CA. Naresh Jakhotia

TAX TALK-03.06.2013-THE HITAVADA TAX TALK   BY CA. NARESH JAKHOTIA Chartered Accountant “JOINT DEVELOPMENT AGREEMENT WITH THE BUILDER FOR DISMANTLING OF THE HOUSE & INCOME TAX IMPLICATIONS” Query 1] Mr.X has an old house in a city say measuring 4,000 sq ft. He enters into a joint venture with a builder "Y" for dismantling the said house & erecting 6 flats on such Land. It is agreed upon between them that each of them shall take over 3 flats after the construction is over. All the expenses including sanction of map & building these flats are borne by "Y". Now, the construction is over & each of them takes over 3 flats. Please advise under I.T. Act, how each of them shall meet their tax liabilities? Suppose the builder has spent Rs. 60 Lacs on construction of 6 flats. The sale price of each flat is say 15 Lacs i.e., Rs. 90 Lacs in total. Three flats of "Y" shall be sold by Mr. X as he is the owner of land & he him...

TAX TALK-27.05.2013-THE HITAVADA TAX TALK   BY CA. NARESH JAKHOTIA Chartered Accountant “PERSON WITH DISABILITY ARE ENTITLED FOR THE INCOME TAX BENEFIT U/S 80U” Query 1] Kindly enlighten me in the following matter through your Tax Talk column: A person is polio affected, with disorder in his legs. 1.       What is the relief available at the hands of employer for TDS in salary payments? 2.       How much and under which section TDS relief is available? 3.       Whether any documentary proof he needs to submit and at what frequency? [ d_pande1@yahoo.in ] Opinion: Deduction U/s 80U Section 80U of the I.T. Act, 1961 allows a deduction to an individual who is resident and who at any time during the previous year is certified by a medical authority to be a person with disability. The deduction under this Section is a sum of Rs 50,000/- in normal cases and if the person is su...

TAX TALK-20.05.2013-THE HITAVADA TAX TALK   BY CA. NARESH JAKHOTIA Chartered Accountant “HOW TO CARRY OUT THE CORRECTION IN THE TAX PAYMENT CHALLANS?” Query 1] While filing the online tax return for the period Assessment Year 2011-2012, we came to know of PAN being wrongly entered in the Tax Challan. Can this amount so deposited by an error be adjusted in subsequent return/statement or refund can be claimed by us? Kindly guide us on the process involved? [MPBPL- A R Temurnikar- miners_bookshop@yahoo.co.in ] Opinion: There are numerous instances where there is an error while making payment of Tax either electronically or manually. To rectify these errors, Income-Tax Department has issued new guidelines effective 01-09-2011 which allows Banks to correct physical challans only . For correction in electronic challans, request will have to be made to the concerned Assessing Officer . For general benefit, I am elaborating the the procedure for correction in t...

TAX TALK-13.05.2013-THE HITAVADA TAX TALK   BY CA. NARESH JAKHOTIA Chartered Accountant WANT TO INVEST THE MONEY FROM SALE OF “AGRICULTURAL LAND & PLOT”   FOR PURCHASE OF “A READYMADE HOUSE”: INCOME TAX SAVING Query 1] I am in Government job and purchased an agriculture land for total amount of Rs. 4.00 Lacs   in the year 2008 and a plot in city area for total amount of Rs. 6.50 Lacs in the year 2011 (through loan & self saving). I want to sell these properties in the FY 2013-14. Please provide following information: 1.       Tax liability on capital gain; 2.       Presently, I do not own any house and want to invest above money to purchase a readymade house (new or old). What would be tax liability in FY 2013-14 or onwards if house is purchased after 2013-14?;and 3.       Till investment in readymade house, I want to do investment in Fixed deposit/ Bonds of Go...

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 ...