Income Tax provisions related to income from salary, including allowances and perquisites

Frequently Asked Questions (FAQs) on "Unit Scheme of Examination" of Integrated Professional Competence Examination(IPCE) Posted: 06 Mar 2012 07:48 PM PST What is this Unit scheme? A candidate who has passed one of the groups of a) Intermediate Examination under the syllabus as specified in paragraph 2A of Schedule B of Chartered Accountants Regulations 1988 ( i.e. Nov. 1994 or later) or b) ... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Limit for retail investors raised from Rs. 1 lakh to Rs. 5 lakh for REC Bonds Posted: 06 Mar 2012 07:47 PM PST Notification No. 13/2012 Any individual investor investing upto rupees five lakh shall be treated as retail investor and any individual investor investing more than rupees five lakh shall be treated as High Networth Individual. [[ This is a content summary only. Visit www.taxguru.in for full article.]] Income Tax provisions related to income from salary, including allowances and perquisites Posted: 06 Mar 2012 07:20 PM PST Salary is chargeable to tax on due or receipt basis whichever is earlier and includes wages, annuity or pension, gratuity, fees, commission, perquisites or profits in lieu of salary, advance salary, leave encashment, etc. [[ This is a content summary only. Visit www.taxguru.in for full article.]] Taxation of Partnership Firms Posted: 06 Mar 2012 07:15 PM PST Remuneration to Partners -1. Payment to a non-working partner will not be allowed as a deduction. 2. A 'working partner' is an individual who is actively engaged in conducting the affairs of the business or profession of the firm. 3. Quantum of... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Whether tax deduction would be mandatory under section 195 under export commission paid to non-resident agent, if so, at what rate Posted: 06 Mar 2012 07:02 PM PST It is the applicant's contention that the agents have rendered services abroad and would be entitled to receive commission abroad for the services rendered to foreign clients of the applicant. As the services are rendered outside India, and the... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Overlapping in Classification of service for construction of residential building Posted: 06 Mar 2012 07:01 PM PST With the introduction of deeming provision in the definition of Construction of Complex Service sub-clause (zzzh) of section 65(105) of the Finance Act, 1994 effective from 01-07-2010, construction of residential complex is taxable to builders and... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Service Tax – Section 76 and 78 prior to May 2008 – Levy of Penalty Posted: 06 Mar 2012 06:54 PM PST Where a person is liable to pay service tax u/s 68 and fails to credit the tax or any thereof to the account of the Central Government within the prescribed time limit then he shall be liable to pay taxes along with applicable interest under section... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Section 54EC Exemption cannot be denied merely because bonds are in joint names Posted: 06 Mar 2012 09:23 AM PST assessee is eligible for the exemption under Section 54EC. I further find that the Mumbai bench, ITAT has held in the case of JCIT v. Smt. Armeda K. Bhaya (2005), 95 ITD 313 (copy filed) that for the purpose of Section 54 of the Act, it is... [[ This is a content summary only. Visit www.taxguru.in for full article.]] S. 54EC Exemption allowed where investment was made after 6 months due to non-availability of bonds Posted: 06 Mar 2012 09:11 AM PST Tribunal held that it was an impossible task for the assessee to comply with the time period laid down u/s 54EC. The delay in purchase due to non-availability of the bonds was held to be a reasonable cause, and the assessee was held to be entitled... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Section 50 would apply only to cases where 'assessee' had obtained depreciation Posted: 06 Mar 2012 08:50 AM PST the assessee had not obtained any depreciation after the asset became an asset of the partnership firm constituted under the deed dated June 16, 1977. In this context reference may usefully be made to the decision of the Calcutta High Court in the... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Benefit u/s 54EC / 54E available even in case of depericiable asset Posted: 06 Mar 2012 08:45 AM PST Deemed fiction created in Ss.(1) and Ss.(2) of S. 50 is restricted only to the mode of computation of capital gains contained in S. 48 and S. 49 and does not apply to other provisions. A fiction created by the legislature has to be confined to the... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Section 50 nowhere says that depreciated assets shall be treated as short-term assets Posted: 06 Mar 2012 08:31 AM PST Section 54E, read with section 50, of the Income-tax Act, 1961 - Capital gains - Not to be charged in certain cases - Assessment year 1991-92 - Whether section 50 nowhere says that depreciable asset shall be treated as short-term capital asset and... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Benefit of indexation not available on depreciable Assets Posted: 06 Mar 2012 08:27 AM PST Section 50 of the Income-tax Act, 1961 - Capital gains - Computation of, in case of depreciable assets - Assessment year 1994-95 - Whether for purpose of section 50(2), where 100 per cent depreciation had been allowed on assets, whole of amount... [[ This is a content summary only. Visit www.taxguru.in for full article.]] S. 54EC investment within 6 months is the investment for that financial year in which transfer has taken place Posted: 06 Mar 2012 07:53 AM PST Investment within 6 months is the investment for that financial year in which transfer has taken place. Hence, subsequent investment is to be considered as part of the investment of financial year in which transfer has taken place. We therefore,... