Exemption from long term capital gain u/s 54F of Income Tax Act 1961.0 comments Monday, May 30, 2011If you have sold a long term capital asset other than residential house you can save the tax payable on the long term capital gain arising from such sale by investing the sale proceeds into a residential house u/s 54F of Income Tax Act 1961. Here below the provisions of section 54F have been discussed. Exemption is available to Individual and HUF: Exemption u/s 54F is available only to an Individual and HUF assesses. Therefore if a firm or company etc (i.e other than individual and HUF assesses) have any long term capital gain, no exemption u/s 54F will be available to them. Four points essential to escape murder conviction-Supreme Court0 commentsAn accused can escape conviction for murder if he proves that there was no premeditation for the act, occurred in a heat of passion, no cruelty involved and undue advantage taken, the Supreme Court has ruled. A bench of justices Asok Kumar Ganguly and Deepak Verma in a judgement said that the accused can seek immunity from murder only if all these four above circumstances are established in defence of the crime. "In order to bring a case under Exception (4) to Section 300 IPC, the evidence must show that the accused acted without any premeditation and in a heat of passion and without having taken undue advantage and he had not acted in a cruel or unusual manner. Why petrol prices are highest in Punjab?0 comments Sunday, May 29, 2011Petrol prices in Punjab are highest in In Punjab VAT on Petrol is charged @ 27.5 per cent and surcharge on the VAT is 10 per cent which makes total VAT on petrol @ 30.25 per cent. Deductions available under Section 80C of Income Tax Act, 19610 commentsEvery Taxpayer is entitled to reduce his tax liability by taking benefits of various deductions available under the Income Tax Act. Therefore one should plan his investment and make decision in such manner that, he may get benefit of deductions u/s 80C to 80U. Section 80C of Income tax Act is an important section wherein investment in certain saving plans and some other expenditures are allowed as deduction to the taxpayer from his total income thereby saving his taxes. The computation of expacted total income and tax thereon should be made right at the beginning of new financial year and should be reviewed in the later part of the financial year. The Finance Act, 2005 has withdrawn the rebate u/s 88 and in its place re-inserted section 80C for deduction in respect of contribution to PF, LIC premiums, investment in NSC, infrastructure bonds etc, w.e.f A.Y 2006-07. Input Tax Credit on Capital Goods under Punjab VAT Act, 2005.2 comments Saturday, May 28, 2011
I have received a querry relating to admissibility of ITC on capital goods. I have replied to it and considering the matter of concern for dealers at large in
Question: Dear Mr Bajaj, As per our telephonic talk today I am submitting my query to you for your comments : Scope of Rule 114B regarding furnishing of PAN in certain transactions extended0 commentsAs per the new amendment in rule 114B of Income Tax Rules, now PAN will also have to be furnished in respect of payment of LIC premium of aggregating Rs. 50000 or more in a year. PAN will also be required to be furnished while making payment to a dealer of Rs. 5 Lakh or more or against a bill of Rs 5 Lakh or more for purchase of bullion or jewellery. The word Dealer has been mentioned in newly added clause (r) to Rule 114B, but who will be considered as dealer is a question to be asked, since no corresponding explanation defining the word dealer has been added in the rule. Instructions for filing Sehaj Form (ITR 1) for A.Y 2011-120 comments Friday, May 27, 2011Instructions for filing Sehaj form have been notified. Not only a layman but also every professional must go through these instructions before filing the form as many new things may come to picture which we might not be aware of. Survey party will provide the taxpayer, names, designation & contact details of CCIT, ACIT/JCIT before starting survey-CBDT0 commentsCBDT has issued some instructions for bringing transparency in the Survey Operations carried under Income Tax Act 1961. As per the instructions now the survey party will inform the