CA. Naresh Jakhotia

TAX TALK-06.05.2013-THE HITAVADA TAX TALK   BY CA. NARESH JAKHOTIA Chartered Accountant “CLOSING ONE HOUSING LOAN ACCOUNT AND AVAILING ANOTHER HOUSING LOAN FOR CONSTRUCTION: INCOME TAX IMPLICATIONS” Query 1] With regard to personal taxation, please clarify the following. My Bank has permitted me to avail Leased Accommodation facility at Bangalore , to enable my family to continue to stay there. Our Bank is also deducting Monthly Lease Rent, as per our Pay Scale, which is about Rs. 400/- pm. However, I am also paying monthly rent of Rs. 5,000/- for my accommodation at Nagpur . Please inform me, whether I can claim deduction for House Rent paid by me as I am also paying tax for the Leased Accommodation provided by my employer.   [Sivaram.G- sivaram.ganeshan@sbm.co.in ] Opinion: You are provided with the leased accommodation by your employer and probably you may not be receiving the House Rent Allowance (HRA). For the mass benefit, I am elaborating the ...

TAX TALK-29.04.2013-THE HITAVADA TAX TALK   BY CA. NARESH JAKHOTIA Chartered Accountant “TAXATION OF LEAVE SALARY/LEAVE ENCASHMENT” Query 1] I have a query on exemption of leave encashment. I request you to please clarify on the same through Tax-Talk column. I have retired on 28 th February 2013 from the Post of Executive Engineer from Maharashtra State Electricity Transmission Company limited, a wholly owned corporate entity under the Maharashtra Government, which  was incorporated under the Companies Act, in June, 2005 after restructuring the erstwhile Maharashtra State Electricity Board. I understand that the employees of Central Government as well as the State Government are allowed accumulation of earned leave up to 300 days and are fully exempt from payment of Income Tax on encashment of leave to his credit at the time of superannuation. All other employees of private sector are allowed exemption up to a limit of Rs. 3 Lacs from payment of tax. ...

TAX TALK-22.04.2013-THE HITAVADA TAX TALK   BY CA. NARESH JAKHOTIA Chartered Accountant “WHETHER HOUSING LOAN BENEFIT IS AVAILABLE AGAINST THE DEMAND OVERDRAFT LOAN AVAILED BY ME?” Query 1] 1.       I am an re-employed ex-servicemen drawing defense pension @ Rs. 10,756/- per month. I am also drawing salary from my re-employment @ Rs. 32,000/- per month on which I am paying applicable IT as TDS after deductions under 80C and others. My query is -Whether I am liable to pay IT on pension income and what are the provisions for exemption of pension income from IT? 2.       Secondly, I have taken a demand loan of Rs. 4,50,000/- in 2011 and invested that amount for purchase of plot with already constructed house. I did not mention the purpose of loan in my DL application to banker as I was not aware of any provision of housing loan exemption from IT. Also the OD account created for this purpose is flexible means I ...

TAX TALK – 15.04.2013- THE HITAVADA “BUILDER ALSO LIABLE TO PAY TAX ON THE DIFFERENCE IF THE STAMP DUTY VALUATION IS HIGHER THAN THE ACTUAL SALE CONSIDERATION” Query 1] Please refer to your Tax Talk Dated 08.04.2013 which was very informative. In continuation to that, we have been told that there are changes on the taxability in the hands of builders also if the flat/office block/ etc are sold at a price lower than the Stamp Duty Valuation. As of now, we are liable to pay tax on the basis of actual sale price and not on the basis of the Stamp Duty valuation. Is it true? Whether the income tax would be applicable on the basis of the value which may not have been received by us? What is the remedy available? Is there any exception to this provision like date of agreement as mentioned in the last issue of Tax Talk? We also read about the change in the agricultural income tax base? What is the change in the agricultural land taxability? We would be thankful if you can k...

TAX TALK-08.04.2013-THE HITAVADA TAX TALK   BY CA. NARESH JAKHOTIA Chartered Accountant “PURCHASING THE PROPERTY BELOW THE STAMP DUTY VALUATION IS TAXING NOW!” Query 1] I have a query in Capital Gains. Mr. A enters into an agreement with Mr. B for purchase of an Agricultural land and paid Rs. 8,00,000/- as advance. In 2004, the balance of Rs. 1600000/- was to be paid at the time of registry. Mr. B has made another agreement with Mr. C for the same Land. Both Mr. A & C sued Mr. B for performance of contract. In the year 2012, all the three parties made compromise and Mr. A & C withdraws there case against Mr. B and the land was sold to Mr. D for sale consideration of Rs. 48,00,000/- whereas the Market value of stamp duty purpose was Rs. 140,00,000/-. The sale consideration of Rs. 48,00,000/- was shared by all the three parties equally (i.e., Mr. A , B &C each receiving Rs.16 Lacs). In addition to his share in the Sale Consideration of Rs. 16 Lacs, ...

TAX TALK-01.04.2013-THE HITAVADA TAX TALK   BY CA. NARESH JAKHOTIA Chartered Accountant “WHETHER HOUSING LOAN BENEFIT AVAILABLE ON THE LOAN TAKEN FROM EMPLOYEE’S CO-OPERATIVE SOCIETY?” Query 1] I sold my ancestral land for Rs 33 Lacs on 24.05.2010. The sale proceeds are kept in S/B a/c since then. I acquired a residential house from G'Noida Authority ( allotted on 29.11.2007) in FY 2012-13 by executing lease deed on 18.06.2012, jointly with my husband out of other sources of finance, including Housing Loan, PPF withdrawal, etc. Can I claim exemption from Tax on LTGC on this house. On the date of sale of land, I owned another Flat jointly with my husband. If I cannot claim exemption, as above, can I buy a residential flat now and save Long term Capital Gains Tax of about Rs 10 Lacs (including Interest). The IT Return for FY 2010-11 is yet to be filed. I shall be grateful for your advice. [Neelam Gupta- anilg.244@gmail.com ] Opinion: 1.    ...

TAX TALK-25.03.2013-THE HITAVADA TAX TALK   BY CA. NARESH JAKHOTIA Chartered Accountant “ERROR IN PAN CARD, HOW TO GET THE PAN CARD RECTIFIED” Query 1] My wife is a Central Government employee & her gross salary is Rs. 2,90,000/- without giving effect to the provisions of sections 80C   to 80U.   Her total salary after above provisions is Rs. 1,55,000/-.   She also has interest income of Rs. 20,000/- on fixed deposits with banks.   She has not filed her return for the assessment year 2012-13.   Now my question is: 1.       Is she exempt from filing IT return under section 139(1C) for the assessment year 2012-13? 2.       If not, then can she file the IT return now electronically? 3.       If she files the IT return now, then under which section: (a) Before due date U/s 139(1) or (b) After due date u/s   139(4) 4.     ...