CA. Naresh Jakhotia

TAX TALK-28.11.2011-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “TRANSFER OF DEPRECIABLE ASSETS & EXEMPTION FROM CAPITAL GAIN” Query 1] I had purchased one office chamber in commercial complex in 1988, for Rs. 2 Lacs (WDV-2010, Rs. 27,000/-) and sold it this year for Rs. 32 Lacs. I am a senior citizen with income, from all sources, below exemption limit. Please tell me the tax treatment: a. Whether benefit of sec 50, 54 will be available or not? b. If not, what is the amount of tax to be paid? [yeshwant1938@gmail.com] Opinion: 1. You have sold an office block on which you have been claiming Depreciation. 2. Section 50 provides that where a capital asset forming part of a block of assets in respect of which depreciation has been allowed, when sold, if the full value of consideration exceeds the block value of the asset, such excess shall be deemed to be the capital gain arising from the transfer of short term capital assets. 3. In your case, probably, office ...

TAX TALK-21.11.2011-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “TDS CERTIFICATE NOT ISSUED DESPITE MANY REMINDERS & REQUESTS” Query 1] One of my relatives who is a Govt. employee, tax payer, purchased of plot in the year 1995 with a cost of Rs. 54,000/- and spent some money for boundary wall of Rs. 21,000/- (Total expenditure was Rs, 54,000/- + Rs. 21,000/- = Rs. 75,000/-). Now (2011), he has sold that plot with a cost of Rs. 15,00,000/-. My questions are as follows: 1. How much he has to pay the tax? 2. If he invests the whole money in MIS, or some bonds, etc, still he has to pay tax? 3. What are ways to avail the tax benefit? 4. If he purchases a flat/plot with the sale proceeds of his plot, still he has to pay some tax? 5. Is it called capital gain? I request you if you could guide something. [susantakumardutta@yahoo.com] Opinion: It is presumed that a) The plot is purchased in the FY 1994-95.(If it is purchased in F.Y. 1995-96, “259” used below shall be...

TAX TALK-14.11.2011-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “AMOUNT DEPOSITED IN THE PPF ACCOUNT OF WIFE: INCOME TAX IMPLICATONS” Query 1] I am 76 years of age and would have only the contributions to the PPF A/c as the category of investment eligible for Deductions U/c 80C, as the benefit of deduction on the Investments made in ELSS is proposed to be withdrawn from 1st April, 2012. I wish to contribute Rs. 30,000/- to the PPF A/c of my Spouse to claim the full benefit of Rs. 1 Lacs U/s 80C. However, I need clarifications and guidance with regards to: 1. Whether the contributions made to the PPF A/c of the Spouse will be treated as ‘Gift, and/or, attract the ‘Clubbing provisions’ as per the New Direct Tax Code, being introduced from 1st April, 2012? 2. If the ‘Clubbing provisions’ are applicable, whether the Interest credited every year on such contributions, on ‘cumulative basis’, is to be added to my income, as ‘tax-free Income’, every year? 3. Whether a w...

TAX TALK-07.11.2011-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “SECOND HOUSE PROPERTY: INCOME TAX IMPLICATONS” Query 1] I have some confusion regarding house property income. Please clear my doubts. 1. I have taken two home loans. One home is in place of work and other in different city. Both the house properties are self occupied & have not been let out. One loan is 10 year old; employer has given it with lesser interest rate and the other taken last year only. New Loan amount: Rs. 11 Lacs for 15 year term, Interest Rs. 1,12,858/- & Principal Rs. 72,088/- in the first year. 2. I have not let out other home. I want to take interest benefit for both loans can I? Please explain whether it is possible? 3. Which Form I have to use for filing Income Tax Return? ( Two Home loans) 4. How to file return, detailed steps for claiming loss on house property? 5. I have already paid tax without counting 2nd loan and I want refund now. Can I get refund? 6. Since othe...

TAX TALK-31.10.2011-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “EXEMPTION U/S 54F & U/S 54EC CAN BE CLAIMED SIMULTANEOUSLY” Query 1] I had purchased an agriculture land in the year 1995 and sold the same in April- 2011. The agricultural land was well within rural land as per Income Tax Act. i.e., there was no village having more than 10,000 populations & is not within the circle of 8 Km as per pervious census, but as per latest census the population of a nearby village has been more than 10,000. My queries are: 1. From when the new census would apply? 2. Whether my sale would attract LTCG or it would be free from capital gain tax available on sale of Rural Agricultural Land? [ dalmia_shivratan@rediffmail.com ] Opinion: In normal course, any income from transfer of agricultural land shall be tax free if the agricultural land is not situated: (a) in any area which is comprised within the jurisdiction of a municipality (Whether known as a municipality, mun...

TAX TALK-24.10.2011-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “PROCEDURE FOR MAKING CORRECTION IN THE INCOME TAX CHALLANS” Query 1] a] If I deposit amount of Rs. 6 Lacs in a FDR with Bank for 3 years on which Bank deducts TDS directly. In such case, whether bank will also deduct on current A/c. or S.B. A/c Interest? [bsc.arya@gmail.com] b] I am a student pursuing CA-Final. Recently, during our bank audit, we have come across the interest payment of more than Rs. 10,000/- to the customer. No Tax is deducted by the bank in the current year nor has been done so in the past as well. I have gone through section 194A which no where provides exemptions from TDS on interest payment on Saving A/c. I have gone through the Circular No. 22/68-IT(B) [F.No. 12/23/68-IT(B)], dated 28-3/13-5-1968 which also confirms the deduction of Tax at source on Saving bank account interest. Please examine whether TDS will be applicable or on interest credit on saving bank A/c? [xxxx5147@...

Format of application to bank for challan correction to be requested by the taxpayer To The Branch Manager, --------------------------- (Address of Branch) Taxpayer Details : Taxpayer Name : Taxpayer Address : Taxpayer TAN/PAN : Name of Authorized Signatory : (in case of non-individual taxpayer) Sub : Request for Correction in Challan No: 280/281/282/283 [Strike out which ever is not applicable] Sir/Madam, I request you to make corrections in the challan data as per following details : Challan Details: BSR Code Challan Tender Date (Cash/Cheque Deposit Date) Challan Sl. No. Sl. No. Fields in which correction required Please Tick Original Details Modified Details 1. TAN/PAN (10 digit) 2. Assessment Year (YYYY) 3. Major Head code (4 digit) 4. Minor Head code (3 digit) 5. Nature of Payment (3 digit) 6. Total Amount (13 digit) Note: Please tick against the relevant fields where changes are required. Tax payer/Authorized Signatory Date Note: 1. Attach copy of original challan counterfoil. 2....