taxpayer on whom survey operations are carried on, before the start of survey proceedings the name designation and contact numbers of the CCIT &Additional CIT/JCIT and also will inform the taxpayer that if he has any grivence he can contact the said authorities. The instructions as issued are produced herebelow for ready reference. Tax paid by contractee on goods supplied to contractor, is allowable as ITC to such contractor0 comments Thursday, May 26, 2011The Punjab & Haryana High Court has held in an important case namely Lajpat Rai Chanana V State of Haryana & others (2011) 38 PHT 390 (P&H) that input tax credit to a works contractor executing the works contract will be justified if the contractee has already paid the tax on the goods supplied by him to the contractor. Rates of Tax on various Goods under Punjab VAT Act 20050 comments Wednesday, May 25, 2011I am sharing hereby various schedules under Punjab VAT Act 2005 prescribing rates of tax(VAT) on various goods in Punjab. I have made every effort to provide the schedules with latest amendments but as we know the rates of goods are changed by Govt from time to time, hence the list of goods and rate of tax on goods mentioned in the schedules should not be taken as final. I will try to update the schedules with latest amendments from time to time for the sake of my knowledge as well as that of readers of my blog. INCOME FROM HOUSE PROPERTY UNDER INCOME TAX ACT 19610 commentsWHAT IS HOUSE PROPERTY? The Income Tax Act classifies 'buildings and/or land appurtenant* thereto as *House Property'. Income derived from vacant plots of land is not charged under this head but under the head Income from other sources' or *business profits'.
The tax under this head is levied upon the owner, legal or beneficial and not upon the occupant. In case the assessee is not the owner but gets rent from sub-letting a property, the income will not be taxed as income from house property, but as income from other sources. Ownership will also include deemed ownership, i.e. persons who purchase properties on Power-of-Attorney basis or under long-term lease (twenty year or more) are also deemed to be owners. Sachin Tendulkar allowed deduction u/s 80RR on advertisement Income as an actor1 comments Tuesday, May 24, 2011MUMBAI: An Income Tax tribunal has allowed ace cricketer Sachin Tendulkar to claim deductions from his taxable income pertaining to earnings from modelling in advertisements. The two-member tribunal, which gave its order on May 20, upheld the cricket legend's argument that he was an 'actor' while appearing in commercials. No penalty u/s 271B if assessee is under bonafide belief that his turnover doesnot exceed audit limit-Delhi ITAT0 commentsDelhi ITAT in a case namely Saurabh Kumar Agarwal Vs. Income tax Officer (2011) ISI C-184 Del. (Trib.) has held that where an assessee is under a bonafide belief that his turnover doesnot exceed audit limit and therefore doesn’t get his accounts audited then it will form a reasonable cause for his failure for not obtaining the audit of his accounts u/s 44AB and hence no penalty u/s 271B can be levied. Punjab VAT- Uploading of information on bills made optional- news6 commentsThere is a news that uploading of information relating to certain sale bills which has been made compulsory by Punjab Govt as per a public notice, has been made optional instead of being compulsory. This was to be made compulsory w.e.f 01-06-2011, but now as per a news in a newspaper it has been made optional. The news is produced herebelow for ready reference Mandatory online issuing of form 16A will force deductors to revise their TDS returns0 comments Monday, May 23, 2011CBDT by a recent circular No 3/2011 [F. NO. 275/34/2011-(IT-B), DATED 13-5-2011 has made it compulsory for the Banking and other companies to issue form 16A for TDS w.e.f 01-04-2011 by downloading it from the TIN website online so as to eliminate the mis-matches in the form 26AS and the form 16A, which will facilitate the refund process. Earlier before the issue of said circular the deductee could not force the deductor to revise his TDS return if there was any mismatch between their 26AS and Form 16A. It is to be noted that issuing of Form 16A to the deductee is mandatory for every deductor under