>
<div class="body" style="background: white; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l1 level1 lfo3; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">The transaction of
allotment of 20 shares of UltraTech & 20 shares of L&T appears to be as
a result of a demerger of L&T. If this demerger is one which satisfies the
conditions in Section 2(19AA) of the Income-Tax Act, no capital gains will
arise on such conversion. However, the question relating to the computation of
capital gains on the sale of shares of UltraTech will necessitates the
computation of the cost of acquisition of such shares.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><b><u><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Cost of acquisition:<br />
</span></u></b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">The
cost of acquisition of the 20 shares in L&T and the 20 shares of UltraTech,
if this demerger is one within the meaning of the Income-Tax Act, will be
computed as follows:<br />
a] UltraTech (20 shares): Cost of acquisition of the shares in L&T before
the demerger x net book value of assets transferred in the scheme of demerger /
net worth of L&T before the demerger.<br />
b] L&T (20 hares): Cost of acquisition of the shares in L&T before the
demerger as reduced by the cost of acquisition of the shares in UltraTech after
the demerger (computed as above).<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><b><u><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Tax Implications:</span></u></b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;"><br />
i] If the transfer of the business by L&T to UltraTech were not a demerger
within the meaning of the I-T Act, capital gains would be attracted when the
shares of UltraTech are allotted to your wife. The capital gains will be
computed taking the market value on the date of allotment of the shares of
UltraTech to your wife as the full value of consideration. This market value
will also be treated as the cost of acquisition when your wife subsequently sells
the shares of UltraTech.<br />
ii] If the transfer of business by L&T to UltraTech is a demerger under the
I-T Act, the period of holding of shares in L&T will also be taken into
account in determining whether the gain is short term or long term. In your
case, the gain would be long term as the shares of L&T have been acquired long
back in the year 2000. However, if the transfer of the business by L&T to
UltraTech is not a demerger under the I-T Act, then the period of holding of
earlier shares of L & T would not have been for determining the period of
holding of new shares.<o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">In both
queries referred above, the holding periods of all the shares are for a period
exceeding 12 months. Further, it appears that (a) the shares are held as a
capital asset (b) the companies are listed and (c) the sell is going to be done
through stock exchange & will be subject to Securities transaction tax
(STT). If it is so, then the amount received on sale of shares would be exempt
from tax u/s 10(38) & computation of cost of acquisition & ascertaining
date of acquisition would not be of much relevance.<o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> </span><b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 2]</span></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
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<!--[if !supportLists]--><b><span style="color: #212121; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><span style="color: #212121; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Segoe UI";">I need a clarification. If some amount of retirement
corpus is invested in the name of wife who is a housewife then the
interest earned is to be added in taxable income of husband along with pension?
Or, one can take benefit up to Rs. 2.50 Lakh interest while filing the IT
return of wife? One can file the return in the name of wife use this as safe
tax saving instrument to reduce tax burden?<o:p></o:p></span></b></div>
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<!--[if !supportLists]--><span class="go"><b><span style="color: #212121; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;">
</span></span></b></span><!--[endif]--><b><span style="color: #212121; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Segoe UI";">Which are the best option in which amount at the time
of withdrawals is not taxable? [</span></b><span class="gd"><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #222222; font-family: "Book Antiqua", serif; font-size: 13pt;">Sudhir Deshpande- </span></b></span><a href="mailto:svdeshu@hotmail.co"><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">svdeshu@hotmail.co</span></b></a><span class="go"><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #555555; font-family: "Book Antiqua", serif; font-size: 13pt;">]</span></b></span><span class="go"><b><span style="color: #212121; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Segoe UI";"><o:p></o:p></span></b></span></div>
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<b><span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></b></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">By virtue of
specific clubbing provision, where an asset is transferred by an individual to
his spouse directly or indirectly, otherwise than for adequate consideration,
any income from such asset is deemed to be the income of the transferor. As a result, amount invested by your wife out
of the amount gifted by you would be clubbed with your income and could not be used as a tax
planning tool.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Public Provident
Fund (PPF), Equity linked saving scheme (ELSS), Investment in share market in
equity for a period of more than 12 months, etc are few of the options wherein
amount withdrawals after specified period is not taxable.<o:p></o:p></span></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">[The author is a practicing
Chartered Accountant from Nagpur. Readers may send their direct tax related
queries at<o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">SSRPN & Co<o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">10, Laxmi Vyankatesh Apartment<o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">C.A. Road, Telephone Exch. Square<o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Nagpur-440008 <o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">or email it at </span></u></b><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; font-family: "Book Antiqua", serif; font-size: 13pt;"><a href="mailto:cassrpn@gmail.com">nareshjakhotia@ssrpn.com</a>]</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">. <o:p></o:p></span></b></div>
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CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com3tag:blogger.com,1999:blog-8937283779209996755.post-59482543973129043962017-10-01T16:46:00.001-07:002017-10-01T16:46:08.385-07:00An additional compliance of submitting estimated current Income & Advance tax payment<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="background: navy; color: white; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">TAX TALK-02.10..2017-THE HITAVADA<o:p></o:p></span></b></div>
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<b><span style="background: maroon; color: yellow; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">TAX TALK</span></b><b><span style="background: white; color: #333333; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;"><o:p></o:p></span></b></div>
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<b><span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">CA. NARESH JAKHOTIA<o:p></o:p></span></b></div>
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<span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">Chartered Accountant<o:p></o:p></span></h1>
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<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">P</span></b><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">roposed amendment requiring taxpayer to file estimated
current income in Form No. 28AA is in straight contravention to the concept of
“Ease of doing business” for which the present Government is committed. It is
not going to yield any additional revenue but will surely kill the time &
energy of the businesses on the unproductive work & is a pure wastage of
talented human resources.</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> </span></b><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; font-weight: normal; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold;"><o:p></o:p></span></strong></div>
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<b><span style="background: navy; color: white; font-family: "Book Antiqua","serif"; font-size: 25.0pt; mso-bidi-font-family: Arial; mso-bidi-language: HI;">An
additional compliance of submitting estimated current Income & Advance tax
payment<o:p></o:p></span></b></div>
<h1 style="background: #FAFAFA; margin-top: 0in;">
<span style="color: #444444; font-size: 13.5pt;"> </span></h1>
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<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 1]</span></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
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<b><span style="color: #222222; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">We have read in the newspaper about filing of estimate of
income tax return before 30<sup>th</sup> September? Ours is a private limited
company and so whether it is compulsory to file any such estimate? Is it
applicable from FY 2017-18 or 2018-19? If yes, why is so much additional
compliance burden if the advance tax payment law is already there and taxpayers
are complying with it? We are already over burdened with GST, will this not add
to unwanted compliances? Ultimately, even if there is a delay in payment of
tax, it is paid with interest at the end of the day. Why such ridiculous
provisions? Any logic for this additional formality? [</span></b><a href="mailto:mukesh.motwani63@gmail.com"><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">mukesh.motwani63@gmail.com</span></b></a><b><span style="color: #222222; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">] </span></b><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in;">
<span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></h1>
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<b><i><span style="background: white; color: red; font-family: "Lucida Sans","sans-serif"; font-size: 16.0pt; mso-bidi-font-family: Arial;">“Taxation without Representation is never a good law”. <o:p></o:p></span></i></b></div>
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<div style="background: white; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo2; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">As of now, a taxpayer is liable to discharge part of its tax
liability by way of advance tax. Failure to pay advance tax results in levy
of interest u/s 234B & 234C. Presently, there is no mandatory requirement
to report the estimate income & advance tax liability to the Income Tax
Department.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Central Board of
Direct Taxes (CBDT) has </span><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">proposed to create a new mechanism
for self-reporting of estimated income & tax thereon by certain class of taxpayer
(i.e., companies & assessees covered by tax audit provision) on voluntary
compliance basis. </span><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">The proposed reporting mechanism is sought to be
created by way of inserting a new Rule 39A and Form No. 28AA in the </span><a href="https://taxguru.in/income-tax/claim-deduction-35dda-vrs-compliance-condition-rule-2ba-incometax-rules-1962.html/" target="_blank"><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;">Income-tax Rules, 1962</span></a><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">. <o:p></o:p></span></div>
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<!--[if !supportLists]--><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></strong><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">In Rule 39A, it is
proposed that companies & other persons covered by tax audit provisions u/s
44AB would be required to file a statement incorporating estimated income, tax
liability and payment of taxes. An estimate of income has to be filed by 15<sup>th</sup>
November for the period up to 30<sup>th</sup> September. Further, in case, the
income estimate is less than the income for the previous corresponding period
by Rs. 5 lakh or 10%, whichever is higher, the assessee has to give another
estimate of income as on 31<sup>st</sup> December before the end of the following
month. The detail is to be provided in Form 28AA.</span><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;"> <o:p></o:p></span></strong></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">4.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">If the draft rule
is implemented, it will be obligatory for the above referred class of taxpayers
to submit annually new set of data consisting of estimated income & tax
details. If implemented, it is sure to increase the compliance burden for the
trade & industry who are already struggling hard with the hefty compliance
burden under the new GST regime.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">5.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">As of now, it is
merely a proposal by the CBDT. Taxpayers may forward their
suggestions/recommendations/ objections at </span><a href="mailto:dirtpl4@nic.in"><b><span style="color: #1f497d; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial; mso-themecolor: text2;">dirtpl4@nic.in</span></b></a><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">.</span></b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;"> Inviting representation before enforcing any law is a good initiative
by the CBDT which deserves appreciation. </span><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;"><o:p></o:p></span></div>
<div class="MsoListParagraph" style="background: white; margin-bottom: 4.0pt; mso-list: l0 level1 lfo2; text-indent: -.25in;">
<!--[if !supportLists]--><b><i><span style="font-size: 13.5pt;">6.<span style="font-size: 7pt; font-stretch: normal; font-style: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></i></b><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">In my opinion, present
proposal is in straight contravention to the concept of “Ease of doing
business” for which the present Government is equally committed. It is not
going to yield any additional revenue but will surely kill the time &
energy of the businesses on the unproductive work & is a pure wastage of
talented human resources. Long back, there was similar provision in the Income
Tax Act-1961 (section 212) which required filing of estimate by the assessee.
