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eligible for Deductions U/c 80C, as the benefit of deduction on the Investments made in ELSS is proposed to be withdrawn from 1st April, 2012.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...