Rule 31(3) of Income Tax Rules. Section 9(2B) of CST Act is applicable retrospectively0 commentsSection 9(2B) of Central Sales Tax Act 1956 provides for interest on delayed payment of CST as per the general sales tax law of the State concerned. This provision was added we.f 12-05-2000 by section 120 of the Finance act 2000, Prior to it there was no such provision for levy of interest under CST Act. The Punjab & Haryana High Court has held in State of Haryana v Giriraj Metal and Ferro Alloys (2011) 39 PHT 101 (P&H) that the said provision u/s 9(2B) will be applicable with retrospective effect i.e w.e.f 05-01-1957(from the date of CST Act) following the decision of Supreme Court in case of Indodan Industries Limited v. State of UP and others, 2010(27) Vat and Service Tax Cases 1 Interest for non payment or delayed payment of tax under Punjab VAT Act 20051 comments Sunday, May 22, 2011Tax under any act should be deposited with the exchequer within time prescribed under such act otherwise there is generally a provision for payment of simple interest along with the tax. Section 32 of Punjab VAT Act 2005 provides for payment of simple interest along with tax due if there is non payment or delayed payment of tax under the Act. The provisions of section 32 can be discussed as follows: Stainless Steel wire is not declared goods under CST Act 1956- Supreme Court0 comments Friday, May 20, 2011Supreme Court in an important decision in a case namely Bansal Wire Industries Ltd. Versus State of U.P. has held that Stainless Steel wire is not covered under declared goods u/s 14 of CST Act 1956. The Apex court held that stainless steel doesnot fall in the entry of Tools, alloys and special steels under Iron and steels. Procedure for downloading form 16A online0 comments Thursday, May 19, 2011Here below I am sharing procedure for downloading Form 16A online. You can download the procedure by clicking at the below link: PROCEDURE FOR DOWNLOADING FORM 16A ONLINE Share | Form 16A to be downloaded online by deductors for TDS on or after 01-04-20110 commentsNow TDS certificate in Form No 16A will be downloaded and generated online from TIN central system by the deductors and the same will be issued to the deductees. A circular to this effect has been issued by CBDT. This online downloading of form 16A has been made compulsory for the banking and other companies for tax deducted on or after 1-04-2011 and optional for other deductors. Ussualy there is difference between the form 16A issued to deductees and form 26AS available online to every assessee. This ussualy happens due to wrong entries made in the TDS returns.
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Exemption from long term capital gain u/s 54F of Income Tax Act 1961.Monday, May 30, 2011If you have sold a long term capital asset other than residential house you can save the tax payable on the long term capital gain arising from such sale by investing the sale proceeds into a residential house u/s 54F of Income Tax Act 1961. Here below the provisions of section 54F have been discussed. Exemption is available to Individual and HUF: Exemption u/s 54F is available only to an Individual and HUF assesses. Therefore if a firm or company etc (i.e other than individual and HUF assesses) have any long term capital gain, no exemption u/s 54F will be available to them. Four points essential to escape murder conviction-Supreme CourtAn accused can escape conviction for murder if he proves that there was no premeditation for the act, occurred in a heat of passion, no cruelty involved and undue advantage taken, the Supreme Court has ruled. A bench of justices Asok Kumar Ganguly and Deepak Verma in a judgement said that the accused can seek immunity from murder only if all these four above circumstances are established in defence of the crime. "In order to bring a case under Exception (4) to Section 300 IPC, the evidence must show that the accused acted without any premeditation and in a heat of passion and without having taken undue advantage and he had not acted in a cruel or unusual manner. Why petrol prices are highest in Punjab?Sunday, May 29, 2011Petrol prices in Punjab are highest in In Punjab VAT on Petrol is charged @ 27.5 per cent and surcharge on the VAT is 10 per cent