It was omitted by the Finance Act-1987 & the circular No. </span><b><span style="font-size: 13.5pt;"> </span></b><span style="font-size: 13.5pt;">516 Dated
15-6-1988 is worth reading. It reads as under:</span><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;"><br />
</span><b><span style="font-family: AsterV, serif; font-size: 13.5pt;">“10.5</span></b><span class="apple-converted-space"><span style="font-family: AsterV, serif; font-size: 13.5pt;"> </span></span><span style="font-family: AsterV, serif; font-size: 13.5pt;">The old
sections 209A and 212 contained detailed provisions which were different for
old and new assessees in regard to filing of statement, estimate or revised
estimates, etc. of advance tax payable by them, on the basis of which the
assessees paid advance tax during the financial year. <b><u>These provisions were very complex and became unnecessary under the
new scheme of payment of advance tax introduced by the Amending Act, 1987,
under which assessees have themselves to pay advance tax in three installments</u></b>.
In case of default, a mandatory interest @ 2 per cent p.m. and in case of
deferment of installment of advance tax, a mandatory interest @ 1 </span><span style="font-size: 13.5pt;">per cent p.m. is to be charged in all
cases under the provisions of the new sections 234B and 234C introduced by the </span><span style="font-family: AsterV, serif; font-size: 13.5pt;">Amending Act,
1987. <b><i><u>The Amending Act, 1987 has, therefore, omitted sections 209A and
212, thus dispensing with the requirement of filing of statements/estimates of
advance tax payable by the assessees. This saves the assessees as well as the
Department from enormous paper work involved.”</u></i></b></span><b><i><u><span style="font-size: 13.5pt;"><o:p></o:p></span></u></i></b></div>
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<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 2]</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
<h3 style="margin-bottom: .0001pt; margin: 0in;">
<span style="color: #222222; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">Government
has suitably amended and added clause 54EE in Income Tax Act to save additional
Rs. 50 lakhs in capital gain in specified securities of Govt. undertakings. So
far, Government has not issued any notification. The investment has to be made
within 6 months of property sale. It appears that those who have sold property
are awaiting it and will not be able to avail this provision. Kindly intimate
if any info is there & elaborate more about section 54EE. <span class="gd">[Ramnarayan
Dubey</span></span><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">-</span><a href="mailto:ra.du.1944@gmail.com"><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">ra.du.1944@gmail.com</span></a><span class="go"><span style="color: #555555; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">]<o:p></o:p></span></span></h3>
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<span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></h3>
<div class="MsoListParagraph" style="background: white; mso-list: l1 level1 lfo1; text-align: justify; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">To promote the startup ecosystem in the country, it was envisaged in
‘Startup India Action Plan’ to establish a Fund of Funds by raising Rs 2500
crore annually for four years to finance the startups.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">To achieve this objective Section
54EE was inserted by the Finance Act, 2016 which offers </span><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">exemption up to Rs.
50 Lakh from Long Term Capital Gain (LTCG) if the amount of LTCG is invested in
units of long term specified funds notified by the Central Government to finance
the start ups. <o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; font-weight: normal; mso-bidi-font-family: "Book Antiqua"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Book Antiqua";">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; font-weight: normal; mso-bidi-font-weight: bold;">Encouraging start up is an excellent initiative of
the Government and carries the potential to take the country to the next higher
level of economy. With the amendment, legislature has bestowed powers to the
Central Government to notify the funds. However, there are no such funds
notified by the Central Government so far. <span style="background: white;">As
such, no exemption as of now can be claimed u/s 54EE. There were lots many
taxpayers who were expecting the funds to be notified but ended up paying taxes.
Though option to save tax is provided in the Act by section 54EE but nothing is
done at ground level to enable taxpayer to actually utilize it. At least, Status
update on 54EE by the Government could provide relief to the taxpayer. They can
plan their transactions by exploring alternate tax saving option or can defer the
transaction or will enter in to the transactions with the upfront clear mindset
of paying tax.<o:p></o:p></span></span></h3>
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<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 3]</span></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
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<b><span style="color: #222222; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">I have purchased a flat for Rs. 32
Lakh & residing in it. Please tell me<br />
if I can take some tax benefit towards maintenance of house, tax paid<br />
etc. If yes, under which section and procedure of claim. [Gurudas-</span></b><a href="mailto:gcmaji@gmail.com"><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">gcmaji@gmail.com</span></b></a><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #555555; font-family: "Book Antiqua", serif; font-size: 13pt;">]<o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in;">
<span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></h1>
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<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">For
the self occupied house property, no deduction is admissible towards tax &
maintenance charges paid.<o:p></o:p></span></div>
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<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 4]</span></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
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<b><span style="color: #222222; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">If an apartment has been purchased in
cash without availing bank finance and stamp duty/ vat/etc paid whether these
taxes get exemption in the income tax? I believe that there should not be tax
on tax and these taxes duties paid to the Govt may get exemption in the income
tax. Kindly opine and oblige. [K.S.Popat-<o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in;">
<a href="mailto:kaushikpopat@gmail.com"><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">kaushikpopat@gmail.com</span></a><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">]<o:p></o:p></span></h1>
<h1 style="background: white; margin-top: 0in;">
<span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></h1>
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<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Stamp duty &
registration charge paid is eligible for deduction u/s 80C subject to
common overall cap of Rs. 1.50 Lakh. Further, the same can also be considered
if any taxpayer is investing in the house property to claim an exemption u/s 54
or 54F. Payment in cash does not bar the claim in either case.</span><span style="font-family: Arial, sans-serif;"><o:p></o:p></span></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">[The author is a practicing
Chartered Accountant from Nagpur. Readers may send their direct tax related
queries at<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">SSRPN & Co<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">10, Laxmi Vyankatesh Apartment<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">C.A. Road, Telephone Exch. Square<o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Nagpur-440008 <o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">or email it at </span></u></b><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; font-family: "Book Antiqua", serif; font-size: 13pt;"><a href="mailto:cassrpn@gmail.com">nareshjakhotia@ssrpn.com</a></span></b><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">]</span></u></b></div>
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<br /></div>
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CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com0tag:blogger.com,1999:blog-8937283779209996755.post-74743750519701791742017-09-24T18:56:00.001-07:002017-09-24T18:56:26.635-07:00Gold, silver or properties, Change in the base year from is for all classes of assets: Tax Talk<div dir="ltr" style="text-align: left;" trbidi="on">
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CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com1tag:blogger.com,1999:blog-8937283779209996755.post-17627674832281334952017-09-24T18:55:00.002-07:002017-09-24T18:55:53.481-07:00Change in the base year from 1981 to 2001 is for all classes of assets<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="background: navy; color: white; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">TAX TALK-02.10..2017-THE HITAVADA<o:p></o:p></span></b></div>
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<b><span style="background: maroon; color: yellow; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">TAX TALK</span></b><b><span style="background: white; color: #333333; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;"><o:p></o:p></span></b></div>
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<b><span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">CA. NARESH JAKHOTIA<o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in; vertical-align: baseline;">
<span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">Chartered Accountant<o:p></o:p></span></h1>
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<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">The change in the
base year from 1981 to 2001 is for all classes of assets be it real estate,
unlisted shares, gold and bond funds). As a result of this amendment, the
cost of all the assets acquired prior to 01.04.2001 would be replaced by the
fair market value of the assets as on 01.04.2001. </span></b><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; font-weight: normal; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold;"><o:p></o:p></span></strong></div>
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<b><span style="background: navy; color: white; font-family: "Book Antiqua","serif"; font-size: 25.0pt; mso-bidi-font-family: Arial; mso-bidi-language: HI;">Change
in the base year from 1981 to 2001 is for all classes of assets<o:p></o:p></span></b></div>
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<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 1]</span></b><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;"> <o:p></o:p></span></b></div>
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<b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">I am senior citizen.
