Messages

It is taxable

Judiciary is divided on issue however in recent past some judgments favoured exemption

yes

DEDUCTION ALLOWABLE EVEN IF BORROWED FUNDS ARE USED
CA MANOJ GUPTA
JODHPUR
09828510543

IF U FILE ITR 7 THE CPC WILL LEVY TAX ON MMR ON THE ENTIRE CORPUS DONATION
CA MANOJ GUPTA
JODHPUR
09828510543

section 24(b) talks of interest on borrowed capital only. Is does not talks about from where to borrow so u will get deduction .
CA MANOJ GUPTA
JODHPUR
09828510543

As per clause 34 of the DTC Bill, the amount of business expenditure shall be the aggregate of the operating expenditure, finance charges and capital allowances. Clause 37 further seeks to provide that the amount of capital allowances shall be the aggregate of the amount in respect of depreciation of business capital assets, initial depreciation of business capital assets, terminal allowance, scientific research and development allowance and deferred revenue expenditure allowance.

The said clause further provides that the depreciation, initial depreciation or terminal allowance shall be allowed in respect of any business capital asset if the asset is owned, wholly or partly, by the person, and used for the purposes of the business of the person. However, the condition of ownership, whether whole or in part, shall not apply in the case of a business capital asset being capital expenditure on any building which is held by the person under a lease or other right of occupancy. A business capital asset shall be deemed to be owned by the person if he is a lessee in terms of a financial lease.

Thus the DTC Bill seeks to clarify that assets acquired under a 'financial lease' shall be regarded as owned by the lessee and depreciation shall be allowed to him.

Clause 314(101) of the DTC Bill, 2010 defines the term financial lease. Accordingly, "financial lease" with its grammatical variations, means a lease transaction where--

(a) a contract for lease is entered into between two parties for leasing of a specific asset;

(b) such contract is for use and occupation of the asset by the lessee;

(c) the lease payment is calculated so as to cover the full cost of the asset together with the interest charges; and

(d) the lessee is entitled to own, or has the option to own, the asset at the end of the lease period after making the lease payment.

Dear sir
Section 10A(7B) bars a unit in SEZ from claiming ded under section 10A from A.Y. 2006-07 onwards
Say a unit is located in SEZ from A.y. 2003-04 it claimed ded under sectyion 10A from ay 2003-04 to 2005-06
now from ay 2006-07 it can claim ded under section 10AA (1) (i) for 7 years

CA MANOJ GUPTA
JODHPUR
09828510543

dear sir
i correct myself
every seller is to collect tax from buyer at the time of debiting the buyer's A/c or at the time of collection of sale proceeds
if the seller and buyer falls within the meaning ogf section 206C then tax is to be collected
since both the persons are residents or at lest the seller is a resident he has to follow the law in section 206C the TCS is not place specific or transaction specific
If u sell the goods listed thereunder and if the law applies to u than u have to follow it
it appers that TCS will apply to the transaction
CA MANOJ GUPTA
JODHPUR
09828510543

 U ACN TAKE HELP FROM THE FOLLOWING
In Biraj Investment (P) Ltd. v. Asstt. CIT 2000 TaxLR 122 (Ahd-Trib), the assessee had sold 80,200 equity shares of Rustom Mills and Industries Ltd. which were invested by the assessee and were pledged to the IDBI as a collateral security for granting financial assistance to Rustom Mills and Industries Ltd. The assessee had sold the shares at a consideration of Rs. 4,01,000 and thereby claimed long term capital loss Rs. 8,38,798. The long-term capital loss claimed by the assessee was rejected by the assessing officer on the ground that there was no transfer of the shares.
It was held merely because the physical possession was held by IDBI, it would not automatically follow that the person who is entitled to the legal possession, i.e., the assessee would be deprived of his right to deal with such goods until he secures the co operation of the third party. The assessee had right to transfer the shares because the legal title vested in it.
EVEN OTHERWISE THE REGD OWNERS WERE UR ASSESSEES THE BANK HAD SOLD SHARES FOR RECOVERY OF ITS LOAN THE PROCEEDS IF EXCEED THE LOAN AMT WILL GO TO UR ASSESEES

CA MANOJ GUPTA
JODHPUR
09828510543

please refer to decision in Shri Humayun S. Rangila  reported in 38(ii) ITCL 630(Mum-Trib) in which it was held that Section 54 exempts capital gain arising from sale of a long term capital asset being a residential house and therefore it will apply to sale of any residential house provided other conditions are fulfilled. This position has also been clarified by CBDT vide circular F.No.207/24/76 IT(ii) dated 25-3-1997 in which it has been clearly mentioned that capital gain arising on transfer of each house will qualify for exemption in case the assessee had sold more than one residential houses. The other issue is whether capital gain arising from sale of two flats can be exempted under section 54 if the gains are invested in one residential house. The requirement of section 54 is that the capital gain arising from transfer of a residential house should be invested in a residential house. The requirement is that the investment should be in one residential house. There is no bar on investing the capital gain arising from sale of more one residential house in one residential house. Therefore, the capital gains arising from sale of more than one residential house will be eligible for exemption under section 54 if gains from both the houses are invested in the same residential house.

CA MANOJ GUPTA
JODHPUR
09828510543

U CAN TAKE HELP FROM THE CASE NEVILLE DE NORANHA 22(II) ITCL 162(kOL-tRIB) : 26 SOT 35 AND M. SIVA PARVATHI 38(II) ITCL 531

The IT Act extends to whole of INdia
India is defined in section 2(25A)
If the transaction is in India as so defined then TCS will be applicable if the conditions in section 206C are met in respect of the transaction

CA MANOJ GUPTA
JODHPUR
09828510543

very fine argument