On literal reading it is possible to claim deduction of interest on loan taken for acquiring a residential house property whose stamp duty value does not exceed Rs. 45/- lakhs even though the cost of the residential property was Rs. 50/- lakhs On comparison with Section 80EE with this section, you will notice that section… (read more)

(a) From the query it is clear that annual turnover of ABC Pvt. Ltd is more than Rs. 60/- lakhs . Hence benefit of exemption u/s. 47(xiiib) is not available. So when ABC Pvt. Ltd converts into LLP, it would liable to tax under section 45 of the Act. (b) If there is any immovable… (read more)

While filing the tax return for F.Y. 2023-24 i.e. for A.Y 2024/25, and computing capital gains, total value of consideration should be taken at Rs. 25/- crores. As balance of Rs. 5 crores would be due and accrue only at the end of three year i.e. March 31, 2027. As the founders are eligible for… (read more)

Section 179 deals with the vicarious liability of the Directors of private company. It states as under:- “179(1) – Notwithstanding anything contained in the Companies Act 1956 where any tax due from a private company in respect of any income of any previous year or from any other company in respect of any income of… (read more)

It is to be stated that no adjustment of demand of earlier years is permissible against the refund of current year in the absence of mandatory intimation required to be given u/s 245 of the Income Tax Act. In Bharat Petrolium Corporation Ltd. v. Asstt DIT (2021) 133 Taxmann.com 320 (Bom) Bombay High Court have… (read more)

As per the query, it appears that ITAT has remanded the matter back to the Assessing Officer to decide afresh. Section 153 of the Income Tax Act prescribes time limit for completion of assessment and re-assessment. It is amended by the Finance Act 2017 with retrospective effect from 01.06.2016 and the provision regarding limitation for… (read more)

To answer the above question, we have to understand the relation between the firm and partner as also the relevant provisions of the income tax act. Those are applicable for the assessment of firm and partner i.e. section 2(24)(ve), section 28 (v), 40(b) and 155(1A). The business carried out by the firm is also a… (read more)

No, bonus becomes due to employee only on July 10, 2023. Therefore the same will be taxable in the hands of employee in the assessment year 2024/25. Employee can claim TDS in the assessment year 2024/25. S.16 contemplates a tax on salaries which are due, whether paid or not. Even it covers salaries which are… (read more)