My present means of livelihood is my pension and bank FD interest. It amounts
to around rupees six and half lakh. In the present FY, the tax for income till
five lakhs is 5% and above that is 20%. Most of my income falls into the 5% tax
bracket the bank however cuts TDS at 10%. I will get refund no doubt but why
should people like me or others who earn five lakhs a year suffer an excess tax
deduction and loss of monthly income till the month of refund. Please advice
whom to approach? [</span></b><a href="mailto:ashutoshgadgil@yahoo.com"><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">ashutoshgadgil@yahoo.com</span></b></a><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">]<o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in;">
<span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></h1>
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<b><i><u><span style="color: red; font-family: "inherit","serif"; font-size: 13.5pt; mso-bidi-font-family: Helvetica;">There is no such thing as a good tax</span></u></i></b><b><i><span style="color: red; font-family: "inherit","serif"; font-size: 13.5pt; mso-bidi-font-family: Helvetica;">-<span style="border: none windowtext 1.0pt; mso-border-alt: none windowtext 0in; padding: 0in;"> </span></span></i></b><b><span style="border: none windowtext 1.0pt; color: red; font-family: "inherit","serif"; font-size: 13.5pt; mso-bidi-font-family: Helvetica; mso-border-alt: none windowtext 0in; padding: 0in;">Winston Churchill<i><o:p></o:p></i></span></b></div>
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<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">A<span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial;">s your
ultimate tax liability is not nil, you cannot submit Form No. 15H. There is no
other way to avoid TDS except getting lower deduction certificate from
Assessing Officer after </span></span><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">making an application in
Form No. 13 with income details incorporated therein. AO can issue lower
deduction certificate authorizing bank to deduct tax at lower rate. Alternatively,
you can claim the excess TDS by filing income tax return. </span><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;"><o:p></o:p></span></div>
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<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 2]</span></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
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<b><span style="background: white; font-family: "Book Antiqua", serif; font-size: 13pt;">With reference to Tax Talk in The Hitavada Dated 11/10/2016 regarding
</span></b><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">senior citizen saving scheme 2004, it is
mentioned that <span style="background: white;">premature withdrawal of
the amount will be taxable. I have the following observation:<o:p></o:p></span></span></b></div>
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<b><span style="background: white; font-family: "Book Antiqua", serif; font-size: 13pt;">1. The amount deposited was from the amount on which tax was
already paid.<o:p></o:p></span></b></div>
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<b><span style="background: white; font-family: "Book Antiqua", serif; font-size: 13pt;">2. It is not like
earlier NSS where the amount deposited was exempt from tax. Hence, it cannot be
taxed on premature withdrawal in case any exemption was not claimed in tax on
this amount u/s 80C? Kindly clarify. [</span></b><span class="position"><b><u><span style="color: #0070c0; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;">mohankumaran2003@yahoo.co.in]</span></u></b></span><u><span style="color: #0070c0; font-family: "Book Antiqua","serif"; font-size: 13.0pt;"><o:p></o:p></span></u></div>
<h1 style="background: white; margin-top: 0in;">
<span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></h1>
<div class="MsoListParagraph" style="mso-list: l1 level1 lfo3; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Amount
deposited under senior citizens saving Scheme is eligible for deduction u/s 80C
of the Income Tax Act, 1961 subject to overall
maximum cap of Rs. 1.50 Lakh.</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
<div class="MsoListParagraph" style="mso-list: l1 level1 lfo3; text-indent: -.25in;">
<!--[if !supportLists]--><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span></span><!--[endif]--><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">If the amount
deposited is withdrawn within a period of 5 years of its deposit, the amount so
withdrawn would be taxable in the year of withdrawals [Clause (6A) to section
80C]. It is advisable to claim deduction only if investment could be kept
untouched till 5 years. <o:p></o:p></span></span></div>
<div class="MsoListParagraph" style="mso-list: l1 level1 lfo3; text-indent: -.25in;">
<!--[if !supportLists]--><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span></span><!--[endif]--><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Reading
section 80C in totality & in accordance with true spirit of law, I am of
the view that amount would be taxable only if the deduction is claimed u/s 80C
at the time of investment. If no deduction u/s 80C was claimed at the time of
investment, nothing would be taxable for premature withdrawal. If deduction is
claimed only towards the part investment (say Rs. 10 Lakh is invested in SCSS
whereas deduction is claimed for Rs. 1 Lakh) then premature withdrawals of Rs.
1 Lakh alone would be subject to tax by virtue of section 80C(6A). <o:p></o:p></span></span></div>
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<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 3]</span></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
<div class="ox-9be0342afd-msonormal" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">I
purchased a plot in the year 1997 & intent to sell it in this FY i.e.,
2017-18. I need to calculate L T C G. As per information made available, the
shift in base year for Cost inflation index (CII) from 1981 to 2001 is
w.e.f. 1<sup>st</sup> April2018 and for assessment year 2018-19.<o:p></o:p></span></b></div>
<div class="ox-9be0342afd-msonormal" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">My queries
are:<o:p></o:p></span></b></div>
<div class="ox-9be0342afd-gmail-m6176721027458797799gmail-m3216670688839725499gmail-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo1; text-indent: -.5in;">
<!--[if !supportLists]--><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">i.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">For
calculating capital gain (CG), should I take CII base year
as 1981 or 2001? If yes, please let us know the cost inflation index from
2001 onwards. <o:p></o:p></span></b></div>
<div class="ox-9be0342afd-gmail-m6176721027458797799gmail-m3216670688839725499gmail-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo1; text-indent: -.5in;">
<!--[if !supportLists]--><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">ii.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;">
</span></span></b><!--[endif]--><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">If I
have to take base year as 2001 for CG calculation then how to arrive at
Fair Market Value (FMV) for 2001? Who are all the authorized persons to
declare FMV? [N.Sundar, Bhilai- </span></b><a href="mailto:nsundarbhilai@gmail.com"><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">nsundarbhilai@gmail.com</span></b></a><b>]</b><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in;">
<span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></h1>
<div style="background: white; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo2; text-indent: -.25in; vertical-align: baseline;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Earlier Capital gain was required to be
calculated by taking 1981 as the base year in respect of old properties
acquired prior to 1981. The base year has been changed from 1981 to 2001 by the
Finance Act-2017 applicable from the Assessment Year 2018-19 (i.e., Financial
Year commencing from 01.04.2017). As a result of this amendment, the cost
of all the assets acquired prior to 01.04.2001 would be replaced by the fair
market value of the assets as on 01.04.2001. The change in the base year is for
all classes of assets be it real estate, unlisted shares, gold and bond funds.
So, even if the gold acquired prior to 01.04.2001 is sold now, Long Term Capital
Gain (LTCG) would be required to be computed by taking the fair market value of
it as on 01.04.1981. In your case, you
intend to sell the property in the FY 2017-18 & so would be able to replace
the cost of acquisition of the property by the FMV as on 01.04.2001.<span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial;"><o:p></o:p></span></span></div>
<div style="background: white; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo2; text-indent: -.25in; vertical-align: baseline;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">Amendment has resulted in change in </span><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">the provisions
relating to indexation for the purpose of computing Long Term Capital Gain
(LTCG). O</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">ld Cost Inflation Index (CII) has now become
redundant & CBDT has notified the new CII with base year as 1-4-2001 [vide
notification No. </span><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">SO 1790(E) (No. 44/2017) (F. No. 370142/11/2017-TPL)],</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> <span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial;">Dated 5-6-2017] as under:<o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="background: white; border-collapse: collapse; margin-left: 50.0pt; mso-padding-alt: 3.0pt 3.0pt 3.0pt 3.0pt; mso-yfti-tbllook: 1184; width: 375px;">
<tbody>
<tr>
<td style="background: #92D050; border: solid black 1.0pt; mso-border-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
<div class="MsoNormal" style="text-align: justify;">
<b><i><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">S.No.</span></i></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
</td>
<td style="background: #92D050; border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
<div class="MsoNormal" style="text-align: justify;">
<b><i><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Financial Year</span></i></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
</td>
<td style="background: #92D050; border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<b><i><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Cost Inflation Index</span></i></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
</td>
</tr>
<tr>
<td style="background: #C6D9F1; border-top: none; border: solid black 1.0pt; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">1<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2001-02<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">100<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #C6D9F1; border-top: none; border: solid black 1.0pt; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2002-03<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">105<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #C6D9F1; border-top: none; border: solid black 1.0pt; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">3<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2003-04<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">109<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #C6D9F1; border-top: none; border: solid black 1.0pt; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">4<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2004-05<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">113<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #C6D9F1; border-top: none; border: solid black 1.0pt; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">5<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2005-06<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">117<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #C6D9F1; border-top: none; border: solid black 1.0pt; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">6<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2006-07<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">122<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #C6D9F1; border-top: none; border: solid black 1.0pt; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">7<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2007-08<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">129<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #C6D9F1; border-top: none; border: solid black 1.0pt; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">8<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2008-09<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">137<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #C6D9F1; border-top: none; border: solid black 1.0pt; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">9<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2009-10<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">148<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #C6D9F1; border-top: none; border: solid black 1.0pt; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">10<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2010-11<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">167<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #C6D9F1; border-top: none; border: solid black 1.0pt; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">11<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2011-12<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">184<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #C6D9F1; border-top: none; border: solid black 1.0pt; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">12<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2012-13<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">200<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #C6D9F1; border-top: none; border: solid black 1.0pt; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">13<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2013-14<o:p></o:p></span></div>
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<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">220<o:p></o:p></span></div>
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<td style="background: #C6D9F1; border-top: none; border: solid black 1.0pt; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
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<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">14<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2014-15<o:p></o:p></span></div>
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<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">240<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #C6D9F1; border-top: none; border: solid black 1.0pt; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">15<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2015-16<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">254<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #C6D9F1; border-top: none; border: solid black 1.0pt; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">16<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
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<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2016-17<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">264<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="background: #C6D9F1; border-top: none; border: solid black 1.0pt; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 43.0pt;" width="57">
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<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">17<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 112.5pt;" width="150">
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<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2017-18<o:p></o:p></span></div>
</td>
<td style="background: #C6D9F1; border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-background-themecolor: text2; mso-background-themetint: 51; mso-border-alt: solid black .75pt; mso-border-left-alt: solid black .75pt; mso-border-top-alt: solid black .75pt; padding: 3.0pt 3.0pt 3.0pt 3.0pt; width: 1.75in;" width="168">
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">272<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
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<div style="background: white; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo2; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Fair Market value (FMV)</span></u></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">:<br />
FMV is an estimated market value of an assets (be it gold, ornaments, land,
building, etc) which it would fetch if sold in the market to a knowledgeable,
unbiased & genuine buyer. FMV may be arrived at by following the precedent
or by extrapolation or by referring it for formal valuation to the certified
valuer. For properties, the most common method to calculate the FMV is to
collect the evidence of transactions of similar type of properties in the same
locality during the relevant time frame. This information/data can be obtained
from the parties to the transactions or from the registrar office. This may
require a lot of efforts & homework and may be difficult for lot many
persons. Alternative option is to approach the Government approved valuer &
get the report of FMV. <br />
[There is one more welcome change by the Finance Act-2017. The holding period
of immoveable property (land & building & not for all the classes of assets)
for qualifying as a long term capital assets is reduced from 3 years to 2
years. As a result, gain arising on sale of immoveable property after a holding
period of 2 years would be (a) considered as long term capital gain (LTCG); (b)
eligible for indexation benefit (c) qualifying for tax saving options u/s 54EC
by the investment in specified bonds or u/s 54 / 54F by investing the amount towards
purchase/construction of house property. <o:p></o:p></span></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">[The author is a practicing
Chartered Accountant from Nagpur. Readers may send their direct tax related