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Clarification Regarding Filing of Conflicting Returns by Contesting Parties Posted: 06 Mar 2012 07:19 AM PST The Ministry of Corporate Affairs has clarified that Circular No. 19 and 20 of 2011 issued on 02.05.2011 that were issued for laying down certain procedure to regulate cases wherein filing of conflicting returns with regard to appointment of... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Art of Internal Auditing! Posted: 06 Mar 2012 06:45 AM PST Now, the world is in twenty first century, everywhere changes could be visualised but with respect to accounting, auditing etc, where is the change? Modern organisations have become more sophisticated and thus resulted in decentralisation of their... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Income taxed in the hand of Firm cannot be taxed in the hand of Partner Posted: 05 Mar 2012 09:57 PM PST Briefly stated the assessee is a Partner in the firm M/s Balachandra Laboratories. The firm had property at Thane on which development rights were transferred to M/s Friends Development Corporation (FDC) for an amount of Rs.17.00 crores. The said... [[ This is a content summary only. Visit www.taxguru.in for full article.]] No penalty for concealment if addition is based on estimation of Gross Profit Posted: 05 Mar 2012 09:53 PM PST Vide a penalty order u/s 271(1)(c) dated 27-03-2009, it was held that the assessee has concealed the income of Rs.8,16,617/- which was taxed on account of estimation of profit. The First Appellate Authority has expressed that since the addition was... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Mere non-mentioning of Section 234B in the assessment order would be of no consequence Posted: 05 Mar 2012 09:39 PM PST As far as decision of the Hon'ble Delhi High Court pronounced in the case of CIT v. Insilco Ltd. (2010) 190 Taxman 306 (Del) is concerned it was held that mere non-mentioning of Section 234B in the assessment order would be of no consequence. When... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Cost Inflation Index meaning and Index for all the years Posted: 05 Mar 2012 08:28 PM PST It is a measure of inflation that finds application in tax law, when computing long-term capital gains on sale of assets. Section 48 of the Income-Tax Act defines the index as what is notified by the Central Government every year, having regard to... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Brief on formation of NGO, Charitable Trust, Society, Non profit section 25 Company Posted: 05 Mar 2012 08:26 PM PST The NGO can be formed as following 1. Trust 2. Society, and 3. Non profit Company TRUST The procedure for registration of Trust is as follows: A public charitable trust is usually floated when there is property involved, especially in terms of... [[ This is a content summary only. Visit www.taxguru.in for full article.]] In the absence of nexus between sale of agricultural produce and introduction of cash in capital account the addition made by AO was to be upheld Posted: 05 Mar 2012 08:25 PM PST The assessee claimed that the agricultural income of the members of his family was around Rs.8 lacs per annum .But the AO found that only an amount of Rs.3,37,152/-was reflected in the financial year 2005-06 and Rs.3,50,454/- in the Financial Year... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Second Edition of the Status Paper Giving Detailed Analysis of the Government's Debt Situation Released Posted: 05 Mar 2012 07:50 PM PST In his Budget Speech for 2010-11, the Union Finance Minister Shri Pranab Mukherjee had announced his intention to bring out a status paper giving detailed analysis of the Government's debt situation and a road map for curtailing the overall public... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Convergence of Indian Accounting Standards with International Financial Reporting Standards –UCBs Posted: 05 Mar 2012 07:40 PM PST The Core Group constituted by the Ministry of Corporate Affairs, Government of India had approved in March 2010, a road map for convergence of Indian Accounting Standards (IAS) with International Financial Reporting Standards (IFRS). In the Annual... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Regarding ban on export of Cotton (Tariff Code 5201 and 5203) Posted: 05 Mar 2012 07:35 PM PST Circular No.6/2012-Customs, Attention is invited to DGFT RE Notification No.102 (RE-2010)/2009-14 dated 5th March, 2012 amending Notification no. 74(RE-2010)/2009-14 dated 12-09-2011 imposing ban on export of cotton (Tariff code 5201 and 5203).... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Registration of companies or LLPS which have one of their objects is to carry on the profession of chartered accountant, cost accountant, architect, company secretary etc. Posted: 05 Mar 2012 07:30 PM PST The Ministry of Corporate Affairs has clarified that at the time of incorporation of companies where one of the objects is to carry on the business of Banking, Insurance or to practice the profession of Chartered Accountancy, Cost Accountancy &... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Clarification – Liberalised Remittance Scheme for Resident Individuals Posted: 05 Mar 2012 07:30 PM PST A.P. (DIR Series) Circular No. 90 Liberalised Remittance Scheme for Resident Individuals - The facility is available to all resident individuals including minors. In case of remitter being a minor, the LRS declaration form should be countersigned... [[ This is a content summary only. Visit www.taxguru.in for full article.]] Publication of Daily Lists of Imports and Exports (Amendment) Rules, 2012 Posted: 05 Mar 2012 07:30 PM PST Notification No.18/2012 - Customs (N.T.) These Rules may be called the Publication of Daily Lists of Imports and Exports (Amendment) Rules, 2012. (2) They shall come into force on the date of their publication in the Official Gazette. [[ This is a content summary only. Visit www.taxguru.in for full article.]]