CA. Naresh Jakhotia

TAX TALK-21.04.2014-THE HITAVADA TAX TALK CA. NARESH JAKHOTIA Chartered Accountant “DEDUCTIONS TOWARDS HOME LOAN & HRA CAN BE CLAIMED SIMULTANEOUSLY” Query 1] I have purchased a plot on 07/10/2002 for Rs. 3,04,000/- and paid stamp duty and registration charges Rs. 48,640/-. I have thereafter started house construction in the said plot in 2004 and completed it in July 2005. I have taken housing loan of Rs. 9,67,500/- from ICICI Bank. In 2007-08, I have incurred near about Rs. 3.64 Lacs for furnishing and coloring of the said house. But today, I do not have any documentary proof of the same. I have decided to sale the said house now. The offer for my house is Rs. 70.00 Lacs. How capital gain is calculated in this situation? Please guide me how much capital gain tax I will have to pay and how it will be calculated? [Mr. B. N. Patil- patilbn_1@yahoo.com ] Opinion: 1.       Computing Long Term Capital Gain (LTCG): Long Term Capital ...

TAX TALK-23.12.2013-THE HITAVADA TAX TALK CA. NARESH JAKHOTIA Chartered Accountant “SAVING TAX ON LONG TERM CAPITAL GAIN- ISSUES INVOLVED” Query 1] I am presently residing in a house purchased from DDA in 1986 in the joint names of self and wife by also taking loan from the Bank. A case regarding my father’s residential property was decided by the Court in March, 2005 and property was divided by court in  3 equal shares – 1/3 rd for my brother, 1/3 rd for myself and 1/3 rd for my father as my sisters relinquished their right in favor of my father. 1/3 rd share of my brother was disposed off by him and after sale expired as well. My father who was residing with me has made a Registered Will of his 1/3 rd share in my favor. My mother expired in 2002 and father in March, 2010. In this way, I became owner of 2/3 rd share of that house (1/3 rd mine share and 1/3 rd my Father’s share by virtue of Will). Now, I have sold this 2/3 rd portion of...

TAX TALK-16.12.2013-THE HITAVADA TAX TALK CA. NARESH JAKHOTIA Chartered Accountant “AMOUNT RECEIVED ON SURRENDER OF TENANCY RIGHT IS TAXABLE !” Query 1] A mother of my friend who is a widow seeks clarification/advice from you regarding income from ancestral property. As per the tax law, income received through disposal of ancestral property comes under Capital Gain Tax & to avoid Capital Gain Tax amount received through disposal of property should be utilized in purchasing of house or in construction of house. Her share after disposal is so small that no house can be purchased or can be constructed. Then, 1.       How  to  save  Capital  Gain  Tax  on  such  amount ? 2.       Can amount be invested in regular fixed de...

TDS not deductible on freight Chargers Shown separately in Goods Purchase Bill CIT v. Bhagwati Steels {PLIniaIJ & Haryana HC) In the instant case. it was helcl that the payment ef freight charges hy the assessee to the truck drivers was based en incliviclual GRs 1which represented incliviclual ancl separate contracts and there was no single eentraet fer carriage er transportation ef geecle referred to between assessee and the impugnecl parties `which would make the assessee liable for deduction of tax at source under section 194C of the Act. It is evident that the expenses cffreight incurred by Mis Tata Steel, which have been shcwn separatelyr in the invoices raised cn the assessee, cannct be construed tc infer that the assesses has paid any amcunt for transportation cf gccds separately than the ccst cf the gcccls purchased by it. Ostensibly, in such circumstances, there would nct arise any necessity of deduction of tax at source on the freight amount separately shown in the Inv...

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...