queries at<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">SSRPN & Co<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">10, Laxmi Vyankatesh Apartment<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">C.A. Road, Telephone Exch. Square<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Nagpur-440008 <o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">or email it at </span></u></b><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; font-family: "Book Antiqua", serif; font-size: 13pt;"><a href="mailto:cassrpn@gmail.com">nareshjakhotia@ssrpn.com</a></span></b><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">]</span></u></b></div>
<br />
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<br /></div>
</div>
CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com0tag:blogger.com,1999:blog-8937283779209996755.post-41848714373863505382017-09-24T18:44:00.003-07:002017-09-24T18:44:49.314-07:00Gold, silver or properties, Change in the base year from is for all classes of assets: Tax Talk
<p dir="ltr"><u>Www.ssrpn.com</u></p>
CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com0tag:blogger.com,1999:blog-8937283779209996755.post-64874936764913387952017-09-17T04:06:00.002-07:002017-09-17T04:06:44.676-07:00Even small size firm are to get its accounts audited if income offered for taxation is less than 8%<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="background: maroon; color: yellow; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">TAX TALK</span></b><b><span style="background: white; color: #333333; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;"><o:p></o:p></span></b></div>
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<b><span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">CA. NARESH JAKHOTIA<o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in; vertical-align: baseline;">
<span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">Chartered Accountant<o:p></o:p></span></h1>
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<div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: none; margin: 0in 0in 0.0001pt; padding: 0in;">
<b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Amendment
so as to not allow the deduction towards interest/remuneration to partners from
8% (or 6%) of turnover would defeat the very purpose of providing ease of
business option to small firms. It is sure to hamper & carry adverse tax
impact for the firms having small turnover/receipts. Smaller size firms would
be left with no other options but to get its books of accounts audited if its
income is less than 8% (or 6%) of the turnover.</span></b><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; font-weight: normal; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold;"><o:p></o:p></span></strong></div>
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<b><span style="background: navy; color: white; font-family: "Book Antiqua","serif"; font-size: 25.0pt; mso-bidi-font-family: Arial; mso-bidi-language: HI;">Even
small size firm are to get its accounts audited if income offered for taxation
is less than 8% <o:p></o:p></span></b></div>
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<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 1]</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
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<b><span style="background: white; font-family: "Book Antiqua", serif; font-size: 13pt;">We have 2 small Partnership Firms, one doing trading and
other doing profession. Turnover in both the firms is far less than audit
limit. Whether for A.Y. 2017-18 audits of all partnerships having even small
turnover is compulsory?<o:p></o:p></span></b></div>
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<b><span style="background: white; font-family: "Book Antiqua", serif; font-size: 13pt;">[Shreyas V. Moghe-</span></b><a href="mailto:shreyasmoghe45@gmail.com"><b><span style="background: white; font-family: "Book Antiqua","serif"; font-size: 13.0pt;">shreyasmoghe45@gmail.com</span></b></a><b><span style="background: white; font-family: "Book Antiqua", serif; font-size: 13pt;">]<o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in;">
<span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></h1>
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<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">There are numerous instances where
an attempt to simplify the tax laws & provide ease of doing business ends
up with more complicated & cumbersome taxation regime. One such amendment
was made by the Finance Act-2016 which has almost imposed a new compliance
burden on the small size firm.<o:p></o:p></span></div>
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<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Before elaborating upon the above
amendment & specific issues raised by you in the query, let us have a
general overview of the few audit related important provisions of Income Tax
Act. <o:p></o:p></span></div>
<div class="MsoNormalCxSpMiddle" style="background: white; margin-left: .5in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Under section 44AB,
every person, other than those engaged in profession, is compulsorily required
to get the books of account audited & upload the tax audit report at the
income tax portal if total sales, turnover, gross receipts from business exceed
Rs. 1 Cr [2 Cr from Assessment Year 2017-18 for taxpayer’s covered by section
44AD as discussed hereunder]. For professional, the limit is of Rs. 50 Lakh [Rs.
25 Lakh from AY 2013-14 to AY 2016-17].<o:p></o:p></span></div>
<div class="MsoNormalCxSpMiddle" style="background: white; margin-left: .5in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Under section 44AD,
any resident- Individual/HUF/partnership firm (but not LLP) whose total sales,
turnover etc doesn’t exceed Rs. 2 Crore, is not required to maintain the books
of accounts if they agree to offer at least 8% of the turnover as income. The
said rate of 8% rate is reduced to 6% in respect of turnover against which payment
is received by an account payee cheque/draft or other ECS mode either in the
relevant financial year itself or before the due date of filing the income tax
return. However, benefit of section 44AD is not available if the person has (a) Income from Profession (b)
Commission Income (c) Agency business income.<o:p></o:p></span></div>
<div class="MsoNormalCxSpLast" style="background: white; margin-left: .5in; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Under section 44AE,
taxpayer (who may be individual/HUF/AOP/BOI/ Firm /Company/Co-operative society
or any other person who may be resident or non-resident) engaged in the
business of plying, hiring or leasing of goods carriages and owns not more than
10 goods carriages at anytime during the previous year, may be excluded from
the provision of maintaining books of accounts & audit if such taxpayer
offers for every goods carriage income of at least Rs. 7,500/- per month or
part of a month. It may be noted that tax audit provision of section 44AB will
not be applicable in such cases even if the turnover exceeds Rs. 2 Crore if
such person agrees to offer income on presumptive basis @ Rs. 7,500/- per month
per truck.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">4.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">The benefit of presumptive taxation u/s
44AD was not available to professionals. To simplify the taxation scheme & to
reduce the compliance burden for professionals, the concept of presumptive
taxation is extended to professionals also by introducing section 44ADA in the
Income Tax Act-1961 from the AY 2017-18. As a result, any resident Indian having
income from profession (legal, medical, engineering, architectural,
accountancy, technical consultancy, interior decoration, authorized representative,
film artist, company secretary, information technology and such other
profession as notified by CBDT) with gross receipt from such profession not
exceeding Rs. 50 lakhs have an option to declare 50% or more of the gross
receipts as income from such profession. If minimum 50% of the receipts is
offered as income then no books of accounts is required to be maintained.
However, if such person claims income to be lower than 50% of the gross
receipts from such profession & further if total income exceeds the maximum
amount not chargeable to income-tax, then the person has to maintain the
required/specified books of account, documents and get them audited from the
CA.<o:p></o:p></span></div>
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<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">In your specific case for the AY
2017-18, it may be noted that;<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Audit would be
compulsory in case of trading firm if the turnover exceeds Rs. 2 Crore. If
turnover is less than Rs. 2 Cr then audit would be compulsory only if the
income offered for taxation is less than 8% (6% if payment against sale
received is through banking channel) of the turnover . In case of firm engaged
in the professional work, audit would be mandatory only if the gross receipt
exceeds Rs. 50 Lakh. If the gross receipt is less than Rs. 50 Lakh, audit would
be mandatory only if the income offered for taxation is less than 50% of the
gross receipts.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Effectively, audit
would be mandatory for the firm with small turnover if the income offered for
taxation is less than 8% / or 6% or 50% as mentioned above.<o:p></o:p></span></div>
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<!--[if !supportLists]--><i><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant-numeric: normal; line-height: normal;"> </span></span></i><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Taxpayer need to
know one important change with regard to above provision. Up to AY 2016-17,
interest, remuneration/salary to partners was further expressly allowed as
deduction from the amount of 8%. However, from the AY 2017-18 onwards, no
additional deduction towards interest /salary to partners is permissible and the
profit of 8% (or 6%) is deemed to have been arrived at after interest &
remuneration to partners. Amendment so as to not allow the deduction towards
interest/remuneration to partners would defeat the very purpose of providing
ease of business option to smaller firms. It is sure to hamper & carry
adverse tax impact for the firms having small turnover/receipts. Smaller size
firms would be left with no other options but to get its books of accounts
audited if its income is less than 8% (or 6%) of the turnover. <i>All the more important, if taxpayers opt to
exit from section 44AD or 44ADA in any year then they cannot take the benefit
of the said sections for next 5 years !!<o:p></o:p></i></span></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">[The author is a practicing
Chartered Accountant from Nagpur. Readers may send their direct tax related
queries at<o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">SSRPN & Co<o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">10, Laxmi Vyankatesh Apartment<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">C.A. Road, Telephone Exch. Square<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Nagpur-440008 <o:p></o:p></span></u></b></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">or email it at </span></u></b><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; font-family: "Book Antiqua", serif; font-size: 13pt;"><a href="mailto:cassrpn@gmail.com">nareshjakhotia@ssrpn.com</a>]</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">. <o:p></o:p></span></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<br /></div>
</div>
CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com0tag:blogger.com,1999:blog-8937283779209996755.post-64895250585206988432017-09-10T21:01:00.003-07:002017-09-10T21:01:48.655-07:00NRI & taxation of mutual fund investments<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="background: navy; color: white; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">TAX TALK-11.10.2017-THE HITAVADA<o:p></o:p></span></b></div>
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<b><span style="background: maroon; color: yellow; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">TAX TALK</span></b><b><span style="background: white; color: #333333; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;"><o:p></o:p></span></b></div>
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<b><span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">CA. NARESH JAKHOTIA<o:p></o:p></span></b></div>
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<span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">Chartered Accountant<o:p></o:p></span></h1>
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<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">The tax treatment for the short-term and
long-term capital gain on mutual fund is same for Residents and Non Resident
Indians (NRIs).</span></b><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; font-weight: normal; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold;"><o:p></o:p></span></strong></div>
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<b><span style="background: navy; color: white; font-family: "Book Antiqua","serif"; font-size: 25.0pt; mso-bidi-font-family: Arial; mso-bidi-language: HI;">NRI
& taxation of mutual fund investments<o:p></o:p></span></b></div>
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<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 1]</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
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<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">My daughter
purchased shares of Persistent Systems Ltd in 2009. She became NRI since FY
2011-12. The shares continue to be held in same Dmat a/c till date. She now
wishes to gift her shares to her mother/father out of natural love. What are
the tax implications/other complications, if any? She had invested in lump-sum
in few mutual funds while serving in India and also in SIP. If she sells them
now, what are the implications? She has no other income in India.(SIP were
continued for 2/3 years but installments were paid by mother/father). Please
guide. [<span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial;">Arvind Deshpande-</span></span></b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #500050; font-family: "Book Antiqua", serif; font-size: 13pt;"> </span><a href="mailto:arvisneha2000@gmail.com" target="_blank"><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #1155cc; font-family: "Book Antiqua", serif; font-size: 13pt;">arvisneha2000@gmail.com</span></b></a><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">]<o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in;">
<span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></h1>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="background: white; font-family: "Book Antiqua", serif; font-size: 13pt;">Gift of shares by your daughter to her mother/father will not carry any
tax implications.<o:p></o:p></span></div>
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</span></span></b><!--[endif]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">NRI’s income would be
taxable in India only if it is earned / received in India (i.e., India sourced
income). Income earned outside India and received outside India will not be
taxable in India. Income on redemption/sale of mutual fund is income earned in
India& so taxable in India. It’s </span><span style="background: white; font-family: "Book Antiqua", serif; font-size: 13pt;">the tax treatment depends upon the
nature o mutual fund i.e., whether it is debt fund or equity fund and also upon
the period of holding prior to redemption. </span><span style="background: white; font-family: "Book Antiqua", serif; font-size: 13pt;">[The tax
treatment for the short-term and long-term capital gains on mutual funds is
same for Residents and Non Resident Indians (NRIs). The only difference in the
case of NRI investors is that Tax at Source wherever applicable will be
deducted at the time of redemption]</span><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></u></b></div>
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</span></span><!--[endif]--><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Tax treatment: <br />
a] Short-term capital gains: <br />
</span></u></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">i] Debt:</span></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> If
investments are sold within three years, gains are added to the income and
taxed at normal applicable Income Tax slab of individual.<br />
<b>ii] Equity:</b> If investments are sold before one year, gains are
taxed at 15% straight.<br />
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<b><u>b] Long-term capital gains<br />
i] </u>Debt:</b> If
investments are sold after three years, gains are taxed @ 20% straight with indexation benefit (excluding
surcharge and cess).<br />
ii] <b>Equity:</b> If investments are sold after a year, nil tax on gains.<br />
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<!--[endif]--><o:p></o:p></span></div>
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</span></span><!--[endif]--><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Filing of Return:</span></u></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> <br />
In case of NRI with investment income and long-term capital gains as sources of
income are exempt from filing a tax return in India if tax is deducted at
source on such income. [It may be noted that such NRI may be a resident of
another country & above income of sale of mutual funds may be taxable
there. In such a case, provisions of the relevant Double Taxation Avoidance
Agreement between India and that other country may be checked so as to
correctly comply with the tax laws].<o:p></o:p></span></div>
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<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 2]</span></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
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<b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">An A/c under senior
citizen saving scheme 2004 with Bank of India is opened recently with initial
deposit of Rs 1 Lakh though the standard maximum limit of deposit is up to Rs
15.00 Lakh. Please let us know if we could deposit the savings in small lots up
to Rs. 15 Lakh in this single A/c from time to time? Also guide us if such A/c attracts exemption
under section 80CC of Income tax Act? If so, to what extent? Whether interest
of deposit is exempt from tax or not? Any lock in period is there? [Sunita N.
