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Messages - sai prasad

sec.234C(1)(a)(i) and (b)(i) impose interest on the shortfall in payment of adv.tax instalment iwth reference to the tax due on the income returned. Explanation is also added to define what is tax due on the returned income and its calculation . Therefore,  tax on assessed income is not  covered in the said sec.
Discussion / Re: investment u/s 54EC
December 29, 2011, 01:46:03 PM
the investment  should have been made in 11-12 so that the cap of Rs.50 lakhs in a year could have been avoided.
Discussion / Re: TDS u/s 195
December 29, 2011, 01:43:38 PM
a trust or any other person ,not being a company or a firm, are permitted to file self declaration in form No.15G or 15H(for senior citizens) where the income of the nature referred to in Sec.193,194A and 194K to the  payer ,not to make TDS, as per Sec. 197A(1A).  Therefore, Comapny and  Firm are barred from the above facility.

It is sale simliciter of water. it is outside the purview of sec.194C or any other TDS prov.
Discussion / Re: PPF Deduction
November 11, 2011, 05:34:16 PM
admittedly  the ppf amount was deposited by father. As per sec.80C(4)(a)(i),father gets deduction u/s.80C. The daughter didnot make deposit, on her own, hence she canot get deduction. Making a gift also doesnot amount to as deposit made by  daguhter.

with regards
c.sai prasad
A firm doing buisness in construction of  residential and commercial blocks sold away residential block and the commercial complex is ready. Portion of it was sold. The first and second floor of the complex is let out to banks. The asset is shown as stock-in-trade in the books. The remaining floors are under completion. What is the nature of the rental income in its hands. If it is Property income, there would not be any deduction towards interest and remuneration to partners. Is it income from business? In case the firm keeps these floors to get regular income , what would be the nature of income? Please give your valuable opinion
Discussion / Re: Sec 44AD
August 01, 2011, 06:32:34 PM
one has to look at the definition of business u/s.2(13) and profession is  sepatately defined u/s.2(36). The distintion between business and profession is always maintained. Further sec.44AA r/w rule 6F  prescribed books of accounts and  records for professionals and it makes mandatory unlike buisness , where there is no specific prescription of  books and records. Therefore, professionals are kept outside sec.44AD.

As regards various businesses,if 8% is maintained on the aggregate that would do.

As regards the issue that if the income is below the maximum amount which is not chargeable to tax  reckoned with 8% on the turnover ,then audit is not required.Othewise the very purpose of sec.44AD would be defeated.

Discussion / requirement of tax audit
July 11, 2011, 05:02:43 PM
a non-medical person owns a nursing home and manages the same . He accounts for collections and all the expendtiure. He pays to Doctors their share in collections. It is a professional activity that requires tax audit in the event of receipts exceeding Rs.15 lakhs.The activity is that of medical practice and the same has been done by qualified doctors. Whether it is the activity that is to be consdiered or is it the person,who is a non-medical one.please give your valuable opinion
the bank  will not admit gain or loss from the shares but it is only recovery of the loan.The assessee only has to admit  the gain or loss and claim exemption. The charge created in favour of bank is only voluntary and there is no overriding diversion in the hands of the assessee. 305 ITR 24 (All);227/222 SC
since i posted last,  i have come across one judgment of the High Court in 284 ITR 511, which is a direct case on the issue. please go thru the same and  give your views
Agrl.lands are never assets under the W.T. Act  and they were excluded from the assets under the old provisions of sec.2(ea). Now from F.A. 1992 sec.2(ea) defines assets ,which are taxable assets , and known as specified assets. The urban land  in the jurisdiction of a municipality or any other town areas with a population exceeding 10000 as per previous Census and the land in the pheripheral limits of such municipality is  a speicified asset. The proviso to the said sec. provides that the land on which construction is not permitted under any law; land for industrial purposes not exceeding 2 years as vacant land and land held as stock in trade for a period not exceeding 10 years are excluded. Thus agrl.lands are not intended to be included as  theyare  productive assets and  never they were treated as assets under the Wealth tax Act. The assessing officer is of the view that "any land" incldes agrl.lands too. Please give your opinion and any supporting case laws or such material.
Discussion / Re: Exemption u/s 54
April 15, 2011, 06:21:02 PM
i am afraid you may not get exemption for both the houses, that are at different places. is it that the family makes use of two houses at different places. An useful reference may be made to the writeup of Sri K.Rajaratnam in the Landmark cases discussion in 331 ITR  journal 32
HRA received by both the spouses employed in the same department.Whether  both of them can claim exemption . The conditon of  payment of rent  equally in both their hands and the fulfilment of conditions of Sec.10(13A) r/w rule 2A would  get their claim for exemption   in respect of tenanted house  in which they live.

An early response is welcome
Discussion / car lifetime tax
March 16, 2011, 09:41:21 AM
Please give your opinion with supporting case law   on the issue as to whether car lifetime tax,one time payment, is revenue expenditure. Sec.43B  proivdes that any tax,duty  and fee are  deductible in the year of payment. Whether the above said tax is enduring nature and needs to be capitalised  in the face of Sec.43B

An early response is welcome
Discussion / Re: CAPITAL GAIN
March 16, 2011, 09:36:14 AM
I have come across the judgment of  the ITAT Delhi that appeared in 300 ITR (AT)410 (2008) where the investment in Bonds for exemptiion u/s.54EC was made in the jiont names of  of assessee and his wife for the sake of convenience but the money therefor flew from the assessee only.

You may also refer to the decisions in 287 ITR 271(Mad) and 318 ITR (AT)356 (Mum) which  throw some light on the issue

C.Sai  Prasad
Advocate, Nizamabad