CA. Naresh Jakhotia

TAX TALK-19.01.2015-THE HITAVADA TAX TALK CA. NARESH JAKHOTIA Chartered Accountant Tax Planning: Sale of Agricultural Land vis a vis N.A. Land Query 1] My grandfather received a farm about 40 years ago as a gift. After his death my mother's name was put up legally on 7/12 extract as his kin. Whether it was taxable? Now, we want to make the land as Non Agricultural and clear it from Town planning (NA/TP). Is it advisable or possible? If yes, then can we start our own business? Are we required to pay taxes for this gift if we start business and can we have the rights to Gift or Sale this property to other person who don't belong to our family? Please help & guide as to the aspects that we should look in to from income tax angel. We would be thankful if you can kindly suggest tax planning measures. [N eha Rathod- rathodn326@gmail.com ] Opinion: First of all, agricultural land received by your mother as a result of inheritance is totally tax free ...

house rent: salaried preferred over self employed Query 1] I am paying a house rent for Rs 14,000/- per month and additional Rs. 1,200/- towards maintenance for which receipt is being given to me every month. Will I get HRA exemption on Rs. 14,000/- or Rs 15,200/-. Please clarify. [N.K. Panda- niroj_p@yahoo.com ] Opinion: With handful of options to save tax for the salaried taxpayers, one can definitely explore the possibility of reducing tax bill by revisiting the exemption & deduction provision. One such tool is claiming an exemption towards rent payment of residential accommodation. Employees generally receive a house rent allowance (HRA) as a part of the salary package, in accordance with the terms and conditions of employment. HRA is given to meet the cost of a rented house taken by the employee for his stay. Exemption on HRA is available under Section 10(13A) of the Income Tax Act and Rule 2A of the Income Tax Rules . Taxpayer would be surprised to see that ...