Grover- </span></b><a href="mailto:nareshgrover12@yahoo.com" target="_blank"><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;">nareshgrover12@yahoo.com</span></b></a><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">]<o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in;">
<span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></h1>
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<b><i><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-language: HI;">“After a lifetime of working, raising families, and
contributing to the success of this nation in countless other ways, senior
citizens deserve to retire with dignity”- Charlie Gonzalez</span></i></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
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<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">With
interest rate at its lowest in the history & rising of cost of living, senior
citizens have niggling financial worries for reasonable flow of income. Further,
most of the tax saving instrument like ELSS, LIC etc may not appropriate or
feasible for the senior citizens. Five-year Senior Citizen Savings Scheme
(SCSS), which was launched in 2004 could be one of the best option as it is not
only safe, secure & risk free investment but also provide regularity of
income with little higher returns coupled with tax benefit. Investments up to
Rs. 1.50 Lacs in the scheme are eligible for deduction under section 80C of the
Income Tax Act. While the positives are many, there is one major drawback that
interest on SCSS A/c is taxable which is not so with PPF Account. Due to lack
of awareness, many citizens have not yet invested in the SCSS. Present write-up
will enable senior citizens to know more about the scheme so as to take an
informed decision regarding investment:<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Rate of interest:<br />
</span></u></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Keeping the
requirements of senior citizens in mind, the interest payout is done on quarterly
basis which provides regular income flow. Presently</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">, interest rate under the scheme is </span><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">8</span></span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">.30% per
annum, payable from the date of deposit to 31<sup>st</sup> March/30<sup>th</sup>
June/30<sup>th</sup> Sept/31<sup>st</sup> December in the first instance &
thereafter, interest shall be payable every quarter ending on 31<sup>st</sup>
March, 30<sup>th</sup> June, 30<sup>th</sup> Sept and 31<sup>st</sup> December.
[</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Interest rate
is linked to G-Sec with spread of 100 basis points i.e., 1% over the G-Sec
rate]. <o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Amount of Deposit:<br />
</span></u></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">The senior citizen
saving scheme does not give freedom to invest as per wish. The minimum
investment could be Rs 1,000/- & </span><strong><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">maximum can’t be more than Rs 15 lakh</span></strong><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">. </span></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">The total balance
of all the SCSS account should not be more than Rs 15 lacs. The investment
should be in the multiple of Rs 1,000/-. Also, only one deposit in a senior
citizen saving account is permissible. One can open many senior citizens saving
account. [As per Rule-3 of SCSS, one can </span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">open more
than one account, as long as the total deposits in all of the accounts together
do not exceed Rs.15 Lakhs collectively]. </span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
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</span></span></span><!--[endif]--><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Age Limit for participating in
the account:</span></u></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><br />
a] An individual of the Age of 60 years or more may open the account.<br />
b] An individual of the age of 55 years or more but less than 60 years who has
retired on superannuation or under VRS can also open account subject to the
condition that the account is opened within one month of receipt of retirement
benefits and amount should not exceed the amount of retirement benefits.</span><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><br />
c] </span></span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">The retired personnel of Defense
Services (excluding Civilian Defense Employees) will be eligible to subscribe
under the scheme irrespective of the age limit of 60 years.</span><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></span></div>
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</span></span></span><!--[endif]--><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Maturity period of account:</span></u></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><br />
Maturity period is 5 years.</span><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> </span></span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">After
maturity, the account can be extended for further three years within one year
of the maturity by giving application in prescribed format. In such cases,
account can be closed at any time after one year of extended period.</span><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> <o:p></o:p></span></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">5.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Nomination
facility:</span></u></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><br />
Nomination facility is available at the time of opening and also after opening
of account.</span><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> No</span></span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">mination made by the depositor may be cancelled or varied by
submitting a fresh nomination. Nomination can be made in joint account also. In
such case, the joint holder will be the first person entitled to receive the
amount payable in the event of death of the depositor. The nominee’s claim will
arise only after the death of both the joint holders.</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
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<!--[if !supportLists]--><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">6.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span></span><!--[endif]--><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Pre-matured Withdrawals:<br />
</span></u></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">a]</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> </span><span class="apple-converted-space"><span style="color: #222222; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;"> </span></span><span style="color: #222222; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;">Premature withdrawal is allowed only on completion of
one year. In case of </span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">p</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">remature closure there
would be deduction @ 1.50% & after 2 years @ 1% of the deposit amoun</span><span style="color: #222222; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;">t</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">.</span><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><br />
b] If the deposit is withdrawn within a period of 5 years of its deposit, the
amount so withdrawn would be taxable in the year of withdrawals. It is advisable
not to invest if investment could not be kept untouched till 5 years</span></span><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">.<o:p></o:p></span></span></div>
<div style="background: white; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l1 level1 lfo2; text-indent: -.25in; vertical-align: baseline;">
<!--[if !supportLists]--><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">7.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Tax
benefit, Taxability of Interest & TDS:<br />
</span></u></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Interest income is not tax free. It would be taxable and would
also be subject to Tax Deduction at Source (TDS) if interest amount is more
than Rs. 10,000/- p.a.</span><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> </span></span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Investment
under this scheme qualifies for the benefit of Section 80C of the Income Tax
Act, 1961 subject to overall maximum cap of Rs. 1.50 Lack.</span><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
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<!--[if !supportLists]--><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">8.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; font-weight: normal; line-height: normal;"> </span></span></b><!--[endif]--><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> Others:</span></u></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> <br />
</span></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">a] Joint account under the SCSS, 2004
can be opened only with the spouse.<br />
b] NRI & HUF’s are not eligible to invest in the accounts under the SCSS,
2004. <b><o:p></o:p></b></span></div>
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<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">c] Loan facility is not available.<br />
</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">d] SCSS, 2004 can be opened in any post office, nationalized bank
& one private sector bank, subject to overall cap of Rs. 15 Lakh.</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;"><o:p></o:p></span></div>
<div style="background: white; margin-bottom: .0001pt; margin: 0in; vertical-align: baseline;">
<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;">Coming to specific issues raised in the query,
it may be noted that <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin-left: .5in; mso-list: l2 level1 lfo3; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;">Multiple deposits in the single account of SCSS is not permissible.
