CA. Naresh Jakhotia

TAX TALK-28.05.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “RESIDENT IN LUCKNOW, PROPERTY SOLD IN NAGPUR, WHERE TO PAY INCOME TAX?” Query 1] Kindly let me know whether interest earned from Post Office Monthly Income scheme (MIS) is taxable or not? If not, under which section? Also let me know what does the section 80L deal with? [ bpmajumdar2006@rediffmail.com ] Opinion: Interest on post office Monthly Income Scheme (MIS) is taxable. There is no provision in the Income Tax Act to exempt the interest on post office MIS. Section 80L is no more in vogue. Similar to erstwhile section 80L, the Finance Act 2012 has inserted a new section 80TTA in the Income Tax Act – 1961 which will provide deduction up to Rs. 10,000/- to an Individual/ HUF towards Interest on saving bank A/c maintained with a bank / society / post office. The deduction admissible shall be interest received or Rs. 10,000/- whichever is lower. (It may be noted that saving bank a...

TAX TALK-21.05.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “RS. 50 LACS INVESTMENT CEILING FOR INVESTMENT IN REC/NHAI BONDS” Query 1] I have recently sold my inherited property at Rs. 60 Lacs. I want to park the money in the REC/NHAI. I am told that maximum of Rs. 50 Lacs can be deposited there. My queries are: 1.       What should I do with the balance Rs. 10 Lacs? If I keep in bank fixed deposit, then am I required to pay tax at the highest slab i.e., @ 30% for this 10 Lacs of Rupees? 2.       I am told that the amount parked in REC/NHAI can be kept for 3 years. After three years when this money is transferred to bank, do I need to pay tax on these Rs. 50 Lacs then? [S.K. Roy, Santi Nagar, Bhilai - professor.ulla@yahoo.co.in ] Opinion: 1.       U/s 54EC of the Income Tax Act-1961, there is a maximum investment ceiling of Rs. 50 Lacs in a financial year for...

TAX TALK-14.05.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “RIGHT TO CLAIM DEDUCTION ORIGINATE FROM OWNERSHIP” Query 1] I would like to seek your opinion with reference to deduction on repayment of housing loan & Interest under the following scenarios: a.       House is jointly owned by husband and wife. Loan is in the name of both.  Their share in the property & loan is not defined.  Wife is not working. Husband is paying entire EMI.  Whether full benefits are to be extended to the husband alone? b.       House is jointly owned by husband and wife. Loan is in the name of both.  Their share in the property and loan is not defined. Wife is working and paying full EMI from her account and wants to claim entire benefit of repayment of loan and interest and willing to give undertaking to the extent that husband will not claim exemption from his office. c.  ...

TAX TALK-07.05.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “HOUSING LOAN BENEFIT: OLD LOAN REPAYMENT & NEW LOAN AVAILMENT” Query 1] Post Budget 2012-13, what are the provisions to get tax exemption on home loan's principal amount and interest amount? [ vimal_sontake44@rediffmail.com ] Opinion: There are no changes proposed in respect of deduction available towards principal repayment & interest payment u/s 24(b) or U/s 80C of the Income Tax Act-1961. For the mass benefit, we are elaborating the income tax benefit towards principal & interest available in respect of home loan, as under: Interest payable on Home loan: 1.       U/s 24(b) of the Income Tax Act-1961, deduction up to Rs. 150,000/- is admissible against the interest payable on the loan availed for purchase / construction of the self occupied house property. [ However, the acquisition or construction of the house property should be compl...

TAX TALK-30.04.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “HOUSE RENT ALLOWANCE & INCOME TAX IMPLICATION” Query 1] My question is regarding HRA deduction from Salary. I am working in a private institution based in Nagpur. My consolidated salary is approx Rs. 25k per month. Is there any provision for HRA deduction from my consolidated salary while computing my income tax liability? If yes, what amount can be claimed as deduction for income tax purpose? [Shantukumar- shantukumarved@ gmail.com ] Opinion: 1.       Assessee receiving HRA from Employer: Salaried Assessees who are in receipt of House Rent Allowance (HRA) from an employer can claim an exemption u/s 10(13A) of the Income Tax Act-1961 read with Rule 2A of the Income Tax Rules, 1962. T he least of following can be claimed as deduction u/s 10(13A):- a.        An amount equal to 50% of salary, where the residential house...

TAX TALK-23.04.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “SECTION 80TTA TO GIVE DEDUCTION OF RS. 10,000/-TOWARDS INTEREST ON SAVING A/C” Query 1] My friend was admitted in the hospital and died almost after 19 days in the hospital, Our Company sanctioned medical reimbursement worth Rs 2.15 Lacs but the audit department deducted Income Tax of almost Rs. 65000/-. Is there any provision to get that back as death claim, his family already spend that money & they got back the amount as reimbursement only. The same is not an income for his family. Deduction of Income tax of Rs 65,000/- is a big amount for that family. Is there any provision to get that amount back from the Income tax department? If so, kindly advise.  [ yogesh_vitankar@yahoo.com ] Opinion: 1.       The legal provision for taxability of medical expenses reimbursement in respect of medical facilities in India in the hands of employee is as ...

TAX TALK-16.04.2012-THE HITAVADA TAX TALK BY CA. NARESH JAKHOTIA (Chartered Accountant) “CLOSURE OF CAPITAL GAIN ACCOUNT SCHEME-1988” Query 1] I had opened capital gain account after the sale of my house and the amount deposited in the account has been used by me for the flat under construction. I have been told by bank to get the application of closing account signed by the IT department of concerned circle which for me is Bhandara but they failed to understand and directed me to get it done at Nagpur with a request application which I deposited there and I was told I shall get the document by post duly signed. For the last one month I did not get it and I have proof of deposition of application with me. How can I get my account closed now please advise. [ cjddhar@sify.com ] Opinion: CBDT Notification No. GSR 724(E) dated 22/06/1988 contains the salient features of Capital Gain Accounts Scheme-1988. Under Rule 13 of the said scheme, the account can be closed by submit...