Deduction u/s 80GG of Income Tax Act, 1961

0 comments Sunday, June 19, 2011
If you are living in a rented house, the rent paid may help you save your income tax. Section 8GG of Income Tax Act provides deduction for House rent paid from the Gross Total Income subject to certain conditions. Section 80GG was omitted by the Finance Act 1997 w.e.f 1998-99, but it was restored again by Finance (No 2) Act, 1998 with retrospective effect i.e A.Y 1998-99.

Herebelow some important points relating to deduction under section 80GG are provided.

Quantum of deduction: The deduction u/s 80GG shall be available as minimum of the following amounts:

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No reversal of ITC on evaporation of Petroleum Products by Petroleum dealers-PVAT Tribunal

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There has been a lot of dispute on the issue whether the Petroleum products dealers should reverse the Input Tax Credit on the evaporation of petrol, diesel and other petroleum products as Rule 21(1) of Punjab VAT Rules, 2005 provides for disallowance of Input tax credit for tax paid on purchase of those goods which have been lost or damaged or destroyed beyond repair because of any theft, fire or natural clamity (please note the words because of any theft, fire or natural clamity have been removed from Rule 21(1) w.e.f 06-11-2008)
 
The Punjab & Haryana High Court in Bharat Petroleum Corporation Limited Vs. State of Punjab [(2009) 12 STM 463 (HC-P&H)] decided the above issue on merits in favour of the revenue and also at the same time dismissed the petition stating that the petitioner has the alternative statutory remedy of filing the appeal before lower appellate authorities.
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NO TDS u/s 194C onseperate contract of supply of material- Bangalore ITAT

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ITAT at Bangalore has held in an important case namely  M/s Karnataka Power Transmission Corporation Ltd.,  vs The Income-tax Officer that where a person has entered into seperate contracts of supply of material and contract of labour then TDS u/s 194C will be deducted on the Contract of labour only since both are seperate contracts and are divisible. No TDS  is liable to be decuted on the contract of supply of goods, hence the assessee cannot be treated as assessee in default.
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