But you can open new account for depositing the additional amount. Ceiling of
Rs. 15 Lakh applies to all the accounts taken together.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;">Amount deposited under SCSS, 2004 is eligible for deduction u /s 80C
subject to overall cap of Rs. 1.50 Lakh.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin-left: .5in; mso-list: l2 level1 lfo3; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;">Interest on SCSS, 2004 is taxable.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin-left: .5in; mso-list: l2 level1 lfo3; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-fareast-font-family: "Book Antiqua";">4.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;">Initial lock in period of 5 years is there in SCSS.<o:p></o:p></span></div>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">[The author is a practicing
Chartered Accountant from Nagpur. Readers may send their direct tax related
queries at<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">SSRPN & Co<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">10, Laxmi Vyankatesh Apartment<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">C.A. Road, Telephone Exch. Square<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Nagpur-440008 <o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">or email it at </span></u></b><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; font-family: "Book Antiqua", serif; font-size: 13pt;"><a href="mailto:cassrpn@gmail.com">nareshjakhotia@ssrpn.com</a></span></b><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">]</span></u></b></div>
<br />
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<br /></div>
</div>
CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com0tag:blogger.com,1999:blog-8937283779209996755.post-58379320387754249932017-09-03T19:17:00.000-07:002017-09-03T19:17:28.385-07:00Advance tax calculation of involves estimation of tax liability which is impossible to predict in businesses where high fluctuations, uncertainties, contingencies & speculation prevail. CBDT should further exclude few categories of taxpayers from the purview of advance tax provision: Tax Talk<div dir="ltr" style="text-align: left;" trbidi="on">
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<b><span style="background: navy; color: white; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">TAX TALK-04.10.2017-THE HITAVADA<o:p></o:p></span></b></div>
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<b><span style="background: maroon; color: yellow; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">TAX TALK</span></b><b><span style="background: white; color: #333333; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;"><o:p></o:p></span></b></div>
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<b><span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">CA. NARESH JAKHOTIA<o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in; vertical-align: baseline;">
<span style="background: maroon; color: #ffff99; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">Chartered Accountant<o:p></o:p></span></h1>
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<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Advance tax Rules:</span></u></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><br />
Calculation of advance tax purely involves estimation of tax liability. It is
purely impossible to predict the profit in businesses where high fluctuations,
uncertainties, contingencies & speculation prevail. To this extent, the provision is illogical
& need consideration. CBDT should further exclude few categories of
taxpayers from the purview of advance tax provision. Till it is done so, taxpayers
don’t have any other alternative but to make a wild guess</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">.</span><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; font-weight: normal; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold;"><o:p></o:p></span></strong></div>
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<b><span style="background: navy; color: white; font-family: "Book Antiqua","serif"; font-size: 25.0pt; mso-bidi-font-family: Arial; mso-bidi-language: HI;">Tax
benefit on donation to approved trust <o:p></o:p></span></b></div>
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<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 1]</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
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<b><span style="color: #26282a; font-family: "Book Antiqua","serif"; font-size: 13.0pt;">I am Govt. Pensioner, senior citizen past 80 years age. My gross
income during F.Y.2016-17 is Rs. 9,15,536/- I can claim deduction of Rs. 1,60,000/-
under 80C & 80TTA. My donation to Public charitable Institutions is Rs. 3,00,000/-
during F.Y. 2016-17. Can I claim deduction under 80G amounting to Rs. 75,554/- (i.e.,
50% of three lakh restricted to 10% of Rs. (915536-160000)= 75,554/-? While
filling return electronically, this figure is shown as Rs. 37,772/- as system
calculated. And therefore, I held up filing of return. Kindly advise which
amount is admissible under section 80G so that I can file return correctly. [Sharashchandra
Ambekar- <o:p></o:p></span></b></div>
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<a href="mailto:swaambekar@yahoo.in"><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;">swaambekar@yahoo.in</span></b></a><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;">]</span></b><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;"> <o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in;">
<span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></h1>
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<b><i><span style="color: #222222; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">“The best way to find yourself, is to lose yourself in the
service of others”</span></i></b><b><span style="color: #222222; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial; mso-bidi-font-style: italic;"> </span></b><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">— </span></b><cite><b><span style="border: none windowtext 1.0pt; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; padding: 0in;">Mahatma Gandhi</span></b></cite><cite><b><span style="border: none windowtext 1.0pt; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-style: normal; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast; padding: 0in;"><o:p></o:p></span></b></cite></div>
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<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Income
Tax Act offers tax offers benefit on donation to certain trust &
institutions provided that such trust/ institutions are <b><u>approved u/s
80G(5)(vi) of the I.T. Act, 1961</u></b>. If the trust is approved, the receipt
of donation issued by the trust would contain the registration number U/s
80G(5)(vi). The total deduction u/s 80G is restricted to a maximum of 10% of
the “Adjusted Gross Total Income”. Adjusted gross total income is gross total
income as reduced by the amount u/s 80C to 80U (excluding 80G) & certain
other special income. There is one more condition. Deduction admissible in
majority of the case is restricted to 50% the eligible amount (100% deduction
is admissible in very few cases like donation to Prime Minister’s various
Relief Fund, National defense fund, National children’s fund, National fund for
communal harmony etc). Section 80G has been amended so as to provide that payment
exceeding Rs. 2,000/- (earlier, Rs. 10,000/-) will be allowed as deduction u/s
80G only if it paid by any mode other than cash. <o:p></o:p></span></div>
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<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">There
are three steps that one needs to follow to arrive at the amount eligible for
deduction u/s 80G. First step is to find out the gross qualifying amount which
is the amount of donation (i.e., Rs. 3 Lakh in your case). Second is to find
out the amount of net qualifying amount which cannot exceed 10% of the adjusted
gross total income (i.e., Rs. 75,553/-). The third step is to find out the
amount deductible which is 50% (100% in few cases as mentioned above). In your
case, you have correctly calculated the amount till 2<sup>nd</sup> steps. In
the third steps, 50% of the net qualifying amount (i.e., Rs. 75,553/-) needs to
be worked out for claiming deduction which is Rs. 37,776/-.<o:p></o:p></span></div>
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<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 2]</span></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
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<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">I am a senior citizen getting pension through bank and regularly
pay Income Tax on pension and bank interest after completing the financial
year. But from this July, I have started Intraday trading as well as delivery
base share trading based on the market condition. Now, my question is whether I
have to pay Advance Tax?<o:p></o:p></span></b></div>
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<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">If yes then how it is to be calculated? How can I know that what
will be my total income before finishing the FY? How much amount I have to pay
as Advance Tax and when? Which Form I have to file next year? Please guide me. [</span></b><a href="mailto:nrdeb52@gmail.com"><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">nrdeb52@gmail.com</span></b></a><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">]</span></b><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;"><o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in;">
<span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></h1>
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<i><span style="background: white; color: #454545; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Tahoma;">Advance tax is
“pay-as-you-earn” concept of levying taxation.<o:p></o:p></span></i></div>
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<span style="font-size: 13.5pt;">Though income tax return is required
to be filed annually,</span><span style="background: white; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;"> a mechanism in the form <b><i>“Advance
Tax”</i></b> is deployed by the Government</span><span style="font-size: 13.5pt;">
f</span><span style="background: white; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">or speedy and evenly collection of
tax. Advance tax is a mechanism in which tax is to be deposited by taxpayer in
installment instead of entire amount being deposited at the time of filing
income tax return. </span><span style="font-size: 13.5pt;">Income tax rules make
it mandatory to pay advance tax if the income tax liability is Rs 10,000/- or
more. </span><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Segoe UI"; mso-bidi-language: HI;">Advance tax applies to
all cadre of tax payers be it salaried, freelancers, and businessmen. It is
equally good for the taxpayer as the </span><span style="background: white; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">tax
liability is sliced in to smaller quantum. If advance
tax is not paid or the amount of advance tax paid is less than 90% of the
assessed tax, taxpayer shall be liable to pay simple interest<br />
i] @ 1% p.m. u/s 234B from 1<sup>st</sup> day of assessment year up to date of
deposit tax & interest;<br />
ii] @ 1% p.m. for a period of 3 months u/s
234C if the payment of advance tax is deferred beyond the due dates except for
the last installment of 15<sup>th</sup> March where it will be for one month
only. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="background: white; font-family: "Book Antiqua", serif; font-size: 13pt;">Advance tax is required
to be paid before a particular date as a percentage of the total tax (after
reducing TDS/TCS) estimated for the entire year. So in order to pay advance tax,
taxpayers need to estimate his annual income, work out tax liability (after
reducing TDS/TCS) & then pay advance tax at a specified percentage.</span><span class="apple-converted-space"><span style="background: white; font-family: "Book Antiqua", serif; font-size: 13pt;"> </span></span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">These
payments have to be made in installments as per due dates provided by the
income tax department. </span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
<div class="MsoNormal">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Taxpayers (other than those covered by
presumptive taxation u/s 44AD & 44ADA who are required to pay advance tax
at one go by 15<sup>th</sup> March) are required to pay Advance Tax in 4 installments
as under:<u><o:p></o:p></u></span></div>
<table border="1" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="background: white; border-collapse: collapse; margin-left: 22.9pt; mso-yfti-tbllook: 1184; width: 645px;">
<tbody>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 171.0pt;" width="228">
<div align="center" class="MsoNormal" style="text-align: center;">
<strong><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Due Date</span></strong><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in; width: 312.8pt;" width="417">
<div align="center" class="MsoNormal" style="text-align: center;">
<strong><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Installment Payable</span></strong><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 171.0pt;" width="228">
<div class="MsoNormal">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> On or before 15<sup>th</sup></span><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> </span></span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">June<o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in; width: 312.8pt;" width="417">
<div class="MsoNormal">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> Not less than 15% of advance
tax.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 171.0pt;" width="228">
<div class="MsoNormal">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> On or before 15<sup>th</sup></span><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> </span></span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> Sept<o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in; width: 312.8pt;" width="417">
<div class="MsoNormal">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Not less than 45% of advance tax as
reduced by the amount paid in the earlier installment.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 171.0pt;" width="228">
<div class="MsoNormal">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> On or before 15<sup>Th</sup></span><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> </span></span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Dec<o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in; width: 312.8pt;" width="417">
<div class="MsoNormal">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Not less than 75% of advance tax as
reduced by the amount paid in the earlier installments.<o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 171.0pt;" width="228">
<div class="MsoNormal">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> On or before 15<sup>Th</sup></span><span class="apple-converted-space"><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> </span></span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Mar,<o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in; width: 312.8pt;" width="417">
<div class="MsoNormal">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> The whole amount (100%) of
advance tax as reduced by the amount paid in the earlier installments.<o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-language: HI;">In your specific case, it may be noted that: <o:p></o:p></span></div>
<div style="background: white; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Book Antiqua";">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">Senior
citizens carry special privilege in the form of ex</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">emption from payment of advance tax if they
don’t have any income chargeable under the head “Profits and gains of business
or profession”. In short, senior citizens without any business income are not
required to pay any advance tax.<o:p></o:p></span></div>
<div style="background: white; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Book Antiqua";">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">In your specific case, you intend to do
the frequent trading in shares & resultant income would be liable to be
taxed as “Income from Business”. As a result, you would not be exempt from
payment of Advance tax.<o:p></o:p></span></div>
<div style="background: white; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: "Book Antiqua"; mso-bidi-font-weight: bold; mso-fareast-font-family: "Book Antiqua";">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><!--[endif]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Calculation of advance tax purely
involves estimation of tax liability. It is purely impossible to predict income
where high fluctuations, uncertainties, contingencies & speculations
prevail. To this extent, the provision is illogical & need consideration.
