CA. Naresh Jakhotia

TAX TALK-05.03.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “ SALE OF AGRICULUTURAL LAND AFTER CONVERTING INTO NON AGRICULTURAL” Query 1] I am making this query after reading your article in The Hitavada, Money, dated 30/1/12 under the title "Capital gain deposit A/c Scheme". We are having land outside NMC Limits, which has been converted to Non-agricultural use and the layout has been sanctioned. The said land was owned by my grandfather, then passed on to my father by way of gift deed and now is jointly owned by my (a) Father (b) Mother (c) Myself & (d) My brother, in equal proportion. Land was acquired by grandfather before 01/04/1981. Now we intend to sell some plot to a Limited co. for a consideration of Rs. 8.50 Cr. From our previous sale of some other property, we are having Capital Gain Loss to above persons as under: (a) Rs. 98,02,356/- (c) Rs. 55,43,693/- (d ) Rs. 36,87,586/- Kindly let me know the amount of Ca...

TAX TALK-27.02.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “CAN I GET A REFUND OF TDS?” Query 1] I am a housewife and a senior citizen of 76 years of age. I am holding Kisan Vikas Patra in my name for total amount of Rs. 2,04,000/-. The amount was invested on 09-09-2003. After completion of its total period of 8 years and 7 months, the maturity amount of Rs. 3,77,589/-, naturally represents interest which I understand is taxable. I have no other source of income except interest on the bank fixed deposits. Yearly income from this source is Rs. 57,800/-. As this income always remained below exemption limit prescribed for the senior citizen, I have not filed income tax return up till now. Thus the combine income of the interest of Rs. 2,31,389/- from Kisan Vikas Patra i.e., Rs 1,73,589 + Rs. 57,800/- from bank fixed deposit will still remain below present exemption limit of Rs 2,50,000/-. I am holding a PAN card in my name. I want to have yo...

CIT v. Manjula J. Shah (2011) 42(I) ITCL 405(Bom-HC) Property acquired from previous owner– Indexation whether to be done from year in which previous owner acquired the asset While computing the capital gains arising on transfer of a capital asset acquired by the assessee under a gift, the indexed cost of acquisition has to be computed with reference to the year in which the previous owner first held the asset and not the year in which the assessee became the owner of the asset. – Vide CIT v. Manjula J. Shah (2011) 42(I) ITCL 405(Bom-HC)

TAX TALK-20.02.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “ SALE OF AGRICULTURAL LAND & INCOME TAX” Query 1] My grandfather purchased 5 Acres of Agricultural land of Rs. 20.000/- (Rs. 4,000/- Acre ) in the Financial Year 1970-71. My grandfather gifted that land to my father in the Financial Year 2000-01. Now my father has sold that land for Rs. 1.20 Crore (Rs. 24 Lacs per Acre ) in financial year 2011-12 & purchased agriculture land of Rs. 1 Crore. My questions are 1. what will be the tax liability & 2. If there is tax liability, what we can do, to save tax? [ manishkhonde@yahoo.in ] Opinion: In normal course, any income from transfer of agricultural land, which is being used for agricultural purpose, 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, municipal cor...

TAX TALK-13.02.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “TAX COLLECTION AT SOURCE ON SCRAP” Query 1] a. In Steel Industry by products like DRI ASH, FLY ASH & Granulated Slag are generated from their production centers like Mini Blast Furnace or Sponge Iron Unit (Direct reduction Plant). Please enlighten me whether sale of these products attracts TCS (Tax Collection At Source) provisions under Income Tax Act? [ tscbose@sunflagsteel.com ] b. Sir, we are a private limited company engaged in the business of chemicals processing & packing. We are selling our un-usable furniture & fixtures. Please elaborate whether Tax Collection at source is compulsory in such sale? We are getting the contradictory opinion on the issue. Please elaborate the legal provision. [LP] Opinion: a. Under Section 206C of the Income Tax Act-1961, tax is required to be collected by certain seller on sale of “Scrap” to certain buyer.The explanation to section 206C outlines th...

TAX TALK-30.01.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “CAPITAL GAIN DEPOSIT ACCOUNT SCHEME” Query 1] 1. My father, aged 71 years, sold his flat for Rs. 12,50,000/- in the month of June-2011 [Market value being Rs. 14,51,000/-]. 2. The flat was purchased by him in May-1999 for Rs. 2,25,000/- (Market value at the time of purchase was Rs. 3,57,000/-. Stamp duty paid was Rs. 6,250/- & Registration fee paid was Rs. 3,590/- in May-1999 I shall be highly thankful if you can kindly give the amount of capital gain & ways of saving the tax thereon? By what time, we should deposit the LTCG amount in the capital gain account scheme? Kindly explain the capital gain Deposit Account scheme. [ vikeshsatpute@gmail.com ] Opinion: 1. Computing LTCG:Cost Inflation Index (CII) for the relevant F.Y. 1999-2000 & F.Y. 2011-12 are “389” & “785” respectively. The indexed cost of acquisition of the flat is Rs. 4,73,906/- i.e., Rs. (2,25,000+ 6,250/- + 3,590/- ) *...

TAX TALK-06.02.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “RECEIVING INCOME WITHOUT TDS” Query 1] I request you to please respond to my following points: 1. My gross total income for the current FY is Rs.3,05,956/-. I am a senior citizen. What is my tax liability? To save tax, what should I do? I am retired and all the income is from Fixed Deposits in bank. There is no deduction of tax at source. If I am to pay tax, will it be OK if I pay it at the time of filing the return? 2. My wife is a housewife. Her yearly income is: -From FD in bank-Rs. 12,859/- -From House rent: Rs. 1,98, 000/-Her income is less than Rs. 2.40 Lacs, is it required that she should file the return? She has got the PAN card also. [ bltiwari@gmail.com ] Opinion: The basic exemption limit for the senior citizens for the F.Y. 2011-12 is Rs. 2.50 Lacs. 1. In your case, on income of Rs. 3,05,956/- the income tax liability works out to Rs. 5,764/-. You can save the entire income tax liabilit...