CA. Naresh Jakhotia

TAX TALK-15.08.2011-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “INCOME TAX ON ACQUISITION OF AGRICULTURAL LAND” Query 1] I had bought an agriculture land (6 acres) for Rs. 15,000/- in 1987-88 situated in Rural area, 35 kms from Nagpur. Now govt. wants the land for industrial development. It offered Rs. 13 Lacs per acre. I am in Government Service with annual salary of Rs. 6.50 Lacs & in tax bracket of 30%. I don’t have any other income. My queries are 1. Whether LTCG is applicable for project affected land? 2. If yes, what are the tax implications there on? 3. What are the remedies to minimize the taxes? 4. My uncle posses 5 acre land at same place as ancestral property. Will he be also required to pay LTCG tax? [bondre_vira@yahoo.in] Opinion: Rural Agricultural Land is not a capital assets & income arising from transfer of agricultural land is not at all chargeable to tax as Income from capital gain. Agricultural Land is considered as Rura...

TAX TALK-22.08.2011-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “NO LOAN SHOULD BE TAKEN AGAINST LTCG BONDS” Query 1] a] Sir, I have paid the insurance premium of the policy taken out by my mother as proposer for me. Similarly, I have also paid the premium of my younger brother. The premiums were paid by me by cheques only & my bank passbook reflects both the above payments. The LIC Premium receipts are, however, issued in their name (Mother & Brother). I want to know whether I will be able to get income tax deductions towards these payments. Similarly, if I make the LIC Premium payment of my father in the F.Y. 2011-12, whether I will be eligible for income tax deduction? Please elaborate. b] I have read in the earlier issues regarding the investment in the REC/ NHAI Bonds for saving Long Term Capital Gain Tax. Accordingly, I have invested in the bonds issued by NHAI, 1 ½ years back. I am in need of some amount for purchase of one agricultural La...

TAX TALK-15.08.2011-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “INCOME TAX ON ACQUISITION OF AGRICULTURAL LAND” Query 1]I had bought an agriculture land (6 acres) for Rs. 15,000/- in 1987-88 situated in Rural area, 35 kms from Nagpur. Now govt. wants the land for industrial development. It offered Rs. 13 Lacs per acre. I am in Government Service with annual salary of Rs. 6.50 Lacs & in tax bracket of 30%. I don’t have any other income. My queries are 1. Whether LTCG is applicable for project affected land? 2. If yes, what are the tax implications there on? 3. What are the remedies to minimize the taxes? 4. My uncle posses 5 acre land at same place as ancestral property. Will he be also required to pay LTCG tax? [bondre_vira@yahoo.in] Opinion: Rural Agricultural Land is not a capital assets & income arising from transfer of agricultural land is not at all chargeable to tax as Income from capital gain. Agricultural Land is considered as Rura...

TAX TALK-08.08.2011-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “INCOME TAX SLAB FOR SENIOR CITIZENS & VERY SENIOR CITIZENS” Query 1] 1. What happens if Rural Land purchased for calming Deduction U/s 54 is sold within a period of 3 years) as sale of rural land is exempt from capital gain Tax? 2. What will be the consequences if Part of Land is sold and the other Part of Land is retained for construction of House Property? 3. Is it good to make two purchase agreements for Purchase of above land (i.e., one for Sale and one for construction of House). Is there any violation of Section 54? [ketan.kini1@gmail.com] Opinion: 1. It may be noted that only Rural AGRICULTURAL LAND, satisfying certain conditions as to its location & population of the area, is not a capital Assets. Being not a capital assets, the transfer of said Rural Agricultural Land doesn’t give rise to any Capital Gain & as a result no income tax liability arises on sale of Rural Agricultura...

TAX TALK-01.08.2011-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “TAX PLANNING: PRE-MORTEM IS BETTER THAN POST-MORTEM” Query 1] a. Sir, kindly clear my doubt regarding filing of income tax return for the F.Y 2010-11 (A.Y. 2011-12) for the salary class person having taxable income, either male or female, whose income tax is deducted subject to tax liability having income less than Five Lacs rupees and having no other income. Whether such assessee is liable to file income tax return. Kindly give clarification. [pravin.aparajit@gmail.com] b. Whether the basic exemption limit has been enhanced to Rs. 5 Lacs? Whether the salaried assessee with salary income from private employer are also exempt from filing the income tax return if the gross salary received is less than Rs. 5 Lacs or it is applicable to Government Employee only? [[MS,KA] Opinion: The Central Board of Direct Taxes has notified the scheme exempting salaried taxpayers with total income up to Rs.5 Lacs fro...