which makes total VAT on petrol @ 30.25 per cent. Deductions available under Section 80C of Income Tax Act, 1961Every Taxpayer is entitled to reduce his tax liability by taking benefits of various deductions available under the Income Tax Act. Therefore one should plan his investment and make decision in such manner that, he may get benefit of deductions u/s 80C to 80U. Section 80C of Income tax Act is an important section wherein investment in certain saving plans and some other expenditures are allowed as deduction to the taxpayer from his total income thereby saving his taxes. The computation of expacted total income and tax thereon should be made right at the beginning of new financial year and should be reviewed in the later part of the financial year. The Finance Act, 2005 has withdrawn the rebate u/s 88 and in its place re-inserted section 80C for deduction in respect of contribution to PF, LIC premiums, investment in NSC, infrastructure bonds etc, w.e.f A.Y 2006-07. Input Tax Credit on Capital Goods under Punjab VAT Act, 2005.Saturday, May 28, 2011
I have received a querry relating to admissibility of ITC on capital goods. I have replied to it and considering the matter of concern for dealers at large in
Question: Dear Mr Bajaj, As per our telephonic talk today I am submitting my query to you for your comments : Scope of Rule 114B regarding furnishing of PAN in certain transactions extendedAs per the new amendment in rule 114B of Income Tax Rules, now PAN will also have to be furnished in respect of payment of LIC premium of aggregating Rs. 50000 or more in a year. PAN will also be required to be furnished while making payment to a dealer of Rs. 5 Lakh or more or against a bill of Rs 5 Lakh or more for purchase of bullion or jewellery. The word Dealer has been mentioned in newly added clause (r) to Rule 114B, but who will be considered as dealer is a question to be asked, since no corresponding explanation defining the word dealer has been added in the rule. Instructions for filing Sehaj Form (ITR 1) for A.Y 2011-12Friday, May 27, 2011Instructions for filing Sehaj form have been notified. Not only a layman but also every professional must go through these instructions before filing the form as many new things may come to picture which we might not be aware of. Survey party will provide the taxpayer, names, designation & contact details of CCIT, ACIT/JCIT before starting survey-CBDTCBDT has issued some instructions for bringing transparency in the Survey Operations carried under Income Tax Act 1961. As per the instructions now the survey party will inform the taxpayer on whom survey operations are carried on, before the start of survey proceedings the name designation and contact numbers of the CCIT &Additional CIT/JCIT and also will inform the taxpayer that if he has any grivence he can contact the said authorities. The instructions as issued are produced herebelow for ready reference. Tax paid by contractee on goods supplied to contractor, is allowable as ITC to such contractorThursday, May 26, 2011The Punjab & Haryana High Court has held in an important case namely Lajpat Rai Chanana V State of Haryana & others (2011) 38 PHT 390 (P&H) that input tax credit to a works contractor executing the works contract will be justified if the contractee has already paid the tax on the goods supplied by him to the contractor. Rates of Tax on various Goods under Punjab VAT Act 2005Wednesday, May 25, 2011I am sharing hereby various schedules under Punjab VAT Act 2005 prescribing rates of tax(VAT) on various goods in Punjab. I have made every effort to provide the schedules with latest amendments but as we know the rates of goods are changed by Govt from time to time, hence the list of goods and rate of tax on goods mentioned in the schedules should not be taken as final. I will try to update the schedules with latest amendments from time to time for the sake of my knowledge as well as that of readers of my blog. INCOME FROM HOUSE PROPERTY UNDER INCOME TAX ACT 1961WHAT IS HOUSE PROPERTY? The Income Tax Act classifies 'buildings and/or land appurtenant* thereto as *House Property'. Income derived from vacant plots of land is not charged under this head but under the head Income from other sources' or *business profits'.