CBDT should further exclude few categories of taxpayers from the purview of
advance tax provision. Till it is done so, taxpayers don’t have any other
alternative but to make a wild guess. <o:p></o:p></span></div>
<div style="background: white; margin-bottom: .0001pt; margin: 0in;">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">[The author is a practicing
Chartered Accountant from Nagpur. Readers may send their direct tax related
queries at<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">SSRPN & Co<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">10, Laxmi Vyankatesh Apartment<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">C.A. Road, Telephone Exch. Square<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Nagpur-440008 <o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">or email it at </span></u></b><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; font-family: "Book Antiqua", serif; font-size: 13pt;"><a href="mailto:cassrpn@gmail.com">nareshjakhotia@ssrpn.com</a></span></b><b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">]</span></u></b></div>
<br />
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<br /></div>
</div>
CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com1tag:blogger.com,1999:blog-8937283779209996755.post-35980774861039952032017-08-27T18:38:00.001-07:002017-08-27T18:38:09.001-07:00Without actual income also, Income tax is payable:Tax Talk<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="separator" style="clear: both; text-align: center;">
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CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com2tag:blogger.com,1999:blog-8937283779209996755.post-38429493139994967382017-08-20T19:03:00.002-07:002017-08-20T19:03:20.231-07:00Professionals excluded from maintaining accounts if offers 50% of receipt as income<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="MsoNormal" style="background: white;">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div style="background: #C2D69B; border: solid windowtext 1.0pt; mso-background-themecolor: accent3; mso-background-themetint: 153; mso-border-alt: solid windowtext .5pt; mso-element: para-border-div; padding: 1.0pt 4.0pt 1.0pt 4.0pt;">
<div class="MsoNormal" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: none; padding: 0in; vertical-align: baseline;">
<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">The taxability of
receipt depends upon the relationship between the payer and payee. If the
employer / employee relationship exists then income would be taxable as “Salary
Income”. If not, the income would be taxable as professional income under the
head “Income from Business/Profession”. </span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
</div>
<div class="MsoNormal">
<br /></div>
<div style="background: white; margin-bottom: .0001pt; margin: 0in;">
<br /></div>
<div class="MsoNormal">
<b><span style="background: navy; color: white; font-family: "Book Antiqua","serif"; font-size: 25.0pt; mso-bidi-font-family: Arial; mso-bidi-language: HI;">Professionals
excluded from maintaining accounts if offers 50% of receipt as income<o:p></o:p></span></b></div>
<div class="MsoHeading7">
<br /></div>
<div class="MsoNormal" style="background: white;">
<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 1]</span></b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="background: white;">
<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">I am a salaried employee. I have taken home loan from a recognized
financial institution. Until last year I am filing ITR-1 for my return. For the
current assessment year 2017-18, I want to take benefits of housing loan
principal and interest deduction u/s 80C as well as u/s 24(b). So, which ITR
form should I fill? There is no separate deduction U/s 24(b) is given in ITR-1.
Please guide me. [Gajanan S. Dharmale, Amravati- </span></b><a href="mailto:gajanansdharmale@gmail.com"><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">gajanansdharmale@gmail.com</span></b></a><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">]<o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in;">
<span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></h1>
<div style="background: white; margin-bottom: .0001pt; margin: 0in;">
<br /></div>
<div style="background: white; margin-bottom: .0001pt; margin: 0in;">
<i><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">“</span></i><i><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Today, it takes more brains and effort
to make out the income-tax form than it does to make the income”- </span></i><i><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">Alfred E. Neuman</span></i><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--></span><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; font-weight: normal; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold;"><o:p></o:p></span></strong></div>
<div style="background: white; margin-bottom: .0001pt; margin: 0in;">
<strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;">Individual can file return of income using ITR-1 to ITR-4. </span></strong><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial; mso-fareast-font-family: "Times New Roman"; mso-fareast-theme-font: major-fareast;">If there is no business income then return can be filed in ITR-1 or
ITR-2.</span></strong><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;"> Else, return has to be filed in ITR-3 or 4.</span></strong><strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; font-weight: normal; mso-bidi-font-family: Arial; mso-bidi-font-weight: bold;"><o:p></o:p></span></strong></div>
<h3 style="background: white; margin-bottom: .0001pt; margin: 0in;">
<strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; font-weight: normal; mso-bidi-font-family: Arial;">Income tax return (ITR) can be filed in ITR 1 only if
individual taxpayer have </span></strong><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; font-weight: normal; mso-bidi-font-weight: bold;">income from salaries/ One House Property income/ other source income
provided that (a) Total income doesn’t exceed Rs. 50 Lakh or (b) Dividend
income does not exceed Rs. 10 Lakh or (c) No income u/s 115BBE or (d) No relief
is claimed u/s 90 or 90A).</span><strong><span style="color: #1e314f; font-family: "Book Antiqua","serif"; font-size: 13.0pt; font-weight: normal; mso-bidi-font-family: Arial;"> </span></strong><strong><span style="color: #1e314f; font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Arial;"><o:p></o:p></span></strong></h3>
<div class="MsoNormal" style="background: white;">
<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-language: HI;">In your case, you can
file your return of income in ITR-1. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white;">
<br /></div>
<div class="MsoNormal" style="background: white;">
<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-language: HI;">Interest paid on self
occupied house property can be mentioned in negative in Part B (B2) whereas
deduction towards principal repayment can be claimed by punching the data in
Part C (U/s 80C) in ITR-1.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white;">
<br /></div>
<div class="MsoNormal" style="background: white;">
<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 2]</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
<div class="MsoNormal" style="background: white;">
<b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">I have two income sources. One is Salary as a
teacher and second is commission as a LIC agent. Which ITR form should I file? Whether
I am eligible for any deduction against my commission even if no expenses bills
are there with me? Please guide. [Ranjit R. Warkad- </span></b><a href="mailto:ranjitwarkad@gmail.com"><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">ranjitwarkad@gmail.com</span></b></a>]<b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;"><o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in;">
<span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></h1>
<div class="MsoNormal" style="background: white;">
<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-language: HI;">Your main income is
income from salary. Your income from LIC could either fall under the category
of “Income from Business/Profession” or as “Income from Other source”. If you
are putting keen efforts in an organized & systematic way, devoting
considerable time & energy for LIC business then income would be considered
as “Business Income”, else it will be treated as other source Income. If LIC
commission is considered as Business Income, you can file return in ITR-3. If
it is “other source income”, return can be filed in ITR-2.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white;">
<br /></div>
<div class="MsoNormal" style="background: white;">
<span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">Insurance agents are eligible for
certain deduction on adhoc basis by virtue of Circular No. 594 Dt. 15th May,
1991, 648 Dt. 30<sup>th</sup> March, 1993 and 677 Dt. 28<sup>th</sup> January,
1994. The benefit of ad hoc deduction will be available to insurance agent up to
a commission of Rs. 60,000/- even if no records/documents of expenses incurred
are maintained, as under:<o:p></o:p></span></div>
<div class="MsoListParagraph" style="background: white; margin-left: .75in; mso-list: l1 level1 lfo1; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">(i)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">Where separate figures of first year and renewal commission are
available, 50% of first year commission & 15% of the renewal commission; <o:p></o:p></span></div>
<div class="MsoListParagraph" style="background: white; margin-left: .75in; mso-list: l1 level1 lfo1; text-indent: -.5in;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">(ii)<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">Where separate figures as above are not available, 1/3<sup>rd</sup> of
the gross commissions. <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin-left: .25in;">
<span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">In both the above
cases, the ad hoc deduction will be subject to a ceiling limit of Rs. 20,000/-.