The tax under this head is levied upon the owner, legal or beneficial and not upon the occupant. In case the assessee is not the owner but gets rent from sub-letting a property, the income will not be taxed as income from house property, but as income from other sources. Ownership will also include deemed ownership, i.e. persons who purchase properties on Power-of-Attorney basis or under long-term lease (twenty year or more) are also deemed to be owners. Sachin Tendulkar allowed deduction u/s 80RR on advertisement Income as an actorTuesday, May 24, 2011MUMBAI: An Income Tax tribunal has allowed ace cricketer Sachin Tendulkar to claim deductions from his taxable income pertaining to earnings from modelling in advertisements. The two-member tribunal, which gave its order on May 20, upheld the cricket legend's argument that he was an 'actor' while appearing in commercials. No penalty u/s 271B if assessee is under bonafide belief that his turnover doesnot exceed audit limit-Delhi ITATDelhi ITAT in a case namely Saurabh Kumar Agarwal Vs. Income tax Officer (2011) ISI C-184 Del. (Trib.) has held that where an assessee is under a bonafide belief that his turnover doesnot exceed audit limit and therefore doesn’t get his accounts audited then it will form a reasonable cause for his failure for not obtaining the audit of his accounts u/s 44AB and hence no penalty u/s 271B can be levied. Punjab VAT- Uploading of information on bills made optional- newsThere is a news that uploading of information relating to certain sale bills which has been made compulsory by Punjab Govt as per a public notice, has been made optional instead of being compulsory. This was to be made compulsory w.e.f 01-06-2011, but now as per a news in a newspaper it has been made optional. The news is produced herebelow for ready reference Mandatory online issuing of form 16A will force deductors to revise their TDS returnsMonday, May 23, 2011CBDT by a recent circular No 3/2011 [F. NO. 275/34/2011-(IT-B), DATED 13-5-2011 has made it compulsory for the Banking and other companies to issue form 16A for TDS w.e.f 01-04-2011 by downloading it from the TIN website online so as to eliminate the mis-matches in the form 26AS and the form 16A, which will facilitate the refund process. Earlier before the issue of said circular the deductee could not force the deductor to revise his TDS return if there was any mismatch between their 26AS and Form 16A. It is to be noted that issuing of Form 16A to the deductee is mandatory for every deductor under Rule 31(3) of Income Tax Rules. Section 9(2B) of CST Act is applicable retrospectivelySection 9(2B) of Central Sales Tax Act 1956 provides for interest on delayed payment of CST as per the general sales tax law of the State concerned. This provision was added we.f 12-05-2000 by section 120 of the Finance act 2000, Prior to it there was no such provision for levy of interest under CST Act. The Punjab & Haryana High Court has held in State of Haryana v Giriraj Metal and Ferro Alloys (2011) 39 PHT 101 (P&H) that the said provision u/s 9(2B) will be applicable with retrospective effect i.e w.e.f 05-01-1957(from the date of CST Act) following the decision of Supreme Court in case of Indodan Industries Limited v. State of UP and others, 2010(27) Vat and Service Tax Cases 1 Interest for non payment or delayed payment of tax under Punjab VAT Act 2005Sunday, May 22, 2011Tax under any act should be deposited with the exchequer within time prescribed under such act otherwise there is generally a provision for payment of simple interest along with the tax. Section 32 of Punjab VAT Act 2005 provides for payment of simple interest along with tax due if there is non payment or delayed payment of tax under the Act. The provisions of section 32 can be discussed as follows: Stainless Steel wire is not declared goods under CST Act 1956- Supreme CourtFriday, May 20, 2011Supreme Court in an important decision in a case namely Bansal Wire Industries Ltd. Versus State of U.P. has held that Stainless Steel wire is not covered under declared goods u/s 14 of CST Act 1956. The Apex court held that stainless steel doesnot fall in the entry of Tools, alloys and special steels under Iron and steels. Procedure for downloading form 16A onlineThursday, May 19, 2011Here below I am sharing procedure for downloading Form 16A online. You can download the procedure by clicking at the below link: PROCEDURE FOR DOWNLOADING FORM 16A ONLINE Share | Form 16A to be downloaded online by deductors for TDS on or after 01-04-2011Now TDS certificate in Form No 16A will be downloaded and generated online from TIN central system by the deductors and the same will be issued to the deductees. A circular to this effect has been issued by CBDT. This online downloading of form 16A has been made compulsory for the banking and other companies for tax deducted on or after 1-04-2011 and optional for other deductors. Ussualy there is difference between the form 16A issued to deductees and form 26AS available online to every assessee. This ussualy happens due to wrong entries made in the TDS returns.
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