The benefit of ad hoc deduction will not be available to agents who have earned
total commission of more than Rs. 60,000 during the year. In such cases,
deduction towards expenditure would be admissible on the basis of actual
expenses incurred & supported by bills & supporting.</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"> <o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; margin-left: .25in;">
<span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><br />
<!--[if !supportLineBreakNewLine]--><br />
<!--[endif]--><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial;"><o:p></o:p></span></span></div>
<div class="MsoNormal" style="background: white;">
<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 3]</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
<div class="MsoNormal" style="background: white;">
<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">I am a LIC agent. Until last year I am filing ITR-4. This year
ITR-4 is available as quick filing form "Sugam". Should I file ITR-4
form or any other form? Please inform. [Pushpa R. Warkad, Wardha.- </span></b><a href="mailto:warkadpushpa@gmail.com"><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">warkadpushpa@gmail.com</span></b></a><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">]<o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in;">
<span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></h1>
<div class="MsoNormal" style="background: white;">
<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-language: HI;">ITR 4 forms, as was
applicable for the A.Y. 2016-17, has now been upgraded to ITR-3 now in the AY
2017-18. It appears that LIC commission income is your main source of income
and hence it would be considered as your business income. You would be required
to file the income tax return in ITR-3.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white;">
<br /></div>
<div class="MsoNormal" style="background: white;">
<br /></div>
<div class="MsoNormal" style="background: white;">
<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 4]</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
<div class="ox-c9cc85d324-msonormal" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">I am working as medical consultant
at a factory & getting fixed monthly remuneration as professional fee,
changing every year. Till last financial year, I was to bear the expenditure on
medicines, compounder, stationary, travel to factory. Since 1<sup>st</sup> April
2017, all above expenditure is borne by the factory. Please let me know as I
have no expenditure hereafter, whether the fixed monthly remuneration is to be
shown as Professional fee or fixed remuneration. What about balance sheet? </span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">[Ramesh
Jain- </span></b><a href="mailto:drrfjain1947@gmail.com"><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-font-family: Helvetica;">drrfjain1947@gmail.com</span></b></a><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">]<o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in;">
<span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></h1>
<div class="MsoListParagraph" style="background: white; margin-left: .25in; mso-list: l0 level1 lfo2; text-indent: -.25in; vertical-align: baseline;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">1.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">The
taxability of receipt depends upon the relationship between the payer and
payee. If the employer / employee relationship exists then income would be
taxable as “Salary Income”. If not, the income would be taxable as professional
income under the head “Income from Business/Profession”. </span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
<div class="MsoListParagraph" style="background: white; margin-left: .25in; mso-list: l0 level1 lfo2; text-indent: -.25in; vertical-align: baseline;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">2.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">Whether
employer/employee relationship exists or not need to be ascertained from the
contract /papers signed by you with the company. If from the agreement it could
be ascertained that the employer has all the control which it exercise over its
other employees & if you are governed </span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">by the rules of the organization concerning employment like
leave, attendance, working conditions, PF, Gratuity and other terminal benefits
on retirement or resignation </span><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">then it would be considered as an employer /employee
relationship between you and the company and resultantly income would be
taxable as “Income from Salary”.</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></div>
<div class="MsoListParagraph" style="background: white; margin-left: .25in; mso-list: l0 level1 lfo2; text-indent: -.25in; vertical-align: baseline;">
<!--[if !supportLists]--><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">3.<span style="font-family: "Times New Roman"; font-size: 7pt; font-stretch: normal; font-variant-numeric: normal; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">If
professional income, then<br />
a] You can claim expenses like conveyance, books, petrol, depreciation etc incurred
for earning this income incurred for earning the income as deduction.<br />
b] You may be required to maintain the books of accounts and may be required to
file the balance sheet details in the return.<br />
</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">[To reduce the compliance burden & promoting
ease of doing business by simplifying compliance burden, a concept of
presumptive taxation is extended to professionals by introducing section 44ADA
in the Income Tax Act-1961. As a result, any resident Indian having income from
profession (legal, medical, engineering, architectural, accountancy, technical
consultancy, interior decoration, authorized representative, film artist,
company secretary, information technology and such other profession as notified
by CBDT<a href="https://www.blogger.com/null" name="_ftnref1">) with </a>gross receipt from such profession not
exceeding Rs. 50 lakhs have an option to declare 50% or more of the gross
receipts as income from such profession. If minimum 50% of the receipt is
offered as income then no books of accounts, expenses vouchers/record etc is
required to be maintained & straight forward minimum 50% of the receipt
could be offered for taxation. <b><i><u>However, if such person claims income to
be lower than 50% of the gross receipts from such profession & further if
total income exceeds the maximum amount not chargeable to income-tax, then the
person has to maintain the required/specified books of account, documents and
get them audited from the CA]. <br />
</u></i></b>In your case, if income is considered as income from profession,
you can offer minimum of 50% of receipt as income u/s 44ADA. If you intend to
offer lower than 50% of receipt as income then you would be required to maintain
& get your books of accounts audited.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white;">
<br /></div>
<div class="MsoNormal" style="background: white;">
<b><span style="background: teal; font-family: "Book Antiqua", serif; font-size: 13pt;">Query 5]</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;"><o:p></o:p></span></b></div>
<div class="MsoNormal" style="background: white;">
<b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">My brother had sold his flat in Nagpur for Rs. 21.50 Lakh in the
F.Y. 2015-16 & invested an Amount of Rs 17 Lakh for the purchase of joint
property with his son in Bangalore in F.Y. 2016-17. We want to know whether the
income tax will have to be paid for the balance amount of Rs. 4.50 Lakh in the
financial year 2016-17 or it can be paid next year being the facility available
for a period of 3 years i.e., from the date of sale? [S.R.Rao- </span></b><a href="mailto:shriniwasrao1945@gmail.com"><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: "Book Antiqua", serif; font-size: 13pt;">shriniwasrao1945@gmail.com</span></b></a><b><span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt;">]<o:p></o:p></span></b></div>
<h1 style="background: white; margin-top: 0in;">
<span style="background: green; font-family: "Book Antiqua", serif; font-size: 13pt;">Opinion</span><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">: <o:p></o:p></span></h1>
<div class="MsoNormal">
<span style="font-family: "Book Antiqua","serif"; font-size: 13.0pt; mso-bidi-language: HI;">Your brother has sold a residential house property for
Rs. 21.50 Lakh & thereafter has purchased another house property. He is
eligible for exemption u/s 54 against his investment in another house property
in Bangalore. For exemption u/s 54, investment of entire sale consideration
(i.e., Rs. 21.50 Lakh in the present case) is not at all required but mere
investment of the Long Term Capital Gain (LTCG) is sufficient. In your
brother’s case, cost of acquisition is not provided but the amount of LTCG
(i.e., sale consideration less indexed cost of acquisition/improvement less
transfer expenses) is obviously going to be lower than Rs. 21.50 Lakh. Since,
investment in the Bangalore house property is sure to exceed the amount of
LTCG, entire amount of LTCG would be eligible for exemption u/s 54. There would
not be any requirement to invest the balance amount of Rs. 4.50 Lakh as
mentioned in the query. <o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">[The author is a practicing
Chartered Accountant from Nagpur. Readers may send their direct tax related
queries at<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">SSRPN & Co<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">10, Laxmi Vyankatesh Apartment<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">C.A. Road, Telephone Exch. Square<o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">Nagpur-440008 <o:p></o:p></span></u></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<b><u><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">or email it at </span></u></b><b><span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: black; font-family: "Book Antiqua", serif; font-size: 13pt;"><a href="mailto:cassrpn@gmail.com">nareshjakhotia@ssrpn.com</a>]</span></b><b><span style="font-family: "Book Antiqua", serif; font-size: 13pt;">. <o:p></o:p></span></b></div>
<div class="ox-dd13fa7602-msolistparagraph" style="background: white; margin-bottom: .0001pt; margin: 0in;">
<br /></div>
</div>
CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com0tag:blogger.com,1999:blog-8937283779209996755.post-177783381406311902017-08-15T01:49:00.001-07:002017-08-15T01:49:19.096-07:00Optimise the tax saving through small measures: Tax Talk<div dir="ltr" style="text-align: left;" trbidi="on">
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CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com1tag:blogger.com,1999:blog-8937283779209996755.post-6707697615663663282017-08-06T20:10:00.001-07:002017-08-06T20:10:59.610-07:00Payment to tenant is eligible for deduction. Documentation is important: Tax Talk <div dir="ltr" style="text-align: left;" trbidi="on">
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CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com2tag:blogger.com,1999:blog-8937283779209996755.post-51530919846022983082017-07-30T18:07:00.001-07:002017-07-30T18:07:55.233-07:00Divorce is the one human tragedy that reduces everything to cash. Here is a write-up covering taxation of Alimony: Tax Talk<div dir="ltr" style="text-align: left;" trbidi="on">
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CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com1tag:blogger.com,1999:blog-8937283779209996755.post-40978346734199007152017-07-23T19:05:00.002-07:002017-07-23T19:05:46.620-07:00Quoting of PAN on various transactions would enable the Government in widening the tax base: Tax Talk<div dir="ltr" style="text-align: left;" trbidi="on">
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CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com0tag:blogger.com,1999:blog-8937283779209996755.post-85631509918567046402017-07-16T19:12:00.000-07:002017-07-16T19:12:33.852-07:00Income tax law incorporates numerous provisions to curb cash transactions. It will not only help in controlling black money generation but would also widen the tax base: Tax Talk<div dir="ltr" style="text-align: left;" trbidi="on">
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CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com1tag:blogger.com,1999:blog-8937283779209996755.post-38178809712937174052017-07-09T19:06:00.001-07:002017-07-09T19:10:19.015-07:00Investment through Gold Sovereign Bond is one of the best option for investment in Gold: Tax Talk<div dir="ltr" style="text-align: left;" trbidi="on">
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CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com1tag:blogger.com,1999:blog-8937283779209996755.post-67371353285330288162017-07-06T20:16:00.001-07:002017-07-06T20:16:58.234-07:00Income Tax & Income are not always related with each other: Tax Talk<div dir="ltr" style="text-align: left;" trbidi="on">
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CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com0tag:blogger.com,1999:blog-8937283779209996755.post-6788062526633879022017-06-25T20:31:00.001-07:002017-06-25T20:31:56.739-07:00After shifting base yea from 1981 to 2001, New Cost Inflation Index notified: Tax Talk<div dir="ltr" style="text-align: left;" trbidi="on">
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CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com1tag:blogger.com,1999:blog-8937283779209996755.post-67380296622992603392017-06-20T19:53:00.002-07:002017-06-20T19:53:39.047-07:00Saving tax & Wealth formation, ELSS serve the dual purpose: Tax Talk<div dir="ltr" style="text-align: left;" trbidi="on">
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CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com1tag:blogger.com,1999:blog-8937283779209996755.post-55963379775930215852017-06-11T19:42:00.001-07:002017-06-11T19:42:57.247-07:00One cavn legally plan numerous transactions in such a way that his tax liability is minimum: Tax Talk<div dir="ltr" style="text-align: left;" trbidi="on">
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CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com1tag:blogger.com,1999:blog-8937283779209996755.post-19616603219380163712017-06-04T21:20:00.001-07:002017-06-04T21:20:24.011-07:00Issues in taxation of capital gain<div dir="ltr" style="text-align: left;" trbidi="on">
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CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com1tag:blogger.com,1999:blog-8937283779209996755.post-34984585644938843832017-05-28T18:06:00.001-07:002017-05-28T18:06:49.879-07:00Statement of financial statements is not required to be filed if no reportable financial transaction is there. However, it is advisable to submit "SFT Preliminary Response" even in such cases: Tax Talk<div dir="ltr" style="text-align: left;" trbidi="on">
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CA Naresh Jakhotiahttp://www.blogger.com/profile/06413706852035135804noreply@blogger.com1